NYS Makes Changes in Fuel Taxes

Submitted by rkoreto on Tue, 05/08/2012 - 15:25
In Technical Memorandum TSB-M-12(2)M (also listed as TSB-M-12(6)S) the New York State Department of Taxation and Finance explains changes regarding the sale of diesel fuel and alternative fuels.
 
The memorandum says that starting June 1, a registered distributor may sell undyed qualified biodiesel to another registered distributor exempt from the excise tax, the petroleum business tax and the prepaid sales tax. However, the "exemption does not apply if the sale to another distributor is a retail sale, or if the sale involves a delivery at a filling station or into a tank equipped with a nozzle capable of fueling a motor vehicle."
 
"Qualified biodiesel" is a diesel motor fuel substitute produced from nonpetroleum renewable resources that meets certain standards, as outlined in the memorandum.
 
Also effective June 1, the definition of "diesel motor fuel" has been amended to delete crude oil. The memorandum explains that this change is to clarify that "crude oil, in its unrefined state, is not a middle distillate or motor fuel suitable for use in the operation of a diesel engine." And because of this redefinition, the specific exemption for crude oil in section 301-b(5) of the petroleum business tax has been deleted.
 
The memo also notes that the tax exemptions for ethanol fuel blend (E-85), compressed natural gas (CNG) and hydrogen, and the partial exemption for biodiesel (B-20), are extended through August 31, 2014. More information on these exemptions is available in TSB-M-06(2)M.

 

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