New York may raise oil taxes

OREANDA-NEWS. New York Governor Andrew Cuomo is proposing to raise taxes on both imported oil and crude passing through the state, a move that could have a major impact on crude-by-rail shipments.

Under the proposal, crude shipped through New York — irrespective of whether it stays in the state or is transferred to another — will be assessed the same fees as imports. Both fees would be raised to 13.75?/bl, from 12.25?/bl for imports and 1.5?/bl for trans-shipped oil. The fee increase would be the first in 15 years and amount to a ninefold increase on taxes on trans-shipped crude.

The taxes will go into the state's Oil Spill Fund, which provides resources for oil spill cleanups when the responsible party does not have the resources or cannot be identified. The governor is proposing to expand the oil spill fund to pay for planning, exercises and response equipment. The governor is also calling for the spill fund to be expanded from \$25mn up to \$40mn.

The governor's executive budget would provide the Department of Environmental Conservation with eight new employees and the Division of Homeland Security and Emergency Services with six new employees dedicated to oil spill planning, training and response.

The proposal has been placed in a budget bill and will need to pass legislative approval. The New York state legislature will hold hearings on the executive budget proposal tomorrow through 26 February. The budget deadline is 1 April.