New York: Prepaid Sales Tax on Fuel
- May 16, 2014 | Gail Cole
The New York State Department of Taxation and Finance has announced the creation of new prepaid sales tax regions and a change in New York sales tax prepayment rates on motor fuel. Both changes take effect June 1, 2014.
New York’s prepaid sales tax regions are as follows:
New Region 1
- New York City, including Bronx, Kings (Brooklyn), New York (Manhattan), Richmond (Staten Island) and Queens counties
- Dutchess County
- Orange County
- Putnam County
- Rockland County
- Westchester County
New Region 2
- Nassau County
- Suffolk County
New Region 3
- All other counties in New York State
Formerly, Region 1 consisted of New York City and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester. And Region 2 consisted of the remaining counties in New York State.
According to the Chart for Prepayment of Sales Tax on Diesel Motor Fuel, the following rates are to be used effective June 1, 2014:
- Region 1: $0.1750
- Region 2: $0.210
- Region 3: $0.160
The amounts above are sales tax prepayment per gallon. These rates are not to be used to compute tax on a retail sale. Additional information is available on Publication 787.
New rates for each region should be used “when computing the amount of prepaid sales tax due on all motor fuel imported, caused to be imported, compounded, or produced in New York State beginning June 1, 2014.” The new rates should also be used to calculate any “additional prepaid sales tax due on any inventory held as of the close of business May 31, 2014.”
Precise instructions for computing the additional tax due on inventory are provided in Important Notice 14-6, Distributors of Diesel Motor Fuel Relating to Publication 787. Examples are also provided.
You could get out your calculators, or you could switch to an automated sales tax solution.