New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter IV - Sales And Use And Other Miscellaneous Taxes › Subchapter A - Sales And Use Taxes › Part 561 - Motor Fuel › Section 561.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, §§ 1101(b)(4)(ii), 1111(e)(6)
(a)
Automotive fuel.
For the purpose of the prepaid sales tax on motor fuel,
automotive fuel
means motor fuel as defined in section 282.2
					 of the Tax Law or diesel motor fuel as defined in section 282.14 of the Tax
					 Law.
(1)
(i)
Motor fuel
means
				  gasoline, benzol or other product, except kerosene and crude oil, which is
				  suitable for use in the operation of any motor vehicle engine, but if kerosene
				  or crude oil is compounded or mixed with any other product or products, and the
				  resulting compound or mixture is suitable for use in the operation of any such
				  motor vehicle engine, such resulting compound or mixture in its entirety is
				  motor fuel.
Motor fuel
includes, but is not limited to,
				  gasoline, benzol, benzene, naphtha, ethanol, methanol, liquefied petroleum gas,
				  compressed natural gas, propane gas, or any combination, or any other product,
				  or combination of products which is suitable for use in the operation of a
				  motor vehicle engine.
(ii) However,
				  any product that is not commonly or commercially known or sold as gasoline or a
				  blend thereof, will not generally be considered to be suitable for use in the
				  operation of a motor vehicle engine until one of the following, whichever is
				  the earliest, takes place.
(a) The product is
				  compounded or otherwise mixed with any other product or products, the result of
				  which is suitable for use in the operation of a motor vehicle engine.
Example 1:
A sells gasoline, as well as other petroleum products that
					 are used for industrial purposes. A also uses light naphtha and other
					 petrochemicals for blending. Those additives, when compounded or otherwise
					 mixed with gasoline, are motor fuel suitable for use in the operation of a
					 motor vehicle engine. A has produced additional motor fuel in this State.
					 Consequently, A must be registered under article 12-A of the Tax Law and pay
					 the taxes imposed on such motor fuel.
(b) The product is destined for use in the
				  operation of a motor vehicle engine as is reasonably concluded from facts and
				  circumstances concerning such product.
Example 2:
B sells gasoline, gasohol and other motor fuels
					 exclusively. B transports methanol to its motor fuel terminal in New York
					 State. It can reasonably be concluded that such product is motor fuel suitable
					 for use in the operation of a motor vehicle engine. B is deemed to have
					 produced motor fuel in this State because B established the methanol as motor
					 fuel. Consequently, B must be registered under article 12-A of the Tax Law and
					 pay the taxes imposed on such motor fuel.
(c) The product is specifically designated as
				  a fuel suitable for use in the operation of a motor vehicle engine.
Example 3:
C sells a variety of denatured alcohols, including
					 anhydrous ethyl alcohol. These products are primarily used by C's customers as
					 solvents and reagents. C also sells a portion of the anhydrous ethyl alcohol as
					 ethanol fuel. Such product is motor fuel suitable for use in the operation of a
					 motor vehicle engine when the specific designation is made. C is deemed to have
					 produced motor fuel in this State because C established the ethyl alcohol as
					 motor fuel on the sale thereof as motor fuel. Consequently, C must be
					 registered under article 12-A of the Tax Law and pay the taxes imposed on such
					 motor fuel.
(d) The product
				  is pumped into the fuel tank of a motor vehicle for use in the operation
				  thereof on the public highways of New York State or is pumped into the fuel
				  tank of a pleasure or recreational motor boat for use in the operation thereof
				  on the waterways of New York State, including any waterways bordering on the
				  State.
Example 4:
D sells compressed natural gas for heating purposes. In
					 addition, D sells such product to persons operating motor vehicles that have
					 been specially adapted to operate on compressed natural gas. Such compressed
					 natural gas is motor fuel suitable for use in the operation of a motor vehicle
					 engine when it is pumped into the fuel tank of a motor vehicle for use in the
					 operation of the vehicle. D is deemed to have produced motor fuel in this State
					 because D established the compressed natural gas as motor fuel. Consequently, D
					 must be registered under article 12-A of the Tax Law and pay the taxes imposed
					 on such motor fuel.
(iii) Motor fuel that is suitable for use in
				  the operation of an engine of the diesel type is
diesel motor
				  fuel
as defined in paragraph (2) of this subdivision, and as such is
				  subject to the prepaid tax as diesel motor fuel pursuant to section 1102 (a)(2)  of the Tax
				  Law.