TAF-22-07-00009-P Regional Average Retail Sales Price for Motor Fuel and Diesel Motor Fuel

5/30/07 N.Y. St. Reg. TAF-22-07-00009-P

NEW YORK STATE REGISTER

VOLUME XXIX, ISSUE 22

May 30, 2007

RULE MAKING ACTIVITIES

DEPARTMENT OF TAXATION AND FINANCE

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. TAF-22-07-00009-P

Regional Average Retail Sales Price for Motor Fuel and Diesel Motor Fuel

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed action:

This is a consensus rule making to amend Part 561 and repeal Part 562 of Title 20 NYCRR.

Statutory authority:

Tax Law, sections 171, subd. First, and 1142(1)

Subject:

Regional average retail sales price for motor fuel and diesel motor fuel.

Purpose:

To amend Part 561 and repeal Part 562, relating to the regional average retail sales prices of motor fuel and diesel motor fuel, to reflect statutory amendments.

Text of proposed rule:

Section 1. Subdivision (b) of section 561.1 of such regulations is amended to read as follows:

(b)(1) Every distributor of motor fuel must pay a prepaid sales tax on each gallon of motor fuel which it:

[(1)](i) imports or causes to be imported into this State for use, distribution, storage or sale in the State; or

[(2)](ii) produces, refines, manufactures or compounds in this State.

(2) Such prepaid tax [is based on the prescribed regional average retail sales price and], as prescribed in section 1111(e) of the Tax Law, must be passed through to subsequent purchasers purchasing for resale.

Section 2. Subdivision (b) of section 561.3 of such regulations is amended to read as follows:

(b) The prepaid tax is based upon [the regional average retail sales price prescribed for] the region in which the motor fuel is imported, produced, refined, manufactured or compounded. The rate of prepaid tax for [purposes of computing the prepayment will either be six or seven percent, depending on the] each region [in which the motor fuel is located. See sections 561.11 and 561.12 of this Part for further information regarding the prescribed regional average retail sales price and the regions created for purposes of the tax on motor fuel] is prescribed in section 1111(e)(2) of the Tax Law.

Section 3. The examples in subdivisions (b) and (c) of section 561.9 of such regulations are REPEALED.

Section 4. Sections 561.11 and 561.12 of such regulations are REPEALED.

Section 5. Section 561.15 of such regulations is amended to read as follows:

Section 561.15 Diesel motor fuel.

Except as otherwise provided, the provisions of this Part pertain to motor fuel and do not specifically apply to diesel motor fuel. See [section] sections 1102 and 1111(e) of the Tax Law for the imposition of the prepaid tax on diesel motor fuel. [See, also, Part 562 of this Title.]

Section 6. Part 562 of such regulations is REPEALED.

Text of proposed rule and any required statements and analyses may be obtained from:

John W. Bartlett, Tax Regulations Specialist 4, Department of Taxation and Finance, Bldg. 9, State Campus, Albany, NY 12227, [phone], e-mail: [e-mail]

Data, views or arguments may be submitted to:

Marilyn Kaltenborn, Director, Technical Services Division, Department of Taxation and Finance, Bldg. 9, State Campus, Albany, NY 12227, [phone], e-mail: [e-mail]

Public comment will be received until:

45 days after publication of this notice.

Consensus Rule Making Determination

The Department of Taxation and Finance has determined that no person is likely to object to the adoption of this rule as written because the amendments merely reflect statutory changes that are not controversial in nature. The rule makes no changes in administrative policies regarding existing statutes and has no impact on taxpayers.

The purpose of this proposal is to amend Part 561 and repeal Part 562 of the Sales and Use Taxes Regulations relating to the regional average retail sales price of motor fuel and diesel motor fuel, to reflect statutory amendments made by Part M-1 of Chapter 109 of the Laws of 2006.

Job Impact Statement

A Job Impact Statement is not being submitted with this rule because it is evident from the subject matter of the rule that it would have no impact on jobs and employment opportunities. The rule merely amends Part 561 and repeals Part 562 of the Sales and Use Taxes Regulations relating to the regional average retail sales price of motor fuel and diesel motor fuel, to reflect statutory changes made by Part M-1 of Chapter 109 of the Laws of 2006.