N.Y. Tax Law § 301-E — Aviation fuel business

§ 301-e. Aviation fuel business. (a) Notwithstanding any other\nprovision of this chapter, for taxable months commencing on and after\nthe first day of September, nineteen hundred ninety, there is hereby\nimposed upon every aviation fuel business for the privilege of engaging\nin business, doing business, employing capital, owning or leasing\nproperty, or maintaining an office in this state, for all or any part of\neach of its taxable months a monthly tax equal to the sum of (1) the\naviation gasoline component determined pursuant to subdivision (b) of\nthis section and (2) the kero-jet component determined pursuant to\nsubdivision (c) of this section. Provided, however, the commissioner may\npermit the tax imposed under this subdivision and returns related to\nsuch tax to be paid and filed for a period covering twelve consecutive\ntaxable months by aviation fuel businesses which are not airlines.\n (b) Aviation gasoline component. (1) The aviation gasoline component\nshall be determined by multiplying the aviation gasoline rate times the\nnumber of gallons of aviation gasoline imported or caused to be imported\ninto this state by an aviation fuel business for use, distribution,\nstorage or sale in the state or produced, refined, manufactured or\ncompounded in the state by an aviation fuel business. Provided that\nimportation of aviation gasoline into the state in the fuel tanks of\naircraft shall be importation for use for the purposes of this section.\nThe basic aviation gasoline rate shall be five and one-half cents per\ngallon. The rate shall be adjusted at the same time as the rates of the\ncomponents of the petroleum business tax imposed by section three\nhundred one-a of this article, and the method of making adjustments to\nthe aviation gasoline rate shall be the same as the method used for such\nrates.\n (2) Partial credit or refund with respect to aviation gasoline. A\ndistributor of motor fuel shall be entitled to a partial credit or\nrefund of the tax paid under this section on aviation gasoline sold to a\nfixed base operator registered under article twelve-a of this chapter as\na "retail seller of aviation gasoline" under the circumstances described\nin subparagraph (i) of paragraph (b) of subdivision one-a of section two\nhundred eighty-nine-c of this chapter. Provided, that in order to\nqualify for the credit or refund the amount of tax claimed as a credit\nor refund shall have been paid or assumed on such sale by such\ndistributor and shall have not been passed on to such "retail seller of\naviation gasoline". A distributor of motor fuel, also registered as a\n"retail seller of aviation gasoline", shall be entitled to a partial\ncredit or refund for aviation gasoline delivered and stored at its fixed\nbase operations premises in such subparagraph (i), and such credit or\nrefund shall accrue at the time the fuel is so delivered and placed in\nsuch storage facility. An airline which is registered as a distributor\nof motor fuel and which imports aviation gasoline into this state for\nuse in its airplanes, where delivery and storage take place as described\nin such subparagraph (i), shall also be allowed such partial credit or\nrefund of tax on such fuel so imported and used exclusively in the\noperation of its airplanes. An aviation fuel business, taxed as such, by\nreason of importation in the fuel tank of an airplane shall also be\nallowed such partial credit or refund for aviation gasoline consumed in\nthis state. The amount of the partial credit or refund allowable under\nthis subparagraph shall be the excess of tax which exceeds five and\ntwo-tenths cents per gallon. Provided, that such five and two-tenths\ncents rate used to compute this partial credit and refund shall be\nadjusted at the same time as the rate of the aviation gasoline component\nimposed by paragraph one of this subdivision, and the methods of making\nsuch adjustments to this partial credit and refund shall be the same as\nthe method used for such rates.\n (c) Kero-jet fuel component. The kero-jet fuel component shall be\ndetermined by multiplying the kero-jet fuel rate times the number of\ngallons of (1) kero-jet fuel imported or caused to be imported into this\nstate by an aviation fuel business and consumed in this state by such\nbusiness in the operation of its aircraft; and (2) kero-jet fuel, which\nhas not been previously included in the measure of the tax imposed by\nthis section, (i) which is sold in this state by an aviation fuel\nbusiness to persons other than those registered under this article as\naviation fuel businesses or (ii) which is consumed in this state by an\naviation fuel business in the operation of its aircraft. Provided that\nimportation of kero-jet fuel in the fuel tanks of aircraft shall be\nimportation for the purposes of this section. The basic kero-jet fuel\nrate shall be six and eight-tenths cents per gallon. The rate shall be\nadjusted at the same time as the rates of the components of the\npetroleum business tax imposed by section three hundred one-a of this\narticle, and the method of making adjustments to the kero-jet fuel rate\nshall be the same as the method used for such rates.\n (d) (1) An aviation fuel business shall be entitled to reimbursement\nof the tax imposed by this section, less any credit allowed or refund\ngranted, with respect to aviation gasoline purchased in this state and\nconsumed by such business exclusively as aviation fuel in the operation\nof its aircraft where such aviation gasoline is not consumed in this\nstate, provided that the amount of such tax, less any credit or refund,\nhas been absorbed by such aviation fuel business. Provided, further, an\naviation fuel business which has imported aviation gasoline into this\nstate and consumed such aviation gasoline in the operation of its\naircraft where a portion of such aviation gasoline is not consumed in\nthis state shall be allowed a credit for such gallonage not consumed in\nthis state in computing the tax imposed by such section.\n (2) An aviation fuel business shall be entitled to reimbursement of\nthe tax imposed by this section with respect to kero-jet fuel purchased\nin this state and consumed by such business exclusively as aviation fuel\nin the operation of its aircraft where such kero-jet fuel is not\nconsumed in this state, provided that the entire amount of such tax has\nbeen absorbed by such aviation fuel business.\n (3) Any purchaser of aviation gasoline in this state who consumes such\naviation gasoline exclusively as aviation fuel in the operation of its\naircraft shall be entitled to a partial reimbursement of the tax imposed\nby this section with respect to aviation gasoline which was purchased by\nsuch purchaser and upon which such purchaser paid or absorbed the full\namount of the tax imposed by this section (where no partial credit or\nrefund under paragraph two of subdivision (b) of this section was\nprovided with respect to such aviation gasoline) where: (i) such\npurchaser purchases the aviation gasoline from a fixed base operator\nwhich qualifies as a retail seller of aviation gasoline but is not so\nregistered under article twelve-A of this chapter, or (ii) such\npurchaser purchases the aviation gasoline in bulk from a distributor of\nmotor fuel registered under article twelve-A of this chapter where such\ndistributor delivers such aviation gasoline directly into a bulk storage\nfacility of the purchaser which is at a fixed and permanent place at an\nairport within this state and is used solely to fill the fuel tanks of\nits aircraft for use in the operations thereof. The amount of the\nreimbursement allowable under this paragraph shall be equal to the\namount of the partial credit or refund allowable under paragraph two of\nsubdivision (b) of this section.\n (4) The commissioner shall require such documentary proof to qualify\nfor any credit, refund or reimbursement of tax provided under this\nsubdivision as the commissioner deems appropriate.\n (e) All the provisions of this article relating to the administration,\ncollection and disposition of the tax imposed on petroleum businesses,\nincluding the registration provisions of section three hundred two of\nthis article applicable to residual petroleum product businesses, shall\napply to the tax imposed by this section and the registration under this\narticle of aviation fuel businesses with such modification as may be\nnecessary in order to adapt the language of such provisions to the tax\nimposed by this section. When reference in this article is made to "the\ntax imposed under this article" or where words of similar import are\nused, unless the context indicates otherwise, such reference shall be to\nthe tax imposed under section three hundred one-a of this article and\nthis section. The tax imposed by this section shall be administered\njointly in conjunction with, and as a part of, the tax imposed on\npetroleum businesses as if the provisions of subdivision (a) of this\nsection, imposing the tax under this section, were made a part of the\nimposition provisions of section three hundred one-a, except where\ncontrary or not applicable to or inconsistent with the provisions of\nthis section. Provided, further, for the purpose of this section:\n (1) the term "aviation fuel business" shall mean a "petroleum\nbusiness" as described in paragraph one or paragraph two of subdivision\n(b) of section three hundred of this article except that the activities\ndescribed therein shall separately relate to aviation gasoline (such\nparagraph one) and kero-jet fuel (such paragraph two) and such term\nshall also include every corporation or unincorporated business\nimporting or causing to be imported aviation fuel into this state for\nconsumption by it in this state by bringing such aviation fuel into this\nstate in aircraft fuel tanks which connect to the engines propelling\nsuch aircraft.\n (2) kero-jet fuel and aviation gasoline consumed in this state shall\nbe presumed to mean all such fuel consumed during takeoffs from points\nin this state;\n (3) where the commissioner of taxation and finance decides that with\nrespect to a certain petroleum business any of the methods prescribed in\nparagraph two of this subdivision do not fairly and equitably reflect\nfuel consumed in this state, the commissioner shall prescribe methods of\nattribution which fairly and equitably reflect fuel consumed in this\nstate.\n (4) "aviation fuel" means kero-jet fuel and aviation gasoline (as\ndescribed in paragraph three of subdivision (a) of section three hundred\none-b of this article). Provided, further the term kero-jet shall not\ninclude naphtha based aviation fuel refined and used solely for\npropelling military jet airplanes of the United States Armed Forces.\n (f) An aviation fuel business, which services four or more cities in\nthe state with non-stop flights between such cities, shall be exempt\nfrom the tax imposed by this section and any surcharge imposed on such\ntax.\n