New York – Exemption for Natural Gas

SALT Report 2352 – As part of New York’s 2013-14 budget package the New York General Assembly enacted legislation that creates an exemption for certain purchases of natural gas. Under current law, if natural gas is purchased in an uncompressed state, the purchaser is required to pay State and local sales taxes on that purchase, even if the purchaser will subsequently convert the natural gas to CNG for use in the engine of a motor vehicle. Senate Bill 2609 amends the exemption to removes this unintended sales tax imposition.

Specifically, the Bill states that the sales and use tax exemption for compressed natural gas (CNG) has been expanded to include natural gas that is purchased and used to produce CNG that will be used exclusively and directly in the engine of a motor vehicle.

The exemption is effective June 1, 2013.

For Further Information

New York General Assembly – Senate Bill 2609