N.Y. Tax Law § 301-C — Reimbursement

§ 301-c. Reimbursement. * A subsequent purchaser shall be eligible\nfor reimbursement of tax with respect to the following gallonage,\nsubsequently sold by such purchaser in accordance with subdivision (a),\n(b), (e), (h), (j), (k), (n) or (o) of this section or used by such\npurchaser in accordance with subdivision (c), (d), (f), (g), (i), (l),\n(m) or (q) of this section, which gallonage has been included in the\nmeasure of the tax imposed by this article on a petroleum business:\n * NB Effective until September 1, 2026\n * A subsequent purchaser shall be eligible for reimbursement of tax\nwith respect to the following gallonage, subsequently sold by such\npurchaser in accordance with subdivision (a), (b), (e), (h), (j) or (k)\nof this section or used by such purchaser in accordance with subdivision\n(c), (d), (f), (g), (i), (l), (m) or (q) of this section, which\ngallonage has been included in the measure of the tax imposed by this\narticle on a petroleum business:\n * NB Effective September 1, 2026\n (a) Non-highway Diesel motor fuel used for heating purposes. (1) Total\nresidential heating reimbursement. Non-highway Diesel motor fuel\npurchased in this state and sold by such purchaser to a consumer for use\nexclusively for residential heating purposes but only where (i) such\nnon-highway diesel motor fuel is delivered into a storage tank which is\nnot equipped with a hose or other apparatus by which such non-highway\nDiesel motor fuel can be dispensed into the fuel tank of a motor vehicle\nand such storage tank is attached to the heating unit burning such\nnon-highway Diesel motor fuel, (ii) the tax imposed pursuant to this\narticle has been paid with respect to such non-highway diesel motor fuel\nand the entire amount of such tax has been absorbed by such purchaser,\nand (iii) such purchaser possesses documentary proof satisfactory to the\ncommissioner evidencing the absorption by it of the entire amount of the\ntax imposed pursuant to this article. Provided, however, that the\ncommissioner is authorized, in the event that the commissioner\ndetermines that it would not threaten the integrity of the\nadministration and enforcement of the tax imposed by this article, to\nprovide a reimbursement with respect to a retail sale to a consumer for\nresidential heating purposes of less than ten gallons of non-highway\ndiesel motor fuel provided such fuel is not dispensed into the tank of a\nmotor vehicle.\n (2) Partial non-residential heating reimbursement. (A) Non-highway\nDiesel motor fuel purchased in this state and sold by such purchaser to\na consumer for use exclusively for heating, other than for residential\nheating purposes, but only where (i) such non-highway diesel motor fuel\nis delivered into a storage tank which is not equipped with a hose or\nother apparatus by which such non-highway Diesel motor fuel can be\ndispensed into the fuel tank of a motor vehicle and such storage tank is\nattached to the heating unit burning such non-highway Diesel motor fuel,\n(ii) the tax imposed pursuant to this article has been paid with respect\nto such non-highway diesel motor fuel and the entire amount of such tax\nhas been absorbed by such purchaser, and (iii) such purchaser possesses\ndocumentary proof satisfactory to the commissioner evidencing the\nabsorption by it of the entire amount of the tax imposed pursuant to\nthis article.\n (B) Calculation of partial reimbursement. Notwithstanding any other\nprovision of this article, the amount of the reimbursement under this\nparagraph shall be determined by multiplying the quantity of non-highway\ndiesel motor fuel eligible for the reimbursement times the sum of the\nthen current rate of the supplemental tax imposed by section three\nhundred one-j of this article and forty-six percent of the then current\nrate of the tax imposed by section three hundred one-a of this article,\nwith respect to the non-highway diesel motor fuel rate, as the case may\nbe.\n (b) Sales to New York state and the federal government. Motor fuel and\ndiesel motor fuel purchased in this state and sold by such purchaser in\nthis state to an organization described in paragraph one or two of\nsubdivision (a) of section eleven hundred sixteen of this chapter where\n(i) such motor fuel or diesel motor fuel is for such organization's own\nuse or consumption, (ii) the tax imposed pursuant to this article has\nbeen paid with respect to such motor fuel or diesel motor fuel and the\nentire amount of such tax has been absorbed by such purchaser and, (iii)\nsuch purchaser possesses documentary proof satisfactory to the\ncommissioner of taxation and finance evidencing the absorption by it of\nthe entire amount of the tax imposed pursuant to this article. Provided,\nhowever, that the commissioner of taxation and finance shall require\nsuch documentary proof to qualify for any reimbursement of tax provided\nby this section as the commissioner deems appropriate, including the\nexpansion of any certification required pursuant to section two hundred\neighty-five-a or two hundred eighty-five-b of this chapter to cover the\ntaxes imposed pursuant to this article.\n (c) Motor fuel and diesel motor fuel used by certain omnibus carriers.\nMotor fuel and diesel motor fuel purchased in this state by an omnibus\ncarrier and consumed by such omnibus carrier in the operation of an\nomnibus (i) in local transit service in this state, as described under\nparagraph (d) of subdivision three of section two hundred eighty-nine-c\nof this chapter, pursuant to a certificate of public convenience and\nnecessity issued by the commissioner of transportation of this state or\nby the interstate commerce commission of the United States or pursuant\nto a contract, franchise or consent between such carrier and a city\nhaving a population of more than one million inhabitants, or any agency\nof such city, or (ii) in the transportation of school children in the\nstate under a contract made pursuant to the provisions of the education\nlaw. Provided, however, the reimbursement under this subdivision is\navailable only where the tax imposed pursuant to this article has been\npaid with respect to such motor fuel or diesel motor fuel and the entire\namount of such tax has been absorbed by such omnibus carrier, where such\nomnibus carrier possesses documentary proof satisfactory to the\ncommissioner of taxation and finance evidencing the absorption by it of\nthe entire amount of the tax imposed pursuant to this article, and\nwhere, in the case of the reimbursement under clause (i) of this\nsubdivision, such motor fuel or diesel motor fuel is included in the\ngallonage upon which reimbursement is calculated under paragraph (d) of\nsubdivision three of section two hundred eighty-nine-c of this chapter\nand, in the case of the reimbursement under clause (ii) of this\nsubdivision, such motor fuel or diesel motor fuel is included in the\ngallonage upon which reimbursement is calculated under paragraph (b) of\nsuch subdivision three of section two hundred eighty-nine-c.\n (d) Motor fuel and diesel motor fuel used by certain nonpublic school\noperators. Motor fuel and diesel motor fuel purchased in this state by a\nnonpublic school operator, as defined in subdivision eleven of section\ntwo hundred eighty-two of this chapter, and consumed by such nonpublic\nschool operator exclusively in educational related activities. Provided,\nhowever, the reimbursement under this subdivision is available only\nwhere the tax imposed pursuant to this article has been paid with\nrespect to such motor fuel or diesel motor fuel and the entire amount of\nsuch tax has been absorbed by such nonpublic school operator, where such\nnonpublic school operator possesses documentary proof satisfactory to\nthe commissioner of taxation and finance evidencing the absorption by it\nof the entire amount of the tax imposed pursuant to this article, and\nwhere such motor fuel or diesel motor fuel is included in the gallonage\nupon which the reimbursement is calculated under paragraph (e) of\nsubdivision three of section two hundred eighty-nine-c of this chapter.\n (e) Non-highway Diesel motor fuel and residual petroleum product used\nfor farm production. Non-highway Diesel motor fuel or residual petroleum\nproduct purchased in this state and sold by such purchaser to a consumer\nfor use or consumption directly and exclusively in the production for\nsale of tangible personal property by farming, but only if all of such\nnon-highway Diesel motor fuel or product is delivered on the farm site\nand is consumed other than on the public highways of this state (except\nfor the use of the public highway to reach adjacent farmlands). This\nreimbursement may be claimed only where (i) the tax imposed pursuant to\nthis article has been paid with respect to such non-highway diesel motor\nfuel or residual petroleum product and the entire amount of such tax has\nbeen absorbed by such purchaser, and (ii) such purchaser possesses\ndocumentary proof satisfactory to the commissioner evidencing the\nabsorption by it of the entire amount of the tax imposed pursuant to\nthis article. Provided, however, that the commissioner shall require\nsuch documentary proof to qualify for any reimbursement of tax provided\nby this section as the commissioner deems appropriate.\n (f) Motor fuel and highway diesel motor fuel used for farm production.\nNo more than one thousand five hundred gallons of motor fuel and no more\nthan four thousand five hundred gallons of highway diesel motor fuel\npurchased in this state in a thirty-day period or a greater amount which\nhas been given prior clearance by the commissioner, by a consumer for\nuse or consumption directly and exclusively in the production for sale\nof tangible personal property by farming, but only if all of such motor\nfuel or highway diesel motor fuel is delivered on the farm site and is\nconsumed other than on the public highways of this state (except for the\nuse of the public highway to reach adjacent farmlands). This\nreimbursement to such purchaser who used such motor fuel or highway\ndiesel motor fuel in the manner specified in this subdivision may be\nclaimed only where, (i) the tax imposed pursuant to this article has\nbeen paid with respect to such motor fuel or highway diesel motor fuel\nand the entire amount of such tax has been absorbed by such purchaser,\nand (ii) such purchaser possesses documentary proof satisfactory to the\ncommissioner evidencing the absorption by it of the entire amount of the\ntax imposed pursuant to this article. Provided, however, that the\ncommissioner shall require such documentary proof to qualify for any\nreimbursement of tax provided by this subdivision as the commissioner\ndeems appropriate. The commissioner is hereby empowered to make such\nprovisions as deemed necessary to define the procedures for granting\nprior clearance for purchases of more than one thousand five hundred\ngallons of motor fuel or four thousand five hundred gallons of highway\ndiesel motor fuel in a thirty-day period.\n (g) Diesel motor fuel and motor fuel used in the operation of\ncommercial fishing vessels. Diesel motor fuel or motor fuel purchased in\nthis state by a commercial fisherman at retail wherein (1) such diesel\nmotor fuel or such motor fuel is delivered by a pump equipped with a\nhose directly into the fuel tank of a commercial fishing vessel to be\nused as fuel in the operation of such vessel for the purpose of engaging\nin the commercial harvesting of fish for sale; and (2) such vessel is\noperated by a commercial fisherman; but only where (i) the tax imposed\npursuant to this article has been paid with respect to such diesel motor\nfuel or such motor fuel and the entire amount of such tax has been\nabsorbed by such purchaser and, (ii) such purchaser possesses\ndocumentary proof satisfactory to the commissioner evidencing the\nabsorption by it of the entire amount of the tax imposed pursuant to\nthis article. Provided, however, that the commissioner shall require\nsuch documentary proof to qualify for any reimbursement of tax provided\nby this section as the commissioner deems appropriate.\n (h) A subsequent purchaser which is registered as a distributor of\ndiesel motor fuel shall be eligible for reimbursement of the tax imposed\nby section three hundred one-a of this article with respect to gallonage\nof residual petroleum product and non-highway diesel motor fuel\nsubsequently sold by such purchaser to an organization which has\nqualified under paragraph four or five of subdivision (a) of section\neleven hundred sixteen of this chapter for the exclusive use and\nconsumption by such organization. Provided, however, this exemption\nshall in no event apply to a sale of non-highway diesel motor fuel which\ninvolves a delivery at a filling station or into a repository which is\nequipped with a hose or other apparatus by which such non-highway Diesel\nmotor fuel can be dispensed into the fuel tank of a motor vehicle and\nall deliveries hereunder shall be made to the premises occupied by the\nqualifying organization and used by such organization in furtherance of\nthe exempt purposes of such organization. This reimbursement may be\nclaimed only where (i) the tax imposed pursuant to this article has been\npaid with respect to such non-highway diesel motor fuel or residual\npetroleum product and the entire amount of such tax has been absorbed by\nsuch purchaser, and (ii) such purchaser possesses documentary proof\nsatisfactory to the commissioner evidencing the absorption by it of the\nentire amount of the tax imposed pursuant to this article. Provided,\nfurther, that the commissioner shall require such other documentary\nproof to qualify for any reimbursement of tax provided by this section\nas the commissioner deems appropriate.\n (i) Reimbursement for commercial gallonage. (1) A reimbursement shall\nbe allowed to a consumer with respect to gallonage of non-highway diesel\nmotor fuel or residual petroleum product (i) which was purchased by such\nconsumer and where the supplemental tax imposed by section three hundred\none-j of this article with respect to such gallonage was paid by a\npetroleum business and passed through to such consumer, (ii) such\nconsumer absorbed the entirety of such tax in the purchase price of such\ngallonage, and (iii) such gallonage was used and consumed by such\nconsumer exclusively as "commercial gallonage". Provided, however, that\nthe commissioner shall require such documentary proof to qualify for any\nreimbursement of tax provided by this subdivision as the commissioner\ndeems appropriate, including a certification by the consumer that the\nproduct was used and consumed exclusively as "commercial gallonage" by\nsuch consumer.\n (2) Calculation. The amount of the reimbursement shall be determined\nby multiplying the quantity of "commercial gallonage" eligible for\nreimbursement times the then current rate of the supplemental tax\nimposed by section three hundred one-j of this article with respect to\nnon-highway diesel motor fuel or residual petroleum product, as the case\nmay be. Any reimbursement of tax may be applied for not more often than\nmonthly.\n (j) Reimbursement for manufacturing gallonage. A subsequent purchaser\nshall be eligible for reimbursement of any taxes imposed under this\narticle with respect to gallonage of residual petroleum product and\nnon-highway diesel motor fuel subsequently sold by such purchaser to a\nconsumer as "manufacturing gallonage." This reimbursement may be claimed\nonly where (1) any tax imposed pursuant to this article has been paid\nwith respect to such gallonage and the entire amount of such tax has\nbeen absorbed by such purchaser, and (2) such purchaser possesses\ndocumentary proof satisfactory to the commissioner evidencing the\nabsorption by it of the entire amount of such tax. Provided, however,\nthat the commissioner shall require such documentary proof to qualify\nfor any reimbursement of tax provided by this subdivision as the\ncommissioner deems appropriate including a certificate by the consumer\nthat such product is to be used and consumed exclusively as\n"manufacturing gallonage".\n (k) Reimbursement for railroad gallonage. (1) A subsequent purchaser,\nwhich is registered as a distributor of diesel motor fuel, shall be\neligible for a reimbursement in accordance with this subdivision with\nrespect to non-highway diesel motor fuel subsequently sold by such\npurchaser to a consumer as "railroad diesel".\n (2) The amount of the reimbursement with respect to such product shall\nbe equal to the difference between (i) the tax actually paid under this\narticle by a petroleum business with respect to such product and\nsubsequently passed through to and absorbed by such purchaser, and (ii)\nthe tax under this article that would have been paid with respect to\nsuch product had an importing distributor sold such product directly to\na purchaser as "railroad diesel". Provided that the commissioner shall\nrequire such documentary proof as the commissioner deems necessary to\nsubstantiate a reimbursement claim under this subdivision. Any\nreimbursement of tax may be applied for not more often than monthly.\n (l) Reimbursement for mining and extraction. A purchaser shall be\neligible for reimbursement of the tax imposed by section three hundred\none-a of this article with respect to gallonage of residual petroleum\nproduct and non-highway diesel motor fuel, purchased for use and\nconsumption directly and exclusively in the production of tangible\npersonal property for sale by mining or extracting, but only if all of\nsuch fuel or product is delivered at the mining or extracting site and\nis consumed other than on the public highways of this state; provided,\nhowever, this reimbursement shall in no event apply to a sale of\nnon-highway diesel motor fuel which involves a delivery at a filling\nstation. This reimbursement may be claimed only where (i) the tax\nimposed pursuant to this article has been paid with respect to such\nnon-highway diesel motor fuel or residual petroleum product and the\nentire amount of such tax has been absorbed by such purchaser, and (ii)\nsuch purchaser possesses documentary proof satisfactory to the\ncommissioner evidencing the absorption by it of the entire amount of the\ntax imposed pursuant to this article. Provided, however, that the\ncommissioner shall require such documentary proof to qualify for any\nreimbursement of tax provided by this section as the commissioner deems\nappropriate.\n (m) Reimbursement for passenger commuter ferries. A use by a passenger\ncommuter ferry of non-highway diesel motor fuel or residual petroleum\nproduct where such non-highway diesel motor fuel or residual petroleum\nproduct was used and consumed by a passenger commuter ferry exclusively\nin providing mass transportation service. This reimbursement may be\nclaimed only where (1) any tax imposed pursuant to this article has been\npaid with respect to such gallonage and the entire amount of such tax\nhas been absorbed by such purchaser, and (2) such ferry possesses\ndocumentary proof satisfactory to the commissioner evidencing the\nabsorption by it of the entire amount of such tax. Provided, that the\ncommissioner shall require such documentary proof to qualify for any\nreimbursement provided hereunder as the commissioner deems appropriate.\n * (n) Reimbursement for E85. E85 purchased in this state and sold by\nsuch purchaser in this state where (1) such E85 is delivered to a\nfilling station and placed in a storage tank of such filling station for\nsuch E85 to be dispensed directly into a motor vehicle for use in the\noperation of such vehicle, (2) the tax imposed pursuant to this article\nhas been paid with respect to such E85 and the entire amount of such tax\nhas been absorbed by such purchaser, and (3) such purchaser possesses\ndocumentary proof satisfactory to the commissioner evidencing the\nabsorption by it of the entire amount of the tax imposed pursuant to\nthis article. Provided, that the commissioner shall require such\ndocumentary proof to qualify for any reimbursement provided hereunder as\nthe commissioner deems appropriate.\n * NB Repealed September 1, 2026\n * (o) (1) Partial reimbursement for B20. B20 purchased in this state\nand sold by such purchaser in this state where (i) the tax imposed\npursuant to this article has been paid with respect to such B20 and the\nentire amount of such tax has been absorbed by such purchaser, and (ii)\nsuch purchaser possesses documentary proof satisfactory to the\ncommissioner evidencing the absorption by it of the entire amount of the\ntax imposed pursuant to this article. Provided, that the commissioner\nshall require such documentary proof to qualify for any reimbursement\nprovided hereunder as the commissioner deems appropriate.\n (2) Calculation of partial reimbursement. The amount of the\nreimbursement under this subdivision shall be determined by multiplying\nthe quantity of B20 times twenty percent of the applicable taxes\notherwise imposed by this article on such fuel.\n * NB Repealed September 1, 2026\n (p) Reimbursement for motor fuel and diesel motor fuel used by a\nvoluntary ambulance service, as defined in section three thousand one of\nthe public health law, a fire company or a fire department, as defined\nin section three of the volunteer firefighters' benefit law, or a\nvolunteer rescue squad supported in whole or in part by tax monies,\nwhere any such entity is the purchaser, user or consumer of motor fuel\nor diesel motor fuel in a vehicle owned and operated by such entity and\nused exclusively for such entity's purposes. A purchaser shall be\neligible for reimbursement of the tax imposed pursuant to this article\nif (1) any tax imposed pursuant to this article has been paid with\nrespect to such gallonage and the entire amount of such tax has been\nabsorbed by such purchaser, and (2) such purchaser possesses documentary\nproof satisfactory to the commissioner evidencing the absorption by such\npurchaser of the entire amount of such tax. Provided, that the\ncommissioner shall require such documentary proof to qualify for any\nreimbursement provided hereunder as the commissioner deems appropriate.\n (q) Reimbursement for tugboats and towboats. A use by a tugboat or\ntowboat of motor fuel, diesel motor fuel, or residual petroleum product.\nThis reimbursement may be claimed only where (1) any tax imposed\npursuant to this article has been paid with respect to such gallonage\nand the entire amount of such tax has been absorbed by such purchaser,\nand (2) such tugboat or towboat possesses documentary proof satisfactory\nto the commissioner evidencing the absorption by it of the entire amount\nof such tax. Provided, that the commissioner shall require such\ndocumentary proof to qualify for any reimbursement provided hereunder as\nthe commissioner deems appropriate.\n