New York Senate Bill S6409c

Wholesalers of motor fuel that reside in New York state are soon going to have to work with a new set of rules and regulations. These requirements are set forth in Senate Bill S6409c. This bill has several amendments to the current rules that deal with fuel wholesalers in New York.

A Fuel Tax Bond will be required as of 12.1.2016

The senate bill requires that all wholesalers of fuel will now have to register with the state, file certain returns and get a fuel tax surety bond. A fuel tax bond is a specialized type of surety bond that makes sure that the state will receive all of the taxes that is required to be paid by a fuel tax wholesaler.

New York Motor Fuel Surety Bond Bill

The pertinent part of the bill is Part UU, which is the part that governs the tax law and how it now requires motor fuel wholesalers to file tax returns and register with the state. Section 2 of the bill provided the wholesalers of motor fuel must register with the New York Dept of Taxation and Finance. That department will then issue each wholesaler their relevant license. Further, Part UU makes clear that motor fuel wholesalers will have to abide by all of the same rules that current apply to distributors of motor fuel.

NY surety bond for motor fuel wholesalers

Section 3 – Surety Bond Requirements

Section 3 of Part UU is the part that deals with surety bonds. The surety bond requirements for motor fuel wholesalers states that a bond is required, although the section is silent for some reason as to the amount of the bond needed. Rather, a surety bond for motor fuel wholesalers is to be in an amount that the Commissioner deems necessary to secure the payment of all taxes and ensures that the proper forms and rules are followed by wholesalers. If the requirements are not met, or the taxes are not properly paid, then a claim can be made against the bond. In addition, if a wholesaler of motor fuel does not get a bond, then their license can be revoked.

Section 4 of Part UU shows when a wholesaler may pay taxes

Section 5 of Part UU shows when a wholesaler may get a refund for their taxes.

What should a New York wholesaler of Motor Fuel do?

First, it makes a lot of sense to start the process to get licensed. Further, you will want to get a surety bond. The NY Department of Taxation and Finance have a limited amount of time to list all of the requirements. It makes some sense to get the license and bond early as then things will not be held up later when the Department gets busy with the rest of the applications.