Capitol Watch > 2008 Bill Ratings

OPPOSES
Memo 30

PETROLEUM BUSINESS TAX EXEMPTION

S.5011-A (Alesi)

A.8886-A (Cahill, et al.)

Summary
This bill would provide for a tax exemption on heating oil sold to businesses. Current law grants petroleum business tax exemptions on heating oil sold to residences and a partial exemption on heating oil sold to businesses and other entities.

Explanation                                                                                                  

The combustion of heating fuels is a major source of the sulfate pollution contributing to acid rain, smog and haze in New York State. The sulfur in any fuel oil is easily oxidized and released when that fuel is burned, producing sulfur dioxide gas that contributes to small particle pollution in the air. Small particle pollution is particularly harmful because small particles can bypass the body’s normal defenses and lodge deep in the lungs. Small particle air pollution can lead to premature death for seniors, lung cancer, asthma attacks, and heart attacks in those with pre-existing heart disease.

Extending the petroleum business tax exemption to heating fuels used by businesses could perversely result in increased consumption of such fuels and further degrade New York’s air quality. A better bill would authorize tax exemptions only for fuels that meet low-sulfur content standards, as lower sulfur content fuels burn more cleanly and efficiently, and result in reduced operation and maintenance costs and cleaner air.

Environmental Advocates of New York opposes this bill.