Exempts fuel used for operation of certain school buses from petroleum products gross receipts tax and motor fuel tax; clarifies tax treatment of certain dyed fuel thereunder; clarifies determination of taxable estates of certain decedents.
In addition to the fuel exemption, A5269 clarifies the tax treatment of dyed fuel under the PPGRT, stating that receipts from sales of dyed fuel (unless used in vehicles for public highway operation) are exempt from taxation. The bill also addresses how taxable estates of resident decedents are determined, particularly those dying on or after January 1, 2017. This is intended to clarify tax liabilities without allowing reductions for certain estate, inheritance, or legacy taxes previously imposed, which is expected to impact estate tax calculations significantly.
Assembly Bill A5269 proposes an exemption from the petroleum products gross receipts tax (PPGRT) and the motor fuel tax specifically for fuel used in the operation of certain school buses. This exemption applies to fuel utilized by school buses that transport pupils to and from school or school-sponsored activities, and includes vehicles operated by charitable organizations under contracts with public agencies. The bill outlines the mechanisms for claiming these tax exemptions, requiring purchasers to pay at the point of purchase and then seek refunds from the Division of Taxation upon proof of tax payment.
Notably, the bill excludes these exemptions from review by the legislative review council established to ensure the proper implementation of the petroleum products gross receipts tax (PPGRT). This provision has raised concerns that it might undermine checks on tax imposition, as the council would be prevented from certifying legislative actions that could affect the continued application of these changes. The potential implications of these altered tax treatments may provoke debate surrounding fairness in taxation and the efficacy of the estate tax estimation process.