Beginning on June 1, 2022 and continuing through December 1, 2022, the excise tax, prepaid sales tax, and state sales and use taxes on motor fuel and highway diesel fuel will be suspended in New York.
The NYS Department of Taxation and Finance issued a notice providing guidance on how this will impact distributors, wholesalers and retail sellers. The notice also provided guidance on International Fuel Tax Agreement (IFTA) filings.
As it relates to IFTA, motor carriers will continue to file Form IFTA-100, IFTA Quarterly Fuel Use Tax Return and Form IFTA-101, IFTA Quarterly Fuel Use Tax Schedule (Instructions). However, the fuel purchased in New York State during the suspension period must be reported
On Form IFTA-101, column L, as tax-paid gallons of fuel. The composite tax rate for New York State that is reported on Form IFTA-101, column N, must be computed using the tax rates in effect on May 31, 2022. Find these rates on Form IFTA-105, IFTA Final Fuel Use Tax Rate and Rate Code Table 1, and on the IFTA tax rates webpage at www.iftach.org.
Carriers must maintain complete records of all fuel purchases, including purchases of fuel in bulk. Be sure to keep original receipts or invoices of fuel purchases. Proper documentation must be included with any claim for credit or refund.
Meanwhile, reports indicate that the Northeast is running out of, or at least low on diesel fuel. The East Coast typically stores around 62 million barrels of diesel during the month of May, according to Department of Energy data. But as of May 6th, the region of the US is reporting under 52 million barrels. An option available to fleets at this critical moment is to take advantage of fuel savings and driver efficiency programs.