New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter IV - Sales And Use And Other Miscellaneous Taxes
Subchapter A - Sales And Use Taxes
Part 561 - Motor Fuel
Section 561.3 - Payment of prepaid tax

Universal Citation: 20 NY Comp Codes Rules and Regs ยง 561.3

Current through Register Vol. 46, No. 12, March 20, 2024

Tax Law, §§ 1101(b)(4)(ii), 1102, 1111(d)-(e), 1115(j), 1116(b)(5), 1132(h)-(i)

(a)

(1) Every distributor must pay a prepaid tax on each gallon of motor fuel which it imports or causes to be imported into New York State for use, distribution, storage or sale in the State. The prepaid sales tax is imposed on the owner of the motor fuel being imported at the time the off-loading of such motor fuel is commenced at or into any terminal, facility or any other land-sited repository. The person who owns such fuel while it is held in the truck, vessel or other means of transportation at the time of the commencement of off-loading of the fuel is the party responsible for the payment of the prepaid tax. In addition, if the party off-loading the motor fuel is not a registered distributor, the party owning the motor fuel after it is off-loaded shall be the party responsible for payment of the tax.

(2) Section 1102 of the Tax Law also imposes a prepaid tax on every gallon of motor fuel produced, refined, manufactured or compounded in New York State.

(3) The prepaid tax must be remitted with a monthly return which is required to be filed on or before the 20th day of each month.

(b) The prepaid tax is based upon the region in which the motor fuel is imported, produced, refined, manufactured or compounded. The rate of prepaid tax for each region is prescribed in section 1111(e)(2) of the Tax Law.

(c) Whenever motor fuel is sold for purposes of resale, the prepaid tax is required to be passed through to the purchaser. The seller must give the purchaser when the fuel is delivered a certification of tax payment. (See sections 561.5 and 561.6 of this Part for information with respect to the certification of tax payment.) A seller of motor fuel shall be relieved of the requirement to pass through the prepaid tax if it receives from the purchaser a properly completed certificate in a form prescribed by the Department of Taxation and Finance indicating that the purchaser is a licensed distributor of, or dealer in, motor fuel in another state or foreign country (or province thereof) and will immediately export the motor fuel being purchased to an identified location in that state or foreign country (or province thereof) for the purpose of selling such motor fuel.

(d) Unless the prepaid tax was not required to be passed through to it pursuant to subdivision (c) of this section, no person shall purchase motor fuel in this State, excluding a purchase at retail, unless the tax required to be prepaid has been paid or assumed by a distributor registered under article 12-A of the Tax Law.

(e) The prepaid tax described in this section shall be administered and collected in the same manner as the sales and compensating use taxes imposed under sections 1105 and 1110 of the Tax Law.

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