2023 New York Laws › TAX - Tax › Article 28 - Sales and Compensating Use Taxes › Part 3 - Exemptions › 1120 - Refunds and Credits With Respect to Motor Fuel and Diesel Motor Fuel.

§  1120.  Refunds  and  credits  with respect to motor fuel and diesel
motor fuel. (a) Retail vendor. (1) A vendor  of  motor  fuel  or  diesel
motor  fuel  who  or  which  is required to collect the taxes imposed by
subdivision (a) of section eleven hundred five of this article  and  any
like  tax  imposed  pursuant  to the authority of article twenty-nine of
this chapter shall be allowed a refund or credit against the  amount  of
tax  collected  and required to be remitted to the commissioner pursuant
to the provisions of section eleven hundred thirty-seven of this article
upon the retail sale of motor fuel or diesel motor fuel in the amount of
the tax on such fuel prepaid by or passed through to and included in the
price paid by such vendor pursuant to the provisions of  section  eleven
hundred two of this article.
(2)  A  refund or credit shall also be allowed such vendor for the tax
prepaid by or passed through to and included in the price paid  by  such
vendor  upon  any  motor  fuel  or  diesel  motor  fuel  pursuant to the
provisions of section eleven hundred two of this article if such fuel is
sold at retail by  such  vendor  under  circumstances  where  the  taxes
imposed  by  section eleven hundred five of this article and pursuant to
the authority of article twenty-nine of this chapter are not required by
the provisions of  this  article  to  be  collected  and  remitted  upon
receipts from a retail sale thereof.
(b) Retail user. A purchaser, user or consumer of motor fuel or diesel
motor  fuel at retail who or which is required to pay the tax imposed by
section eleven hundred ten of this article  and  any  like  tax  imposed
pursuant  to  the  authority of article twenty-nine of this chapter with
respect to the purchase of or the use or consumption of such fuel  shall
be  allowed  a  credit  against  such  tax  required  to  be paid to the
commissioner pursuant to such section and article in the amount  of  the
tax  prepaid  by  or passed through to and included in the price paid by
such purchaser, user or consumer pursuant to the provisions  of  section
eleven hundred two of this article.
(c)  Self-use  of  motor  fuel  or  diesel  motor  fuel  purchased  at
wholesale.  A refund or credit equal to the amount of tax prepaid by  or
passed through to and included in the price paid by a purchaser, user or
consumer  pursuant  to  the  provisions of section eleven hundred two of
this article with respect to a purchase of motor fuel  or  diesel  motor
fuel  other  than  at  retail  shall  be allowed such purchaser, user or
consumer upon the use or consumption of  such  fuel  at  retail  if  the
acquisition  of  such fuel by the purchaser, user or consumer would have
otherwise been exempt pursuant to section eleven hundred five-A,  eleven
hundred  fifteen  or  eleven hundred sixteen of this article but for the
provisions of the last sentence of subdivision  (c)  of  section  eleven
hundred  two and subdivision (j) of section eleven hundred fifteen or of
such last sentence and paragraph five  of  subdivision  (b)  of  section
eleven  hundred  sixteen of this article. Also, a refund or credit shall
be allowed equal to the difference between the amount of tax prepaid  by
or passed through to and included in the price paid by a purchaser, user
or  consumer pursuant to the provisions of section eleven hundred two of
this article with respect to a purchase of diesel motor fuel other  than
at  retail  and  the aggregate of the amount of tax that would have been
imposed if measured by the applicable rate specified in  section  eleven
hundred  five-A  of  this  article and the amount of tax that would have
been imposed if measured by the applicable  rate  specified  in  section
twelve  hundred  ten of article twenty-nine upon diesel motor fuel which
is used for  residential  heating  purposes  if  the  purchase,  use  or
consumption  would have otherwise been subject to such lower rate of tax
pursuant to such section eleven hundred five-A but for the last sentence
of subdivision (a) of such section eleven hundred five-A or pursuant  to

section twelve hundred ten but for the last sentence of subparagraph (i)
of  paragraph  three  of  subdivision (a) of such section twelve hundred
ten.
(d) Purchase of motor fuel or diesel motor fuel at retail by an exempt
organization.  A  refund  or  credit  equal to the amount of tax imposed
pursuant to section eleven hundred five of this article and any like tax
imposed pursuant to the authority of article twenty-nine of this chapter
upon the sale of motor fuel or diesel motor fuel and paid by a purchaser
shall be allowed such purchaser if the purchase, use or  consumption  of
such  fuel  would  have otherwise been exempt pursuant to section eleven
hundred fifteen or eleven hundred sixteen of this article  but  for  the
provisions  of  subdivision  (j)  of  section  eleven hundred fifteen or
paragraph five of subdivision (b) of section eleven hundred  sixteen  of
this  article.  Also, there shall be allowed a refund or credit equal to
the difference between the amount of tax actually  imposed  pursuant  to
section  eleven  hundred five of this article and the amount of tax that
would have been imposed as measured by the applicable rate specified  in
section  eleven  hundred  five-A  of this article and a refund or credit
equal to the difference between the tax actually imposed pursuant to the
authority of article twenty-nine of this chapter and the amount  of  tax
that  would  have  been  imposed  if  measured  by  the  applicable rate
specified in section twelve hundred  ten  of  article  twenty-nine  upon
diesel  motor fuel which is used for residential heating purposes if the
purchase, use or consumption would have otherwise been subject  to  such
lower rate of tax pursuant to such section eleven hundred five-A but for
the  last  sentence  of  subdivision  (a) of such section eleven hundred
five-A or pursuant to section  twelve  hundred  ten  but  for  the  last
sentence  of  subparagraph  (i) of paragraph three of subdivision (a) of
such section twelve hundred ten.
(e) Immediate  export.  With  respect  to  (i)  motor  fuel  imported,
manufactured or sold or purchased in this state, and (ii) highway diesel
motor fuel, a refund or credit shall be allowed a registered distributor
of  this state or a purchaser of the tax required to be prepaid pursuant
to section eleven hundred two of this article in the amount of such  tax
paid by or included in the price paid by a distributor or such purchaser
if  such  fuel was exported from this state for sale outside this state,
such distributor or such purchaser, as the case may be,  exporting  such
fuel  is  duly  registered with or licensed by the taxing authorities of
the state to which such fuel is exported as a distributor or a dealer in
the fuel being so exported, and in connection with such exportation such
fuel was immediately shipped to an identified facility in the  state  to
which  such  fuel  is exported, and provided the applicant complies with
all  requirements  and  rules  and  regulations  of  the   commissioner,
including evidentiary requirements, relating thereto.
(f)  Refunds  of  the  tax  required  to  be  prepaid  pursuant to the
provisions of section eleven  hundred  two  of  this  article  shall  be
allowed  only  to  the  extent such tax paid by or passed through to the
retail vendor, or the purchaser, consumer or user exceeds the amount  of
tax required to be collected from such person or required to be remitted
by  the  provisions  of  this  article  and pursuant to the authority of
article twenty-nine of this chapter.
(g) Such credit shall be allowed only  to  the  extent  that  the  tax
required  to  be  prepaid pursuant to section eleven hundred two of this
article is prepaid by such vendor, purchaser, user or consumer (i)  upon
importation, manufacture, sale or use, as the case may be, and (ii) with
respect to the identified motor fuel or diesel motor fuel for which such
credit  is  claimed upon the use or consumption thereof, but only to the
extent that the tax imposed by  section  eleven  hundred  five  of  this

article  and  any  like tax imposed pursuant to the authority of article
twenty-nine of this chapter together with the  tax  imposed  by  section
eleven  hundred ten of this article and any like tax imposed pursuant to
the  authority  of  article  twenty-nine  of this chapter required to be
paid, collected and remitted has been paid, collected and remitted.
(h) Such refunds and credits shall be subject  to  the  provisions  of
sections  eleven hundred nineteen and eleven hundred thirty-nine of this
article as if such sections were incorporated in full into this  section
and had expressly referred to the refunds and credits authorized by this
section   including   the   periods   of  limitations  on  payments  and
applications to the commissioner; provided, however, that as provided in
subdivision (e) of section eleven hundred thirty-nine of this article no
interest shall be allowed or paid upon any refund made or credit allowed
pursuant to subdivisions (a) and (b)  of  this  section;  and  provided,
further,   that,   with  respect  to  refunds  or  credits  pursuant  to
subdivision (d) of this section with respect to organizations  described
in  paragraph  four of subdivision (a) of section eleven hundred sixteen
of this chapter and subdivision (e) of this section, upon receipt  of  a
claim  for refund in processible form, interest shall be allowed or paid
at the overpayment rate set by  the  commissioner  pursuant  to  section
eleven  hundred  forty-two of this article, or if no rate is set, at the
rate of six percent per annum, from the due date of the  return  or  the
actual  filing  date  of  the  return,  whichever  is later, to the date
immediately preceding the date of the refund check  except  no  interest
shall  be  allowed  or  paid if the refund check is mailed within thirty
days of such receipt (except  in  case  of  organizations  described  in
paragraph  four  of subdivision (a) of section eleven hundred sixteen of
this chapter, the relevant period of time shall be forty-five days  from
the  date the application for refund is received in processible form and
interest, if allowable, shall apply from the date  such  application  is
received  in  processible form) and no interest shall be allowed or paid
upon a credit pursuant to such subdivision and except no interest  shall
be  allowed or paid if the amount thereof would be less than one dollar.
Provided, however, the department shall process applications for  refund
as expeditiously as possible.