ALBANY – New York Governor Andrew Cuomo earlier this week announced the implementation of a change in the state’s fuel tax law, designed to benefit small business operators selling certain highway diesel motor fuels, LongIsland.com reports.

Governor Cuomo signed the law earlier this year, which took effect this month.

“This administration is committed to creating a business-friendly setting in New York State, and this change contributes a positive step in that direction for fuel distributors,” Governor Cuomo said. “By updating the State’s fuel tax law we are addressing an unnecessary financial burden on small businesses.”

Previously, petroleum distributors operating in New York were required to pay fuel taxes at the time they purchased fuel. Under the change, they will pay them when the product is loaded into a fuel truck and removed from the storage terminal, better enabling fuel markets to manage cash flow.

“It’s our hope that this amendment to New York’s tax policy will help an industry that employs more than 32,000 people throughout the state,” said Commissioner of Taxation and Finance Thomas H. Mattox.

“Our members applaud this change,” said Thomas J. Peters, CEO of the Empire State Petroleum Association (ESPA), a trade association representing 300 petroleum marketers throughout New York. “Before, the distributor had to pre-pay all that tax upfront, but couldn’t collect it until a sale was made, which might be many months down the road. It’s a question of improving a business’s cash position — and this is a cash flow victory.”