2010 New York Code
TAX - Tax
Article 13-A - (300 - 315) TAX ON PETROLEUM BUSINESSES
301-B - Exemptions.

§  301-b.  Exemptions. The following gallonage otherwise includable in
  the measure of the tax imposed by section three hundred  one-a  of  this
  article  on a petroleum business shall be exempt from the measure of tax
  on such petroleum business:
    (a) Products. (1) Kerosene sold or used by a petroleum business  which
  is registered under article twelve-A of this chapter as a distributor of
  diesel  motor  fuel  so long as (i) such product has not been blended or
  mixed with any other product constituting diesel  motor  fuel  or  motor
  fuel  or  a residual petroleum product and (ii) such product is not used
  by the petroleum business as fuel to operate a motor vehicle or sold  by
  such petroleum business to a consumer for use as fuel to operate a motor
  vehicle.
    (2) Kero-jet fuel (i) sold by a petroleum business which is registered
  under  article twelve-A of this chapter as a distributor of diesel motor
  fuel to a consumer for use exclusively as jet  aircraft  fuel  or  to  a
  petroleum   business   registered  under  such  article  twelve-A  as  a
  "distributor of kero-jet fuel only" where such fixed  base  operator  is
  engaged solely in making or offering to make retail sales not in bulk of
  kero-jet fuel directly into the fuel tank of an airplane for the purpose
  of   operating  such  airplane,  (ii)  used  by  a  petroleum  business,
  registered under article twelve-A of this chapter as  a  distributor  of
  diesel  motor  fuel,  exclusively as jet aircraft fuel, or (iii) sold at
  retail not in bulk by a  petroleum  business  registered  under  article
  twelve-A  of this chapter as a "distributor of kero-jet fuel only" where
  such fuel is delivered directly into the fuel tank of a jet airplane for
  use in the operation of such airplane.
    (3)  Aviation  gasoline,  meeting  the  specifications  set  forth  in
  American  Standard  Testing  Material  Specification  D910  or  Military
  Specification MIL-G-5572, which is imported or  caused  to  be  imported
  into  this  state  by  a  petroleum  business  which is registered under
  article twelve-A of this chapter as  a  distributor  of  motor  fuel  or
  produced,  refined,  manufactured  or compounded in this state by such a
  petroleum business.
    (4) Residual petroleum product sold by a petroleum business registered
  under this article as a residual  petroleum  product  business  if  such
  product  is  sold  by  such  petroleum  business  to  a consumer for use
  exclusively as bunker fuel for vessels or if such  product  is  used  by
  such petroleum business exclusively as bunker fuel in its own vessels.
    (5) Crude oil and liquefied petroleum gases, such as butane, ethane or
  propane.
    * (6)  E85  imported  or  caused  to  be  imported  into this state or
  produced, refined,  manufactured  or  compounded  in  this  state  by  a
  petroleum business registered under article twelve-A of this chapter, as
  a  distributor  of  motor fuel, and then sold by such petroleum business
  and 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.
    * NB Repealed September 1, 2011
    * (7)(i) Partial B20 exemption. B20 imported or caused to be  imported
  into this state or produced, refined, manufactured or compounded in this
  state  by a petroleum business registered under article twelve-A of this
  chapter, as a distributor of diesel motor fuel, and then  sold  by  such
  petroleum business.
    (ii)  Calculation  of  partial  exemption.  The  amount of the partial
  exemption under this paragraph 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, 2011

* (8) CNG or hydrogen.
    * NB Repealed September 1, 2011
    (b) Export. (1) Motor fuel imported or caused to be imported into this
  state  or produced, refined, manufactured or compounded in this state by
  a petroleum business registered under article twelve-A of this  chapter,
  as a distributor of motor fuel, where
    (A)  such  petroleum business or the immediate purchaser of such motor
  fuel exports such motor fuel from this state for sale or use outside the
  state,
    (B) such petroleum business 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 product being so exported,
    (C) in connection with the  exportation,  such  fuel  was  immediately
  shipped  to  an  identified  facility in the state to which such fuel is
  exported, and
    (D) the rules and regulations of  the  commissioner  of  taxation  and
  finance relating to evidentiary requirements are complied with.
    (2)  Enhanced diesel motor fuel imported or caused to be imported into
  this state or produced, refined,  manufactured  or  compounded  in  this
  state  by a petroleum business registered under article twelve-A of this
  chapter, as a distributor of diesel motor fuel, which is  sold  by  such
  petroleum  business  to  a  purchaser who then exports such diesel motor
  fuel from this state for sale or use outside the state where
    (A) such purchaser 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 product being so exported,
    (B) in connection with the  exportation,  such  fuel  was  immediately
  shipped  to  an  identified  facility in the state to which such fuel is
  exported, and
    (C) the rules and regulations of  the  commissioner  of  taxation  and
  finance relating to evidentiary requirements are complied with.
    (3) For the purpose of this article, "export" from this state shall in
  no  event  be construed to include motor fuel or diesel motor fuel taken
  out of this state in the fuel tank connected with the engine of a  motor
  vehicle  or any conveyance and consumed in the operation thereof outside
  of this state.
    (c) Sales to New York state and the federal government. (1) Motor fuel
  imported or caused to be imported into this state or produced,  refined,
  manufactured  or  compounded  in  this  state  by  a  petroleum business
  registered under article twelve-A of this chapter, as a  distributor  of
  motor  fuel, and then sold by such petroleum business to an organization
  described in paragraph one or two of subdivision (a) of  section  eleven
  hundred  sixteen  of  this chapter where such motor fuel is used by such
  organization for its own use or consumption.
    (2) Enhanced diesel motor fuel imported or caused to be imported  into
  this  state  or  produced,  refined,  manufactured  or  compounded  by a
  petroleum business registered under article twelve-A of this chapter, as
  a distributor of diesel motor fuel, and  then  sold  by  such  petroleum
  business  to  an  organization  described  in  paragraph  one  or two of
  subdivision (a) of section eleven hundred sixteen of this chapter  where
  such  motor  fuel  is  used  by  such  organization  for  its own use or
  consumption.
    (3) Diesel motor fuel, which is not enhanced diesel motor  fuel,  sold
  by  a  petroleum  business  registered  under  article  twelve-A of this
  chapter as a  distributor  of  diesel  motor  fuel  to  an  organization
  described  in  paragraph one or two of subdivision (a) of section eleven

hundred sixteen of this chapter where such diesel motor fuel is used  by
  such organization for its own use or consumption.
    (4) Residual petroleum product sold by a petroleum business registered
  under  this  article  as  a  residual  petroleum  product business to an
  organization described in paragraph one or two  of  subdivision  (a)  of
  section  eleven  hundred  sixteen  of this chapter where such product is
  used by such organization for its own use or consumption.
    (d) Sales to consumers for heating  purposes.  (1)  Total  residential
  heating  exemption. (A) Unenhanced diesel motor fuel sold by a petroleum
  business  registered  under  article  twelve-A  of  this  chapter  as  a
  distributor of diesel motor fuel or residual petroleum product sold by a
  petroleum business registered under this article as a residual petroleum
  product  business  to  the  consumer exclusively for residential heating
  purposes.
    (B) Enhanced diesel motor fuel sold by a petroleum business registered
  under article twelve-A of this chapter as a distributor of diesel  motor
  fuel  to  the  consumer exclusively for residential heating purposes but
  only if such enhanced diesel motor fuel is delivered into a storage tank
  which is not equipped with a hose or other apparatus by which such  fuel
  can  be dispensed into the fuel tank of a motor vehicle and such storage
  tank is attached to the heating unit burning such fuel,  provided,  that
  with  respect  to  each  delivery  of  such fuel over four thousand five
  hundred gallons, to obtain this exemption  there  shall  be  required  a
  certificate  signed  by  the  purchaser stating that the product will be
  used exclusively for residential heating purposes.
    (2) Partial non-residential heating exemption. (A)  Unenhanced  diesel
  motor  fuel  sold  by  a  petroleum  business  registered  under article
  twelve-A of this chapter as  a  distributor  of  diesel  motor  fuel  or
  residual petroleum product sold by a petroleum business registered under
  this  article  as  a residual petroleum product business to the consumer
  exclusively for heating, other than residential heating purposes.
    (B) Enhanced diesel motor fuel sold by a petroleum business registered
  under article twelve-A of this chapter as a distributor of diesel  motor
  fuel  to  the  consumer  exclusively for heating, other than residential
  heating purposes, but  only  if  such  enhanced  diesel  motor  fuel  is
  delivered into a storage tank which is not equipped with a hose or other
  apparatus  by  which  such fuel can be dispensed into the fuel tank of a
  motor vehicle and such storage tank is  attached  to  the  heating  unit
  burning  such fuel, provided, that with respect to each delivery of such
  fuel over four thousand five hundred gallons, to obtain  this  exemption
  there  shall  be  required a certificate signed by the purchaser stating
  that the product will  be  used  exclusively  for  heating,  other  than
  residential heating purposes.
    (C)  Calculation  of  partial  exemption.  Notwithstanding  any  other
  provision of this article, commencing April first, two thousand one  and
  ending  August thirty-first, two thousand two, the amount of the partial
  exemption under this paragraph shall be determined  by  multiplying  the
  quantity  of  diesel  motor fuel and residual petroleum product eligible
  for the exemption times  the  sum  of  the  then  current  rate  of  the
  supplemental  tax imposed by section three hundred one-j of this article
  and twenty percent of the then  current  rate  of  the  tax  imposed  by
  section  three  hundred  one-a  of  this  article,  with  respect to the
  specific diesel motor fuel or residual petroleum product  rate,  as  the
  case  may  be,  and  commencing  September  first, two thousand two, the
  amount of the partial exemption under this paragraph shall be determined
  by multiplying the quantity of diesel motor fuel and residual  petroleum
  product  eligible  for  the  exemption 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  specific  diesel  motor fuel or residual petroleum product rate, as
  the case may be.
    (e)  Sales  of  diesel  motor  fuel  and residual petroleum product to
  registered distributors of diesel motor  fuel  and  registered  residual
  petroleum product businesses.
    (1)  Diesel  motor fuel, which is not enhanced diesel motor fuel, sold
  by a person registered under article  twelve-A  of  this  chapter  as  a
  distributor  of  diesel  motor  fuel  to  a person registered under such
  article twelve-A as a distributor of diesel motor fuel where  such  sale
  is  not  a  retail  sale or a sale that involves a delivery at a filling
  station or into a repository equipped with a hose or other apparatus  by
  which such fuel can be dispensed into the fuel tank of a motor vehicle.
    (2)  Residual petroleum product sold by a person registered under this
  article as a residual petroleum product business to a person  registered
  under  this  article as a residual petroleum product business where such
  sale is not a retail sale. Provided, however, that the  commissioner  of
  taxation  and  finance may require such documentary proof to qualify for
  any exemption  provided  in  this  section  as  the  commissioner  deems
  appropriate,  including  the  expansion  of  any certifications required
  pursuant  to  section  two  hundred   eighty-five-a   or   two   hundred
  eighty-five-b  of  this  chapter  to  cover  the  taxes  imposed by this
  article.
    (f) Utilities. (1) Residual petroleum product and  diesel  motor  fuel
  (which   is  not  enhanced  diesel  motor  fuel)  sold  to  an  electric
  corporation, as described in subdivision (a) of  section  three  hundred
  one-d  of  this  article,  which  is  registered  with the department of
  taxation and finance as a petroleum business tax direct  pay  permittee,
  and used by such electric corporation to fuel generators for the purpose
  of   manufacturing   or   producing   electricity  where  such  electric
  corporation provides a copy of a direct pay permit authorized and issued
  by the commissioner of taxation and finance, to the  petroleum  business
  making such sale. If so registered, such corporation shall be a taxpayer
  under this article and (i) such electric corporation shall file a return
  monthly  and  pay  the  applicable  tax  under  this  article, after the
  application of allowable credits, on all such purchases directly to  the
  commissioner,  (ii) such electric corporation shall be subject to all of
  the provisions of this article  relating  to  the  responsibilities  and
  liabilities  of  taxpayers  under  this  article  with  respect  to such
  residual petroleum product and diesel motor fuel.
    (2) If a direct payment permit is granted, its use shall be subject to
  conditions specified by the commissioner and the payment of tax  on  all
  product  purchased  pursuant to the permit shall be made directly to the
  commissioner by the permit  holder.  The  commissioner  may  suspend  or
  cancel  a direct payment permit for any of the grounds for suspending or
  cancelling a registration pursuant to section three hundred two of  this
  article  and  the  notice  and  hearing provisions applicable under such
  section three hundred two of this article shall apply to the  suspension
  and cancellation of direct payment permits.
    (3)  A  sale  to  an  electric  corporation authorized to issue direct
  payment permits which furnishes a direct payment permit in  proper  form
  shall,  with  respect  to  the  seller, not be subject to tax under this
  article unless such electric corporation's  direct  payment  permit  has
  been suspended or cancelled by the commissioner and the commissioner has
  provided petroleum businesses with information identifying persons whose
  direct  payment  permits have been suspended or cancelled or such seller
  has been provided information that the purchaser's direct payment permit

has been cancelled or suspended. Where a seller accepts a direct payment
  permit from a person whose direct payment permit has been  suspended  or
  cancelled,  and  the commissioner has provided petroleum businesses with
  information  identifying those persons whose direct payment permits have
  been suspended or cancelled  or  where  the  seller  has  been  provided
  information   that  the  purchaser's  direct  payment  permit  has  been
  suspended or cancelled, such sale shall be subject to tax  at  the  full
  applicable rate.
    (g)  Sales or uses of diesel motor fuel and residual petroleum product
  for farm production. Diesel motor fuel  or  residual  petroleum  product
  sold to or used by a consumer who purchases or uses such fuel or product
  for  use  or  consumption directly and exclusively in the production for
  sale of tangible personal property by farming, but only if all such fuel
  or product is delivered on the farm site and is consumed other  than  on
  the  highways  of this state (except for the use of the highway to reach
  adjacent farmlands); provided, however, that a farmer  may  purchase  no
  more  than  four thousand five hundred gallons of diesel motor fuel in a
  thirty-day period for such use or consumption exempt from the measure of
  the tax imposed by section three hundred one-a of this  article,  except
  in accordance with prior clearance given by the commissioner.
    (h) Exemption for certain not-for-profit organizations. There shall be
  exempt from the measure of the petroleum business tax imposed by section
  three  hundred one-a of this article a sale or use of residual petroleum
  product, diesel motor fuel (which is not enhanced diesel motor fuel)  or
  dyed  diesel  motor  fuel,  to or by an organization which has qualified
  under paragraph four or  five  of  subdivision  (a)  of  section  eleven
  hundred sixteen of this chapter where such diesel motor fuel or residual
  petroleum  product  is  exclusively  for  use  and  consumption  by such
  organization, but only if all of such diesel motor fuel  or  product  is
  consumed  other  than  on the highways of this state. Provided, however,
  this exemption shall in no event apply to a sale of  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 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. Provided, however, that the  commissioner
  shall  require  such  documentary  proof  to  qualify  for any exemption
  provided  herein  as  the  commissioner  deems  appropriate.   Provided,
  further,  the distributor selling such fuel and product shall separately
  report on its return the gallonage  sold  during  the  reporting  period
  exempt  from  tax  under  the provisions of this subdivision and provide
  such other information with respect to such sales  as  the  commissioner
  deems  appropriate to prevent evasion. The term "dyed diesel motor fuel"
  as used in this subdivision shall  have  the  same  meaning  it  has  in
  subdivision eighteen of section two hundred eighty-two of this chapter.
    (i)  Exemption  for  passenger  commuter ferries. A use by a passenger
  commuter ferry of diesel motor fuel or residual petroleum product  where
  such  diesel  motor  fuel  or  residual  petroleum  product was used and
  consumed by a passenger commuter ferry  exclusively  in  providing  mass
  transportation  service.  Provided,  that the commissioner shall require
  such documentary proof to qualify for any exemption  provided  hereunder
  as the commissioner deems appropriate.
    (j)  Limited  exemption  for dyed diesel motor fuel. Dyed diesel motor
  fuel sold in accordance with  paragraph  (c)  of  subdivision  three  of
  section two hundred eighty-two-a of this chapter.