Section 301-E. Aviation fuel business

(a)  Notwithstanding  any  other
  provision of this chapter, for taxable months commencing  on  and  after
  the  first  day  of  September, nineteen hundred ninety, there is hereby
  imposed upon every aviation fuel business for the privilege of  engaging
  in  business,  doing  business,  employing  capital,  owning  or leasing
  property, or maintaining an office in this state, for all or any part of
  each of its taxable months a monthly tax equal to the  sum  of  (1)  the
  aviation  gasoline  component  determined pursuant to subdivision (b) of
  this section and (2)  the  kero-jet  component  determined  pursuant  to
  subdivision (c) of this section. Provided, however, the commissioner may
  permit  the  tax  imposed  under this subdivision and returns related to
  such tax to be paid and filed for a period covering  twelve  consecutive
  taxable months by aviation fuel businesses which are not airlines.
    (b)  Aviation  gasoline component. (1) The aviation gasoline component
  shall be determined by multiplying the aviation gasoline rate times  the
  number of gallons of aviation gasoline imported or caused to be imported
  into  this  state  by  an  aviation fuel business for use, distribution,
  storage or sale in the  state  or  produced,  refined,  manufactured  or
  compounded  in  the  state  by  an aviation fuel business. Provided that
  importation of aviation gasoline into the state in  the  fuel  tanks  of
  aircraft  shall be importation for use for the purposes of this section.
  The basic aviation gasoline rate shall be five and  one-half  cents  per
  gallon.  The rate shall be adjusted at the same time as the rates of the
  components of the  petroleum  business  tax  imposed  by  section  three
  hundred  one-a  of this article, and the method of making adjustments to
  the aviation gasoline rate shall be the same as the method used for such
  rates.
    (2) Partial credit or refund with  respect  to  aviation  gasoline.  A
  distributor  of  motor  fuel  shall  be  entitled to a partial credit or
  refund of the tax paid under this section on aviation gasoline sold to a
  fixed base operator registered under article twelve-a of this chapter as
  a "retail seller of aviation gasoline" under the circumstances described
  in subparagraph (i) of paragraph (b) of subdivision one-a of section two
  hundred eighty-nine-c of  this  chapter.  Provided,  that  in  order  to
  qualify  for  the credit or refund the amount of tax claimed as a credit
  or refund shall  have  been  paid  or  assumed  on  such  sale  by  such
  distributor  and shall have not been passed on to such "retail seller of
  aviation gasoline". A distributor of motor fuel, also  registered  as  a
  "retail  seller  of  aviation  gasoline", shall be entitled to a partial
  credit or refund for aviation gasoline delivered and stored at its fixed
  base operations premises in such subparagraph (i), and  such  credit  or
  refund  shall  accrue at the time the fuel is so delivered and placed in
  such storage facility. An airline which is registered as  a  distributor
  of  motor  fuel  and which imports aviation gasoline into this state for
  use in its airplanes, where delivery and storage take place as described
  in such subparagraph (i), shall also be allowed such partial  credit  or
  refund  of  tax  on  such  fuel  so imported and used exclusively in the
  operation of its airplanes. An aviation fuel business, taxed as such, by
  reason of importation in the fuel tank of  an  airplane  shall  also  be
  allowed  such partial credit or refund for aviation gasoline consumed in
  this state. The amount of the partial credit or refund  allowable  under
  this  subparagraph  shall  be  the  excess of tax which exceeds five and
  two-tenths cents per gallon. Provided, that  such  five  and  two-tenths
  cents  rate  used  to  compute  this  partial credit and refund shall be
  adjusted at the same time as the rate of the aviation gasoline component
  imposed by paragraph one of this subdivision, and the methods of  making
  such  adjustments to this partial credit and refund shall be the same as
  the method used for such rates.

    (c) Kero-jet fuel component. The  kero-jet  fuel  component  shall  be
  determined  by  multiplying  the  kero-jet fuel rate times the number of
  gallons of (1) kero-jet fuel imported or caused to be imported into this
  state by an aviation fuel business and consumed in this  state  by  such
  business  in the operation of its aircraft; and (2) kero-jet fuel, which
  has not been previously included in the measure of the  tax  imposed  by
  this  section,  (i)  which  is  sold  in  this state by an aviation fuel
  business to persons other than those registered under  this  article  as
  aviation  fuel  businesses or (ii) which is consumed in this state by an
  aviation fuel business in the operation of its aircraft.  Provided  that
  importation  of  kero-jet  fuel  in  the fuel tanks of aircraft shall be
  importation for the purposes of this section. The  basic  kero-jet  fuel
  rate  shall  be  one and nine-tenths cents per gallon. The rate shall be
  adjusted at the same  time  as  the  rates  of  the  components  of  the
  petroleum  business  tax  imposed by section three hundred one-a of this
  article, and the method of making adjustments to the kero-jet fuel  rate
  shall  be the same as the method used for such rates. Provided, however,
  that commencing July first, nineteen hundred  ninety-one,  the  kero-jet
  fuel  rate  shall  be equal to the motor fuel and automotive-type diesel
  motor fuel rate set by subdivision (e) of section three hundred one-a of
  this  article  as  such  rate  may  be  adjusted  as  provided  in  such
  subdivision.   Provided,   further,  that  commencing  September  first,
  nineteen hundred ninety-five, the kero-jet fuel rate shall be  five  and
  two-tenths cents per gallon. The rate shall be adjusted at the same time
  as  the rates of the components of the petroleum business tax imposed by
  section three hundred one-a of this article, and the  method  of  making
  adjustments  to  the  kero-jet fuel rate shall be the same as the method
  used for such rates.
    (d) (1) An aviation fuel business shall be entitled  to  reimbursement
  of  the  tax  imposed by this section, less any credit allowed or refund
  granted, with respect to aviation gasoline purchased in this  state  and
  consumed  by such business exclusively as aviation fuel in the operation
  of its aircraft where such aviation gasoline is  not  consumed  in  this
  state,  provided that the amount of such tax, less any credit or refund,
  has been absorbed by such aviation fuel business. Provided, further,  an
  aviation  fuel  business  which has imported aviation gasoline into this
  state and consumed such  aviation  gasoline  in  the  operation  of  its
  aircraft  where  a  portion of such aviation gasoline is not consumed in
  this state shall be allowed a credit for such gallonage not consumed  in
  this state in computing the tax imposed by such section.
    (2)  An  aviation  fuel business shall be entitled to reimbursement of
  the tax imposed by this section with respect to kero-jet fuel  purchased
  in this state and consumed by such business exclusively as aviation fuel
  in  the  operation  of  its  aircraft  where  such  kero-jet fuel is not
  consumed in this state, provided that the entire amount of such tax  has
  been absorbed by such aviation fuel business.
    (3) Any purchaser of aviation gasoline in this state who consumes such
  aviation  gasoline  exclusively as aviation fuel in the operation of its
  aircraft shall be entitled to a partial reimbursement of the tax imposed
  by this section with respect to aviation gasoline which was purchased by
  such purchaser and upon which such purchaser paid or absorbed  the  full
  amount  of  the  tax imposed by this section (where no partial credit or
  refund under paragraph two  of  subdivision  (b)  of  this  section  was
  provided  with  respect  to  such  aviation  gasoline)  where:  (i) such
  purchaser purchases the aviation gasoline from  a  fixed  base  operator
  which  qualifies  as  a retail seller of aviation gasoline but is not so
  registered  under  article  twelve-A  of  this  chapter,  or  (ii)  such
  purchaser  purchases the aviation gasoline in bulk from a distributor of

  motor fuel registered under article twelve-A of this chapter where  such
  distributor delivers such aviation gasoline directly into a bulk storage
  facility  of the purchaser which is at a fixed and permanent place at an
  airport  within  this state and is used solely to fill the fuel tanks of
  its aircraft for use in  the  operations  thereof.  The  amount  of  the
  reimbursement  allowable  under  this  paragraph  shall  be equal to the
  amount of the partial credit or refund allowable under paragraph two  of
  subdivision (b) of this section.
    (4)  The  commissioner shall require such documentary proof to qualify
  for any credit, refund or  reimbursement  of  tax  provided  under  this
  subdivision as the commissioner deems appropriate.
    (e) All the provisions of this article relating to the administration,
  collection  and  disposition of the tax imposed on petroleum businesses,
  including the registration provisions of section three  hundred  two  of
  this  article applicable to residual petroleum product businesses, shall
  apply to the tax imposed by this section and the registration under this
  article of aviation fuel businesses with such  modification  as  may  be
  necessary  in  order to adapt the language of such provisions to the tax
  imposed by this section. When reference in this article is made to  "the
  tax  imposed  under  this  article" or where words of similar import are
  used, unless the context indicates otherwise, such reference shall be to
  the tax imposed under section three hundred one-a of  this  article  and
  this  section.  The  tax  imposed  by this section shall be administered
  jointly in conjunction with, and as  a  part  of,  the  tax  imposed  on
  petroleum  businesses  as  if  the provisions of subdivision (a) of this
  section, imposing the tax under this section, were made a  part  of  the
  imposition  provisions  of  section  three  hundred  one-a, except where
  contrary or not applicable to or inconsistent  with  the  provisions  of
  this section. Provided, further, for the purpose of this section:
    (1)  the  term  "aviation  fuel  business"  shall  mean  a  "petroleum
  business" as described in paragraph one or paragraph two of  subdivision
  (b)  of section three hundred of this article except that the activities
  described therein shall separately relate  to  aviation  gasoline  (such
  paragraph  one)  and  kero-jet  fuel  (such paragraph two) and such term
  shall  also  include  every  corporation  or   unincorporated   business
  importing  or  causing  to be imported aviation fuel into this state for
  consumption by it in this state by bringing such aviation fuel into this
  state in aircraft fuel tanks which connect  to  the  engines  propelling
  such aircraft.
    (2)  kero-jet  fuel and aviation gasoline consumed in this state shall
  be presumed to mean all such fuel consumed during takeoffs  from  points
  in this state;
    (3)  where  the commissioner of taxation and finance decides that with
  respect to a certain petroleum business any of the methods prescribed in
  paragraph two of this subdivision do not fairly  and  equitably  reflect
  fuel consumed in this state, the commissioner shall prescribe methods of
  attribution  which  fairly  and  equitably reflect fuel consumed in this
  state.
    (4) "aviation fuel" means kero-jet  fuel  and  aviation  gasoline  (as
  described in paragraph three of subdivision (a) of section three hundred
  one-b  of  this  article). Provided, further the term kero-jet shall not
  include  naphtha  based  aviation  fuel  refined  and  used  solely  for
  propelling military jet airplanes of the United States Armed Forces.
    (f)  An  aviation fuel business, which services four or more cities in
  the state with non-stop flights between such  cities,  shall  be  exempt
  from  the  tax imposed by this section and any surcharge imposed on such
  tax.