N.Y. Comp. Codes R. & Regs. tit. 20 § 561.10

Current through Register Vol. 46, No. 50, December 11, 2024

Section 561.10 - Refund and credits allowable

(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.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 561.10