N.Y. Tax Law § 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),

(m) or (q) 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, 2031

* 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), (m) or (q) 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, 2031

(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, 2031

* (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, 2031

(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.

(q) Reimbursement for tugboats and towboats. A use by a tugboat or

towboat of motor fuel, diesel motor fuel, or residual petroleum product.

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 tugboat or towboat 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.