New York Laws
Article 12-A - Tax on Gasoline and Similar Motor Fuel
282-A - Imposition of Excise Tax on Diesel Motor Fuel.

(b) The tax on the incidence of sale or use imposed by subdivision one
of this section shall not apply to: (i) the sale or use of non-highway
Diesel motor fuel, but only if all of such fuel is consumed other than
on the public highways of this state (except for the use of the public
highway by farmers to reach adjacent farmlands); provided, however, this
exemption shall in no event apply to a sale of non-highway Diesel motor
fuel which involves a delivery at a filling station or into a repository
which is equipped with a hose or other apparatus by which such fuel can
be dispensed into the fuel tank of a motor vehicle (except for delivery
at a farm site which qualifies for the exemption under subdivision (g)
of section three hundred one-b of this chapter); or (ii) a sale to the
consumer consisting of not more than twenty gallons of water-white
kerosene to be used and consumed exclusively for heating purposes; or
(iii) the sale to or delivery at a filling station or other retail
vendor of water-white kerosene provided such filling station or other
retail vendor only sells such water-white kerosene exclusively for
heating purposes in containers of no more than twenty gallons; or (iv) a
sale of kero-jet fuel to an airline for use in its airplanes or a use of
kero-jet fuel by an airline in its airplanes; or (v) a sale of kero-jet
fuel by a registered distributor of Diesel motor fuel to a fixed base
operator registered under this article as a distributor of kero-jet fuel
only where such fixed base operator is engaged solely in making or
offering to make retail sales not in bulk of kero-jet fuel directly into
the fuel tank of an airplane for the purpose of operating such airplane;
or (vi) a retail sale not in bulk of kero-jet fuel by a fixed base
operator registered under this article as a distributor of kero-jet fuel
only where such fuel is delivered directly into the fuel tank of an
airplane for use in the operation of such airplane; or (vii) the sale of
previously untaxed qualified biodiesel to a person registered under this
article as a distributor of Diesel motor fuel other than (A) a retail
sale to such person or (B) a sale to such person which involves a
delivery at a filling station or into a repository which is equipped
with a hose or other apparatus by which such qualified biodiesel can be
dispensed into the fuel tank of a motor vehicle; or (viii) the sale of
previously untaxed highway Diesel motor fuel by a person registered
under this article as a distributor of Diesel motor fuel to a person
registered under this article as a distributor of Diesel motor fuel
where the highway Diesel motor fuel is either: (A) being delivered by
pipeline, railcar, barge, tanker or other vessel to a terminal, the
operator of which terminal is registered under section two hundred
eighty-three-b of this article, or (B) within such a terminal where it
has been so delivered. Provided, however, that the exemption set forth

in this subparagraph shall not apply to any highway Diesel motor fuel if
it is removed from a terminal, other than by pipeline, barge, tanker or
other vessel.
(c) Nothing in this article shall exempt non-highway diesel motor fuel
from the imposition of the tax under this section, if such non-highway
diesel motor fuel is intended for use on the waterways of the state
including any other waterways bordering on the state, for operating
pleasure or recreational motor boats thereon.
4. The tax imposed by this section on Diesel motor fuel shall be
passed through by the seller and included as part of the selling price
to each purchaser of such fuel. Provided, however, the amount of the tax
imposed by this section may be excluded from the selling price of Diesel
motor fuel where (i) a sale of Diesel motor fuel is made to an
organization described in paragraph (a) of subdivision three of this
section solely for the purpose stated therein; (ii) a sale of
non-highway Diesel motor fuel is made to a consumer but only if such
non-highway Diesel motor fuel is not delivered to a filling station, nor
delivered into a storage tank which is equipped with a hose or other
apparatus by which such fuel can be dispensed into the fuel tank of a
motor vehicle; or (iii) the sale to or delivery at a filling station or
other retail vendor of water-white kerosene provided such filling
station or other retail vendor only sells such water-white kerosene
exclusively for heating purposes in containers of no more than twenty
gallons; or (iv) a sale of kero-jet fuel is made to an airline for use
in its airplanes.
5. All the provisions of this article relating to the administration
and collection of the taxes on motor fuel, except section two hundred
eighty-three-a of this article, shall be applicable to the tax imposed
by this section with such limitation as specifically provided for in
this article with respect to Diesel motor fuel and with such
modification as may be necessary to adapt the language of such
provisions to the tax imposed by this section. With respect to the bond
or other security required by subdivision three of section two hundred
eighty-three of this article, the commissioner, in determining the
amount of bond or other security required for the purpose of securing
tax payments, shall take into account the volume of non-highway Diesel
motor fuel and other Diesel motor fuel sold for exempt purposes by a
distributor of Diesel motor fuel during prior periods as a factor
reducing potential tax liability along with any other relevant factors
in determining the amount of security required. With respect to the bond
required to be filed prior to registration as a Diesel motor fuel
distributor, no bond shall be required of an applicant upon a finding of
the applicant's fiscal responsibility, as reflected by such factors as
net worth, current assets and liabilities, and tax reporting and payment
history, and the department shall not provide for a minimum bond of
every applicant.