2010 New York Code
TAX - Tax
Article 13-A - (300 - 315) TAX ON PETROLEUM BUSINESSES
301 - Imposition of tax.

§  301.  Imposition  of  tax.--  (a) (1) General.--Notwithstanding any
  other provision of this chapter, or of any other law, for taxable  years
  commencing  on  or  after  the  first  day  of  April,  nineteen hundred
  eighty-four, but including that portion of any taxable  year  commencing
  prior  thereto to the extent of that portion of such year which includes
  the period which commences with the first day of April, nineteen hundred
  eighty-four,  and  ending  with  (but  not  including)   taxable   years
  commencing  on  and  after  the first day of September, nineteen hundred
  ninety, but including that portion of any taxable year commencing  prior
  thereto  to  the  extent of that portion of such year which includes the
  period which terminates with the thirty-first day  of  August,  nineteen
  hundred  ninety,  there is hereby imposed upon every petroleum business,
  for the privilege of engaging in  business,  doing  business,  employing
  capital,  owning  or  leasing property, or maintaining an office in this
  state, for all or any part of each of its taxable years, an  annual  tax
  equal  to  two  and three-quarters per centum, provided that for taxable
  years commencing on or after the first day  of  June,  nineteen  hundred
  ninety,  but including that portion of any taxable year commencing prior
  thereto to the extent of that portion of such year  which  includes  the
  period  which  commences  with  the  first day of June, nineteen hundred
  ninety, the annual tax shall  be  equal  to  seven  and  two-tenths  per
  centum,  of  (i)  its  gross  receipts  from  sales  of  petroleum where
  shipments are made to points within the state,  (ii)  the  consideration
  given or contracted to be given by it for petroleum (other than aviation
  fuel) which it imported or caused to be imported (by a person other than
  one  which  is  subject  to  tax under this article) into this state for
  consumption by it in this state, and (iii) the  consideration  given  or
  contracted  to  be  given by it for aviation fuel consumed by it in this
  state. In no event shall the tax imposed by this article  be  less  than
  two  hundred  fifty  dollars. For the purpose of the tax imposed by this
  section,  any  taxable  year  commencing  prior  to  the  first  day  of
  September, nineteen hundred ninety but ending after the thirty-first day
  of August, nineteen hundred ninety shall be deemed terminated as of such
  thirty-first  day of August and such year shall be brought to a close as
  of such thirty-first day of August.
    (2) Credit, refund or reimbursement. (A) An electric  corporation,  as
  defined  in  subdivision  thirteen  of section two of the public service
  service law, subject to the supervision  of  the  department  of  public
  service  shall  be  allowed  a  credit  against  the tax imposed by this
  section,  or  a  refund  or  reimbursement,  with  respect  to  residual
  petroleum  product  or  diesel  motor fuel (which is not enhanced diesel
  motor fuel) used by such electric corporation to fuel generators for the
  purpose of manufacturing or producing electricity. Such credit or refund
  shall be applicable only to gallonage which is included in the return of
  such electric corporation and  the  consideration  for  which  has  been
  subjected  to  tax  under this section on and after June first, nineteen
  hundred ninety at the rate of seven  and  two-tenths  per  centum;  such
  reimbursement  shall  apply only to gallonage purchased in this state by
  such electric corporation on and  after  June  first,  nineteen  hundred
  ninety  wherein  (i)  with  respect to such gallonage so purchased a tax
  under this section has been imposed at the rate of seven and  two-tenths
  per centum and (ii) such electric corporation absorbed the entire amount
  of  such  tax  in  the  purchase  price of such fuel. The amount of such
  credit or refund shall be determined by  multiplying  the  consideration
  given  with  respect  to  such  eligible  gallons  of residual petroleum
  product and diesel product times four and forty-five hundredths percent.
  The amount of such reimbursement shall be equal to the  result  obtained
  by  subtracting  from  the  entire  amount  of  the tax absorbed by such

electric corporation the product of such entire amount of  tax  absorbed
  times  two  and seventy-five hundredths divided by seven and two-tenths.
  (B) An aviation fuel business shall be allowed a credit against the  tax
  imposed  by  clause  (iii)  of  paragraph (1) of this subdivision on and
  after June first, nineteen hundred ninety with respect to kero-jet  fuel
  with  respect  to  which a tax has been imposed at the rate of seven and
  two-tenths per centum and which was  consumed  in  this  state  by  such
  business  in  the  operation  of its aircraft. The amount of such credit
  shall be four and forty-five hundredths  percent  of  the  consideration
  given  or contracted to be given by such business for such kero-jet fuel
  consumed by it in this state.
    (b) Doing business, etc.--Any petroleum business shall not  be  deemed
  to be doing business, engaging in business, employing capital, owning or
  leasing  property,  or  maintaining  an  office  in  this state, for the
  purposes of this article, by reason  of  (i)  the  maintenance  of  cash
  balances  with  banks  or  trust  companies  in  this state, or (ii) the
  ownership of shares of stock or securities kept in this state,  if  kept
  in  a  safe  deposit box, safe, vault or other receptacle rented for the
  purpose, or if pledged as collateral security, or if deposited with  one
  or  more  banks  or  trust  companies,  or  brokers who are members of a
  recognized security exchange, in safekeeping  or  custody  accounts,  or
  (iii)  the  taking  of  any  action by any such bank or trust company or
  broker, which is incidental to the rendering of safekeeping or custodian
  service to such petroleum business, or (iv) the maintenance of an office
  in this state by one or more officers  or  directors  of  the  petroleum
  business (where such business is a corporation) who are not employees of
  the  petroleum  business  if  such  petroleum  business otherwise is not
  engaging in business or doing business  in  this  state,  and  does  not
  employ  capital  or  own  or  lease  property  in this state, or (v) the
  keeping of books or records of a petroleum business  in  this  state  if
  such  books  or  records  are  not  kept  by employees of such petroleum
  business and such  petroleum  business  does  not  otherwise  engage  in
  business, do business, employ capital, own or lease property or maintain
  an  office  in  this  state,  or  (vi)  any combination of the foregoing
  activities.
    (c) Vessel credit  or  refund.  A  petroleum  business,  which  brings
  petroleum into this state in the fuel tank connecting with the engine of
  a  vessel  propelled  by the use of such petroleum with respect to which
  there is imposed a consumption tax pursuant to subdivision (a)  of  this
  section,  shall calculate the tax due on such gallonage according to the
  method prescribed in this subdivision. The tax liability  for  gallonage
  that  a  vessel  consumes shall be the tax liability with respect to the
  positive difference between the gallonage consumed in this state  during
  the  reporting  period  and  the gallonage purchased in this state (upon
  which the tax imposed by this section has been paid) during such period.
  A credit or refund shall be available for any excess  of  tax  liability
  for  gallonage  purchased  in  this  state  during  the  period over tax
  liability on gallonage so consumed in this  state  during  such  period,
  which excess shall be presumed to have been used outside this state.