Current through Register Vol. 46, No. 12, March 20, 2024
(a) To sellers and users of motor fuel.
(1) A seller of motor fuel will be entitled
to a refund or credit of the amount of prepaid tax paid by or passed through to
it upon its acquisition of motor fuel against the amount of sales tax required
to be collected by an paid over by it to the Department of Taxation and Finance
upon the retail sale of such fuel.
(2) A seller of motor fuel is entitled to a
refund or credit of the prepaid tax which has been paid by or passed through to
it on the purchase of motor fuel it sells at retail to purchasers who are not
required to pay sales tax on retail purchases of motor fuel.
(3) A seller of motor fuel is entitled to a
refund or credit of the prepaid tax paid by or passed through to it on motor
fuel which it sells for immediate export from New York State without passing
the prepaid tax through to the purchaser in accordance with section
561.3(c)
of this Part.
(4) Any person
required to pay use tax pursuant to section
1110 of the Tax Law with respect to the use
of motor fuel will be entitled to a refund or credit in the amount of prepaid
tax paid by or passed through to such person with respect to the motor fuel
against the amount of use tax owing on such fuel.
Example:A purchaser of a large volume of motor fuel
indicates to the vendor that the fuel is being purchased for resale.
Accordingly, the vendor passes through the prepaid tax on the motor fuel to the
purchaser. Subsequently, the purchaser uses some of the motor fuel in his own
vehicles. The purchaser may claim a refund or credit against his use tax
liability in the amount of prepaid tax passed through to him on the fuel which
he has used.
(b)
To persons entitled to purchase motor fuel without payment of tax. Although
purchasers described in section
561.7(c)(1)
of this Part are not required to pay the prepaid tax or the sales tax on their
purchases of motor fuel for their own use and not intended for resale, when
such purchases of motor fuel have been made under circumstances where such
taxes have been paid by them, they are entitled to a refund or credit of such
taxes paid.
(c) To purchasers who
are otherwise entitled to exemption under the general retail sales tax.
(1) A purchaser of motor fuel for resale will
be entitled to a refund or credit in the amount of prepaid tax paid by or
passed through to it where the motor fuel is subsequently used by the purchaser
rather than resold and:
(i) the purchaser is
an exempt purchaser under section
1116 of the Tax Law other than one
described in section
561.7(c)(1)
of this Part; or
(ii) the use to
which the motor fuel is put would be exempt from tax under section
1115 of the Tax Law with respect to
tangible personal property other than motor fuel.
(2) A purchaser of motor fuel at retail will
be entitled to a refund or credit of the sales tax paid on such fuel:
(i) if such purchaser is an exempt purchaser
under section
1116 of the Tax Law other than one
described in section
561.7(c)(1)
of this Part; or
(ii) if such
purchaser uses the motor fuel in a manner that would qualify for exemption
under section
1115 of the Tax Law in the case of tangible
personal property other than motor fuel.
Example 1:A private university which qualifies as an exempt
organization under section
1116(a)(4) of the Tax Law
purchases a large volume of motor fuel for use in its buses. The vendor is
required to collect the sales tax on the retail sale of the motor fuel.
However, the university may apply for a refund of the sales tax paid on its
purchase for its own use.
Example 2:A company purchases a large volume of motor fuel.
The company uses the motor fuel in motor vehicles used in an exempt manner
under section
1115(a)(12) of the Tax Law
in the operation of the company's oil mining facilities. Although the vendor is
required to collect sales tax for the retail sale of the motor fuel, the
company is entitled to a refund or credit of the sales tax collected from it
with respect to the motor fuel used in an exempt manner.
(d) To distributors or
purchasers of motor fuel for immediate export out-of-state.
(1) A refund or credit of prepaid tax on
motor fuel shall be allowed a distributor or a purchaser of motor fuel who pays
or has passed through to him the prepaid tax and subsequently immediately
exports such motor fuel for sale out-of-state. The distributor or purchaser
must be duly registered or licensed as a distributor of or a dealer in motor
fuel by the taxing authorities of the jurisdiction to which the motor fuel is
exported. In connection with all exportation, the motor fuel must be shipped to
an identified facility outside New York State.
(2) An applicant for a refund or credit
allowed under this subdivision must submit evidence that it has transported
motor fuel out-of-state and qualifies for such refund or credit. Among the
documents or records that must be submitted are:
(i) a photocopy of the applicant's license as
a distributor of or dealer in motor fuel issued by the taxing authorities of
the jurisdiction to which the applicant has exported motor fuel for sale, or a
letter from such taxing authorities certifying the applicant' s status as a
licensed distributor of or dealer in motor fuel; and
(ii) a copy of the motor fuel tax return for
the jurisdiction to which the motor fuel was exported which covers the period
in which such motor fuel was exported.
(e) Interest.
(1) No interest shall be paid upon any refund
or credit allowed pursuant to subdivision (a) or (b) or paragraph (c)(1) of
this section or upon any credit allowed pursuant to paragraph (c)(2) of this
section.
(2) Interest shall be paid
upon refunds or credits allowed pursuant to subdivision (d) of this section.
However, no interest will be paid upon a particular refund if the refund
payment is mailed to the applicant within 30 days of receipt of a properly
completed application for refund.
(3) Interest shall be paid upon refunds
allowed pursuant to paragraph (c)(2) of this section with respect to
organizations described in section
1116(a)(4) of the Tax Law.
However, no interest will be paid upon a particular refund if the refund
payment is mailed to the applicant within 45 days of receipt of a properly
completed application for refund.
(4) For information concerning the
overpayment rate of interest, see Part 2393 of this Title.
(f) The refunds and credits provided for in
this section shall be administered in accordance with the provisions of Part
534 of this Title.
