NY Tax L § 301-C (2021)
2021 New York Laws TAX - Tax Article 13-A - Tax on Petroleum Businesses 301-C - Reimbursement.

§ 301-c. Reimbursement. * A subsequent purchaser shall be eligible for reimbursement   of   tax   with  respect  to  the  following  gallonage, subsequently sold by such purchaser in accordance with subdivision  (a), (b),  (e),  (h),  (j),  (k),  (n) or (o) of this section or used by such purchaser in accordance with subdivision (c), (d), (f), (g), (i), (l) or (m) of this section, which gallonage has been included in the measure of the tax imposed by this article on a petroleum business:   * NB Effective until September 1, 2026   * A subsequent purchaser shall be eligible for  reimbursement  of  tax with  respect  to  the  following  gallonage,  subsequently sold by such purchaser in accordance with subdivision (a), (b), (e), (h), (j) or  (k) of this section or used by such purchaser in accordance with subdivision (c), (d), (f), (g), (i), (l) or (m) of this section, which gallonage has been  included  in  the  measure of the tax imposed by this article on a petroleum business:   * NB Effective September 1, 2026  (a) Non-highway Diesel motor fuel used for heating purposes. (1) Total residential  heating  reimbursement.  Non-highway  Diesel   motor   fuel purchased in this state and sold by such purchaser to a consumer for use exclusively  for  residential  heating  purposes but only where (i) such non-highway diesel motor fuel is delivered into a storage tank which  is not  equipped  with  a hose or other apparatus by which such non-highway Diesel motor fuel can be dispensed into the fuel tank of a motor vehicle and such storage tank is attached  to  the  heating  unit  burning  such non-highway  Diesel  motor  fuel,  (ii) the tax imposed pursuant to this article has been paid with respect to such non-highway diesel motor fuel and the entire amount of such tax has been absorbed by  such  purchaser, and (iii) such purchaser possesses documentary proof satisfactory to the commissioner evidencing the absorption by it of the entire amount of the tax  imposed  pursuant  to  this  article.  Provided,  however, that the commissioner  is  authorized,  in  the  event  that   the   commissioner determines   that   it   would   not   threaten  the  integrity  of  the administration and enforcement of the tax imposed by  this  article,  to provide  a reimbursement with respect to a retail sale to a consumer for residential heating purposes of less than  ten  gallons  of  non-highway diesel motor fuel provided such fuel is not dispensed into the tank of a motor vehicle.  (2)  Partial  non-residential  heating  reimbursement. (A) Non-highway Diesel motor fuel purchased in this state and sold by such purchaser  to a  consumer  for use exclusively for heating, other than for residential heating purposes, but only where (i) such non-highway diesel motor  fuel is  delivered  into  a storage tank which is not equipped with a hose or other apparatus by which such  non-highway  Diesel  motor  fuel  can  be dispensed into the fuel tank of a motor vehicle and such storage tank is attached to the heating unit burning such non-highway Diesel motor fuel, (ii) the tax imposed pursuant to this article has been paid with respect to  such non-highway diesel motor fuel and the entire amount of such tax has been absorbed by such purchaser, and (iii) such purchaser  possesses documentary  proof  satisfactory  to  the  commissioner  evidencing  the absorption by it of the entire amount of the  tax  imposed  pursuant  to this article.  (B)  Calculation  of  partial reimbursement. Notwithstanding any other provision of this article, the amount of the  reimbursement  under  this paragraph shall be determined by multiplying the quantity of non-highway diesel  motor  fuel  eligible for the reimbursement times the sum of the then current rate of the  supplemental  tax  imposed  by  section  three hundred  one-j of this article and forty-six percent of the then current rate of the tax imposed by section three hundred one-a of this  article,  with  respect to the non-highway diesel motor fuel rate, as the case may be.  (b) Sales to New York state and the federal government. Motor fuel and diesel  motor fuel purchased in this state and sold by such purchaser in this state to an organization described  in  paragraph  one  or  two  of subdivision  (a) of section eleven hundred sixteen of this chapter where (i) such motor fuel or diesel motor fuel is for such organization's  own use  or  consumption,  (ii) the tax imposed pursuant to this article has been paid with respect to such motor fuel or diesel motor fuel  and  the entire amount of such tax has been absorbed by such purchaser and, (iii) such   purchaser   possesses   documentary  proof  satisfactory  to  the commissioner of taxation and finance evidencing the absorption by it  of the entire amount of the tax imposed pursuant to this article. Provided, however,  that  the  commissioner  of taxation and finance shall require such documentary proof to qualify for any reimbursement of tax  provided by  this  section  as  the commissioner deems appropriate, including the expansion of any certification required pursuant to section two  hundred eighty-five-a  or two hundred eighty-five-b of this chapter to cover the taxes imposed pursuant to this article.  (c) Motor fuel and diesel motor fuel used by certain omnibus carriers. Motor fuel and diesel motor fuel purchased in this state by  an  omnibus carrier  and  consumed  by  such  omnibus carrier in the operation of an omnibus (i) in local transit service in this state, as  described  under paragraph  (d) of subdivision three of section two hundred eighty-nine-c of this chapter, pursuant to a certificate  of  public  convenience  and necessity  issued by the commissioner of transportation of this state or by the interstate commerce commission of the United States  or  pursuant to  a  contract,  franchise  or  consent between such carrier and a city having a population of more than one million inhabitants, or any  agency of  such  city,  or (ii) in the transportation of school children in the state under a contract made pursuant to the provisions of the  education law.  Provided,  however,  the  reimbursement  under this subdivision is available only where the tax imposed pursuant to this article  has  been paid with respect to such motor fuel or diesel motor fuel and the entire amount of such tax has been absorbed by such omnibus carrier, where such omnibus   carrier   possesses  documentary  proof  satisfactory  to  the commissioner of taxation and finance evidencing the absorption by it  of the  entire  amount  of  the  tax  imposed pursuant to this article, and where, in the case  of  the  reimbursement  under  clause  (i)  of  this subdivision,  such  motor  fuel  or diesel motor fuel is included in the gallonage upon which reimbursement is calculated under paragraph (d)  of subdivision  three  of section two hundred eighty-nine-c of this chapter and, in the  case  of  the  reimbursement  under  clause  (ii)  of  this subdivision,  such  motor  fuel  or diesel motor fuel is included in the gallonage upon which reimbursement is calculated under paragraph (b)  of such subdivision three of section two hundred eighty-nine-c.  (d)  Motor fuel and diesel motor fuel used by certain nonpublic school operators. Motor fuel and diesel motor fuel purchased in this state by a nonpublic school operator, as defined in subdivision eleven  of  section two  hundred  eighty-two of this chapter, and consumed by such nonpublic school operator exclusively in educational related activities. Provided, however, the reimbursement under  this  subdivision  is  available  only where  the  tax  imposed  pursuant  to  this  article has been paid with respect to such motor fuel or diesel motor fuel and the entire amount of such tax has been absorbed by such nonpublic school operator, where such nonpublic school operator possesses documentary  proof  satisfactory  to the commissioner of taxation and finance evidencing the absorption by it of  the  entire  amount of the tax imposed pursuant to this article, and  where such motor fuel or diesel motor fuel is included in the  gallonage upon  which  the  reimbursement  is  calculated  under  paragraph (e) of subdivision three of section two hundred eighty-nine-c of this chapter.  (e)  Non-highway Diesel motor fuel and residual petroleum product used for farm production. Non-highway Diesel motor fuel or residual petroleum product purchased in this state and sold by such purchaser to a consumer for use or consumption directly and exclusively in  the  production  for sale  of  tangible personal property by farming, but only if all of such non-highway Diesel motor fuel or product is delivered on the  farm  site and  is consumed other than on the public highways of this state (except for the use of the public highway to  reach  adjacent  farmlands).  This reimbursement  may be claimed only where (i) the tax imposed pursuant to this article has been paid with respect to such non-highway diesel motor fuel or residual petroleum product and the entire amount of such tax has been absorbed by such  purchaser,  and  (ii)  such  purchaser  possesses documentary  proof  satisfactory  to  the  commissioner  evidencing  the absorption by it of the entire amount of the  tax  imposed  pursuant  to this  article.  Provided,  however,  that the commissioner shall require such documentary proof to qualify for any reimbursement of tax  provided by this section as the commissioner deems appropriate.  (f) Motor fuel and highway diesel motor fuel used for farm production. No more than one thousand five hundred gallons of motor fuel and no more than  four  thousand  five  hundred gallons of highway diesel motor fuel purchased in this state in a thirty-day period or a greater amount which has been given prior clearance by the commissioner, by  a  consumer  for use  or  consumption directly and exclusively in the production for sale of tangible personal property by farming, but only if all of such  motor fuel  or  highway diesel motor fuel is delivered on the farm site and is consumed other than on the public highways of this state (except for the use  of  the  public  highway  to  reach   adjacent   farmlands).   This reimbursement  to  such  purchaser  who  used such motor fuel or highway diesel motor fuel in the manner specified in  this  subdivision  may  be claimed  only  where,  (i)  the tax imposed pursuant to this article has been paid with respect to such motor fuel or highway diesel  motor  fuel and  the  entire amount of such tax has been absorbed by such purchaser, and (ii) such purchaser possesses documentary proof satisfactory to  the commissioner evidencing the absorption by it of the entire amount of the tax  imposed  pursuant  to  this  article.  Provided,  however, that the commissioner shall require such documentary proof  to  qualify  for  any reimbursement  of  tax  provided by this subdivision as the commissioner deems appropriate. The commissioner is hereby  empowered  to  make  such provisions  as  deemed  necessary  to define the procedures for granting prior clearance for purchases of more than  one  thousand  five  hundred gallons  of  motor fuel or four thousand five hundred gallons of highway diesel motor fuel in a thirty-day period.  (g) Diesel motor  fuel  and  motor  fuel  used  in  the  operation  of commercial fishing vessels. Diesel motor fuel or motor fuel purchased in this  state  by a commercial fisherman at retail wherein (1) such diesel motor fuel or such motor fuel is delivered by a  pump  equipped  with  a hose  directly  into  the fuel tank of a commercial fishing vessel to be used as fuel in the operation of such vessel for the purpose of engaging in the commercial harvesting of fish for sale; and (2)  such  vessel  is operated  by  a commercial fisherman; but only where (i) the tax imposed pursuant to this article has been paid with respect to such diesel motor fuel or such motor fuel and the entire  amount  of  such  tax  has  been absorbed   by   such   purchaser  and,  (ii)  such  purchaser  possesses documentary  proof  satisfactory  to  the  commissioner  evidencing  the absorption  by  it  of  the entire amount of the tax imposed pursuant to  this article. Provided, however, that  the  commissioner  shall  require such  documentary proof to qualify for any reimbursement of tax provided by this section as the commissioner deems appropriate.  (h)  A  subsequent  purchaser  which is registered as a distributor of diesel motor fuel shall be eligible for reimbursement of the tax imposed by section three hundred one-a of this article with respect to gallonage of  residual  petroleum  product  and  non-highway  diesel  motor   fuel subsequently  sold  by  such  purchaser  to  an  organization  which has qualified under paragraph four or five of  subdivision  (a)  of  section eleven  hundred  sixteen  of  this  chapter  for  the  exclusive use and consumption by such  organization.  Provided,  however,  this  exemption shall in no event apply to a sale of non-highway diesel motor fuel which involves  a  delivery at a filling station or into a repository which is equipped with a hose or other apparatus by which such non-highway Diesel motor fuel can be dispensed into the fuel tank of a  motor  vehicle  and all  deliveries  hereunder shall be made to the premises occupied by the qualifying organization and used by such organization in furtherance  of the  exempt  purposes  of  such  organization. This reimbursement may be claimed only where (i) the tax imposed pursuant to this article has been paid with respect to such non-highway  diesel  motor  fuel  or  residual petroleum product and the entire amount of such tax has been absorbed by such  purchaser,  and  (ii)  such  purchaser possesses documentary proof satisfactory to the commissioner evidencing the absorption by it of  the entire  amount  of  the  tax imposed pursuant to this article. Provided, further, that the commissioner  shall  require  such  other  documentary proof  to  qualify for any reimbursement of tax provided by this section as the commissioner deems appropriate.  (i) Reimbursement for commercial gallonage. (1) A reimbursement  shall be allowed to a consumer with respect to gallonage of non-highway diesel motor fuel or residual petroleum product (i) which was purchased by such consumer and where the supplemental tax imposed by section three hundred one-j  of  this  article  with  respect  to such gallonage was paid by a petroleum business and  passed  through  to  such  consumer,  (ii)  such consumer absorbed the entirety of such tax in the purchase price of such gallonage,  and  (iii)  such  gallonage  was  used  and consumed by such consumer exclusively as "commercial gallonage". Provided, however,  that the commissioner shall require such documentary proof to qualify for any reimbursement  of  tax  provided by this subdivision as the commissioner deems appropriate, including a certification by the  consumer  that  the product  was  used and consumed exclusively as "commercial gallonage" by such consumer.  (2) Calculation. The amount of the reimbursement shall  be  determined by  multiplying  the  quantity  of  "commercial  gallonage" eligible for reimbursement times the  then  current  rate  of  the  supplemental  tax imposed  by  section three hundred one-j of this article with respect to non-highway diesel motor fuel or residual petroleum product, as the case may be. Any reimbursement of tax may be applied for not more often  than monthly.  (j)  Reimbursement for manufacturing gallonage. A subsequent purchaser shall be eligible for reimbursement of  any  taxes  imposed  under  this article  with  respect  to  gallonage  of residual petroleum product and non-highway diesel motor fuel subsequently sold by such purchaser  to  a consumer as "manufacturing gallonage." This reimbursement may be claimed only  where  (1)  any tax imposed pursuant to this article has been paid with respect to such gallonage and the entire amount  of  such  tax  has been  absorbed  by  such  purchaser,  and  (2)  such purchaser possesses documentary  proof  satisfactory  to  the  commissioner  evidencing  the absorption  by  it  of the entire amount of such tax. Provided, however,  that the commissioner shall require such documentary  proof  to  qualify for  any  reimbursement  of  tax  provided  by  this  subdivision as the commissioner deems appropriate including a certificate by  the  consumer that   such   product   is  to  be  used  and  consumed  exclusively  as "manufacturing gallonage".  (k) Reimbursement for railroad gallonage. (1) A subsequent  purchaser, which  is  registered  as  a  distributor of diesel motor fuel, shall be eligible for a reimbursement in accordance with  this  subdivision  with respect  to  non-highway  diesel  motor  fuel  subsequently sold by such purchaser to a consumer as "railroad diesel".  (2) The amount of the reimbursement with respect to such product shall be equal to the difference between (i) the tax actually paid under  this article  by  a  petroleum  business  with  respect  to  such product and subsequently passed through to and absorbed by such purchaser, and  (ii) the  tax  under  this  article that would have been paid with respect to such product had an importing distributor sold such product directly  to a  purchaser  as "railroad diesel". Provided that the commissioner shall require such documentary proof as the commissioner  deems  necessary  to substantiate   a   reimbursement   claim  under  this  subdivision.  Any reimbursement of tax may be applied for not more often than monthly.  (l) Reimbursement for mining and  extraction.  A  purchaser  shall  be eligible  for  reimbursement of the tax imposed by section three hundred one-a of this article with respect to gallonage  of  residual  petroleum product  and  non-highway  diesel  motor  fuel,  purchased  for  use and consumption directly and  exclusively  in  the  production  of  tangible personal  property  for sale by mining or extracting, but only if all of such fuel or product is delivered at the mining or extracting  site  and is  consumed  other than on the public highways of this state; provided, however, this reimbursement shall  in  no  event  apply  to  a  sale  of non-highway  diesel  motor  fuel  which involves a delivery at a filling station. This reimbursement may  be  claimed  only  where  (i)  the  tax imposed  pursuant  to  this  article  has been paid with respect to such non-highway diesel motor fuel or  residual  petroleum  product  and  the entire  amount of such tax has been absorbed by such purchaser, and (ii) such  purchaser  possesses  documentary  proof   satisfactory   to   the commissioner evidencing the absorption by it of the entire amount of the tax  imposed  pursuant  to  this  article.  Provided,  however, that the commissioner shall require such documentary proof  to  qualify  for  any reimbursement  of tax provided by this section as the commissioner deems appropriate.  (m) Reimbursement for passenger commuter ferries. A use by a passenger commuter ferry of non-highway diesel motor fuel  or  residual  petroleum product  where  such non-highway diesel motor fuel or residual petroleum product was used and consumed by a passenger commuter ferry  exclusively in  providing  mass  transportation  service.  This reimbursement may be claimed only where (1) any tax imposed pursuant to this article has been paid with respect to such gallonage and the entire amount  of  such  tax has  been  absorbed  by  such  purchaser,  and  (2) such ferry possesses documentary  proof  satisfactory  to  the  commissioner  evidencing  the absorption  by  it  of the entire amount of such tax. Provided, that the commissioner shall require such documentary proof  to  qualify  for  any reimbursement provided hereunder as the commissioner deems appropriate.   * (n)  Reimbursement  for E85. E85 purchased in this state and sold by such purchaser in this state where  (1)  such  E85  is  delivered  to  a filling station and placed in a storage tank of such filling station for such  E85  to  be dispensed directly into a motor vehicle for use in the operation of such vehicle, (2) the tax imposed pursuant to this  article has been paid with respect to such E85 and the entire amount of such tax  has  been  absorbed  by such purchaser, and (3) such purchaser possesses documentary  proof  satisfactory  to  the  commissioner  evidencing  the absorption  by  it  of  the entire amount of the tax imposed pursuant to this  article.  Provided,  that  the  commissioner  shall  require  such documentary proof to qualify for any reimbursement provided hereunder as the commissioner deems appropriate.   * NB Repealed September 1, 2026   * (o) (1) Partial reimbursement for B20. B20 purchased in  this  state and  sold  by  such  purchaser  in  this state where (i) the tax imposed pursuant to this article has been paid with respect to such B20 and  the entire  amount of such tax has been absorbed by such purchaser, and (ii) such  purchaser  possesses  documentary  proof   satisfactory   to   the commissioner evidencing the absorption by it of the entire amount of the tax  imposed  pursuant  to this article. Provided, that the commissioner shall require such documentary proof to qualify  for  any  reimbursement provided hereunder as the commissioner deems appropriate.  (2)   Calculation   of   partial  reimbursement.  The  amount  of  the reimbursement under this subdivision shall be determined by  multiplying the  quantity  of  B20  times  twenty  percent  of  the applicable taxes otherwise imposed by this article on such fuel.   * NB Repealed September 1, 2026  (p) Reimbursement for motor fuel and  diesel  motor  fuel  used  by  a voluntary ambulance service, as defined in section three thousand one of the  public  health law, a fire company or a fire department, as defined in section three of  the  volunteer  firefighters'  benefit  law,  or  a volunteer  rescue  squad  supported  in  whole or in part by tax monies, where any such entity is the purchaser, user or consumer of  motor  fuel or  diesel motor fuel in a vehicle owned and operated by such entity and used exclusively for  such  entity's  purposes.  A  purchaser  shall  be eligible  for  reimbursement of the tax imposed pursuant to this article if (1) any tax imposed pursuant to  this  article  has  been  paid  with respect  to  such  gallonage  and the entire amount of such tax has been absorbed by such purchaser, and (2) such purchaser possesses documentary proof satisfactory to the commissioner evidencing the absorption by such purchaser  of  the  entire  amount  of  such  tax.  Provided,  that  the commissioner  shall  require  such  documentary proof to qualify for any reimbursement provided hereunder as the commissioner deems appropriate.