N.Y. Comp. Codes R. & Regs. tit. 20 § 414.1

Current through Register Vol. 46, No. 45, November 2, 2024

Section 414.1 - General

Tax Law, §§ 4, 284(1), 289-c, 289-f

(a)

(1) The motor fuel tax imposed pursuant to article 12-A of the Tax Law is not required to be paid when motor fuel is imported into New York State or caused to be imported into New York State by a distributor for use, distribution, storage or sale in the State or when motor fuel is produced, refined, manufactured, compounded or sold by a distributor in the State, under any circumstances which might preclude the collection of the tax by reason of the United States Constitution and any laws of the United States enacted pursuant thereto.

(2) The motor fuel tax is not required to be paid in respect of motor fuel imported or caused to be imported into the State, or produced, refined, manufactured or compounded in the State by:

(i) the United States of America, and any of its agencies and instrumentalities;

(ii) New York State, or any of its agencies, instrumentalities, public corporations (including a public corporation created pursuant to agreement or compact with another state or Canada) or political subdivisions (including school districts); or

(iii) a hospital which holds a current operating certificate issued by the New York State Department of Health pursuant to the authority of section 2805 of the Public Health Law or by the New York State Department of Mental Hygiene pursuant to the authority of article 31 of the Mental Hygiene Law and which qualifies as an exempt organization pursuant to section 1116 (a)(4) of the Tax Law, if such motor fuel is for the entities' own use or consumption. Such entities may also purchase at retail, for their use or consumption, motor fuel upon which the seller has not passed through the motor fuel tax.

(3) Motor fuel upon which the seller has not passed through the motor fuel tax may be acquired in the State by a purchaser which is a duly registered or licensed distributor of, or dealer in, motor fuel in another state or province of a foreign country and will immediately export such motor fuel to an identified facility in that state or province for the purpose of selling such motor fuel.

(4) As described in sections 414.4 and 414.5 of this Part, retail purchases of motor fuel charged to authorized oil company credit cards by:

(i) diplomatic missions and diplomatic personnel; and

(ii) the United Nations, may be billed to such purchasers exclusive of the motor fuel tax. Motor fuel so purchased must be used or consumed by such individual or entity.

(b) Although exemptions from the motor fuel tax exist only to the extent provided for in this Part, refunds, credits and reimbursements may be allowed in other circumstances. (See Part 415 of this Title.)

(c)

(1) It is presumed that all motor fuel in this State is subject to tax until the contrary is established. Pursuant to the joint administrative provisions of sections 289-f and 1142 (11) of the Tax Law, any person or entity purchasing motor fuel and entitled to an exemption from tax in accordance with this Part must furnish its seller (or have furnished to its seller on its behalf) proper documentation substantiating its right to the exemption claimed. Upon presentation of the proper documentation, the tax on motor fuel imposed pursuant to article 12-A of the Tax Law as well as the taxes imposed by article 28 and pursuant to the authority of article 29 of such law in respect to motor fuel need not be passed through, billed or collected, as the case may be, by the seller of such fuel. Documentation substantiating an exempt transaction must be retained by the seller for at least three years following the date the transaction was required to be reported to the Department of Taxation and Finance or the date the transaction was actually reported to the department, if later. For penalties relating to false or fraudulent exemption certificates or documents, see section 1145 (a)(5) and article 37 of the Tax Law.

(2)

(i) In order to make purchases of motor fuel upon which the seller has not passed through the motor fuel tax, a purchaser must:

(a) furnish to the seller a properly completed certificate to the effect that the purchaser is entitled to acquire motor fuel upon which the tax has not been passed through, on a form which the Department of Taxation and Finance has prescribed for such purpose, together with such other information as the department may require;

(b) furnish to the seller a government purchase contract, purchase order or the appropriate exemption document, where the purchaser is a governmental entity described in subparagraphs (a)(2)(i) and (ii) of this section; or

(c) purchase such motor fuel, with a valid credit card issued by an oil company, pursuant to the provisions of sections 414.4 and 414.5 of this Part, where the purchaser is an individual or entity described in paragraph (a)(4) of this section.

(ii)

(a) When a person sells motor fuel without passing through to the purchaser the motor fuel tax as provided for in this Part, as proof of the exemption the seller must obtain from the purchaser and retain in his files either:

(1) a properly completed certificate to the effect that the purchaser is entitled to acquire motor fuel upon which the tax has not been passed through; or

(2) a government purchase contract or order, or the appropriate exemption document, where the purchaser is a governmental entity described in subparagraphs (a)(2)(i) and (ii) of this section.

(b) In the case of a credit card sale of motor fuel to a purchaser described in paragraph (a)(4) of this section, as proof of the exemption the United States Department of State or the American Institute in Taiwan must certify to an oil company that an individual or entity is in fact exempt from tax. Such oil company must retain in its files a copy of said certification. On such certification and the issuance of an authorized credit card, the oil company will bill the individual or entity, exclusive of the taxes from which such purchaser is exempt. (See sections 414.4 and 414.5 of this Part.)

(d)

(1) The burden of proving that any sale of motor fuel is not subject to the tax is upon the purchaser of the motor fuel and, except as otherwise provided for in this subdivision, is also upon the person required to pass through the tax.

(2) A seller of motor fuel who, within 90 days after the delivery of such fuel, in good faith accepts from the purchaser a properly completed exemption certificate or other document evidencing exemption from tax, is relieved of the liability for failure to have passed through the tax with respect to that transaction and the burden of proving that such sale of motor fuel is not subject to tax is solely on the purchaser. Provided, however, a seller of motor fuel shall be relieved of liability for failure to have passed through the tax on sales for export under paragraph (a)(3) of this section only if such seller receives, and accepts in good faith, the properly completed certificate prescribed by the Department of Taxation and Finance at or prior to the time of delivery of such motor fuel.

(i) A certificate or other document is accepted in good faith when a seller of motor fuel has no actual knowledge that the exemption certificate or other document issued by the purchaser is false or is fraudulently presented.

(ii) A certificate is considered to be properly completed when it contains:

(a) the date prepared;

(b) the name and address of the purchaser;

(c) the name and address of the seller;

(d) the identification number of the purchaser as shown on its certificate of authority, certificate of registration or exempt organization number as shown on the exempt organization certificate, if any such numbers are required;

(e) the signature of the purchaser or the purchaser's authorized representative; and

(f) any other information required to be completed on the particular certificate or document.

(iii) For the purposes of this subdivision, the term 90 days after the delivery of the motor fuel means that date 90 days after the date actual possession of the motor fuel is transferred to the purchaser. If actual possession is not transferred to the purchaser, such term means that date 90 days after the earlier of transfer of title or constructive possession to the purchaser.

(e) The provisions of this Part with respect to purchases and sales of motor fuel are controlling whenever they are in conflict with the other provisions of this Title. In all other respects, the provisions of Subchapter J of this Title (Sales and Use Taxes) shall apply to purchases and sales of motor fuel so far as such provisions can be made applicable to the taxes imposed by article 12-A of the Tax Law with such limitations as are set forth in this Part and such modifications as may be necessary in order to adapt such provisions to the provisions of this Part.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 414.1