New York Senate Bill S05633

New York 2025-2026 Regular Session

• Introduced: 2/26/25
• Refer: 2/26/25
• Refer: 1/7/26

Caption

Provides motor fuel tax exemption for sales of diesel motor fuel used in vessels used directly in a business providing sport fishing opportunities for hire to the general public from the tax on petroleum businesses and from sales and compensating use taxes.

Summary

S05633 would create a new tax exemption for fuel used in commercial sport fishing vessels—boats used directly and predominantly in a business providing sport fishing opportunities for hire to the general public. The bill defines a “commercial sport fishing vessel” as one owned by a person holding a marine and coastal district party and charter boat license, and it limits the exemption to vessels that provide at least 50 percent of the owner’s total annual income. The measure applies to both motor fuel and diesel motor fuel used in these vessels, and it also adds the exemption to the state sales and compensating use tax law. The bill amends multiple sections of the Tax Law to ensure that fuel used in qualifying sport fishing vessels is excluded from the petroleum business tax and from state sales and use taxes, and it authorizes local governments, including New York City, to extend the same exemption to local sales taxes. It also creates reimbursement procedures for fuel purchased at retail and used in qualifying vessels, subject to documentary proof and commissioner approval. The bill is structured to integrate the new exemption into existing tax reimbursement and local-option provisions, with an effective date 90 days after enactment.

Impact

If enacted, the bill would narrow the tax base by exempting qualifying commercial sport fishing vessel fuel from state petroleum business taxes and state sales and compensating use taxes, and it would permit local sales tax exemptions to mirror the state exemption. It would amend Tax Law sections 300, 301-a, 301-c, 1115, and 1210, creating a new category of exempt fuel use and corresponding reimbursement rules. The practical effect would be to reduce fuel costs for eligible charter and party boat operators and to require tax administrators to verify income thresholds, licensing status, and proof that the tax was absorbed by the purchaser.

Sentiment

The bill text and available context do not show recorded committee debate or votes, so there is no documented floor or committee sentiment in the materials provided. Based on the bill’s design, it appears to be a targeted tax relief measure for a specific maritime tourism and charter-fishing industry. The overall tone of the proposal is supportive of that sector, with no opposing statements or amendments reflected in the available record.

Contention

The main policy issue embedded in the bill is whether commercial sport fishing vessels should receive the same fuel-tax treatment already available to certain commercial fishing vessels. A likely point of contention is the bill’s eligibility limits, especially the requirement that the vessel provide at least 50 percent of the owner’s annual income, which narrows the exemption to operators who rely heavily on the business. Another potential issue is revenue loss to the state and local governments, since the bill authorizes both state and optional local tax exemptions. No specific opponents or supporters are identified in the provided materials.