N.Y. Comp. Codes R. & Regs. tit. 20, § 561.10
(4) Any person required to pay use tax pursuant to section 1110 of the Tax Law with respect to the use of motor fuel will be entitled to a refund or credit in the amount of prepaid tax paid by or passed through to such person with respect to the motor fuel against the amount of use tax owing on such fuel. Example:
Example:
A purchaser of a large volume of motor fuel indicates to the vendor that the fuel is being purchased for resale. Accordingly, the vendor passes through the prepaid tax on the motor fuel to the purchaser. Subsequently, the purchaser uses some of the motor fuel in his own vehicles. The purchaser may claim a refund or credit against his use tax liability in the amount of prepaid tax passed through to him on the fuel which he has used.
(b) To persons entitled to purchase motor fuel without payment of tax.
Although purchasers described in section 561.7(c)(1) of this Part are not required to pay the prepaid tax or the sales tax on their purchases of motor fuel for their own use and not intended for resale, when such purchases of motor fuel have been made under circumstances where such taxes have been paid by them, they are entitled to a refund or credit of such taxes paid.
(c) To purchasers who are otherwise entitled to exemption under the general retail sales tax.
(2) A purchaser of motor fuel at retail will be entitled to a refund or credit of the sales tax paid on such fuel: (i) if such purchaser is an exempt purchaser under section 1116 of the Tax Law other than one described in section 561.7(c)(1) of this Part; or (ii) if such purchaser uses the motor fuel in a manner that would qualify for exemption under section 1115 of the Tax Law in the case of tangible personal property other than motor fuel. Example 1: Example 2:
Example 1:
A private university which qualifies as an exempt organization under section 1116(a)(4) of the Tax Law purchases a large volume of motor fuel for use in its buses. The vendor is required to collect the sales tax on the retail sale of the motor fuel. However, the university may apply for a refund of the sales tax paid on its purchase for its own use.
Example 2:
A company purchases a large volume of motor fuel. The company uses the motor fuel in motor vehicles used in an exempt manner under section 1115(a)(12) of the Tax Law in the operation of the company's oil mining facilities. Although the vendor is required to collect sales tax for the retail sale of the motor fuel, the company is entitled to a refund or credit of the sales tax collected from it with respect to the motor fuel used in an exempt manner.
(d) To distributors or purchasers of motor fuel for immediate export out-of-state.
(2) An applicant for a refund or credit allowed under this subdivision must submit evidence that it has transported motor fuel out-of-state and qualifies for such refund or credit. Among the documents or records that must be submitted are:
(ii) a copy of the motor fuel tax return for the jurisdiction to which the motor fuel was exported which covers the period in which such motor fuel was exported.
(e) Interest.
(a) To sellers and users of motor fuel.