Bill Text: NY A09059 | 2011-2012 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2012-2013 state fiscal year; relates to the effectiveness of provisions of law relating to oil and gas charges (Part A); relates to the suspension of STAR exemptions and related benefits of persons who are delinquent in the payment of outstanding state tax liabilities (Part B); relates to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions (Part D); relates to making technical amendments to the tax treatment of diesel fuel to reflect industry practice (Part E); relates to establishing standards for electronic real property tax administration, allowing the department of taxation and finance to use electronic communication means to furnish tax notices and other documents, mandatory electronic filing of tax documents, debit cards issued for tax refunds, improving sales tax compliance and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto, in relation to the expiration thereof (Part G); relates to extending the empire state commercial production tax credit (Part I); relates to the credit against income tax for persons or entities investing in low-income housing (Part J); relates to extending the biofuel production tax credit; and to amend part X of chapter 62 of the laws of 2006, amending the tax law relating to providing tax credits for biofuel production plants, relating to the effectiveness thereof (Part K); relates to providing an enhanced earned income tax credit, relating to the effectiveness thereof (Part L); relates to tax rates and exclusions under the metropolitan commuter transportation mobility tax for professional employer organizations and to amend part B of chapter 56 of the laws of 2011 amending the tax law relating to the tax rates and exclusions under the metropolitan commuter transportation mobility tax, relating to the effectiveness thereof (Part N); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof (Part O); relates to the distribution of revenue collected from the corporate and utilities taxes imposed under sections 183 and 184 of the tax law; and providing for the repeal of such provisions upon expiration thereof (Part P); relates to facilitating the compliance of room remarketers with their obligation to collect sales tax on their sales of occupancy (Part Q); relates to transitional provisions relating to the enactment and implementation of the federal Gramm-Leach-Bliley act (Part R); relates to video lottery gaming (Part S); relates to the deadline for employer applications to the New York youth tax credit program (Part T); provides for the administration of certain funds and accounts related to the 2012-13 budget; authorizes certain payments and transfers; relates to school tax relief fund; relates to issuance of certifications of participation, variable rate bonds, payments, transfers and deposits of funds and investment of general funds, bond proceeds, and other funds not immediately required; relates to state environmental infrastructure projects; relates to providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to the Division of Military and Naval Affairs Capital Projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; relates to the establishment of the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to courthouse improvements and training facilities, metropolitan transportation authority facilities, peace bridge projects and issuance of bonds by the dormitory authority; relates to funding project costs for the state university of New York college for nanoscale and science engineering and the NY-SUNY 2020 challenge grant program; relates to providing for the administration of certain funds and accounts related to the 2008-2009 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to the metropolitan transportation authority, the New York city transit authority, and the Triborough bridge and tunnel authority, in relation to authorizations to issue bonds and notes; repeals provisions relating to the reserve funds of private not-for-profit schools established with the dormitory authority; repeals provisions relating to the rural housing assistance fund; repeals provisions relating to penalties for violations of the lobbying act (Part U).
Spectrum: Committee Bill
Status: (Passed) 2012-03-30 - signed chap.59 [A09059 Detail]
Download: New_York-2011-A09059-Amended.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2012-2013 state fiscal year; relates to the effectiveness of provisions of law relating to oil and gas charges (Part A); relates to the suspension of STAR exemptions and related benefits of persons who are delinquent in the payment of outstanding state tax liabilities (Part B); relates to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions (Part D); relates to making technical amendments to the tax treatment of diesel fuel to reflect industry practice (Part E); relates to establishing standards for electronic real property tax administration, allowing the department of taxation and finance to use electronic communication means to furnish tax notices and other documents, mandatory electronic filing of tax documents, debit cards issued for tax refunds, improving sales tax compliance and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto, in relation to the expiration thereof (Part G); relates to extending the empire state commercial production tax credit (Part I); relates to the credit against income tax for persons or entities investing in low-income housing (Part J); relates to extending the biofuel production tax credit; and to amend part X of chapter 62 of the laws of 2006, amending the tax law relating to providing tax credits for biofuel production plants, relating to the effectiveness thereof (Part K); relates to providing an enhanced earned income tax credit, relating to the effectiveness thereof (Part L); relates to tax rates and exclusions under the metropolitan commuter transportation mobility tax for professional employer organizations and to amend part B of chapter 56 of the laws of 2011 amending the tax law relating to the tax rates and exclusions under the metropolitan commuter transportation mobility tax, relating to the effectiveness thereof (Part N); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof (Part O); relates to the distribution of revenue collected from the corporate and utilities taxes imposed under sections 183 and 184 of the tax law; and providing for the repeal of such provisions upon expiration thereof (Part P); relates to facilitating the compliance of room remarketers with their obligation to collect sales tax on their sales of occupancy (Part Q); relates to transitional provisions relating to the enactment and implementation of the federal Gramm-Leach-Bliley act (Part R); relates to video lottery gaming (Part S); relates to the deadline for employer applications to the New York youth tax credit program (Part T); provides for the administration of certain funds and accounts related to the 2012-13 budget; authorizes certain payments and transfers; relates to school tax relief fund; relates to issuance of certifications of participation, variable rate bonds, payments, transfers and deposits of funds and investment of general funds, bond proceeds, and other funds not immediately required; relates to state environmental infrastructure projects; relates to providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to the Division of Military and Naval Affairs Capital Projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; relates to the establishment of the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to courthouse improvements and training facilities, metropolitan transportation authority facilities, peace bridge projects and issuance of bonds by the dormitory authority; relates to funding project costs for the state university of New York college for nanoscale and science engineering and the NY-SUNY 2020 challenge grant program; relates to providing for the administration of certain funds and accounts related to the 2008-2009 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to providing for the administration of certain funds and accounts related to the 2009-10 budget, in relation to the effectiveness thereof; relates to the metropolitan transportation authority, the New York city transit authority, and the Triborough bridge and tunnel authority, in relation to authorizations to issue bonds and notes; repeals provisions relating to the reserve funds of private not-for-profit schools established with the dormitory authority; repeals provisions relating to the rural housing assistance fund; repeals provisions relating to penalties for violations of the lobbying act (Part U).
Spectrum: Committee Bill
Status: (Passed) 2012-03-30 - signed chap.59 [A09059 Detail]
Download: New_York-2011-A09059-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
S. 6259--A A. 9059--A
S E N A T E - A S S E M B L Y
January 17, 2012
___________
IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
cle seven of the Constitution -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to
article seven of the Constitution -- read once and referred to the
Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend chapter 540 of the laws of 1992, amending the real prop-
erty tax law relating to oil and gas charges, in relation to the
effective date of such chapter (Part A); to amend the real property
tax law, the tax law, the administrative code of the city of New York
and the state finance law, in relation to the suspension of STAR
exemptions and related benefits of persons who are delinquent in the
payment of outstanding state tax liabilities (Part B); to amend the
tax law, in relation to reforming excise tax on tobacco products,
imposing a fixed rate of tax on loose tobacco, and imposing a retail
tax on cigars (Part C); to amend chapter 109 of the laws of 2006,
amending the tax law relating to providing exemptions, reimbursements
and credits from various taxes for certain alternative fuels, in
relation to extending the alternative fuels tax exemptions (Part D);
to amend the tax law, in relation to making technical amendments to
the tax treatment of diesel fuel to reflect industry practice (Part
E); to amend the tax law, in relation to the power of the commissioner
of taxation and finance to refuse to issue a certificate of authority
to collect the sales and compensating use taxes imposed by article 28
of the tax law and pursuant to the authority of article 29 of the tax
law (Part F); to amend the tax law and part U of chapter 61 of the
laws of 2011, amending the real property tax law, the general munici-
pal law, the public officers law, the tax law, the abandoned property
law, the state finance law and the administrative code of the city of
New York, relating to establishing standards for electronic real prop-
erty tax administration, allowing the department of taxation and
finance to use electronic communication means to furnish tax notices
and other documents, mandatory electronic filing of tax documents,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12674-02-2
S. 6259--A 2 A. 9059--A
debit cards issued for tax refunds, improving sales tax compliance and
repealing certain provisions of the tax law and the administrative
code of the city of New York relating thereto, in relation to making
permanent, provisions relating to mandatory electronic filing of tax
documents and improving sales tax compliance; and to repeal certain
provisions of the tax law and the administrative code of the city of
New York relating thereto (Part G); to amend the tax law, in relation
to the personal income tax credits for solar energy systems equipment
and the sales and use tax exemption provided for such equipment (Part
H); to amend the tax law, in relation to extending the empire state
commercial production tax credit; and to amend part V of chapter 62 of
the laws of 2006 relating to the empire state commercial production
tax credit, in relation to the effectiveness thereof (Part I); to
amend the public housing law, in relation to the credit against income
tax for persons or entities investing in low-income housing (Part J);
to amend the tax law, in relation to extending the biofuel production
tax credit; and to amend part X of chapter 62 of the laws of 2006,
amending the tax law relating to providing tax credits for biofuel
production plants, in relation to the effectiveness thereof (Part K);
to amend chapter 58 of the laws of 2006, relating to providing an
enhanced earned income tax credit, in relation to the effectiveness
thereof (Part L); to amend the civil practice law and rules and the
debtor and creditor law, in relation to prohibiting banking insti-
tutions from deducting levy processing fees from tax and child support
levy proceeds (Part M); to amend the tax law, in relation to tax rates
and exclusions under the metropolitan commuter transportation mobility
tax for professional employer organizations and to amend part B of
chapter 56 of the laws of 2011 amending the tax law relating to the
tax rates and exclusions under the metropolitan commuter transporta-
tion mobility tax, in relation to the effectiveness thereof (Part N);
to amend the racing, pari-mutuel wagering and breeding law, in
relation to licenses for simulcast facilities, sums relating to track
simulcast, simulcast of out-of-state thoroughbred races, simulcasting
of races run by out-of-state harness tracks and distributions of
wagers; to amend chapter 281 of the laws of 1994 amending the racing,
pari-mutuel wagering and breeding law and other laws relating to
simulcasting and chapter 346 of the laws of 1990 amending the racing,
pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, in relation to
extending certain provisions thereof; to amend the racing, pari-mutuel
wagering and breeding law, in relation to extending certain provisions
thereof (Part O); to amend the tax law, in relation to the distrib-
ution of revenue collected from the corporate and utilities taxes
imposed under sections 183 and 184 of the tax law (Part P); and to
amend the tax law and the administrative code of the city of New York,
in relation to facilitating the compliance of room remarketers with
their obligation to collect sales tax on their sales of occupancy
(Part Q)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. This act enacts into law major components of legislation
2 which are necessary to implement the state fiscal plan for the 2012-2013
3 state fiscal year. Each component is wholly contained within a Part
S. 6259--A 3 A. 9059--A
1 identified as Parts A through Q. The effective date for each particular
2 provision contained within such Part is set forth in the last section of
3 such Part. Any provision in any section contained within a Part, includ-
4 ing the effective date of the Part, which makes a reference to a section
5 "of this act", when used in connection with that particular component,
6 shall be deemed to mean and refer to the corresponding section of the
7 Part in which it is found. Section three of this act sets forth the
8 general effective date of this act.
9 PART A
10 Section 1. Section 2 of chapter 540 of the laws of 1992, amending the
11 real property tax law relating to oil and gas charges, as amended by
12 section 1 of part II of chapter 56 of the laws of 2009, is amended to
13 read as follows:
14 S 2. This act shall take effect immediately and shall be deemed to
15 have been in full force and effect on and after April 1, 1992; provided,
16 however that any charges imposed by section 593 of the real property tax
17 law as added by section one of this act shall first be due for values
18 for assessment rolls with tentative completion dates after July 1, 1992,
19 and provided further, that this act shall remain in full force and
20 effect until March 31, [2012] 2015, at which time section 593 of the
21 real property tax law as added by section one of this act shall be
22 repealed.
23 S 2. This act shall take effect immediately and shall be deemed to
24 have been in full force and effect on and after April 1, 2012.
25 PART B
26 Section 1. Subdivision 3 of section 425 of the real property tax law
27 is amended by adding a new paragraph (f) to read as follows:
28 (F) COMPLIANCE WITH STATE TAX OBLIGATIONS. THE PROPERTY'S ELIGIBILITY
29 FOR THE STAR EXEMPTION MUST NOT BE SUSPENDED PURSUANT TO SECTION ONE
30 HUNDRED SEVENTY-ONE-Y OF THE TAX LAW DUE TO THE PAST-DUE STATE TAX
31 LIABILITIES OF ONE OR MORE OF ITS OWNERS. NOTWITHSTANDING ANY PROVISION
32 OF LAW TO THE CONTRARY, WHERE A PROPERTY'S ELIGIBILITY FOR A STAR
33 EXEMPTION HAS BEEN SUSPENDED PURSUANT TO SUCH SECTION, THE FOLLOWING
34 PROVISIONS SHALL BE APPLICABLE:
35 (I) THE PROPERTY SHALL BE INELIGIBLE FOR A BASIC OR ENHANCED STAR
36 EXEMPTION EFFECTIVE WITH THE NEXT SCHOOL YEAR COMMENCING AFTER THE ISSU-
37 ANCE OF NOTICE BY THE DEPARTMENT OF THE SUSPENSION OF ITS ELIGIBILITY
38 FOR THE STAR EXEMPTION, EVEN IF THE NOTICE WAS ISSUED AFTER THE APPLICA-
39 BLE TAXABLE STATUS DATE. IF A STAR EXEMPTION HAS BEEN GRANTED TO SUCH A
40 PROPERTY ON A TENTATIVE OR FINAL ASSESSMENT ROLL, THE ASSESSOR OR OTHER
41 PERSON HAVING CUSTODY OF THAT ROLL IS HEREBY AUTHORIZED AND DIRECTED TO
42 IMMEDIATELY REMOVE THAT STAR EXEMPTION FROM THE ROLL.
43 (II) ANY CHALLENGE TO THE FACTUAL OR LEGAL BASIS BEHIND THE SUSPENSION
44 OF A PROPERTY'S ELIGIBILITY FOR A STAR EXEMPTION PURSUANT TO SECTION ONE
45 HUNDRED SEVENTY-ONE-Y OF THE TAX LAW MUST BE PRESENTED TO THE DEPARTMENT
46 IN THE MANNER PRESCRIBED BY SUCH SECTION. NEITHER AN ASSESSOR NOR A
47 BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO CONSIDER SUCH A CHAL-
48 LENGE.
49 (III) THE PROPERTY SHALL REMAIN INELIGIBLE FOR THE STAR EXEMPTION
50 UNTIL THE DEPARTMENT NOTIFIES THE ASSESSOR THAT THE SUSPENSION OF ITS
51 ELIGIBILITY HAS BEEN LIFTED. ONCE THE ASSESSOR HAS BEEN SO NOTIFIED, THE
S. 6259--A 4 A. 9059--A
1 EXEMPTION MAY BE RESUMED ON A PROSPECTIVE BASIS ONLY, PROVIDED THAT THE
2 ELIGIBILITY REQUIREMENTS OF THIS SECTION ARE OTHERWISE SATISFIED.
3 (IV) IN THE CASE OF A COOPERATIVE APARTMENT OR MOBILE HOME RECEIVING A
4 STAR EXEMPTION PURSUANT TO PARAGRAPH (K) OR (L) OF SUBDIVISION TWO OF
5 THIS SECTION, A SUSPENSION OF A STAR EXEMPTION DUE TO A TAXPAYER'S
6 PAST-DUE STATE TAX LIABILITIES SHALL ONLY APPLY TO THE STAR EXEMPTION ON
7 THE COOPERATIVE APARTMENT OR MOBILE HOME OWNED, OR DEEMED TO BE OWNED,
8 BY THAT TAXPAYER.
9 S 2. The tax law is amended by adding a new section 171-y to read as
10 follows:
11 S 171-Y. ENFORCEMENT OF DELINQUENT STATE TAX LIABILITIES THROUGH THE
12 SUSPENSION OF ELIGIBILITY FOR STAR EXEMPTIONS. 1. THE COMMISSIONER IS
13 HEREBY AUTHORIZED TO DEVELOP A PROGRAM TO COLLECT DELINQUENT STATE TAX
14 LIABILITIES FROM TAXPAYERS THROUGH THE SUSPENSION OF THE ELIGIBILITY OF
15 PROPERTIES FOR STAR EXEMPTIONS WHERE ONE OR MORE OF THE PROPERTY OWNERS
16 HAVE PAST-DUE STATE TAX LIABILITIES. FOR THE PURPOSES OF THIS SECTION,
17 THE TERM "STATE TAX LIABILITY" MEANS ANY TAX (INCLUDING BUT NOT LIMITED
18 TO LOCAL SALES AND INCOME TAXES), SURCHARGE, PENALTY, INTEREST CHARGE OR
19 FEE ADMINISTERED BY THE COMMISSIONER THAT IS OWED BY A TAXPAYER; THE
20 TERM "PAST-DUE STATE TAX LIABILITIES" MEANS ANY STATE TAX LIABILITY OR
21 LIABILITIES WHICH HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER NO
22 LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND FOR WHICH
23 THE TAXPAYER HAS NOT MADE PAYMENT ARRANGEMENTS FOR THAT LIABILITY SATIS-
24 FACTORY TO THE COMMISSIONER; THE TERM "TAXPAYER" SHALL MEAN THE INDIVID-
25 UAL RESPONSIBLE FOR THE PAYMENT OF ANY OF THE PAST-DUE STATE TAX LIABIL-
26 ITIES; AND THE TERM "STAR EXEMPTION" MEANS THE EXEMPTION FROM REAL
27 PROPERTY TAXATION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE
28 REAL PROPERTY TAX LAW.
29 2. THE COMMISSIONER SHALL ESTABLISH PROCEDURES FOR THE ADMINISTRATION
30 OF THIS PROGRAM, WHICH SHALL INCLUDE THE FOLLOWING PROVISIONS:
31 (A) THE CRITERIA FOR IDENTIFYING TAXPAYERS WITH PAST-DUE STATE TAX
32 LIABILITIES.
33 (B) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL DETERMINE WHETHER
34 PROPERTIES OWNED BY SUCH TAXPAYERS ARE RECEIVING THE STAR EXEMPTION.
35 (C) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY SUCH TAXPAYERS
36 THAT THE ELIGIBILITY OF THEIR PROPERTIES FOR THE STAR EXEMPTION WILL BE
37 SUSPENDED UNLESS THEY EITHER SATISFY THEIR PAST-DUE STATE TAX LIABIL-
38 ITIES OR MAKE PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER BY A
39 DATE TO BE SPECIFIED IN THE NOTICE.
40 (D) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY ASSESSORS OF
41 PROPERTIES WHOSE ELIGIBILITY FOR STAR EXEMPTIONS HAS BEEN SUSPENDED DUE
42 TO THE PAST-DUE STATE TAX LIABILITIES OF ONE OR MORE PROPERTY OWNERS.
43 (E) THE PROCEDURES BY WHICH TAXPAYERS MAY ACT TO LIFT SUCH SUSPENSIONS
44 ON A PROSPECTIVE BASIS BY EITHER SATISFYING THEIR PAST-DUE STATE TAX
45 LIABILITIES OR MAKING PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMIS-
46 SIONER.
47 (F) THE PROCEDURES BY WHICH THE DEPARTMENT SHALL NOTIFY ASSESSORS WHEN
48 THE SUSPENSION OF A PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION HAS
49 BEEN LIFTED.
50 (G) THE PROCEDURES BY WHICH THE DEPARTMENT AND ASSESSORS SHALL COORDI-
51 NATE AND EXECUTE THEIR OBLIGATIONS PURSUANT TO THIS SECTION AND PARA-
52 GRAPH (F) OF SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF
53 THE REAL PROPERTY TAX LAW.
54 (H) ANY OTHER MATTER AS THE DEPARTMENT SHALL DEEM NECESSARY TO CARRY
55 OUT THE PROVISIONS OF THIS SECTION.
S. 6259--A 5 A. 9059--A
1 3. THE DEPARTMENT SHALL NOTIFY THE TAXPAYER AT LEAST FORTY-FIVE DAYS
2 PRIOR TO THE DATE THE DEPARTMENT INTENDS TO INFORM THE ASSESSOR OF THE
3 SUSPENSION OF THE ELIGIBILITY FOR THE STAR EXEMPTION OF PROPERTY WHICH
4 IS WHOLLY OR PARTIALLY OWNED BY THE TAXPAYER.
5 (A) SUCH NOTICE SHALL INCLUDE A STATEMENT THAT THE DEPARTMENT WILL
6 NOTIFY THE ASSESSOR OF THE SUSPENSION OF THE ELIGIBILITY FOR THE STAR
7 EXEMPTION OF PROPERTY WHOLLY OR PARTIALLY OWNED BY THE TAXPAYER UNLESS
8 THE TAXPAYER FULLY SATISFIES THE OUTSTANDING STATE TAX LIABILITIES OR
9 OTHERWISE MAKES PAYMENT ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER IN
10 ACCORDANCE WITH LAW. HOWEVER, IN ANY CASE WHERE A TAXPAYER FAILS TO
11 COMPLY WITH THE TERMS OF AN INSTALLMENT PAYMENT AGREEMENT AS DESCRIBED
12 HEREIN MORE THAN ONCE WITHIN A TWELVE MONTH PERIOD, THE COMMISSIONER MAY
13 IMMEDIATELY NOTIFY THE ASSESSOR OF THE SUSPENSION OF THE PROPERTY'S
14 ELIGIBILITY FOR THE STAR EXEMPTION.
15 (B) SUCH NOTICE SHALL ALSO INCLUDE THE INFORMATION NECESSARY FOR THE
16 TAXPAYER TO PAY THE PAST-DUE LIABILITY, MAKE PAYMENT ARRANGEMENTS OR
17 OTHERWISE REQUEST ADDITIONAL INFORMATION.
18 (C) SUCH NOTICE SHALL ALSO STATE THAT THE TAXPAYER'S RIGHT TO PROTEST
19 THE NOTICE IS LIMITED TO RAISING ISSUES THAT CONSTITUTE A MISTAKE OF
20 FACT AS DEFINED IN SUBDIVISION FIVE OF THIS SECTION.
21 (D) SUCH NOTICE SHALL ALSO INCLUDE A STATEMENT THAT THE SUSPENSION OF
22 THE PROPERTY'S STAR EXEMPTION WILL CONTINUE UNTIL THE TAXPAYER HAS
23 SATISFIED HIS OR HER PAST-DUE STATE TAX LIABILITIES OR HAS MADE PAYMENT
24 ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER, AND THAT THE PROPERTY
25 WILL BE PERMANENTLY INELIGIBLE FOR THE STAR EXEMPTION FOR ANY SCHOOL
26 YEARS THAT COMMENCE WHILE ITS ELIGIBILITY FOR THE STAR EXEMPTION IS
27 SUSPENDED.
28 (E) SUCH NOTICE MAY ALSO INCLUDE ANY OTHER INFORMATION THAT THE
29 COMMISSIONER DEEMS NECESSARY.
30 4. IF THE TAXPAYER FAILS TO SATISFY HIS OR HER PAST-DUE STATE TAX
31 LIABILITIES OR MAKE SATISFACTORY PAYMENT ARRANGEMENTS BY THE DATE SPECI-
32 FIED IN THE NOTICE, THE DEPARTMENT SHALL NOTIFY THE ASSESSOR OF THE
33 SUSPENSION OF THE PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION.
34 5. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE NOTICE ISSUED BY
35 THE DEPARTMENT PURSUANT TO THIS SECTION FOR THE PURPOSE OF SUSPENDING
36 THE PROPERTY'S ELIGIBILITY FOR THE STAR EXEMPTION MAY ONLY BE CHALLENGED
37 BEFORE THE DEPARTMENT ON THE GROUNDS OF A MISTAKE OF FACT AS DEFINED IN
38 THIS SUBDIVISION AND THE TAXPAYER WILL HAVE NO RIGHT TO COMMENCE A COURT
39 ACTION, ADMINISTRATIVE PROCEEDING OR ANY OTHER FORM OF LEGAL RECOURSE
40 AGAINST THE DEPARTMENT OR ASSESSOR REGARDING SUCH SUSPENSION. FOR THE
41 PURPOSES OF THIS SUBDIVISION, "MISTAKE OF FACT" IS LIMITED TO CLAIMS
42 THAT: (I) THE INDIVIDUAL NOTIFIED IS NOT THE TAXPAYER AT ISSUE; (II) THE
43 PAST-DUE STATE TAX LIABILITIES WERE SATISFIED; OR (III) THE DEPARTMENT
44 INCORRECTLY FOUND THAT THE TAXPAYER HAS FAILED TO COMPLY WITH THE TERMS
45 OF AN INSTALLMENT PAYMENT AGREEMENT MORE THAN ONCE WITHIN A TWELVE MONTH
46 PERIOD FOR THE PURPOSES OF SUBDIVISION THREE OF THIS SECTION. HOWEVER,
47 NOTHING IN THIS SUBDIVISION IS INTENDED TO LIMIT A TAXPAYER FROM SEEKING
48 RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION SIX HUNDRED
49 FIFTY-FOUR OF THIS CHAPTER TO THE EXTENT THAT HE OR SHE IS ELIGIBLE
50 PURSUANT TO THAT SUBDIVISION OR ESTABLISHING TO THE DEPARTMENT THAT THE
51 ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS BEEN STAYED BY THE
52 FILING OF A PETITION PURSUANT TO THE BANKRUPTCY CODE OF 1978 (TITLE
53 ELEVEN OF THE UNITED STATES CODE).
54 6. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE DEPART-
55 MENT SHALL FURNISH THE APPROPRIATE ASSESSOR WITH THE NAME AND ADDRESS OF
56 ANY TAXPAYER WHO OWNS PROPERTY WHICH HAS BECOME INELIGIBLE FOR THE STAR
S. 6259--A 6 A. 9059--A
1 EXEMPTION PURSUANT TO THIS SECTION AND PARAGRAPH (F) OF SUBDIVISION
2 THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW
3 AND A DESCRIPTION OF SUCH PROPERTY.
4 7. ACTIVITIES TO COLLECT STATE TAX LIABILITIES UNDERTAKEN BY THE
5 DEPARTMENT PURSUANT TO THIS SECTION SHALL NOT IN ANY WAY LIMIT, RESTRICT
6 OR IMPAIR THE DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT
7 OR ENFORCE PAST-DUE STATE TAX LIABILITIES UNDER ANY OTHER APPLICABLE
8 PROVISION OF LAW. THE AMOUNT BY WHICH A TAXPAYER'S PROPERTY TAX LIABIL-
9 ITY INCREASES AS A RESULT OF THE LOSS OF THE STAR EXEMPTION PURSUANT TO
10 PARAGRAPH (F) OF SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE
11 OF THE REAL PROPERTY TAX LAW AND THIS SECTION MAY NOT BE APPLIED IN ANY
12 WAY AS AN OFFSET AGAINST THE AMOUNT OF THE TAXPAYER'S PAST-DUE STATE TAX
13 LIABILITY.
14 S 3. Subsection (e) of section 697 of the tax law is amended by adding
15 a new paragraph 3-b to read as follows:
16 (3-B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH ONE OF THIS
17 SUBSECTION, THE COMMISSIONER MAY DISCLOSE TO ASSESSORS THE INFORMATION
18 DESCRIBED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THIS CHAPTER THAT IS
19 NECESSARY IN THE COMMISSIONER'S DISCRETION FOR THE PROPER IDENTIFICATION
20 OF A TAXPAYER WITH PAST-DUE STATE TAX LIABILITIES WHO OWNS PROPERTY WITH
21 A STAR EXEMPTION THAT IS SUBJECT TO SUSPENSION PURSUANT TO SUCH SECTION
22 AND PARAGRAPH (F) OF SUBDIVISION THREE OF SECTION FOUR HUNDRED
23 TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
24 S 4. The tax law is amended by adding a new section 1304-E to read as
25 follows:
26 S 1304-E. RECALCULATION OF TAX RATE FOR TAXPAYERS WITH PAST-DUE STATE
27 TAX LIABILITIES. WHEN A TAXPAYER OWES A PAST-DUE STATE TAX LIABILITY, AS
28 THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THIS CHAP-
29 TER, ON THE LAST DAY OF THE TAXABLE YEAR, THE TAX RATE APPLICABLE TO
30 SUCH TAXPAYER UNDER SECTION THIRTEEN HUNDRED FOUR OF THIS ARTICLE FOR
31 THE TAXABLE YEAR SHALL BE RECALCULATED BY THE COMMISSIONER SO AS TO
32 ELIMINATE THE REDUCTION TO SUCH TAX RATE MADE BY CHAPTER THREE HUNDRED
33 EIGHTY-NINE OF THE LAWS OF NINETEEN HUNDRED NINETY-SEVEN, AS ADJUSTED.
34 SUCH RECALCULATION SHALL BE TREATED AS A MATHEMATICAL ERROR AND THE
35 COMMISSIONER MAY ISSUE A NOTICE AND DEMAND TO THE TAXPAYER FOR THE
36 AMOUNT DUE AS A RESULT OF SUCH RECALCULATION. THE AMOUNT BY WHICH A
37 TAXPAYER'S INCOME TAX LIABILITY INCREASES AS A RESULT OF THE RECALCU-
38 LATION OF THE APPLICABLE TAX RATE PURSUANT TO THIS SECTION MAY NOT BE
39 APPLIED IN ANY WAY AS AN OFFSET AGAINST THE AMOUNT OF THE TAXPAYER'S
40 PAST-DUE STATE TAX LIABILITY.
41 S 5. Paragraph 1 of subsection (e) of section 1310 of the tax law, as
42 amended by section 3 of part A of chapter 56 of the laws of 1998, is
43 amended to read as follows:
44 (1) For taxable years beginning after nineteen hundred ninety-seven, a
45 state school tax reduction credit shall be allowed as provided in the
46 following tables. The credit shall be allowed against the taxes author-
47 ized by this article reduced by the credits permitted by this article.
48 If the credit exceeds the tax as so reduced, the taxpayer may receive,
49 and the comptroller, subject to a certificate of the commissioner, shall
50 pay as an overpayment, without interest, the amount of such excess. For
51 purposes of this subsection, no credit shall be granted to (A) an indi-
52 vidual with respect to whom a deduction under subsection (c) of section
53 one hundred fifty-one of the internal revenue code is allowable to
54 another taxpayer for the taxable year, OR (B) A TAXPAYER WHO OWES A
55 PAST-DUE STATE TAX LIABILITY, AS THAT TERM IS DEFINED IN SECTION ONE
56 HUNDRED SEVENTY-ONE-Y OF THIS CHAPTER, ON THE LAST DAY OF THE TAXABLE
S. 6259--A 7 A. 9059--A
1 YEAR. IF A TAXPAYER WITH A PAST-DUE STATE TAX LIABILITY CLAIMS THIS
2 CREDIT, ANY AMOUNT OWED AS A RESULT OF THE DENIAL OF THIS CREDIT SHALL
3 BE TREATED AS A MATHEMATICAL ERROR AND THE COMMISSIONER MAY ISSUE A
4 NOTICE AND DEMAND TO THE TAXPAYER FOR SUCH AMOUNT. THE AMOUNT BY WHICH A
5 TAXPAYER'S INCOME TAX LIABILITY INCREASES AS A RESULT OF THE LOSS OF THE
6 TAX CREDIT PURSUANT TO THIS SECTION MAY NOT BE APPLIED IN ANY WAY AS AN
7 OFFSET AGAINST THE AMOUNT OF THE TAXPAYER'S PAST-DUE STATE TAX
8 LIABILITY.
9 S 6. The administrative code of the city of New York is amended by
10 adding a new section 11-1704.2 to read as follows:
11 S 11-1704.2 RECALCULATION OF TAX RATE FOR TAXPAYERS WITH PAST-DUE
12 STATE TAX LIABILITIES. WHEN A TAXPAYER OWES A PAST-DUE STATE TAX LIABIL-
13 ITY, AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-Y OF THE
14 TAX LAW, ON THE LAST DAY OF THE TAXABLE YEAR, THE TAX RATE APPLICABLE TO
15 SUCH TAXPAYER UNDER SECTION 11-1701 OF THIS SUBCHAPTER FOR THE TAXABLE
16 YEAR SHALL BE RECALCULATED BY THE COMMISSIONER OF TAXATION AND FINANCE
17 SO AS TO ELIMINATE THE REDUCTION TO SUCH TAX RATE MADE BY CHAPTER THREE
18 HUNDRED EIGHTY-NINE OF THE LAWS OF NINETEEN HUNDRED NINETY-SEVEN, AS
19 ADJUSTED. SUCH RECALCULATION SHALL BE TREATED AS A MATHEMATICAL ERROR
20 AND THE COMMISSIONER OF TAXATION AND FINANCE MAY ISSUE A NOTICE AND
21 DEMAND TO THE TAXPAYER FOR THE AMOUNT DUE AS A RESULT OF SUCH RECALCU-
22 LATION. THE AMOUNT BY WHICH A TAXPAYER'S INCOME TAX LIABILITY INCREASES
23 AS A RESULT OF THE RECALCULATION OF THE APPLICABLE TAX RATE PURSUANT TO
24 THIS SECTION MAY NOT BE APPLIED IN ANY WAY AS AN OFFSET AGAINST THE
25 AMOUNT OF THE TAXPAYER'S PAST-DUE STATE TAX LIABILITY.
26 S 7. Paragraph 1 of subdivision (c) of section 11-1706 of the adminis-
27 trative code of the city of New York, as amended by section 6 of part A
28 of chapter 56 of the laws of 1998, is amended to read as follows:
29 (1) For taxable years beginning after nineteen hundred ninety-seven, a
30 state school tax reduction credit shall be allowed as provided in the
31 following tables. The credit shall be allowed against the taxes author-
32 ized by this article reduced by the credits permitted by this article.
33 If the credit exceeds the tax as so reduced, the taxpayer may receive,
34 and the comptroller, subject to a certificate of the commissioner, shall
35 pay as an overpayment, without interest, the amount of such excess. For
36 purposes of this subdivision, no credit shall be granted to (A) an indi-
37 vidual with respect to whom a deduction under subsection (c) of section
38 one hundred fifty-one of the internal revenue code is allowable to
39 another taxpayer for the taxable year, OR (B) A TAXPAYER WHO OWES A
40 PAST-DUE STATE TAX LIABILITY, AS THAT TERM IS DEFINED IN SECTION ONE
41 HUNDRED SEVENTY-ONE-Y OF THE TAX LAW, ON THE LAST DAY OF THE TAXABLE
42 YEAR. IF A TAXPAYER WITH A PAST-DUE STATE TAX LIABILITY CLAIMS THIS
43 CREDIT, ANY AMOUNT OWED AS A RESULT OF THE DENIAL OF THIS CREDIT SHALL
44 BE TREATED AS A MATHEMATICAL ERROR AND THE COMMISSIONER OF TAXATION AND
45 FINANCE MAY ISSUE A NOTICE AND DEMAND TO THE TAXPAYER FOR SUCH AMOUNT.
46 THE AMOUNT BY WHICH A TAXPAYER'S INCOME TAX LIABILITY INCREASES AS A
47 RESULT OF THE LOSS OF THE TAX CREDIT PURSUANT TO THIS SECTION MAY NOT BE
48 APPLIED IN ANY WAY AS AN OFFSET AGAINST THE AMOUNT OF THE TAXPAYER'S
49 PAST-DUE STATE TAX LIABILITY.
50 S 8. Paragraph (a) of subdivision 3 of section 54-f of the state
51 finance law, as added by section 139 of part A of chapter 389 of the
52 laws of 1997, is amended to read as follows:
53 (a) The amount of such reimbursement shall be estimated by the commis-
54 sioner of taxation and finance on or before December first of the year
55 preceding the state fiscal year during which such amount is to be paid
56 begins. The commissioner shall use the best available information at his
S. 6259--A 8 A. 9059--A
1 or her disposal to estimate such amount. In addition to such methods and
2 information the commissioner may use in making such estimate, he or she
3 shall consult with the city department of finance during the preparation
4 of the determination of such amount. SUCH REIMBURSEMENT SHALL DISREGARD
5 THE AMOUNT OF BENEFITS RECALCULATED PURSUANT TO SECTION THIRTEEN HUNDRED
6 FOUR-E OF THE TAX LAW AND CREDITS DENIED PURSUANT TO PARAGRAPH ONE OF
7 SUBSECTION (E) OF SECTION THIRTEEN HUNDRED TEN OF THE TAX LAW.
8 S 9. This act shall take effect immediately; provided however that
9 sections four through seven of this act shall apply to taxable years
10 beginning on or after January 1, 2012.
11 PART C
12 Section 1. The article heading of article 20 of the tax law, as
13 amended by chapter 71 of the laws of 1959, is amended to read as
14 follows:
15 TAX ON CIGARETTES, CIGARS AND TOBACCO PRODUCTS
16 S 2. Subdivision 2 of section 470 of the tax law, as amended by
17 section 15 of part D of chapter 134 of the laws of 2010, is amended to
18 read as follows:
19 2. "Tobacco products." Any [cigar, including a little cigar, or]
20 tobacco, other than cigarettes AND CIGARS, intended for consumption [by
21 smoking, chewing, or as snuff].
22 S 3. Subdivision 6 of section 470 of the tax law, as added by chapter
23 61 of the laws of 1989, is amended to read as follows:
24 6. ["Wholesale price." The established price for which a manufacturer
25 sells tobacco products to a distributor, before the allowance of any
26 discount, trade allowance, rebate or other reduction.
27 In the absence of such an established price, a manufacturer's invoice
28 price of any tobacco product shall be presumptive evidence of the whole-
29 sale price of such tobacco product, and in its absence the price at
30 which such tobacco products were purchased shall be presumed to be the
31 wholesale price, unless evidence of a lower wholesale price shall be
32 established or any industry standard of markups relating to the purchase
33 price in relation to the wholesale price shall be established.] "LOOSE
34 TOBACCO." ANY TOBACCO PRODUCTS, OTHER THAN SNUFF AND LITTLE CIGARS.
35 S 4. Subdivision 8 of section 470 of the tax law, as amended by
36 section 1 of part K of chapter 61 of the laws of 2005, is amended to
37 read as follows:
38 8. "Wholesale dealer." Any person who (a) sells cigarettes, CIGARS or
39 tobacco products to retail dealers or other persons for purposes of
40 resale, or (b) owns, operates or maintains one or more cigarette, CIGAR
41 or tobacco product vending machines in, at or upon premises owned or
42 occupied by any other person, or (c) sells cigarettes, CIGARS or tobacco
43 products to an Indian nation or tribe or to a reservation cigarette
44 seller on a qualified reservation.
45 S 5. Subdivision 9 of section 470 of the tax law, as amended by chap-
46 ter 61 of the laws of 1989, is amended to read as follows:
47 9. "Retail dealer." Any person other than a wholesale dealer engaged
48 in selling cigarettes, CIGARS or tobacco products.
49 S 6. Subdivision 12 of section 470 of the tax law, as added by chapter
50 61 of the laws of 1989, is amended to read as follows:
51 12. "Distributor." Any person who imports or causes to be imported
52 into this state any CIGAR OR tobacco product (in excess of fifty cigars
53 or one pound of tobacco) for sale, or who manufactures any CIGAR OR
54 tobacco product in this state, and any person within or without the
S. 6259--A 9 A. 9059--A
1 state who is authorized by the commissioner [of taxation and finance] to
2 make returns and pay the tax on CIGARS OR tobacco products sold, shipped
3 or delivered by [him] SUCH PERSON to any person in the state.
4 S 7. Subdivision 18 of section 470 of the tax law, as added by section
5 1 of part QQ-1 of chapter 57 of the laws of 2008, is amended to read as
6 follows:
7 18. "Snuff." Any finely cut, ground, or powdered tobacco that is not
8 intended to be smoked. SNUFF INCLUDES BOTH MOIST AND DRY SNUFF, AND ANY
9 SMOKELESS TOBACCO PRODUCT SIMILAR IN COMPOSITION AND MAKEUP TO SNUFF.
10 SNUFF DOES NOT INCLUDE CHEWING TOBACCOS SUCH AS PLUG OR TWIST TOBACCO.
11 S 8. Subdivision 19 of section 470 of the tax law, as amended by
12 section 17 of part D of chapter 134 of the laws of 2010, is amended to
13 read as follows:
14 19. "Cigar." Any roll of tobacco wrapped in leaf tobacco or in any
15 substance containing tobacco (other than any roll of tobacco that is a
16 cigarette as defined in subdivision one of this section). "Cigar" shall
17 NOT include[, except where expressly excluded,] any little cigar.
18 S 9. Section 470 of the tax law is amended by adding a new subdivision
19 20 to read as follows:
20 20. "RECEIPT." THE AMOUNT RECEIVED IN OR BY REASON OF ANY SALE, CONDI-
21 TIONAL OR OTHERWISE, OF CIGARS. RECEIPT IS EXPRESSED IN MONEY, WHETHER
22 PAID IN CASH, CREDIT OR PROPERTY OF ANY KIND OR NATURE, AND SHALL BE
23 DETERMINED WITHOUT ANY DEDUCTION THEREFROM ON ACCOUNT OF FEDERAL EXCISE
24 TAXES, MANUFACTURER'S COUPONS, THE COST OF THE SERVICE SOLD OR THE COST
25 OF MATERIALS, LABOR OR SERVICES USED OR OTHER COSTS, INTEREST OR
26 DISCOUNT PAID OR ANY OTHER EXPENSES WHATSOEVER.
27 S 10. Paragraph (a) of subdivision 1 of section 471-b of the tax law,
28 as amended by section 18 of part D of chapter 134 of the laws of 2010,
29 is amended to read as follows:
30 (a) Such tax on LOOSE tobacco [products other than snuff and little
31 cigars] shall be at the rate of [seventy-five percent of the wholesale
32 price] FOUR DOLLARS AND FIFTY-THREE CENTS PER OUNCE AND A PROPORTIONATE
33 RATE ON ANY FRACTIONAL PARTS OF AN OUNCE. SUCH TAX SHALL BE COMPUTED
34 BASED ON THE NET WEIGHT AS LISTED BY THE MANUFACTURER, and is intended
35 to be imposed only once upon the sale of any LOOSE tobacco [products
36 other than snuff and little cigars].
37 S 11. Section 471-b of the tax law is amended by adding a new subdivi-
38 sion 4 to read as follows:
39 4. THE TAX IMPOSED BY THIS SECTION SHALL NOT APPLY TO CIGARS ON OR
40 AFTER, JUNE FIRST, TWO THOUSAND TWELVE.
41 S 12. Subdivision (a) of section 471-c of the tax law, as amended by
42 section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs (i)
43 and (ii) as amended by section 20 and paragraph (iii) as added by
44 section 21 of part D of chapter 134 of the laws of 2010, is amended to
45 read as follows:
46 (a) There is hereby imposed and shall be paid a tax on all tobacco
47 products used in the state by any person, except that no such tax shall
48 be imposed (1) if the tax provided in section four hundred seventy-one-b
49 of this article is paid, or (2) on the use of tobacco products which are
50 exempt from the tax imposed by said section, or (3) on the use of [two
51 hundred fifty cigars or less, or] five pounds or less of tobacco other
52 than roll-your-own tobacco[,] or thirty-six ounces or less of roll-your-
53 own tobacco brought into the state on, or in the possession of, any
54 person.
55 (i) Such tax on LOOSE tobacco [products other than snuff and little
56 cigars] shall be at the rate of [seventy-five percent of the wholesale
S. 6259--A 10 A. 9059--A
1 price] FOUR DOLLARS AND FIFTY-THREE CENTS PER OUNCE AND A PROPORTIONATE
2 RATE ON ANY FRACTIONAL PARTS OF AN OUNCE. SUCH TAX SHALL BE COMPUTED
3 BASED ON THE NET WEIGHT AS LISTED BY THE MANUFACTURER.
4 (ii) Such tax on snuff shall be at the rate of two dollars per ounce
5 and a proportionate rate on any fractional parts of an ounce, provided
6 that cans or packages of snuff with a net weight of less than one ounce
7 shall be taxed at the equivalent rate of cans or packages weighing one
8 ounce. Such tax shall be computed based on the net weight as listed by
9 the manufacturer.
10 (iii) Such tax on little cigars shall be at the same rate imposed on
11 cigarettes under this article and is intended to be imposed only once
12 upon the sale of any little cigars.
13 S 13. The tax law is amended by adding a new section 471-f to read as
14 follows:
15 S 471-F. IMPOSITION OF CIGAR TAX. 1. THERE IS HEREBY IMPOSED AND THERE
16 SHALL BE PAID A TAX OF FIFTY PERCENT UPON THE RECEIPTS FROM EVERY RETAIL
17 SALE OF CIGARS, EXCEPT THAT NO TAX SHALL BE IMPOSED ON CIGARS SOLD UNDER
18 SUCH CIRCUMSTANCES THAT THIS STATE IS WITHOUT POWER TO IMPOSE SUCH TAX,
19 OR SOLD TO THE UNITED STATES, OR SOLD TO OR BY A VOLUNTARY UNINCORPORAT-
20 ED ORGANIZATION OF THE ARMED FORCES OF THE UNITED STATES OPERATING A
21 PLACE FOR THE SALE OF GOODS PURSUANT TO REGULATIONS PROMULGATED BY THE
22 APPROPRIATE EXECUTIVE AGENCY OF THE UNITED STATES, TO THE EXTENT
23 PROVIDED IN SUCH REGULATIONS AND POLICY STATEMENTS OF SUCH AN AGENCY
24 APPLICABLE TO SUCH SALES. SUCH TAX IS INTENDED TO BE IMPOSED ONLY ONCE
25 UPON THE SALE OF ANY CIGARS. IT SHALL BE PRESUMED THAT ALL CIGARS WITHIN
26 THE STATE ARE SUBJECT TO TAX UNTIL THE CONTRARY IS ESTABLISHED, AND THE
27 BURDEN OF PROOF THAT ANY CIGARS ARE NOT TAXABLE HEREUNDER SHALL BE UPON
28 THE PERSON IN POSSESSION THEREOF.
29 2. IT IS INTENDED THAT THE ULTIMATE INCIDENCE OF AND LIABILITY FOR THE
30 TAX SHALL BE UPON THE CONSUMER, AND THAT ANY RETAIL DEALER WHO SHALL PAY
31 THE TAX TO THE COMMISSIONER SHALL COLLECT THE TAX FROM THE PURCHASER OR
32 CONSUMER.
33 3. THE DISTRIBUTOR SHALL BE LIABLE UNDER SECTION FOUR HUNDRED SEVEN-
34 TY-ONE-H OF THIS ARTICLE FOR THE PREPAYMENT OF THE CIGAR TAX ON CIGARS
35 WHICH HE OR SHE IMPORTS OR CAUSES TO BE IMPORTED INTO THE STATE, OR
36 WHICH HE OR SHE MANUFACTURES IN THE STATE, AND EVERY DISTRIBUTOR AUTHOR-
37 IZED BY THE COMMISSIONER TO MAKE RETURNS AND PREPAY THE CIGAR TAX ON
38 CIGARS SOLD, SHIPPED OR DELIVERED BY HIM OR HER TO ANY PERSON IN THE
39 STATE SHALL BE LIABLE FOR THE PREPAYMENT OF THE CIGAR TAX ON ALL CIGARS
40 SO SOLD, SHIPPED OR DELIVERED.
41 4. SEPARATE STATEMENT OF TAX. DISTRIBUTORS, WHOLESALE DEALERS, AND
42 RETAIL DEALERS REQUIRED TO COLLECT OR PASS THROUGH THE TAX IMPOSED BY
43 THIS SECTION SHALL STATE, CHARGE, AND SHOW THAT TAX SEPARATELY FROM THE
44 PRICE OR CHARGE, AND ALSO SEPARATELY FROM ANY OTHER TAX IMPOSED BY THIS
45 ARTICLE OR OTHER LAW ON ANY SALES SLIP, INVOICE, RECEIPT, OR OTHER
46 STATEMENT OR MEMORANDUM OF THE PRICE OR CHARGE, PAID OR PAYABLE, GIVEN
47 TO THE CUSTOMER.
48 S 14. The tax law is amended by adding a new section 471-g to read as
49 follows:
50 S 471-G. USE TAX ON CIGARS. (A) THERE IS HEREBY IMPOSED ON ALL CIGARS
51 USED IN THE STATE BY ANY PERSON, EXCEPT THAT NO SUCH TAX SHALL BE
52 IMPOSED (1) IF THE TAX PROVIDED IN SECTION FOUR HUNDRED SEVENTY-ONE-F OF
53 THIS ARTICLE IS PAID, OR (2) ON THE USE OF CIGARS WHICH ARE EXEMPT FROM
54 THE TAX IMPOSED BY SAID SECTION, OR (3) ON THE USE OF FIFTY CIGARS OR
55 LESS BROUGHT INTO THE STATE ON, OR IN THE POSSESSION OF, ANY PERSON.
56 THERE IS HEREBY IMPOSED AND THERE SHALL BE PAID A TAX OF FIFTY PERCENT
S. 6259--A 11 A. 9059--A
1 UPON ALL RECEIPTS PAID OR REQUIRED TO BE PAID FROM EVERY RETAIL SALE OF
2 CIGARS.
3 (B) WITHIN TWENTY-FOUR HOURS AFTER LIABILITY FOR THE TAX ACCRUES, EACH
4 SUCH PERSON SHALL FILE WITH THE COMMISSIONER A RETURN IN SUCH FORM AS
5 THE COMMISSIONER MAY PRESCRIBE TOGETHER WITH A REMITTANCE OF THE TAX
6 SHOWN TO BE DUE THEREON. FOR PURPOSES OF THIS ARTICLE, THE WORD "USE"
7 MEANS THE EXERCISE OF ANY RIGHT OR POWER ACTUAL OR CONSTRUCTIVE AND
8 SHALL INCLUDE BUT IS NOT LIMITED TO THE RECEIPT, STORAGE OR ANY KEEPING
9 OR RETENTION FOR ANY LENGTH OF TIME, BUT SHALL NOT INCLUDE POSSESSION
10 FOR SALE. ALL THE OTHER PROVISIONS OF THIS ARTICLE, IF NOT INCONSISTENT,
11 SHALL APPLY TO THE ADMINISTRATION AND ENFORCEMENT OF THE TAX IMPOSED BY
12 THIS SECTION IN THE SAME MANNER AS IF THE LANGUAGE OF SAID PROVISIONS
13 HAD BEEN INCORPORATED IN FULL INTO THIS SECTION.
14 S 15. The tax law is amended by adding a new section 471-h to read as
15 follows:
16 S 471-H. PREPAYMENT OF CIGAR TAX. (A)(1) EVERY DISTRIBUTOR SHALL PAY,
17 AS A PREPAYMENT ON ACCOUNT OF THE TAXES IMPOSED BY SECTION FOUR HUNDRED
18 SEVENTY-ONE-F OF THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF THIS
19 ARTICLE, A TAX ON CIGARS POSSESSED FOR SALE OR USE IN THIS STATE, EXCEPT
20 NO TAX SHALL BE REQUIRED TO BE PREPAID ON CIGARS SOLD UNDER CIRCUM-
21 STANCES THAT THIS STATE IS WITHOUT POWER TO IMPOSE SUCH PREPAYMENT OR
22 SOLD TO THE UNITED STATES OR SOLD TO OR BY A VOLUNTARY UNINCORPORATED
23 ORGANIZATION OF THE ARMED FORCES OF THE UNITED STATES OPERATING A PLACE
24 FOR THE SALE OF GOODS PURSUANT TO REGULATIONS PROMULGATED BY THE APPRO-
25 PRIATE EXECUTIVE AGENCY OF THE UNITED STATES, TO THE EXTENT PROVIDED IN
26 SUCH REGULATIONS AND WRITTEN POLICY STATEMENTS OF SUCH AN AGENCY APPLI-
27 CABLE TO SUCH SALES.
28 (2) THE COMMISSIONER MAY, IN THE COMMISSIONER'S DISCRETION, REQUIRE
29 ANY DISTRIBUTOR TO FILE WITH THE DEPARTMENT A BOND ISSUED BY A SURETY
30 COMPANY APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES AS TO
31 SOLVENCY AND RESPONSIBILITY AND AUTHORIZED TO TRANSACT BUSINESS IN THE
32 STATE OR OTHER SECURITY ACCEPTABLE TO THE COMMISSIONER, IN SUCH AMOUNT
33 AS THE COMMISSIONER MAY FIX, TO SECURE THE PAYMENT OF ANY SUMS DUE FROM
34 SUCH DISTRIBUTOR PURSUANT TO THIS SECTION. IF SECURITIES ARE DEPOSITED
35 AS SECURITY UNDER THIS SUBDIVISION, SUCH SECURITIES SHALL BE KEPT IN THE
36 CUSTODY OF THE COMMISSIONER AND MAY BE SOLD BY THE COMMISSIONER IF IT
37 BECOMES NECESSARY TO DO SO IN ORDER TO RECOVER ANY SUMS DUE FROM SUCH
38 DISTRIBUTOR PURSUANT TO THIS SECTION, BUT NO SUCH SALE SHALL BE HAD
39 UNTIL AFTER SUCH DISTRIBUTOR SHALL HAVE HAD AN OPPORTUNITY TO LITIGATE
40 THE VALIDITY OF ANY PREPAYMENT OF TAX IF IT ELECTS TO DO SO. UPON ANY
41 SUCH SALE, THE SURPLUS, IF ANY, ABOVE THE SUMS DUE UNDER THIS SECTION
42 SHALL BE RETURNED TO SUCH DISTRIBUTOR.
43 (3) WHERE CIGARS ARE IMPORTED OR CAUSED TO BE IMPORTED INTO THE STATE,
44 OR MANUFACTURED IN THE STATE, THE AMOUNT OF THE CIGAR TAX REQUIRED TO BE
45 PREPAID PURSUANT TO THIS SECTION SHALL BE TWENTY CENTS ON EACH CIGAR.
46 (B) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE TAXES REQUIRED
47 TO BE PREPAID PURSUANT TO THIS SECTION SHALL BE ADMINISTERED AND
48 COLLECTED IN A LIKE MANNER AS THE TAXES IMPOSED BY SECTIONS FOUR HUNDRED
49 SEVENTY-ONE-F AND FOUR HUNDRED SEVENTY-ONE-G OF THIS ARTICLE. ALL THE
50 PROVISIONS OF THIS ARTICLE RELATING TO OR APPLICABLE TO THE ADMINIS-
51 TRATION, COLLECTION AND DISPOSITION OF THE TAXES IMPOSED BY SUCH
52 SECTIONS SHALL APPLY TO THE TAX REQUIRED TO BE PREPAID UNDER THIS
53 SECTION SO FAR AS SUCH PROVISIONS CAN BE MADE APPLICABLE TO SUCH PREPAY-
54 MENTS OF TAX WITH SUCH LIMITATIONS AS SET FORTH IN THIS ARTICLE AND SUCH
55 MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE
56 TAX SO IMPOSED. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND
S. 6259--A 12 A. 9059--A
1 EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL
2 IN THIS SECTION EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCON-
3 SISTENT WITH A PROVISION OF THIS SECTION OR IS NOT RELEVANT TO THE TAX
4 REQUIRED TO BE PREPAID BY THIS SECTION. FOR PURPOSES OF THIS SECTION,
5 ANY REFERENCE IN THIS ARTICLE TO THE TAX OR TAXES IMPOSED BY SECTIONS
6 FOUR HUNDRED SEVENTY-ONE-F AND FOUR HUNDRED SEVENTY-ONE-G OF THIS ARTI-
7 CLE SHALL BE DEEMED TO REFER TO THE TAX REQUIRED TO BE PREPAID PURSUANT
8 TO THIS SECTION UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED.
9 (C) NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE THE PAYMENT
10 OF THE TAX REQUIRED TO BE PREPAID PURSUANT TO THIS SECTION MORE THAN
11 ONCE UPON CIGARS POSSESSED FOR SALE OR USED WITHIN THE STATE. WHEN THE
12 PREPAID TAX IMPOSED PURSUANT TO THIS SECTION IS PAID, IT SHALL HAVE BEEN
13 SO PAID ON ACCOUNT OF THE TAXES IMPOSED BY SECTIONS FOUR HUNDRED SEVEN-
14 TY-ONE-F OR FOUR HUNDRED SEVENTY-ONE-G OF THIS ARTICLE AND PURSUANT TO
15 THE AUTHORITY OF THIS ARTICLE WITH RESPECT TO THE RETAIL SALE OR THE USE
16 OF CIGARS. NOTHING IN THIS SECTION SHALL MODIFY OR AFFECT THE TAXES
17 IMPOSED BY SECTIONS FOUR HUNDRED SEVENTY-ONE-F AND FOUR HUNDRED SEVEN-
18 TY-ONE-G OF THIS ARTICLE AS APPLIED TO RECEIPTS FROM THE SALE, OR TO THE
19 USE, OF SUCH CIGARS.
20 (D) THE DISTRIBUTOR SHALL BE LIABLE FOR THE PREPAID TAX ON CIGARS
21 WHICH HE OR SHE IMPORTS OR CAUSES TO BE IMPORTED INTO THE STATE, OR
22 WHICH HE OR SHE MANUFACTURES IN THE STATE, AND EVERY DISTRIBUTOR AUTHOR-
23 IZED BY THE COMMISSIONER TO MAKE RETURNS AND PAY THE PREPAID TAX ON
24 CIGARS SOLD, SHIPPED OR DELIVERED BY HIM OR HER TO ANY PERSON IN THE
25 STATE SHALL BE LIABLE FOR THE PREPAID TAX ON ALL CIGARS SO SOLD, SHIPPED
26 OR DELIVERED.
27 S 16. The tax law is amended by adding a new section 471-i to read as
28 follows:
29 S 471-I. REFUNDS AND CREDITS WITH RESPECT TO CIGARS.
30 (A) RETAIL DEALER. (1) A RETAIL DEALER OF CIGARS WHO OR WHICH IS
31 REQUIRED TO COLLECT THE TAXES IMPOSED BY SECTION FOUR HUNDRED
32 SEVENTY-ONE-F OF THIS ARTICLE SHALL BE ALLOWED A REFUND OR CREDIT
33 AGAINST THE AMOUNT OF TAX COLLECTED AND REQUIRED TO BE REMITTED TO THE
34 COMMISSIONER PURSUANT TO THE PROVISIONS OF SECTION FOUR HUNDRED SEVEN-
35 TY-ONE-F OF THIS ARTICLE UPON THE RETAIL SALE OF CIGARS IN THE AMOUNT OF
36 THE TAX ON SUCH CIGARS PREPAID BY OR PASSED THROUGH TO AND INCLUDED IN
37 THE PRICE PAID BY SUCH RETAIL DEALER PURSUANT TO THE PROVISIONS OF
38 SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE.
39 (2) A REFUND OR CREDIT SHALL ALSO BE ALLOWED SUCH RETAIL DEALER FOR
40 THE TAX PREPAID BY OR PASSED THROUGH TO AND INCLUDED IN THE PRICE PAID
41 BY SUCH RETAIL DEALER UPON ANY CIGARS PURSUANT TO THE PROVISIONS OF
42 SECTION FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTICLE IF SUCH CIGARS ARE
43 SOLD AT RETAIL BY SUCH RETAIL DEALER UNDER CIRCUMSTANCES WHERE THE TAXES
44 IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTICLE AND PURSU-
45 ANT TO THE AUTHORITY OF THIS ARTICLE ARE NOT REQUIRED BY THE PROVISIONS
46 OF THIS ARTICLE TO BE COLLECTED AND REMITTED UPON RECEIPTS FROM A RETAIL
47 SALE THEREOF.
48 (B) EXPORT, DESTRUCTION, TAX PAID IN ERROR. WHENEVER ANY CIGARS UPON
49 WHICH THE PREPAID TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF
50 THIS ARTICLE HAS BEEN PAID HAVE BEEN SOLD AND SHIPPED TO ANOTHER STATE
51 FOR SALE OR USE THERE OR HAVE BECOME UNFIT FOR USE OR UNSALABLE, OR HAVE
52 BEEN DESTROYED, OR WHENEVER THE COMMISSIONER SHALL HAVE DETERMINED THAT
53 ANY TAX REQUIRED TO BE PREPAID BY SUCH SECTION FOUR HUNDRED
54 SEVENTY-ONE-H OF THIS ARTICLE SHALL HAVE BEEN PAID IN ERROR, THE
55 DISTRIBUTOR OR DEALER, AS THE CASE MAY BE, SHALL BE ENTITLED TO A REFUND
S. 6259--A 13 A. 9059--A
1 OR CREDIT OF THE ACTUAL AMOUNT OF PREPAID TAX SO PAID WITH RESPECT TO
2 CIGARS WHICH WILL NOT BE POSSESSED FOR SALE OR USE IN THIS STATE.
3 (C) REFUNDS OF THE TAX REQUIRED TO BE PREPAID PURSUANT TO THE
4 PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE SHALL
5 BE ALLOWED ONLY TO THE EXTENT SUCH TAX PAID BY OR PASSED THROUGH TO THE
6 RETAIL DEALER, OR THE PURCHASER OR USER, EXCEEDS THE AMOUNT OF TAX
7 REQUIRED TO BE COLLECTED FROM SUCH PERSON OR REQUIRED TO BE REMITTED BY
8 THE PROVISIONS OF THIS ARTICLE.
9 (D) A REFUND OR CREDIT SHALL BE ALLOWED UNDER THIS SECTION ONLY TO THE
10 EXTENT THAT THE TAX REQUIRED TO BE PREPAID PURSUANT TO SECTION FOUR
11 HUNDRED SEVENTY-ONE-H OF THIS ARTICLE HAS BEEN PREPAID BY OR PASSED
12 THROUGH TO SUCH RETAIL DEALER, PURCHASER OR USER, BUT ONLY TO THE EXTENT
13 THAT THE TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTI-
14 CLE TOGETHER WITH THE TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-G
15 OF THIS ARTICLE REQUIRED TO BE PAID, COLLECTED AND REMITTED HAS BEEN
16 PAID, COLLECTED AND REMITTED.
17 (E) SUCH REFUNDS AND CREDITS SHALL BE SUBJECT TO THE PROVISIONS OF
18 SECTION FOUR HUNDRED SEVENTY-SIX OF THIS ARTICLE AS IF SUCH SECTION WAS
19 INCORPORATED IN FULL INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE
20 REFUNDS AND CREDITS AUTHORIZED BY THIS SECTION INCLUDING THE PERIODS OF
21 LIMITATIONS ON PAYMENTS AND APPLICATIONS TO THE COMMISSIONER; PROVIDED,
22 HOWEVER, THAT, AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-SIX OF THIS
23 ARTICLE, NO INTEREST SHALL BE ALLOWED OR PAID UPON ANY REFUND MADE OR
24 CREDIT ALLOWED PURSUANT TO SUBDIVISIONS (A) AND (B) OF THIS SECTION. THE
25 COMMISSIONER SHALL PROCESS APPLICATIONS FOR REFUND AS EXPEDITIOUSLY AS
26 POSSIBLE.
27 S 17. The tax law is amended by adding a new section 471-j to read as
28 follows:
29 S 471-J. SPECIAL PROVISION AS TO IMPOSITION OF TAXES ON CERTAIN
30 CIGARS. IF A PERSON SHALL RECEIVE ANY CIGARS, UPON WHICH CIGARS THIS
31 STATE WAS WITHOUT POWER TO IMPOSE THE TAXES UNDER THIS ARTICLE, AND SUCH
32 PERSON SHALL THEREAFTER POSSESS SUCH CIGARS FOR SALE OR USE ANY SUCH
33 CIGARS IN SUCH MANNER AND UNDER SUCH CIRCUMSTANCES AS MAY SUBJECT THE
34 SAME TO THE TAXING POWER OF THIS STATE WITH RESPECT TO SUCH POSSESSION
35 FOR SALE OR USE, SUCH PERSON SHALL BE LIABLE FOR THE TAX IMPOSED BY
36 SECTION FOUR HUNDRED SEVENTY-ONE-F OR FOUR HUNDRED SEVENTY-ONE-G OF THIS
37 ARTICLE, AS THE CASE MAY BE WITH RESPECT TO SUCH SALE OR USE, AND SHALL
38 MAKE THE SAME REPORTS AND RETURNS, PAY THE SAME TAXES AND BE SUBJECT TO
39 ALL OTHER PROVISIONS OF THIS ARTICLE RELATING TO DISTRIBUTORS OR RETAIL
40 DEALERS, EXCEPT THAT SUCH A PERSON SHALL NOT BE SUBJECT TO THE
41 PROVISIONS OF SECTIONS FOUR HUNDRED SEVENTY-TWO AND FOUR HUNDRED EIGHTY
42 OF THIS ARTICLE IF SUCH PERSON DOES NOT OFFER CIGARS FOR SALE.
43 S 18. The tax law is amended by adding a new section 471-k to read as
44 follows:
45 S 471-K. COLLECTION OF TAX FROM CUSTOMER; FILING OF RETURNS AND
46 PAYMENT.
47 (A)(1) EVERY RETAIL DEALER SHALL COLLECT THE TAX IMPOSED BY SECTION
48 FOUR HUNDRED SEVENTY-ONE-F OF THIS ARTICLE FROM THE CUSTOMER WHEN
49 COLLECTING THE RECEIPT TO WHICH IT APPLIES. EACH CUSTOMER SHALL BE GIVEN
50 SOME INDICIA OF SALE, INCLUDING SALES SLIP, INVOICE, RECEIPT OR OTHER
51 STATEMENT OR MEMORANDUM OF THE PRICE, UPON WHICH THE TAX SHALL BE STAT-
52 ED, CHARGED AND SHOWN SEPARATELY.
53 (2) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ALL THE PROVISIONS
54 OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER RELATING TO THE PERSONAL LIABIL-
55 ITY FOR THE TAX, ADMINISTRATION AND COLLECTION AND DETERMINATION OF TAX,
56 INCLUDING SECTION ELEVEN HUNDRED THIRTY-EIGHT OF THIS CHAPTER RELATING
S. 6259--A 14 A. 9059--A
1 TO DETERMINATION OF TAX BUT NOT INCLUDING SECTION ELEVEN HUNDRED FORTY-
2 FIVE OF THIS CHAPTER, SHALL APPLY TO THE TAX IMPOSED BY SECTION FOUR
3 HUNDRED SEVENTY-ONE-F OF THIS ARTICLE IN THE SAME MANNER AND WITH THE
4 SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH PROVISIONS OF SUCH
5 ARTICLE TWENTY-EIGHT HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE,
6 EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH
7 A PROVISION OF THIS SECTION OR IS NOT RELEVANT THERETO AND WITH SUCH
8 OTHER MODIFICATIONS AS MAY BE NECESSARY TO ADAPT THE LANGUAGE OF SUCH
9 PROVISIONS TO THE PROVISIONS OF THIS SECTION. PROVIDED, HOWEVER ALL
10 TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER
11 UNDER SECTIONS FOUR HUNDRED SEVENTY-ONE-F, FOUR HUNDRED SEVENTY-ONE-G,
12 AND FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE SHALL BE DEPOSITED AND
13 DISPOSED OF PURSUANT TO SECTION FOUR HUNDRED EIGHTY-TWO OF THIS ARTICLE.
14 PROVIDED, THE COMMISSIONER MAY REQUIRE RETURNS TO BE FILED WITH HIM OR
15 HER AT SUCH TIMES AND CONTAINING SUCH INFORMATION AS HE OR SHE MAY
16 PRESCRIBE.
17 (B) (1) (I) NO PERSON SHALL PURCHASE CIGARS IN THIS STATE, EXCLUDING A
18 PURCHASE AT RETAIL, UNLESS THE TAX REQUIRED TO BE PREPAID BY SECTION
19 FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE HAS BEEN ASSUMED BY A
20 DISTRIBUTOR REGISTERED UNDER THIS ARTICLE IN ACCORDANCE WITH A CERTIF-
21 ICATION UNDER THIS PARAGRAPH OR PAID BY SUCH DISTRIBUTOR, AND, IN EACH
22 OF SUCH INSTANCES, IS PASSED THROUGH TO SUCH PURCHASER. IN ADDITION TO
23 ANY OTHER CIVIL AND CRIMINAL PENALTIES WHICH MAY APPLY, ANY PERSON WHO
24 PURCHASES CIGARS IN VIOLATION OF THIS SUBPARAGRAPH SHALL BE JOINTLY AND
25 SEVERALLY LIABLE TO PAY THE TAX REQUIRED TO BE PREPAID BY SECTION FOUR
26 HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WITH RESPECT TO SUCH CIGARS.
27 (II) FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND
28 TO PREVENT EVASION OF THE TAX ON CIGARS IMPOSED BY AND PURSUANT TO THIS
29 ARTICLE, IT SHALL BE PRESUMED THAT ALL CIGARS IMPORTED, MANUFACTURED OR
30 SOLD, RECEIVED OR POSSESSED IN THE STATE IS INTENDED FOR USE, DISTRIB-
31 UTION, STORAGE OR SALE IN THE STATE AND SUBJECT TO THE TAX REQUIRED TO
32 BE PREPAID BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE UNTIL
33 THE CONTRARY IS ESTABLISHED. IT SHALL BE FURTHER PRESUMED THAT ALL
34 CIGARS SO IMPORTED, MANUFACTURED, SOLD, RECEIVED OR POSSESSED IN THE
35 STATE BY ANY PERSON ARE SUBJECT TO THE TAX REQUIRED TO BE PREPAID UNDER
36 SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE AND SUCH PERSON IS
37 RESPONSIBLE FOR SUCH PREPAYMENT. THE BURDEN OF PROVING THAT ANY CIGARS
38 ARE NOT SO SUBJECT SHALL BE UPON THE PERSON SO RESPONSIBLE FOR SUCH
39 PREPAYMENT WITH RESPECT TO SUCH CIGARS.
40 (III) UPON EACH SALE OF CIGARS, OTHER THAN A SALE AT RETAIL, THE SELL-
41 ER MUST GIVE TO THE PURCHASER AND THE PURCHASER SHALL RECEIVE, AT THE
42 TIME OF DELIVERY OF SUCH CIGARS, A CERTIFICATION CONTAINING SUCH INFOR-
43 MATION AS THE COMMISSIONER SHALL REQUIRE WHICH SHALL INCLUDE A STATEMENT
44 TO THE EFFECT (A) IF SUCH SELLER IS A DISTRIBUTOR REGISTERED UNDER THIS
45 ARTICLE, THAT HE OR SHE HAS ASSUMED THE PAYMENT OF OR PAID THE TAX
46 REQUIRED TO BE PREPAID BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS
47 ARTICLE AND, IN EACH CASE, IS PASSING THROUGH SUCH TAX OR (B) THAT SUCH
48 SELLER IS PASSING THROUGH SUCH TAX WHICH WAS SO PREVIOUSLY ASSUMED OR
49 PAID BY AN IDENTIFIED DISTRIBUTOR OR WHOLESALE DEALER REGISTERED UNDER
50 THIS ARTICLE, AND PASSED THROUGH TO HIM OR HER.
51 (IV) IF THE CERTIFICATION REQUIRED BY THIS PARAGRAPH HAS BEEN
52 FURNISHED TO THE PURCHASER BY THE SELLER AT DELIVERY AND ACCEPTED IN
53 GOOD FAITH, THE BURDEN OF PROVING THAT THE TAX REQUIRED TO BE PAID BY
54 SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WAS ASSUMED OR PAID
55 BY A DISTRIBUTOR REGISTERED UNDER THIS ARTICLE AND PASSED THROUGH SHALL
56 BE SOLELY ON THE SELLER.
S. 6259--A 15 A. 9059--A
1 (V) WHERE THE CERTIFICATION REQUIRED UNDER THIS PARAGRAPH IS NOT
2 FURNISHED BY THE SELLER AT DELIVERY OF CIGARS, IT SHALL BE PRESUMED THAT
3 THE TAX REQUIRED TO BE PREPAID BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF
4 THIS ARTICLE HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR REGISTERED AS
5 SUCH UNDER THIS ARTICLE AND THAT THE PURCHASER IN SUCH CASE IS JOINTLY
6 AND SEVERALLY LIABLE FOR THE TAX.
7 S 19. Subdivision 3 of section 472 of the tax law, as added by chapter
8 61 of the laws of 1989 and as further amended by section 104 of part A
9 of chapter 62 of the laws of 2011, is amended to read as follows:
10 3. The commissioner [of taxation and finance] may appoint dealers in
11 CIGARS AND tobacco products, manufacturers of CIGARS AND tobacco
12 products and other persons within or without the state as distributors
13 and may authorize them to make returns and to pay the tax on CIGARS AND
14 tobacco products sold, shipped or delivered by them to any person in the
15 state. The commissioner may, in his OR HER discretion, require the
16 deposit of a bond issued by a surety company approved by the superinten-
17 dent of financial services as to solvency and responsibility and author-
18 ized to transact business in this state, or other security acceptable to
19 the commissioner in an amount and form satisfactory to him OR HER as a
20 condition of appointing any such person as a distributor. If securities
21 are deposited as security under this subdivision, such securities shall
22 be kept in the custody of the commissioner [of taxation and finance] and
23 may be sold by the commissioner if it becomes necessary so to do in
24 order to recover any sums due from such distributor pursuant to this
25 article, but no such sale shall be had until after such distributor
26 shall have had an opportunity to litigate the validity of any tax if it
27 elects so to do. Upon any such sale, the surplus, if any, above the sums
28 due under this article shall be returned to such distributor.
29 S 20. Section 473-a of the tax law, as added by chapter 61 of the laws
30 of 1989, is amended to read as follows:
31 S 473-a. Returns and payment of CIGARS PREPAID AND tobacco products
32 [tax] TAXES by distributors. 1. (A) Every distributor shall, on or
33 before the twentieth day of each month, file with the commissioner [of
34 taxation and finance] a return on forms to be prescribed and furnished
35 by the commissioner, showing the quantity and [wholesale price] WEIGHT
36 of all tobacco products OR QUANTITY OF CIGARS imported or caused to be
37 imported into the state by him OR HER or manufactured in the state by
38 him OR HER, during the preceding calendar month. Every distributor
39 authorized by the commissioner to make returns and pay the tax on CIGARS
40 OR tobacco products sold, shipped or delivered by him OR HER to any
41 person in the state shall file a return showing the quantity and [whole-
42 sale price] WEIGHT of all tobacco products so sold, shipped or delivered
43 during the preceding calendar month. Provided, however, the commissioner
44 may, if he OR SHE deems it necessary in order to insure the payment of
45 the taxes imposed by this article, require returns to be made at such
46 times and covering such periods as he OR SHE may deem necessary, and, by
47 regulation, may permit the filing of returns on a quarterly, semi-annual
48 or annual basis, or may waive the filing of returns by a distributor for
49 such time and upon such terms as he OR SHE may deem proper if satisfied
50 that no tax imposed by this article is or will be payable by him OR HER
51 during the time for which returns are waived. Such returns shall contain
52 such further information as the commissioner may require.
53 (B) EVERY DISTRIBUTOR SHALL, ON OR BEFORE THE TWENTIETH DAY OF EACH
54 MONTH, FILE WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED AND
55 FURNISHED BY THE COMMISSIONER, SHOWING THE QUANTITY OF ALL CIGARS
56 IMPORTED OR CAUSED TO BE IMPORTED INTO THE STATE BY HIM OR HER OR MANU-
S. 6259--A 16 A. 9059--A
1 FACTURED IN THE STATE BY HIM OR HER, DURING THE PRECEDING CALENDAR
2 MONTH. EVERY DISTRIBUTOR AUTHORIZED BY THE COMMISSIONER TO MAKE RETURNS
3 AND PAY THE CIGAR PREPAID TAX ON CIGARS SOLD, SHIPPED OR DELIVERED BY
4 HIM OR HER TO ANY PERSON IN THE STATE SHALL FILE A RETURN SHOWING THE
5 QUANTITY OF ALL CIGARS SO SOLD, SHIPPED OR DELIVERED DURING THE PRECED-
6 ING CALENDAR MONTH. PROVIDED, HOWEVER, THE COMMISSIONER MAY, IF HE OR
7 SHE DEEMS IT NECESSARY IN ORDER TO INSURE THE PAYMENT OF THE CIGAR
8 PREPAID TAX IMPOSED BY THIS ARTICLE, REQUIRE RETURNS TO BE MADE AT SUCH
9 TIMES AND COVERING SUCH PERIODS AS HE OR SHE MAY DEEM NECESSARY, AND, BY
10 REGULATION, MAY PERMIT THE FILING OF RETURNS ON A QUARTERLY, SEMI-ANNUAL
11 OR ANNUAL BASIS, OR MAY WAIVE THE FILING OF RETURNS BY A DISTRIBUTOR FOR
12 SUCH TIME AND UPON SUCH TERMS AS HE OR SHE MAY DEEM PROPER IF SATISFIED
13 THAT NO CIGAR PREPAID TAX IMPOSED BY THIS ARTICLE IS OR WILL BE PAYABLE
14 BY HIM OR HER DURING THE TIME FOR WHICH RETURNS ARE WAIVED. SUCH RETURNS
15 SHALL CONTAIN SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE.
16 2. Every distributor shall pay to the commissioner with the filing of
17 such return the tax on CIGARS OR tobacco products for such month imposed
18 under this article.
19 S 21. Subdivisions 2, 3 and 4 of section 474 of the tax law, subdivi-
20 sion 2 as amended by chapter 552 of the laws of 2008, subdivision 3 as
21 added and subdivision 4 as amended by chapter 61 of the laws of 1989,
22 are amended to read as follows:
23 2. Every person who shall possess or transport more than [two hundred]
24 fifty cigars, or more than five pounds of tobacco other than roll-your-
25 own tobacco[,] or more than thirty-six ounces of roll-your-own tobacco
26 upon the public highways, roads or streets of the state, shall be
27 required to have in [his] SUCH PERSON'S actual possession invoices or
28 delivery tickets for such CIGARS OR tobacco products. Such invoices or
29 delivery tickets shall show the name and address of the consignor or
30 seller, the name and address of the consignee or purchaser, the
31 quantity, WEIGHT and brands of the CIGARS OR tobacco products trans-
32 ported, and the name and address of the person who has or shall assume
33 the payment of the tax [and the wholesale price] or the tax paid or
34 payable. The absence of such invoices or delivery tickets shall be prima
35 facie evidence that such person is a dealer in CIGARS OR tobacco
36 products in this state and subject to the requirements of this article.
37 3. Every dealer or distributor or employee thereof, or other person
38 acting on behalf of a dealer or distributor, who shall possess or trans-
39 port more than fifty cigars or more than one pound of tobacco upon the
40 public highways, roads or streets of the state, shall be required to
41 have in his OR HER actual possession invoices or delivery tickets for
42 such CIGARS OR tobacco products. Such invoices or delivery tickets shall
43 show the name and address of the consignor or seller, the name and
44 address of the consignee or purchaser, the quantity, WEIGHT and brands
45 of the CIGARS OR tobacco products transported, and the name and address
46 of the person who has or shall assume the payment of the tax [and the
47 wholesale price] or the tax paid or payable. The absence of such
48 invoices or delivery tickets shall be prima facie evidence that the tax
49 imposed by this article on CIGARS OR tobacco products has not been paid
50 and is due and owing.
51 4. At the time of delivering cigarettes to any person each agent or
52 wholesale dealer, and at the time of delivering CIGARS OR tobacco
53 products to any person each distributor or wholesale dealer of CIGARS OR
54 tobacco products, shall make a true duplicate invoice showing the date
55 of delivery, the number of packages and number of cigarettes contained
56 therein, in each shipment of cigarettes delivered, and the items and
S. 6259--A 17 A. 9059--A
1 quantity and [wholesale price] WEIGHT of each item in each shipment of
2 tobacco products OR QUANTITY OF CIGARS delivered, and the name of the
3 purchaser to whom delivery is made, and shall retain the same for a
4 period of three years subject to the use and inspection of the commis-
5 sioner [of taxation and finance]. Each dealer shall procure and retain
6 invoices showing the number of packages and number of cigarettes
7 contained therein, in each shipment of cigarettes received by him OR
8 HER, and the items and quantity and [wholesale price] WEIGHT of each
9 item in each shipment of CIGARS OR tobacco products received by him OR
10 HER, the date thereof, and the name of the shipper, and shall retain the
11 same for a period of three years subject to the use and inspection of
12 the commissioner [of taxation and finance]. The commissioner [of taxa-
13 tion and finance] by regulation may provide that whenever cigarettes,
14 CIGARS or tobacco products are shipped into the state, the railroad
15 company, express company, trucking company or other public carrier
16 transporting any shipment thereof shall file with the commissioner [of
17 taxation and finance] a copy of the freight bill within ten days after
18 the delivery in the state of each shipment. All dealers shall maintain
19 and keep for a period of three years such other records of cigarettes,
20 CIGARS or tobacco products received, sold or delivered within the state
21 as may be required by the commissioner [of taxation and finance]. The
22 commissioner [of taxation and finance] is hereby authorized to examine
23 the books, papers, invoices and other records of any person in
24 possession, control or occupancy of any premises where cigarettes,
25 CIGARS or tobacco products are placed, stored, sold or offered for sale,
26 and the equipment of any such person pertaining to the stamping of ciga-
27 rettes or the sale and delivery of cigarettes, CIGARS or tobacco
28 products taxable under this article, as well as the stock of cigarettes,
29 CIGARS or tobacco products in any such premises or vehicle. To verify
30 the accuracy of the tax imposed and assessed by this article, each such
31 person is hereby directed and required to give to the commissioner [of
32 taxation and finance] or his OR HER duly authorized representatives, the
33 means, facilities and opportunity for such examinations as are herein
34 provided for and required.
35 S 22. The section heading of section 475 of the tax law, as amended by
36 chapter 227 of the laws of 1956, is amended to read as follows:
37 General powers of the [tax commission] COMMISSIONER.
38 S 23. Section 476 of the tax law, as amended by chapter 61 of the laws
39 of 1989, is amended to read as follows:
40 S 476. Refunds; sales of stamps. Whenever any cigarettes upon which
41 stamps have been placed or CIGARS OR tobacco products upon which the tax
42 has been paid have been sold and shipped into another state for sale or
43 use there or have become unfit for use and consumption or unsalable, or
44 have been destroyed, or whenever the commissioner [of taxation and
45 finance] shall have determined that any tax imposed by this article
46 shall have been paid in error, the agent, dealer or CIGAR OR tobacco
47 products distributor, as the case may be, shall be entitled to a refund
48 of the actual amount of tax so paid, provided application therefor is
49 filed with the commissioner [of taxation and finance] within two years
50 after the stamps were affixed to such cigarettes or the tax was paid
51 upon such CIGARS OR tobacco products, except if an agreement under the
52 provisions of section four hundred seventy-eight OF THIS ARTICLE
53 (extending the period for determination of tax imposed by this article)
54 is made within the two-year period for the filing of an application for
55 refund provided for in this section, the period for filing an applica-
56 tion for refund shall not expire prior to six months after the expira-
S. 6259--A 18 A. 9059--A
1 tion of the period within which a determination may be made pursuant to
2 the agreement or any extension thereof. If the commissioner [of taxation
3 and finance] is satisfied that any dealer is entitled to a refund he OR
4 SHE shall issue to such dealer stamps of sufficient value to cover the
5 refund of the tax on cigarettes or may, subject to audit by the comp-
6 troller, make a refund of the tax on cigarettes or on CIGARS OR tobacco
7 products. No person shall sell or offer for sale any stamp or stamps
8 issued under this article except by written permission of the commis-
9 sioner [of taxation and finance]. The commissioner [of taxation and
10 finance] may redeem unused stamps lawfully in possession of any person.
11 The commissioner [of taxation and finance] may prescribe necessary rules
12 and regulations concerning refunds, sales of stamps, and redemptions
13 under the provisions of this article.
14 S 24. Paragraph (d) of subdivision 1 of section 480 of the tax law, as
15 added by chapter 629 of the laws of 1996, is amended to read as follows:
16 (d) Each applicant shall file satisfactory proof that it will maintain
17 a secure separate warehousing facility for the purpose of receiving and
18 distributing cigarettes, CIGARS or tobacco products and conducting its
19 wholesale business. Such proof shall consist of a copy of a deed, or a
20 copy of an executed lease for a minimum period of two years, to a sepa-
21 rate, secure warehouse. If the applicant carries on another business in
22 conjunction with the warehouse facility, the other business shall also
23 be identified.
24 S 25. Paragraph (j) of subdivision 1 of section 480 of the tax law, as
25 amended by chapter 629 of the laws of 1996, is amended to read as
26 follows:
27 (j) The commissioner may for cause refuse to issue, or may suspend or
28 revoke a wholesaler's license, or may forbid a retail dealer to continue
29 selling cigarettes, CIGARS or tobacco products or may forbid a person
30 required to be appointed as a distributor of CIGARS OR tobacco products
31 who has not been so appointed from selling cigarettes, CIGARS or tobacco
32 products, after an opportunity for hearing has been afforded. A
33 violation of any provision of this article or of any regulation issued
34 under it shall be cause to forbid a retail dealer to continue selling
35 cigarettes, CIGARS or tobacco products.
36 S 26. Paragraph (k) of subdivision 1 of section 480 of the tax law, as
37 amended by chapter 262 of the laws of 2000, is amended to read as
38 follows:
39 (k) No agent shall sell cigarettes and no distributor shall sell
40 CIGARS OR tobacco products to an unlicensed wholesale dealer, or to a
41 wholesale dealer whose license has been suspended or revoked, or to a
42 retail dealer who is not registered under section four hundred eighty-a
43 of this article, or whose registration has been suspended or revoked,
44 and no wholesale dealer shall sell cigarettes, CIGARS or tobacco
45 products to a retail dealer who is not registered under section four
46 hundred eighty-a of this article, or whose registration has been
47 suspended or revoked, and no retail dealer shall sell cigarettes, CIGARS
48 or tobacco products unless such dealer is registered under section four
49 hundred eighty-a of this article.
50 S 27. Paragraph (l) of subdivision 1 of section 480 of the tax law, as
51 added by chapter 629 of the laws of 1996, is amended to read as follows:
52 (l) Paragraphs (b), (c) and (g) of this subdivision shall not apply to
53 the filing of an application for a license as a wholesale dealer that is
54 based solely upon the ownership, operation or maintenance of one or more
55 cigarette, CIGAR or tobacco products vending machines in, at or upon
56 premises owned or occupied by another person, or that is based solely
S. 6259--A 19 A. 9059--A
1 upon the sale of CIGARS OR tobacco products for resale, or that is based
2 upon both the ownership, operation or maintenance of one or more ciga-
3 rette, CIGAR or tobacco products vending machines in, at or upon prem-
4 ises owned or occupied by another person and the sale of CIGARS OR
5 tobacco products for resale.
6 S 28. Subparagraph (iv) of paragraph (b) of subdivision 3 of section
7 480 of the tax law, as amended by chapter 61 of the laws of 1989, is
8 amended to read as follows:
9 (iv) Has knowingly aided and abetted the sale of cigarettes, CIGARS or
10 tobacco products by a person which such licensee or controlling person
11 knows (A) has not been licensed by the commissioner [of taxation and
12 finance] and (B) is a wholesale dealer pursuant to the terms of subdivi-
13 sion eight of section four hundred seventy of this [chapter] ARTICLE.
14 S 29. Subdivision 4 of section 480 of the tax law, as amended by chap-
15 ter 61 of the laws of 1989, is amended to read as follows:
16 4. If the commissioner [of taxation and finance] considers it neces-
17 sary for the proper administration of the cigarette tax, CIGAR TAX or
18 tobacco products tax imposed by this article or the cigarette marketing
19 standards contained in article twenty-A of this chapter he OR SHE may
20 require every person under this article who holds a license to file a
21 new application for a license in such form and at such time as the
22 commissioner may prescribe and to surrender such license. The commis-
23 sioner may require such filing and such surrender not more often than
24 once every three years. Upon the filing of such application with the
25 proper fee and the surrender of such license, the commissioner shall
26 issue, within such time as he OR SHE may prescribe, a new license to
27 each applicant.
28 S 30. Paragraphs (a) and (b) of subdivision 1 of section 480-a of the
29 tax law, as added by chapter 190 of the laws of 1990, are amended to
30 read as follows:
31 (a) [On and after January first, nineteen hundred ninety-one, every]
32 EVERY retail dealer shall publicly display a certificate of registration
33 from the department in each place of business in this state through
34 which it sells cigarettes, CIGARS or tobacco products at retail. A
35 retail dealer who has no regular place of business shall publicly
36 display such certificate on each of its carts, stands, trucks or other
37 merchandising devices through which it sells cigarettes, CIGARS or
38 tobacco products in this state.
39 (b) Every person who owns or, if the owner is not the operator, then
40 any person who operates one or more vending machines through which ciga-
41 rettes, CIGARS or tobacco products are sold in this state, regardless of
42 whether located on the premises of the vending machine owner or, if the
43 owner is not the operator, then the premises of the operator or the
44 premises of any other person, must register each such vending machine
45 with the department. [On and after January first, nineteen hundred nine-
46 ty-one, a] A vending machine registration certificate, in such form as
47 may be prescribed by the commissioner [of taxation and finance], shall
48 be affixed to each vending machine through which cigarettes, CIGARS or
49 tobacco products are sold in this state.
50 S 31. Paragraphs (a) and (b) of subdivision 2 of section 480-a of the
51 tax law, as amended by section 1 of part T of chapter 61 of the laws of
52 2011, are amended to read as follows:
53 (a) (i) Every retail dealer and every person owning or, if the owner
54 is not the operator, then any person operating one or more vending
55 machines through which cigarettes, CIGARS or tobacco products are sold
56 in this state, who is required under section eleven hundred thirty-six
S. 6259--A 20 A. 9059--A
1 of this chapter to file a return for the quarterly period ending on the
2 last day of August OF EACH YEAR, [nineteen hundred ninety or for the
3 quarterly period ending on the last day of August in any year thereaft-
4 er,] must file an application for registration under this section with
5 that quarterly return, in such form as shall be prescribed by the
6 commissioner.
7 (ii) Each retail dealer must pay an application fee with the quarterly
8 return of three hundred dollars for each retail place of business in
9 this state through which it sells cigarettes, CIGARS or tobacco
10 products.
11 (iii) Every person who owns or, if the owner is not the operator, then
12 any person who operates one or more vending machines through which ciga-
13 rettes, CIGARS or tobacco products are sold in this state, regardless of
14 whether located on the premises of the vending machine owner or, if the
15 owner is not the operator, then the premises of the operator or the
16 premises of any other person, must pay an application fee with the quar-
17 terly return of one hundred dollars for each vending machine. The
18 department will issue a registration certificate, as prescribed by the
19 commissioner, after receipt of a registration application and the appro-
20 priate registration fee, prior to the next succeeding January first.
21 (b) Every retail dealer and every person who owns or, if the owner is
22 not the operator, then any person who operates one or more vending
23 machines through which cigarettes, CIGARS or tobacco products are sold
24 in this state who commences business after the last day of August[,
25 nineteen hundred ninety,] or who commences selling cigarettes, CIGARS or
26 tobacco products at retail through a new or different place of business
27 in this state after such date, or who commences selling cigarettes,
28 CIGARS or tobacco products through new or different vending machines
29 after such date, must file with the commissioner an application for
30 registration, in a form prescribed by him or her, at least thirty days
31 prior to commencing business or commencing sales. Each application must
32 be accompanied by an application fee of three hundred dollars for each
33 retail place of business and one hundred dollars for each vending
34 machine to be registered. The department, within ten days after receipt
35 of an application for registration under this paragraph and payment of
36 the proper fee for application for registration, will issue a registra-
37 tion certificate, as prescribed by the commissioner, for each retail
38 place of business or cigarette, CIGAR or tobacco products vending
39 machine registered.
40 S 32. Paragraph (d) of subdivision 2 of section 480-a of the tax law,
41 as amended by chapter 760 of the laws of 1992, is amended to read as
42 follows:
43 (d) Except as otherwise provided in this section, all the provisions
44 of article twenty-eight of this chapter relating to the personal liabil-
45 ity for the tax, administration, collection and determination of tax,
46 and deposit and disposition of revenue, including section eleven hundred
47 thirty-eight of this chapter relating to determination of tax and
48 section eleven hundred forty-five of this chapter (but only paragraphs
49 one and two of subdivision (a) of such section) relating to penalties
50 and interest for failure to file a return or pay tax within the time
51 required, shall apply to the applications for registration and the fees
52 for filing such applications required by this section and the penalty
53 imposed pursuant to subdivision three of this section, as if such appli-
54 cations were returns required under section eleven hundred thirty-six of
55 this chapter and such filing fees, penalties and interest were taxes
56 required to be paid pursuant to such article twenty-eight, in the same
S. 6259--A 21 A. 9059--A
1 manner and with the same force and effect as if the language of such
2 provisions of such article twenty-eight had been incorporated in full
3 into this article, except to the extent that any such provision is
4 either inconsistent with a provision of this section or is not relevant
5 thereto and with such other modifications as may be necessary to adapt
6 the language of such provisions to the provisions of this section.
7 [Section] ANY REFERENCE TO A CERTIFICATE OF AUTHORITY SHOULD BE READ TO
8 MEAN A CERTIFICATE OF REGISTRATION FOR THE PURPOSE OF THIS SECTION.
9 PARAGRAPHS ONE THROUGH THREE OF SUBDIVISION A AND SUBDIVISIONS B AND C
10 OF SECTION eleven hundred thirty-four of [such article twenty-eight]
11 THIS CHAPTER shall not apply to this section AS WELL AS ANY LANGUAGE
12 CONTAINED IN SUCH SECTION REFERRING TO AN OFFICER, DIRECTOR, PARTNER OR
13 EMPLOYEE OF SUCH PERSON, AND, WHERE SUCH PERSON IS A LIMITED LIABILITY
14 COMPANY, ALSO A MEMBER OR MANAGER OF SUCH PERSON, IN THE OFFICER'S,
15 DIRECTOR'S, PARTNER'S, MEMBER'S, MANAGER'S OR EMPLOYEE'S CAPACITY AS A
16 PERSON REQUIRED TO COLLECT TAX ON BEHALF OF SUCH PERSON OR ANOTHER
17 PERSON. Provided, however, that the commissioner [of taxation and
18 finance] shall refund or credit an application fee paid with respect to
19 the registration of a vending machine or a retail place of business in
20 this state through which cigarettes, CIGARS or tobacco products were to
21 be sold if, prior to the beginning of the calendar year with respect to
22 which such registration relates, the certificate of registration
23 described in paragraph (a) of this subdivision is returned to the
24 department [of taxation and finance], or if such certificate has been
25 destroyed, the retail dealer or vending machine operator satisfactorily
26 accounts to the commissioner for the missing certificate, but such vend-
27 ing machine or retail place of business may not be used to sell ciga-
28 rettes, CIGARS or tobacco products in this state during such calendar
29 year, unless it is re-registered. The provisions of section eleven
30 hundred thirty-nine of this chapter shall apply to the refund or credit
31 authorized by the preceding sentence and for such purposes, such refund
32 or credit shall be deemed a refund of tax paid in error provided, howev-
33 er, no interest shall be allowed or paid on any such refund.
34 S 33. Paragraph (b) of subdivision 3 of section 480-a of the tax law,
35 as amended by section 125-a of part C of chapter 58 of the laws of 2009,
36 is amended to read as follows:
37 (b) Any person who owns or, if the owner is not the operator, then any
38 person who operates one or more vending machines through which ciga-
39 rettes, CIGARS or tobacco products are sold in this state and who
40 violates the provisions of this section, after due notice and an oppor-
41 tunity for a hearing, for a first violation is liable for a civil fine
42 not less than seven hundred fifty dollars but not to exceed two thousand
43 dollars and for a second or subsequent violation within three years
44 following a prior finding of violation be liable for a civil fine not
45 less than two thousand dollars but not to exceed six thousand dollars.
46 S 34. Clause (B) of subparagraph (i) of paragraph (a) of subdivision 1
47 of section 481 of the tax law, as amended by chapter 61 of the laws of
48 1989, is amended to read as follows:
49 (B) If a tax on cigarettes, CIGARS or on tobacco products under this
50 article is not paid when due by any other person, the person liable for
51 the payment of such tax shall be subject to a penalty of fifty per
52 centum of the amount of such tax determined to be due as provided in
53 this article plus one per centum of such amount for each month or frac-
54 tion thereof during which such failure to pay continues after the expi-
55 ration of the first month after such tax became due.
S. 6259--A 22 A. 9059--A
1 S 35. Subparagraph (i) of paragraph (b) of subdivision 1 of section
2 481 of the tax law, as amended by chapter 604 of the laws of 2008, is
3 amended to read as follows:
4 (i) In addition to any other penalty imposed by this article, the
5 commissioner may (A) impose a penalty of not more than one hundred fifty
6 dollars for each two hundred cigarettes, or fraction thereof, in excess
7 of one thousand cigarettes in unstamped or unlawfully stamped packages
8 in the possession or under the control of any person or (B) impose a
9 penalty of not more than two hundred dollars for each ten unaffixed
10 false, altered or counterfeit cigarette tax stamps, imprints or
11 impressions, or fraction thereof, in the possession or under the control
12 of any person. In addition, the commissioner may impose a penalty of not
13 more than seventy-five dollars for each fifty cigars or one pound of
14 tobacco, or fraction thereof, in excess of [two hundred] fifty cigars or
15 five pounds of tobacco in the possession or under the control of any
16 person and a penalty of not more than one hundred fifty dollars for each
17 fifty cigars or pound of tobacco, or fraction thereof, in excess of five
18 hundred cigars or ten pounds of tobacco in the possession or under the
19 control of any person, with respect to which the CIGAR OR tobacco
20 products tax has not been paid or assumed by a distributor or CIGAR OR
21 tobacco products dealer; provided, however, that any such penalty
22 imposed shall not exceed seven thousand five hundred dollars in the
23 aggregate. The commissioner may impose a penalty of not more than seven-
24 ty-five dollars for each fifty cigars or one pound of tobacco, or frac-
25 tion thereof, in excess of fifty cigars or one pound of tobacco in the
26 possession or under the control of any CIGAR OR tobacco products dealer
27 or distributor appointed by the commissioner, and a penalty of not more
28 than one hundred fifty dollars for each fifty cigars or pound of tobac-
29 co, or fraction thereof, in excess of [two hundred] fifty cigars or five
30 pounds of tobacco in the possession or under the control of any such
31 dealer or distributor, with respect to which the CIGAR OR tobacco
32 products tax has not been paid or assumed by a distributor or a CIGAR OR
33 tobacco products dealer; provided, however, that any such penalty
34 imposed shall not exceed fifteen thousand dollars in the aggregate.
35 S 36. Clauses (B) and (C) of subparagraph (ii) of paragraph (b) of
36 subdivision 1 of section 481 of the tax law, as added by chapter 262 of
37 the laws of 2000, are amended to read as follows:
38 (B)(I) not less than twenty-five dollars but not more than one hundred
39 dollars for each fifty cigars or one pound of tobacco, or fraction ther-
40 eof, in excess of [two hundred] fifty cigars or five pounds of tobacco
41 knowingly in the possession or knowingly under the control of any
42 person, with respect to which the CIGAR OR tobacco products tax has not
43 been paid or assumed by a distributor or CIGAR OR tobacco products deal-
44 er; and
45 (II) not less than fifty dollars but not more than two hundred dollars
46 for each fifty cigars or pound of tobacco, or fraction thereof, in
47 excess of [five] ONE hundred cigars or ten pounds of tobacco knowingly
48 in the possession or knowingly under the control of any person, with
49 respect to which the CIGAR OR tobacco products tax has not been paid or
50 assumed by a distributor or CIGAR OR tobacco products dealer; provided,
51 however, that any such penalty imposed under this clause shall not
52 exceed ten thousand dollars in the aggregate.
53 (C)(I) not less than twenty-five dollars but not more than one hundred
54 dollars for each fifty cigars or one pound of tobacco, or fraction ther-
55 eof, in excess of fifty cigars or one pound of tobacco knowingly in the
56 possession or knowingly under the control of any person, with respect to
S. 6259--A 23 A. 9059--A
1 which the CIGAR OR tobacco products tax has not been paid or assumed by
2 a distributor or CIGAR OR tobacco products dealer; and
3 (II) not less than fifty dollars but not more than two hundred dollars
4 for each fifty cigars or pound of tobacco, or fraction thereof, in
5 excess of [two hundred fifty] ONE HUNDRED cigars or five pounds of
6 tobacco knowingly in the possession or knowingly under the control of
7 any person, with respect to which the CIGAR OR tobacco products tax has
8 not been paid or assumed by a distributor or a CIGAR OR tobacco products
9 dealer; provided, however, that any such penalty imposed under this
10 clause shall not exceed twenty thousand dollars in the aggregate.
11 S 37. Subdivision 2 of section 481 of the tax law, as amended by chap-
12 ter 61 of the laws of 1989 and paragraph (a) as amended by chapter 552
13 of the laws of 2008, is amended to read as follows:
14 2. (a) The possession within this state of more than four hundred
15 cigarettes in unstamped or unlawfully stamped packages, or more than
16 [two hundred] fifty cigars, or more than five pounds of tobacco other
17 than roll-your-own tobacco, or more than thirty-six ounces of roll-your-
18 own tobacco by any person other than an agent or distributor, as the
19 case may be, at any one time shall be presumptive evidence that such
20 cigarettes, CIGARS or tobacco products are subject to tax as provided by
21 this article.
22 (b) Nothing in this section shall apply to common or contract carriers
23 or warehousemen while engaged in lawfully transporting or storing
24 CIGARS, tobacco products or unstamped packages of cigarettes as merchan-
25 dise, nor to any employee of such carrier or warehouseman acting within
26 the scope of his OR HER employment, nor to public officers or employees
27 in the performance of their official duties requiring possession or
28 control of CIGARS, tobacco products or unstamped or unlawfully stamped
29 packages of cigarettes, nor to temporary incidental possession by
30 employees or agents of persons lawfully entitled to possession, nor to
31 persons whose possession is for the purpose of aiding police officers in
32 performing their duties.
33 S 38. The tax law is amended by adding new section 481-a to read as
34 follows:
35 S 481-A. PENALTIES AND INTEREST FOR RETAIL DEALERS. (A) (1) (I) ANY
36 PERSON FAILING TO FILE A RETURN OR TO PAY OR PAY OVER ANY TAX TO THE
37 COMMISSIONER WITHIN THE TIME REQUIRED BY OR PURSUANT TO THIS ARTICLE
38 (DETERMINED WITH REGARD TO ANY EXTENSION OF TIME FOR FILING OR PAYING)
39 SHALL BE SUBJECT TO A PENALTY OF TEN PERCENT OF THE AMOUNT OF TAX DUE IF
40 SUCH FAILURE IS FOR NOT MORE THAN ONE MONTH, WITH AN ADDITIONAL ONE
41 PERCENT FOR EACH ADDITIONAL MONTH OR FRACTION THEREOF DURING WHICH SUCH
42 FAILURE CONTINUES, NOT EXCEEDING THIRTY PERCENT IN THE AGGREGATE.
43 PROVIDED, HOWEVER, IN THE CASE OF A FAILURE TO FILE SUCH RETURN WITHIN
44 SIXTY DAYS OF THE DATE PRESCRIBED FOR FILING OF SUCH RETURN BY OR PURSU-
45 ANT TO THIS ARTICLE (DETERMINED WITH REGARD TO ANY EXTENSION OF TIME FOR
46 FILING), THE PENALTY IMPOSED BY THIS SUBPARAGRAPH SHALL NOT BE LESS THAN
47 THE LESSER OF ONE HUNDRED DOLLARS OR ONE HUNDRED PERCENT OF THE AMOUNT
48 REQUIRED TO BE SHOWN AS TAX ON SUCH RETURN. FOR THE PURPOSE OF THE
49 PRECEDING SENTENCE, THE AMOUNT OF TAX REQUIRED TO BE SHOWN ON THE RETURN
50 SHALL BE REDUCED BY THE AMOUNT OF ANY PART OF THE TAX WHICH IS PAID ON
51 OR BEFORE THE DATE PRESCRIBED FOR PAYMENT OF THE TAX AND BY THE AMOUNT
52 OF ANY CREDIT AGAINST THE TAX WHICH MAY BE CLAIMED UPON THE RETURN. IN
53 THE CASE OF A FAILURE TO FILE A RETURN BY A PERSON REQUIRED TO REGISTER
54 WITH THE COMMISSIONER AS PROVIDED IN SECTION FOUR HUNDRED EIGHTY-A OF
55 THIS ARTICLE, IN NO EVENT SHALL THE PENALTY FOR FAILURE TO FILE A RETURN
56 BE LESS THAN ONE HUNDRED FIFTY DOLLARS.
S. 6259--A 24 A. 9059--A
1 (II) IF ANY AMOUNT OF TAX IS NOT PAID ON OR BEFORE THE LAST DATE
2 PRESCRIBED IN THIS ARTICLE FOR PAYMENT, INTEREST ON SUCH AMOUNT AT THE
3 RATE OF FOURTEEN AND ONE-HALF PERCENT PER ANNUM OR AT THE UNDERPAYMENT
4 RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF
5 SECTION ONE HUNDRED SEVENTY-ONE OF THIS CHAPTER, WHICHEVER IS GREATER,
6 SHALL BE PAID FOR THE PERIOD FROM SUCH LAST DATE TO THE DATE PAID,
7 WHETHER OR NOT ANY EXTENSION OF TIME FOR PAYMENT WAS GRANTED. INTEREST
8 UNDER THIS SUBPARAGRAPH SHALL NOT BE PAID IF THE AMOUNT THEREOF IS LESS
9 THAN ONE DOLLAR.
10 (III) IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE OR DELAY WAS
11 DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY
12 REMIT ALL OF SUCH PENALTY AND THAT PORTION OF SUCH INTEREST THAT EXCEEDS
13 THE INTEREST THAT WOULD BE PAYABLE IF SUCH INTEREST WERE COMPUTED AT THE
14 UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWEN-
15 TY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS CHAPTER. THE COMMIS-
16 SIONER MAY PROMULGATE RULES AND REGULATIONS AS TO WHAT CONSTITUTES
17 REASONABLE CAUSE.
18 (IV) ANY PERSON REQUIRED BY THIS ARTICLE TO FILE A RETURN, WHO OMITS
19 FROM THE TOTAL AMOUNT OF CIGAR EXCISE TAX REQUIRED TO BE SHOWN ON A
20 RETURN AN AMOUNT WHICH IS IN EXCESS OF TWENTY-FIVE PERCENT OF THE AMOUNT
21 OF SUCH TAXES REQUIRED TO BE SHOWN ON THE RETURN SHALL BE SUBJECT TO A
22 PENALTY EQUAL TO TEN PERCENT OF THE AMOUNT OF SUCH OMISSION. IF THE
23 COMMISSIONER DETERMINES THAT SUCH OMISSION WAS DUE TO REASONABLE CAUSE
24 AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY REMIT ALL OF SUCH PENALTY.
25 (V) ANY PERSON REQUIRED TO COLLECT TAX WHO SELLS CIGARS AT RETAIL AND
26 WHO SHALL WILLFULLY AND KNOWINGLY HAVE IN SUCH PERSON'S CUSTODY OR
27 POSSESSION OR UNDER SUCH PERSON'S CONTROL ANY CIGARS ON WHICH (A) THE
28 PREPAID TAX IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTI-
29 CLE HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR LICENSED AS SUCH UNDER
30 THIS ARTICLE, OR (B) THE PREPAID TAX IMPOSED BY SUCH SECTION FOUR
31 HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WAS REQUIRED TO HAVE BEEN PASSED
32 THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN THE COST OF SUCH
33 CIGARS TO SUCH PERSON, SHALL BE LIABLE FOR A PENALTY IN THE AMOUNT OF
34 TWICE THE TAX NOT SO ASSUMED OR PAID, OR INCLUDED. SUCH PENALTY SHALL
35 BE DETERMINED, ASSESSED, COLLECTED AND PAID IN THE SAME MANNER AS TAXES
36 IMPOSED BY THIS ARTICLE AND ALL THE PROVISIONS OF THIS ARTICLE RELATING
37 THERETO SHALL BE DEEMED ALSO TO REFER TO THE PENALTY IMPOSED BY THIS
38 SUBPARAGRAPH. SUCH PENALTY MAY BE DETERMINED AT ANY TIME WITHIN THREE
39 YEARS AFTER SUCH CIGARS SHALL HAVE COME INTO SUCH PERSON'S CUSTODY OR
40 POSSESSION OR UNDER SUCH PERSON'S CONTROL. FOR PURPOSES OF THIS SUBPARA-
41 GRAPH, SUCH PERSON SHALL WILLFULLY AND KNOWINGLY HAVE IN SUCH PERSON'S
42 CUSTODY OR POSSESSION OR UNDER SUCH PERSON'S CONTROL ANY CIGAR ON WHICH
43 (A) SUCH TAX HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBUTOR LICENSED AS
44 SUCH UNDER THIS ARTICLE, OR (B) SUCH TAX WAS REQUIRED TO HAVE BEEN
45 PASSED THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN THE COST OF
46 SUCH CIGARS TO SUCH PERSON, WHERE SUCH PERSON HAS KNOWLEDGE OF THE
47 REQUIREMENT THAT SUCH TAXES BE PAID OR ASSUMED OR SO INCLUDED AND WHERE,
48 TO SUCH PERSON'S KNOWLEDGE, SUCH TAXES HAVE NOT BEEN SO PAID OR ASSUMED
49 OR SO INCLUDED. FOR PURPOSES OF THIS SUBPARAGRAPH, IT SHALL BE PRESUMP-
50 TIVE EVIDENCE THAT SUCH PERSON SHALL WILLFULLY AND KNOWINGLY HAVE IN
51 SUCH PERSON'S CUSTODY OR POSSESSION OR UNDER SUCH PERSON'S CONTROL
52 CIGARS ON WHICH (A) SUCH TAX HAS NOT BEEN ASSUMED OR PAID BY A DISTRIBU-
53 TOR AUTHORIZED AS SUCH UNDER THIS ARTICLE OR (B) SUCH TAX WAS REQUIRED
54 TO HAVE BEEN PASSED THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN
55 THE COST OF SUCH CIGARS TO SUCH PERSON WHERE SUCH PERSON HAS NOT
56 RECEIVED THE CERTIFICATION REQUIRED BY SECTION FOUR HUNDRED
S. 6259--A 25 A. 9059--A
1 SEVENTY-ONE-K OF THIS ARTICLE AT THE TIME OF DELIVERY OF SUCH CIGARS OR,
2 IN THOSE CIRCUMSTANCES WHERE THE COMMISSIONER HAS AUTHORIZED THE DELIV-
3 ERY OF SUCH CERTIFICATION AT A TIME AFTER DELIVERY OF THE CIGARS, AT THE
4 TIME PRESCRIBED BY THE COMMISSIONER.
5 (2) IF THE FAILURE TO PAY OR PAY OVER ANY TAX TO THE COMMISSIONER
6 WITHIN THE TIME REQUIRED BY THIS ARTICLE IS DUE TO FRAUD, IN LIEU OF THE
7 PENALTIES AND INTEREST PROVIDED FOR IN SUBPARAGRAPHS (I) AND (II) OF
8 PARAGRAPH ONE OF THIS SUBDIVISION, THERE SHALL BE ADDED TO THE TAX (I) A
9 PENALTY OF TWO TIMES THE AMOUNT OF THE TAX DUE, PLUS (II) INTEREST ON
10 SUCH UNPAID TAX AT THE RATE OF FOURTEEN AND ONE-HALF PERCENT PER ANNUM
11 OR THE UNDERPAYMENT RATE OF INTEREST SET BY THE COMMISSIONER PURSUANT TO
12 SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS
13 CHAPTER, WHICHEVER IS GREATER, FOR THE PERIOD BEGINNING ON THE LAST DAY
14 PRESCRIBED BY THIS ARTICLE FOR THE PAYMENT OF SUCH TAX (DETERMINED WITH-
15 OUT REGARD TO ANY EXTENSION OF TIME FOR PAYING) AND ENDING ON THE DAY ON
16 WHICH SUCH TAX IS PAID.
17 (3) (I) ANY PERSON REQUIRED TO OBTAIN A CERTIFICATE OF REGISTRATION
18 UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS ARTICLE WHO, WITHOUT
19 POSSESSING A VALID CERTIFICATE OF REGISTRATION, SELLS CIGARETTES, CIGARS
20 AND TOBACCO PRODUCTS SHALL, IN ADDITION TO ANY OTHER PENALTY IMPOSED BY
21 THIS CHAPTER, BE SUBJECT TO A PENALTY IN AN AMOUNT NOT EXCEEDING FIVE
22 HUNDRED DOLLARS FOR THE FIRST DAY ON WHICH SUCH SALES OR PURCHASES ARE
23 MADE, PLUS AN AMOUNT NOT EXCEEDING TWO HUNDRED DOLLARS FOR EACH SUBSE-
24 QUENT DAY ON WHICH SUCH SALES OR PURCHASES ARE MADE, NOT TO EXCEED TEN
25 THOUSAND DOLLARS IN THE AGGREGATE.
26 (II) IF THE COMMISSIONER DETERMINES THAT ANY FAILURE OR ACT DESCRIBED
27 IN THIS PARAGRAPH WAS DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL
28 NEGLECT, HE OR SHE MAY REMIT ALL OR PART OF SUCH PENALTY.
29 (4) ANY PERSON REQUIRED BY THIS ARTICLE TO DISPLAY A CERTIFICATE OF
30 REGISTRATION, WHO FAILS TO DISPLAY SUCH CERTIFICATE IN THE MANNER
31 REQUIRED BY THIS ARTICLE OR ANY RULE OR REGULATION ADOPTED BY THE
32 COMMISSIONER IN CONNECTION WITH SUCH REQUIREMENT SHALL, IN ADDITION TO
33 ANY OTHER PENALTY IMPOSED BY THIS CHAPTER, BE SUBJECT TO A PENALTY OF
34 FIFTY DOLLARS. IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE WAS DUE
35 TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE MAY REMIT
36 ALL OR PART OF SUCH PENALTY.
37 (5) THE PENALTIES AND INTEREST PROVIDED FOR IN THIS SUBDIVISION SHALL
38 BE PAID AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES FROM THIS
39 ARTICLE. SUCH PENALTIES AND INTEREST MAY BE DETERMINED, ASSESSED,
40 COLLECTED AND ENFORCED IN THE SAME MANNER AS THE TAX IMPOSED BY THIS
41 ARTICLE. INTEREST UNDER THIS SUBDIVISION SHALL BE COMPOUNDED DAILY.
42 (B) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN
43 OF THIS CHAPTER.
44 (C) ANY PERSON FAILING TO FILE A RETURN OR TO PAY ANY TAX REQUIRED TO
45 BE PREPAID TO THE COMMISSIONER WITH RESPECT TO CIGARS PURSUANT TO THE
46 PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTICLE WITHIN
47 THE TIME REQUIRED BY THIS ARTICLE SHALL, IN ADDITION TO ANY OTHER PENAL-
48 TY PROVIDED IN THIS ARTICLE OR OTHERWISE IMPOSED BY LAW, BE SUBJECT TO A
49 PENALTY EQUAL TO THE AMOUNT OF TAX REQUIRED TO BE SO PREPAID PURSUANT TO
50 THE PROVISIONS OF SUCH SECTION FOUR HUNDRED SEVENTY-ONE-H OF THIS ARTI-
51 CLE. IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE TO FILE A RETURN
52 OR TO PAY ANY SUCH TAX WAS DUE TO REASONABLE CAUSE AND NOT DUE TO WILL-
53 FUL NEGLECT, HE OR SHE MAY REMIT ALL OR ANY PART OF SUCH PENALTY.
54 (D) THE CERTIFICATE OF THE COMMISSIONER TO THE EFFECT THAT A TAX HAS
55 NOT BEEN PAID, THAT A RETURN, BOND OR REGISTRATION CERTIFICATE HAS NOT
S. 6259--A 26 A. 9059--A
1 BEEN FILED, OR THAT INFORMATION HAS NOT BEEN SUPPLIED PURSUANT TO THE
2 PROVISIONS OF THIS ARTICLE SHALL BE PRESUMPTIVE EVIDENCE THEREOF.
3 (E) ANY PERSON REQUIRED TO MAKE OR MAINTAIN RECORDS UNDER THIS ARTICLE
4 WHO FAILS TO MAKE OR MAINTAIN OR MAKE AVAILABLE TO THE COMMISSIONER
5 THESE RECORDS IS SUBJECT TO A PENALTY NOT TO EXCEED ONE THOUSAND DOLLARS
6 FOR THE FIRST PERIOD OR PART THEREOF FOR WHICH THE FAILURE OCCURS AND
7 NOT TO EXCEED FIVE THOUSAND DOLLARS FOR EACH ADDITIONAL PERIOD OR PART
8 THEREOF FOR WHICH THE FAILURE OCCURS. THIS PENALTY IS IN ADDITION TO ANY
9 OTHER PENALTY PROVIDED FOR IN THIS ARTICLE BUT MAY NOT BE IMPOSED AND
10 COLLECTED MORE THAN ONCE FOR FAILURES FOR THE SAME PERIOD OR PART THERE-
11 OF. IF THE COMMISSIONER DETERMINES THAT A FAILURE TO MAKE OR MAINTAIN OR
12 MAKE AVAILABLE RECORDS IN ANY PERIOD WAS ENTIRELY DUE TO REASONABLE
13 CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMISSIONER MUST REMIT THE PENAL-
14 TY IMPOSED FOR THAT PERIOD. THESE PENALTIES WILL BE PAID AND DISPOSED OF
15 IN THE SAME MANNER AS OTHER REVENUES FROM THIS ARTICLE. THESE PENALTIES
16 WILL BE DETERMINED, ASSESSED, COLLECTED, PAID AND ENFORCED IN THE SAME
17 MANNER AS THE TAX IMPOSED BY THIS ARTICLE, AND ALL THE PROVISIONS OF
18 THIS ARTICLE RELATING TO TAX WILL BE DEEMED ALSO TO APPLY TO THE PENAL-
19 TIES IMPOSED BY THIS SUBDIVISION. FOR PURPOSES OF THE PENALTY IMPOSED BY
20 THIS SUBDIVISION, A PERSON WILL BE CONSIDERED TO HAVE FAILED TO MAKE OR
21 MAINTAIN THE REQUIRED RECORDS WHEN THE RECORDS MADE OR MAINTAINED BY
22 THAT PERSON FOR A PERIOD MAKE IT VIRTUALLY IMPOSSIBLE TO VERIFY SALES
23 RECEIPTS AND TO CONDUCT A COMPLETE AUDIT.
24 (F) FALSE OR FRAUDULENT DOCUMENT PENALTY. ANY TAXPAYER THAT SUBMITS A
25 FALSE OR FRAUDULENT DOCUMENT TO THE DEPARTMENT WILL BE SUBJECT TO A
26 PENALTY OF ONE HUNDRED DOLLARS PER DOCUMENT SUBMITTED, OR FIVE HUNDRED
27 DOLLARS PER TAX RETURN SUBMITTED. THIS PENALTY WILL BE IN ADDITION TO
28 ANY OTHER PENALTY PROVIDED BY LAW.
29 (G) AIDING OR ASSISTING IN THE GIVING OF FRAUDULENT RETURNS, REPORTS,
30 STATEMENTS OR OTHER DOCUMENTS. ANY PERSON WHO, WITH THE INTENT THAT TAX
31 BE EVADED, FOR A FEE OR OTHER COMPENSATION OR AS AN INCIDENT TO THE
32 PERFORMANCE OF OTHER SERVICES FOR WHICH THAT PERSON RECEIVES COMPEN-
33 SATION, AIDS OR ASSISTS IN, OR PROCURES, COUNSELS, OR ADVISES THE PREPA-
34 RATION OR PRESENTATION UNDER THIS ARTICLE, OR IN CONNECTION WITH ANY
35 MATTER ARISING UNDER THIS ARTICLE, OF ANY RETURN, REPORT, DECLARATION,
36 STATEMENT OR OTHER DOCUMENT THAT IS FRAUDULENT OR FALSE AS TO ANY MATE-
37 RIAL MATTER, OR SUPPLIES ANY FALSE OR FRAUDULENT INFORMATION, WHETHER OR
38 NOT SUCH FALSITY OR FRAUD IS WITH THE KNOWLEDGE OR CONSENT OF THE PERSON
39 AUTHORIZED OR REQUIRED TO PRESENT THAT RETURN, REPORT, DECLARATION,
40 STATEMENT OR OTHER DOCUMENT, WILL PAY A PENALTY NOT EXCEEDING FIVE THOU-
41 SAND DOLLARS.
42 (H) ANY PERSON WHO, HAVING ELECTED TO MAINTAIN IN AN ELECTRONIC FORMAT
43 ANY PORTION OR ALL OF THE RECORDS HE OR SHE IS REQUIRED TO MAKE AND
44 MAINTAIN BY THIS ARTICLE, FAILS TO PRESENT AND MAKE THESE RECORDS AVAIL-
45 ABLE AND ACCESSIBLE TO THE COMMISSIONER IN ELECTRONIC FORMAT, IS SUBJECT
46 TO A PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS FOR EACH PERIOD OR PART
47 THEREOF FOR WHICH THESE ELECTRONIC RECORDS ARE NOT PRESENTED AND MADE
48 AVAILABLE AND ACCESSIBLE UPON REQUEST, NOTWITHSTANDING THAT THE RECORDS
49 MAY ALSO BE MAINTAINED AND AVAILABLE IN HARD COPY FORMAT. THIS PENALTY
50 IS IN ADDITION TO ANY OTHER PENALTY PROVIDED FOR IN THIS ARTICLE, BUT
51 MAY NOT BE IMPOSED AND COLLECTED MORE THAN ONCE FOR A FAILURE FOR THE
52 SAME PERIOD OR PART THEREOF. PROVIDED, HOWEVER, NOTHING IN THIS SUBDI-
53 VISION WILL PREVENT THE SEPARATE IMPOSITION, IF APPLICABLE, OF ANY
54 PENALTY IMPOSED BY THIS SECTION FOR THE SAME PERIOD OR PART THEREOF. IF
55 THE COMMISSIONER DETERMINES THAT THE FAILURE TO PRESENT AND MAKE ELEC-
56 TRONICALLY MAINTAINED RECORDS AVAILABLE AND ACCESSIBLE FOR A PERIOD WAS
S. 6259--A 27 A. 9059--A
1 ENTIRELY DUE TO REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMIS-
2 SIONER MUST REMIT THE PENALTY IMPOSED FOR THAT PERIOD. THESE PENALTIES
3 WILL BE PAID AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES FROM
4 THIS ARTICLE. THESE PENALTIES WILL BE DETERMINED, ASSESSED, COLLECTED,
5 PAID AND ENFORCED IN THE SAME MANNER AS THE TAX IMPOSED BY THIS ARTICLE,
6 AND ALL THE PROVISIONS OF THIS ARTICLE RELATING TO TAX WILL BE DEEMED
7 ALSO TO APPLY TO THE PENALTY IMPOSED BY THIS SUBDIVISION. FOR PURPOSES
8 OF THE PENALTY IMPOSED BY THIS SUBDIVISION, A FAILURE TO PRESENT AND
9 MAKE AVAILABLE AND ACCESSIBLE A RECORD MAINTAINED IN ELECTRONIC FORMAT
10 INCLUDES NOT ONLY THE DENIAL OF ACCESS TO THE REQUESTED RECORDS THAT
11 WERE MAINTAINED ELECTRONICALLY, BUT ALSO THE FAILURE TO MAKE AVAILABLE
12 TO THE COMMISSIONER THE INFORMATION, KNOWLEDGE, OR MEANS NECESSARY TO
13 ACCESS AND OTHERWISE USE THE ELECTRONICALLY MAINTAINED RECORDS IN THE
14 INSPECTION AND EXAMINATION OF THESE RECORDS.
15 S 39. Subdivision (h) of section 1111 of the tax law, as amended by
16 section 1 of part Q-3 of chapter 62 of the laws of 2003, is amended to
17 read as follows:
18 (h) Receipts subject to tax under subdivision (a) of section eleven
19 hundred five on retail sales of cigarettes, CIGARS and tobacco products
20 and consideration given or contracted to be given for cigarettes, CIGARS
21 and tobacco products the uses of which are subject to tax under section
22 eleven hundred ten shall be deemed to include any tax imposed on ciga-
23 rettes, CIGARS and tobacco products by article twenty of this chapter
24 and any tax imposed on cigarettes AND CIGARS by chapter thirteen of
25 title eleven of the administrative code of the city of New York.
26 S 40. Subdivision (e) of section 1814 of the tax law, as amended by
27 section 28 of subpart I of part V-1 of chapter 57 of the laws of 2009,
28 is amended to read as follows:
29 (e) Nothing in this section shall apply to common or contract carriers
30 or warehousemen while engaged in lawfully transporting or storing
31 unstamped packages of cigarettes as merchandise, or lawfully transport-
32 ing or storing CIGARS OR tobacco products, nor to any employee of such
33 carrier or warehouseman acting within the scope of his OR HER employ-
34 ment, nor to public officers or employees in the performance of their
35 official duties requiring possession or control of unstamped or unlaw-
36 fully stamped packages of cigarettes or possession or control of CIGARS
37 OR tobacco products, nor to temporary incidental possession by employees
38 or agents of persons lawfully entitled to possession, nor to persons
39 whose possession is for the purpose of aiding police officers in
40 performing their duties.
41 S 41. Paragraphs 3 and 4 of subdivision (h) of section 1814 of the tax
42 law, as amended by section 28 of subpart I of part V-1 of chapter 57 of
43 the laws of 2009, are amended to read as follows:
44 (3) Any person, other than a distributor appointed by the commissioner
45 under article twenty of this chapter, who shall knowingly transport or
46 have in his OR HER custody, possession or under his OR HER control twen-
47 ty-five hundred or more cigars or fifty or more pounds of tobacco upon
48 which the taxes imposed by article twenty of this chapter have not been
49 assumed or paid by a distributor appointed by the commissioner under
50 article twenty of this chapter, or other person treated as a distributor
51 pursuant to section four hundred seventy-one-d of this chapter shall be
52 guilty of a misdemeanor. Provided further, that any person who has twice
53 been convicted under this subdivision shall be guilty of a class E felo-
54 ny for any subsequent violation of this section, regardless of the
55 amount of CIGARS OR tobacco products involved in such violation.
S. 6259--A 28 A. 9059--A
1 (4) For purposes of this subdivision, such person shall knowingly
2 transport or have in his OR HER custody, possession or under his OR HER
3 control tobacco PRODUCTS or cigars on which such taxes have not been
4 assumed or paid by a distributor appointed by the commissioner where
5 such person has knowledge of the requirement of the tax on CIGARS AND
6 tobacco products and, where to his OR HER knowledge, such taxes have not
7 been assumed or paid on such CIGARS OR tobacco products by a distributor
8 appointed by the commissioner [of taxation and finance].
9 S 42. Section 1814-a of the tax law, as added by chapter 61 of the
10 laws of 1989, is amended to read as follows:
11 S 1814-a. Person not appointed as a [tobacco products] distributor OF
12 CIGARS OR TOBACCO PRODUCTS. (a) Any person who, while not appointed as a
13 distributor of CIGARS OR tobacco products pursuant to the provisions of
14 article twenty of this chapter, imports or causes to be imported into
15 the state more than fifty cigars or more than one pound of tobacco, for
16 sale within the state, or produces, manufactures or compounds CIGARS OR
17 tobacco products within the state shall be guilty of a misdemeanor
18 punishable by a fine of not more than five thousand dollars or by a term
19 of imprisonment not to exceed thirty days. If, within any ninety day
20 period, one thousand or more cigars or five hundred pounds or more of
21 tobacco are imported or caused to be imported into the state for sale
22 within the state or are produced, manufactured or compounded within the
23 state by any person while not appointed as a distributor of CIGARS OR
24 tobacco products, such person shall be guilty of a misdemeanor. Provided
25 further, that any person who has twice been convicted under this section
26 shall be guilty of a class E felony for any subsequent violation of this
27 section, regardless of the amount of CIGARS OR tobacco products involved
28 in such violation.
29 (b) For purposes of this section, the possession or transportation
30 within this state by any person, other than a CIGAR OR tobacco products
31 distributor appointed by the commissioner [of taxation and finance], at
32 any one time of seven hundred fifty or more cigars or fifteen pounds or
33 more of tobacco shall be presumptive evidence that such tobacco products
34 are possessed or transported for the purpose of sale and are subject to
35 the tax imposed by section four hundred seventy-one-b, SECTION FOUR
36 HUNDRED SEVENTY-ONE-F OR SECTION FOUR HUNDRED SEVENTY-ONE-H of this
37 chapter. With respect to such possession or transportation, any
38 provisions of article twenty of this chapter providing for a time period
39 during which the tax imposed by such article may be paid shall not
40 apply.
41 S 43. The section heading, subdivisions (a), (b) and (c) of section
42 1846-a of the tax law, as amended by chapter 556 of the laws of 2011,
43 are amended to read as follows:
44 Forfeiture action with respect to CIGARS AND tobacco products. (a)
45 Whenever a police officer designated in section 1.20 of the criminal
46 procedure law or a peace officer designated in subdivision four of
47 section 2.10 of such law, acting pursuant to his OR HER special duties,
48 shall discover any tobacco products in excess of five hundred cigars or
49 ten pounds of tobacco which are being imported for sale in the state
50 where the person importing or causing such CIGARS AND tobacco products
51 to be imported has not been appointed as a distributor pursuant to
52 section four hundred seventy-two of this chapter, such police officer or
53 peace officer is hereby authorized and empowered forthwith to seize and
54 take possession of such CIGARS AND tobacco products. Such CIGARS AND
55 tobacco products seized by a police officer or peace officer shall be
56 turned over to the commissioner. Such seized CIGARS AND tobacco products
S. 6259--A 29 A. 9059--A
1 shall be forfeited to the state. All CIGARS AND tobacco products
2 forfeited to the state shall be destroyed or used for law enforcement
3 purposes, except that CIGARS OR tobacco products that violate, or are
4 suspected of violating, federal trademark laws or import laws shall not
5 be used for law enforcement purposes. If the commissioner determines the
6 CIGARS OR tobacco products may not be used for law enforcement purposes,
7 the commissioner must, within a reasonable time thereafter, upon publi-
8 cation in the state registry of a notice to such effect before the day
9 of destruction, destroy such forfeited CIGARS OR tobacco products. The
10 commissioner may, prior to any destruction of CIGARS OR tobacco
11 products, permit the true holder of the trademark rights in the CIGARS
12 OR tobacco products to inspect such forfeited products in order to
13 assist in any investigation regarding such CIGARS OR tobacco products.
14 (b) In the alternative, the commissioner, on reasonable notice by mail
15 or otherwise, may permit the person from whom said CIGARS OR tobacco
16 products were seized to redeem the said CIGARS OR tobacco products by
17 the payment of the tax due, plus a penalty of fifty per centum thereof,
18 plus interest on the amount of tax due for each month or fraction there-
19 of after such tax became due (determined without regard to any extension
20 of time for filing or paying) at the rate applicable under subparagraph
21 (ii) of paragraph (a) of subdivision one of section four hundred eight-
22 y-one of this chapter and the costs incurred in such proceeding, which
23 total payment shall not be less than five dollars; provided, however,
24 that such seizure and sale or redemption shall not be deemed to relieve
25 any person from fine or imprisonment provided for in this article for
26 violation of any provision of article twenty of this chapter.
27 (c) In the alternative, the commissioner may dispose of any CIGARS OR
28 tobacco products seized pursuant to this section, except those that
29 violate, or are suspected of violating, federal trademark or import
30 laws, by transferring them to the department of corrections and communi-
31 ty supervision for sale to or use by inmates in such institutions.
32 S 44. The section heading of section 1847 of the tax law, as amended
33 by chapter 61 of the laws of 1989, is amended to read as follows:
34 Seizure and forfeiture of vehicles or other means of transportation
35 used to transport or for deposit or concealment of cigarettes or used to
36 import CIGARS OR tobacco products.
37 S 45. Subdivision (b) of section 1847 of the tax law, as added by
38 chapter 61 of the laws of 1989, is amended to read as follows:
39 (b) Any peace officer designated in subdivision four of section 2.10
40 of the criminal procedure law, acting pursuant to his OR HER special
41 duties, or any police officer designated in section 1.20 of the criminal
42 procedure law may seize any vehicle or other means of transportation
43 used to import CIGARS OR tobacco products in excess of five hundred
44 cigars or ten pounds of tobacco for sale where the person importing or
45 causing such CIGARS OR tobacco products to be imported has not been
46 appointed a distributor pursuant to section four hundred seventy-two of
47 this chapter, other than a vehicle or other means of transportation used
48 by any person as a common carrier in transaction of business as such
49 common carrier, and such vehicle or other means of transportation shall
50 be subject to forfeiture as hereinafter in this section provided.
51 S 46. This act shall take effect July 1, 2012; provided, however, that
52 section eleven of this act shall take effect immediately.
53 PART D
S. 6259--A 30 A. 9059--A
1 Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006,
2 amending the tax law relating to providing exemptions, reimbursements
3 and credits from various taxes for certain alternative fuels, as amended
4 by section 2 of part L of chapter 61 of the laws of 2011, is amended to
5 read as follows:
6 S 19. This act shall take effect immediately; provided, however, that
7 sections one through thirteen of this act shall take effect September 1,
8 2006 and shall be deemed repealed on September 1, [2012] 2017 and such
9 repeal shall apply in accordance with the applicable transitional
10 provisions of sections 1106 and 1217 of the tax law, and shall apply to
11 sales made, fuel compounded or manufactured, and uses occurring on or
12 after such date, and with respect to sections seven through eleven of
13 this act, in accordance with applicable transitional provisions of
14 sections 1106 and 1217 of the tax law; provided, however, that the
15 commissioner of taxation and finance shall be authorized on and after
16 the date this act shall have become a law to adopt and amend any rules
17 or regulations and to take any steps necessary to implement the
18 provisions of this act; provided further that sections fourteen through
19 sixteen of this act shall take effect immediately and shall apply to
20 taxable years beginning on or after January 1, 2006.
21 S 2. This act shall take effect immediately.
22 PART E
23 Section 1. Subdivision 14 of section 282 of the tax law, as amended by
24 section 1 of part K of chapter 61 of the laws of 2011, is amended to
25 read as follows:
26 14. "Diesel motor fuel" shall mean No. 1 Diesel fuel, No. 2 Diesel
27 fuel, biodiesel, kerosene, [crude oil,] fuel oil or other middle distil-
28 late and also motor fuel suitable for use in the operation of an engine
29 of the diesel type, excluding, however, any product specifically desig-
30 nated "No. 4 Diesel fuel" and not suitable as a fuel used in the opera-
31 tion of a motor vehicle engine.
32 S 2. Paragraph (b) of subdivision 3 of section 282-a of the tax law,
33 as amended by section 5 of part K of chapter 61 of the laws of 2011, is
34 amended to read as follows:
35 (b) The tax on the incidence of sale or use imposed by subdivision one
36 of this section shall not apply to: (i) the sale or use of non-highway
37 Diesel motor fuel, but only if all of such fuel is consumed other than
38 on the public highways of this state (except for the use of the public
39 highway by farmers to reach adjacent farmlands); provided, however, this
40 exemption shall in no event apply to a sale of non-highway Diesel motor
41 fuel which involves a delivery at a filling station or into a repository
42 which is equipped with a hose or other apparatus by which such fuel can
43 be dispensed into the fuel tank of a motor vehicle (except for delivery
44 at a farm site which qualifies for the exemption under subdivision (g)
45 of section three hundred one-b of this chapter); or (ii) a sale to the
46 consumer consisting of not more than twenty gallons of water-white kero-
47 sene to be used and consumed exclusively for heating purposes; or (iii)
48 the sale to or delivery at a filling station or other retail vendor of
49 water-white kerosene provided such filling station or other retail
50 vendor only sells such water-white kerosene exclusively for heating
51 purposes in containers of no more than twenty gallons; or (iv) a sale of
52 kero-jet fuel to an airline for use in its airplanes or a use of kero-
53 jet fuel by an airline in its airplanes; or (v) a sale of kero-jet fuel
54 by a registered distributor of Diesel motor fuel to a fixed base opera-
S. 6259--A 31 A. 9059--A
1 tor registered under this article as a distributor of kero-jet fuel only
2 where such fixed base operator is engaged solely in making or offering
3 to make retail sales not in bulk of kero-jet fuel directly into the fuel
4 tank of an airplane for the purpose of operating such airplane; [or]
5 (vi) a retail sale not in bulk of kero-jet fuel by a fixed base operator
6 registered under this article as a distributor of kero-jet fuel only
7 where such fuel is delivered directly into the fuel tank of an airplane
8 for use in the operation of such airplane; OR (VII) THE SALE OF PREVI-
9 OUSLY UNTAXED QUALIFIED BIODIESEL TO A PERSON REGISTERED UNDER THIS
10 ARTICLE AS A DISTRIBUTOR OF DIESEL MOTOR FUEL OTHER THAN (A) A RETAIL
11 SALE TO SUCH PERSON OR (B) A SALE TO SUCH PERSON WHICH INVOLVES A DELIV-
12 ERY AT A FILLING STATION OR INTO A REPOSITORY WHICH IS EQUIPPED WITH A
13 HOSE OR OTHER APPARATUS BY WHICH SUCH QUALIFIED BIODIESEL CAN BE
14 DISPENSED INTO THE FUEL TANK OF A MOTOR VEHICLE.
15 S 3. Paragraph 5 of subdivision (a) of section 301-b of the tax law,
16 as added by chapter 190 of the laws of 1990, is amended to read as
17 follows:
18 (5) [Crude oil and liquefied] LIQUIFIED petroleum gases, such as
19 butane, ethane or propane.
20 S 4. Subdivision (e) of section 301-b of the tax law, as amended by
21 section 21 of part K of chapter 61 of the laws of 2011, is amended to
22 read as follows:
23 (e) Sales of QUALIFIED BIODIESEL, non-highway diesel motor fuel and
24 residual petroleum product to registered distributors of diesel motor
25 fuel and registered residual petroleum product businesses.
26 (1) [Non-highway] QUALIFIED BIODIESEL AND NON-HIGHWAY Diesel motor
27 fuel sold by a person registered under article twelve-A of this chapter
28 as a distributor of diesel motor fuel to a person registered under such
29 article twelve-A as a distributor of diesel motor fuel where such sale
30 is not a retail sale or a sale that involves a delivery at a filling
31 station or into a repository equipped with a hose or other apparatus by
32 which such QUALIFIED BIODIESEL OR non-highway Diesel motor fuel can be
33 dispensed into the fuel tank of a motor vehicle.
34 (2) Residual petroleum product sold by a person registered under this
35 article as a residual petroleum product business to a person registered
36 under this article as a residual petroleum product business where such
37 sale is not a retail sale. Provided, however, that the commissioner may
38 require such documentary proof to qualify for any exemption provided in
39 this section as the commissioner deems appropriate, including the expan-
40 sion of any certifications required pursuant to section two hundred
41 eighty-five-a or two hundred eighty-five-b of this chapter to cover the
42 taxes imposed by this article.
43 (3) "QUALIFIED BIODIESEL" MEANS SUCH TERM AS DEFINED IN SUBDIVISION
44 TWENTY-THREE OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
45 S 5. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
46 amended by section 39 of part K of chapter 61 of the laws of 2011, is
47 amended to read as follows:
48 (2) Every distributor of diesel motor fuel shall pay, as a prepayment
49 on account of the taxes imposed by this article and pursuant to the
50 authority of article twenty-nine of this chapter, a tax upon the sale or
51 use of diesel motor fuel in this state. The tax shall be computed based
52 upon the number of gallons of diesel motor fuel sold or used. Provided,
53 however, if the tax has not been imposed prior thereto, it shall be
54 imposed on the delivery of diesel motor fuel to a retail service
55 station. The collection of such tax shall not be made applicable to the
56 sale or use of diesel motor fuel under circumstances which preclude the
S. 6259--A 32 A. 9059--A
1 collection of such tax by reason of the United States constitution and
2 of laws of the United States enacted pursuant thereto. The prepaid tax
3 on diesel motor fuel shall not apply to (i) the sale of previously
4 untaxed non-highway Diesel motor fuel to a person registered as a
5 distributor of Diesel motor fuel other than a sale to such person which
6 involves a delivery at a filling station or into a repository which is
7 equipped with a hose or other apparatus by which such fuel can be
8 dispensed into the fuel tank of a motor vehicle, [or] (ii) the sale to
9 or delivery at a filling station or other retail vendor of water-white
10 kerosene provided such filling station or other retail vendor only sells
11 such water-white kerosene exclusively for heating purposes in containers
12 of no more than twenty gallons or to the sale of CNG or hydrogen; OR
13 (III) THE SALE OF PREVIOUSLY UNTAXED QUALIFIED BIODIESEL TO A PERSON
14 REGISTERED UNDER ARTICLE TWELVE-A OF THIS CHAPTER AS A DISTRIBUTOR OF
15 DIESEL MOTOR FUEL OTHER THAN (A) A RETAIL SALE TO SUCH PERSON OR (B) A
16 SALE TO SUCH PERSON WHICH INVOLVES A DELIVERY AT A FILLING STATION OR
17 INTO A REPOSITORY WHICH IS EQUIPPED WITH A HOSE OR OTHER APPARATUS BY
18 WHICH SUCH QUALIFIED BIODIESEL CAN BE DISPENSED INTO THE FUEL TANK OF A
19 MOTOR VEHICLE. "QUALIFIED BIODIESEL" MEANS SUCH TERM AS DEFINED IN
20 SUBDIVISION TWENTY-THREE OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAP-
21 TER.
22 S 6. Paragraph 2 of subdivision (a) of section 1102 of the tax law, as
23 amended by section 39-a of part K of chapter 61 of the laws of 2011, is
24 amended to read as follows:
25 (2) Every distributor of diesel motor fuel shall pay, as a prepayment
26 on account of the taxes imposed by this article and pursuant to the
27 authority of article twenty-nine of this chapter, a tax upon the sale or
28 use of diesel motor fuel in this state. The tax shall be computed based
29 upon the number of gallons of diesel motor fuel sold or used. Provided,
30 however, if the tax has not been imposed prior thereto, it shall be
31 imposed on the delivery of diesel motor fuel to a retail service
32 station. The collection of such tax shall not be made applicable to the
33 sale or use of diesel motor fuel under circumstances which preclude the
34 collection of such tax by reason of the United States constitution and
35 of laws of the United States enacted pursuant thereto. The prepaid tax
36 on diesel motor fuel shall not apply to (i) the sale of [previously
37 untaxed] non-highway Diesel motor fuel to a person registered as a
38 distributor of Diesel motor fuel other than a sale to such person which
39 involves a delivery at a filling station or into a repository which is
40 equipped with a hose or other apparatus by which such fuel can be
41 dispensed into the fuel tank of a motor vehicle, [or] (ii) the sale to
42 or delivery at a filling station or other retail vendor of water-white
43 kerosene provided such filling station or other retail vendor only sells
44 such water-white kerosene exclusively for heating purposes in containers
45 of no more than twenty gallons; OR (III) THE SALE OF PREVIOUSLY UNTAXED
46 QUALIFIED BIODIESEL TO A PERSON REGISTERED UNDER ARTICLE TWELVE-A OF
47 THIS CHAPTER AS A DISTRIBUTOR OF DIESEL MOTOR FUEL OTHER THAN (A) A
48 RETAIL SALE TO SUCH PERSON OR (B) A SALE TO SUCH PERSON WHICH INVOLVES A
49 DELIVERY AT A FILLING STATION OR INTO A REPOSITORY WHICH IS EQUIPPED
50 WITH A HOSE OR OTHER APPARATUS BY WHICH SUCH QUALIFIED BIODIESEL CAN BE
51 DISPENSED INTO THE FUEL TANK OF A MOTOR VEHICLE. "QUALIFIED BIODIESEL"
52 MEANS SUCH TERM AS DEFINED IN SUBDIVISION TWENTY-THREE OF SECTION TWO
53 HUNDRED EIGHTY-TWO OF THIS CHAPTER.
54 S 7. This act shall take effect June 1, 2012; provided, however, that
55 the amendments to paragraph 2 of subdivision (a) of section 1102 of the
56 tax law made by section five of this act shall be subject to the expira-
S. 6259--A 33 A. 9059--A
1 tion and reversion of such paragraph pursuant to section 19 of part W1
2 of chapter 109 of the laws of 2006, as amended, when upon such date the
3 provisions of section six of this act shall take effect; provided,
4 further, that sections five and six of this act shall apply to sales
5 made and uses occurring on and after such effective date in accordance
6 with the applicable transitional provisions in sections 1106 and 1217 of
7 the tax law.
8 PART F
9 Section 1. Subparagraph (B) of paragraph 4 of subdivision (a) of
10 section 1134 of the tax law, as amended by chapter 2 of the laws of
11 1995, is amended to read as follows:
12 (B) Where a person files a certificate of registration for a certif-
13 icate of authority under this subdivision and in considering such appli-
14 cation the commissioner ascertains that (i) any tax imposed under this
15 chapter or any related statute, as defined in section eighteen hundred
16 of this chapter, has been finally determined to be due from such person
17 and has not been paid in full, (ii) [a] ANY tax [due under this article
18 or any law, ordinance or resolution enacted pursuant to the authority of
19 article twenty-nine] IMPOSED UNDER THIS CHAPTER OR ANY RELATED STATUTE,
20 AS DEFINED IN SECTION EIGHTEEN HUNDRED of this chapter, has been finally
21 determined to be due from an officer, director, partner or employee of
22 such person, and, where such person is a limited liability company, also
23 a member or manager of such person, in the officer's, director's, part-
24 ner's, member's, manager's or employee's capacity as a person required
25 to collect tax on behalf of such person or another person and has not
26 been paid, (iii) such person has been convicted of a crime provided for
27 in this chapter within one year from the date on which such certificate
28 of registration is filed, (iv) an officer, director, partner or employee
29 of such person, and, where such person is a limited liability company,
30 also a member or manager of such person, which officer, director, part-
31 ner, member, manager or employee is a person required to collect tax on
32 behalf of such person filing a certificate of registration has in the
33 officer's, director's, partner's, member's, manager's or employee's
34 capacity as a person required to collect tax on behalf of such person or
35 of another person been convicted of a crime provided for in this chapter
36 within one year from the date on which such certificate of registration
37 is filed, (v) a shareholder owning more than fifty percent of the number
38 of shares of stock of such person (where such person is a corporation)
39 entitling the holder thereof to vote for the election of directors or
40 trustees, who owned more than fifty percent of the number of such shares
41 of another person (where such other person is a corporation) at the time
42 any tax imposed under this chapter or any related statute as defined in
43 section eighteen hundred of this chapter was finally determined to be
44 due and where such tax has not been paid in full, or at the time such
45 other person was convicted of a crime provided for in this chapter with-
46 in one year from the date on which such certificate of registration is
47 filed, or (vi) a certificate of authority issued to such person has been
48 revoked or suspended pursuant to subparagraph (A) of this paragraph
49 within one year from the date on which such certificate of registration
50 is filed, the commissioner may refuse to issue a certificate of authori-
51 ty.
52 S 2. Subdivision (g) of section 1146 of the tax law, as added by chap-
53 ter 577 of the laws of 1997, is amended to read as follows:
S. 6259--A 34 A. 9059--A
1 (g) (1) Notwithstanding the provisions of subdivision (a) of this
2 section, if the commissioner determines that a person required to
3 collect tax is liable for any tax, penalty or interest under this arti-
4 cle or is liable for a penalty under subdivision (e) of section eleven
5 hundred forty-five of this article with respect to any failure, upon
6 request in writing of such person, the commissioner shall disclose in
7 writing to such person [(1)] (I) the name of any other person required
8 to collect tax or any other person liable for such penalty under such
9 subdivision (e) whom the commissioner has determined to be liable for
10 the same tax, penalty or interest or for such penalty with respect to
11 such failure, and [(2)] (II) whether the commissioner has attempted to
12 collect such tax, penalty or interest or such penalty from such other
13 person, the general nature of such collection activities, and the amount
14 collected.
15 (2) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY, FOR
16 THE PURPOSES OF SUBPARAGRAPH (B) OF PARAGRAPH FOUR OF SUBDIVISION (A) OF
17 SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART, IF THE COMMISSIONER
18 DETERMINES THAT ANY TAX IMPOSED UNDER THIS CHAPTER OR ANY RELATED STAT-
19 UTE, AS DEFINED IN SECTION EIGHTEEN HUNDRED OF THIS CHAPTER, HAS BEEN
20 FINALLY DETERMINED TO BE DUE FROM A PERSON REQUIRED TO COLLECT TAX AND
21 HAS NOT BEEN PAID, UPON WRITTEN REQUEST OF THE PERSON WHO FILED THE
22 CERTIFICATE OF REGISTRATION FOR A CERTIFICATE OF AUTHORITY THAT WAS
23 REFUSED, THE COMMISSIONER MAY DISCLOSE TO SUCH PERSON THE NAME AND
24 AMOUNT OF TAX DUE OF THE PERSON OR PERSONS REQUIRED TO COLLECT TAX WHOSE
25 TAX LIABILITY OR LIABILITIES WERE GROUNDS FOR THE REFUSAL TO ISSUE THE
26 CERTIFICATE OF AUTHORITY.
27 S 3. This act shall take effect immediately.
28 PART G
29 Section 1. Paragraph 10 of subsection (g) of section 658 of the tax
30 law is REPEALED.
31 S 2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin-
32 istrative code of the city of New York is REPEALED.
33 S 3. Paragraph 5 of subsection (u) of section 685 of the tax law is
34 REPEALED.
35 S 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
36 trative code of the city of New York is REPEALED.
37 S 5. Section 23 of part U of chapter 61 of the laws of 2011, amending
38 the real property tax law, the general municipal law, the public offi-
39 cers law, the tax law, the abandoned property law, the state finance law
40 and the administrative code of the city of New York, relating to estab-
41 lishing standards for electronic real property tax administration,
42 allowing the department of taxation and finance to use electronic commu-
43 nication means to furnish tax notices and other documents, mandatory
44 electronic filing of tax documents, debit cards issued for tax refunds,
45 improving sales tax compliance and repealing certain provisions of the
46 tax law and the administrative code of the city of New York relating
47 thereto, is amended to read as follows:
48 S 23. This act shall take effect immediately; provided, however, that:
49 (a) the amendments to section 29 of the tax law made by section thir-
50 teen of this act shall apply to tax documents filed or required to be
51 filed on or after the sixtieth day after which this act shall have
52 become a law [and shall expire and be deemed repealed December 31,
53 2012], provided however that the amendments to paragraph 4 of subdivi-
54 sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e)
S. 6259--A 35 A. 9059--A
1 of section 29 of the tax law made by section thirteen of this act with
2 regard to individual taxpayers shall take effect September 15, 2011 but
3 only if the commissioner of taxation and finance has reported in the
4 report required by section seventeen-b of this act that the percentage
5 of individual taxpayers electronically filing their 2010 income tax
6 returns is less than eighty-five percent; provided that the commissioner
7 of taxation and finance shall notify the legislative bill drafting
8 commission of the date of the issuance of such report in order that the
9 commission may maintain an accurate and timely effective data base of
10 the official text of the laws of the state of New York in furtherance of
11 effectuating the provisions of section 44 of the legislative law and
12 section 70-b of the public officers law;
13 (b) sections fourteen, fifteen, sixteen and seventeen of this act
14 shall take effect September 15, 2011 but only if the commissioner of
15 taxation and finance has reported in the report required by section
16 seventeen-b of this act that the percentage of individual taxpayers
17 electronically filing their 2010 income tax returns is less than eight-
18 y-five percent;
19 (c) sections fourteen-a and fifteen-a of this act shall take effect
20 September 15, 2011 and expire and be deemed repealed December 31, 2012
21 but shall take effect only if the commissioner of taxation and finance
22 has reported in the report required by section seventeen-b of this act
23 that the percentage of individual taxpayers electronically filing their
24 2010 income tax returns is eighty-five percent or greater; AND
25 (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this
26 act shall take effect January 1, 2013 but only if the commissioner of
27 taxation and finance has reported in the report required by section
28 seventeen-b of this act that the percentage of individual taxpayers
29 electronically filing their 2010 income tax returns is less than eight-
30 y-five percent[; and
31 (e) sections twenty-one and twenty-one-a of this act shall expire and
32 be deemed repealed December 31, 2012].
33 S 6. Paragraph 2 of subsection (b) of section 29 of the tax law as
34 added by section 13 of part U of chapter 61 of the laws of 2011, is
35 amended to read as follows:
36 (2) If a tax return preparer prepared more than five original tax
37 documents during any calendar year beginning on or after January first,
38 two thousand eleven, and if in any succeeding calendar year that tax
39 return preparer prepares one or more authorized [returns] TAX DOCUMENTS
40 using tax software, then, for such succeeding calendar year and for each
41 subsequent calendar year thereafter, all authorized tax documents
42 prepared by that tax return preparer must be filed electronically, in
43 accordance with instructions prescribed by the commissioner.
44 S 7. This act shall take effect immediately, provided, however, that
45 the amendments to paragraph 2 of subsection (b) of section 29 of the tax
46 law made by section six of this act shall be deemed to have been in full
47 force and effect on the same date and in the same manner as section 13
48 of part U of chapter 61 of the laws of 2011, as amended, took effect.
49 PART H
50 Section 1. Paragraphs 2 and 3 of subsection (g-1) of section 606 of
51 the tax law, paragraph 2 as amended by chapter 378 of the laws of 2005,
52 subparagraph (B) of paragraph 2 as amended by chapter 251 of the laws of
53 2006 and paragraph 3 as amended by chapter 128 of the laws of 2007, are
54 amended to read as follows:
S. 6259--A 36 A. 9059--A
1 (2) Qualified solar energy system equipment expenditures. (A) The term
2 "qualified solar energy system equipment expenditures" means expendi-
3 tures for:
4 (I) the purchase of solar energy system equipment which is installed
5 in connection with residential property which is [(i)] (I) located in
6 this state and [(ii) which is] (II) used by the taxpayer as his or her
7 principal residence at the time the solar energy system equipment is
8 placed in service;
9 (II) THE LEASE OF SOLAR ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN AGREE-
10 MENT THAT SPANS AT LEAST TEN YEARS WHERE SUCH EQUIPMENT OWNED BY A
11 PERSON OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION WITH RESIDEN-
12 TIAL PROPERTY WHICH IS: (I) LOCATED IN THIS STATE; AND (II) USED BY THE
13 TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE AT THE TIME THE SOLAR ENERGY
14 SYSTEM EQUIPMENT IS PLACED IN SERVICE; OR
15 (III) THE PURCHASE OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT
16 LEAST TEN YEARS WHERE THE POWER PURCHASED IS GENERATED BY SOLAR ENERGY
17 SYSTEM EQUIPMENT OWNED BY A PERSON OTHER THAN THE TAXPAYER AND IS
18 INSTALLED IN CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS: (I) LOCATED
19 IN THIS STATE; AND (II) USED BY THE TAXPAYER AS HIS OR HER PRINCIPAL
20 RESIDENCE AT THE TIME THE SOLAR ENERGY SYSTEM IS PLACED IN SERVICE.
21 (B) Such qualified expenditures shall include expenditures for materi-
22 als, labor costs properly allocable to on-site preparation, assembly and
23 original installation, architectural and engineering services, and
24 designs and plans directly related to the construction or installation
25 of the solar energy system equipment.
26 (C) Such qualified expenditures shall not include interest or other
27 finance charges.
28 (D) SUCH QUALIFIED SOLAR ENERGY SYSTEM EQUIPMENT EXPENDITURES
29 DESCRIBED IN CLAUSE (II) OR (III) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH
30 SHALL INCLUDE AN AMOUNT EQUAL TO ALL PAYMENTS MADE DURING THE TAXABLE
31 YEAR UNDER SUCH AGREEMENT.
32 (E) NOTWITHSTANDING PARAGRAPH ONE OF THIS SUBDIVISION, THE PERCENTAGE
33 TO BE USED TO CALCULATE THE AMOUNT OF CREDIT ALLOWED FOR QUALIFIED SOLAR
34 ENERGY SYSTEM EQUIPMENT EXPENDITURES DESCRIBED IN CLAUSES (II) AND (III)
35 OF SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE EQUAL TO TWELVE AND ONE-
36 HALF PERCENT.
37 (3) Solar energy system equipment. The term "solar energy system
38 equipment" shall mean an arrangement or combination of components
39 utilizing solar radiation, which, when installed in a residence, produc-
40 es energy designed to provide heating, cooling, hot water or electricity
41 for use in such residence. Such arrangement or components shall not
42 include equipment connected to solar energy system equipment that is a
43 component of part or parts of a non-solar energy system or which uses
44 any sort of recreational facility or equipment as a storage medium.
45 Solar energy system equipment that generates electricity for use in a
46 residence must conform to applicable requirements set forth in section
47 sixty-six-j of the public service law. Provided, however, where solar
48 energy system equipment is purchased and installed by a condominium
49 management association or a cooperative housing corporation, for
50 purposes of this subsection only, the term ["ten kilowatts"]
51 "TWENTY-FIVE KILOWATTS" in such section sixty-six-j shall be read as
52 "fifty kilowatts."
53 S 2. Subdivision (ee) of section 1115 of the tax law, as added by
54 chapter 306 of the laws of 2005, is amended to read as follows:
55 (ee) Receipts from the retail sale of [residential] solar energy
56 systems equipment and of the service of installing such systems shall be
S. 6259--A 37 A. 9059--A
1 exempt from tax under this article. For the purposes of this subdivi-
2 sion, "[residential] solar energy systems equipment" shall mean an
3 arrangement or combination of components [installed in a residence] that
4 utilizes solar radiation to produce energy designed to provide heating,
5 cooling, hot water and/or electricity IN A BUILDING OR A STRUCTURE.
6 Such arrangement or components shall not [include] EXCEED AN INSTALLED
7 CAPACITY RATING OF TWO MEGAWATTS OR THE THERMAL EQUIVALENT THEREOF AND
8 SHALL NOT INCLUDE equipment that is part of a non-solar energy system or
9 [which uses any sort of recreational facility or equipment as a storage
10 medium] SYSTEMS OR EQUIPMENT USED TO HEAT RESIDENTIAL SWIMMING POOLS.
11 S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
12 amended by section 3 of part GG of chapter 57 of the laws of 2010, is
13 amended to read as follows:
14 (1) Either, all of the taxes described in article twenty-eight of this
15 chapter, at the same uniform rate, as to which taxes all provisions of
16 the local laws, ordinances or resolutions imposing such taxes shall be
17 identical, except as to rate and except as otherwise provided, with the
18 corresponding provisions in such article twenty-eight, including the
19 definition and exemption provisions of such article, so far as the
20 provisions of such article twenty-eight can be made applicable to the
21 taxes imposed by such city or county and with such limitations and
22 special provisions as are set forth in this article. The taxes author-
23 ized under this subdivision may not be imposed by a city or county
24 unless the local law, ordinance or resolution imposes such taxes so as
25 to include all portions and all types of receipts, charges or rents,
26 subject to state tax under sections eleven hundred five and eleven
27 hundred ten of this chapter, except as otherwise provided. (i) Any local
28 law, ordinance or resolution enacted by any city of less than one
29 million or by any county or school district, imposing the taxes author-
30 ized by this subdivision, shall, notwithstanding any provision of law to
31 the contrary, exclude from the operation of such local taxes all sales
32 of tangible personal property for use or consumption directly and
33 predominantly in the production of tangible personal property, gas,
34 electricity, refrigeration or steam, for sale, by manufacturing, proc-
35 essing, generating, assembly, refining, mining or extracting; and all
36 sales of tangible personal property for use or consumption predominantly
37 either in the production of tangible personal property, for sale, by
38 farming or in a commercial horse boarding operation, or in both; and,
39 unless such city, county or school district elects otherwise, shall omit
40 the provision for credit or refund contained in clause six of subdivi-
41 sion (a) or subdivision (d) of section eleven hundred nineteen of this
42 chapter. (ii) Any local law, ordinance or resolution enacted by any
43 city, county or school district, imposing the taxes authorized by this
44 subdivision, shall omit the [residential] solar energy systems equipment
45 exemption provided for in subdivision (ee) and the clothing and footwear
46 exemption provided for in paragraph thirty of subdivision (a) of section
47 eleven hundred fifteen of this chapter, unless such city, county or
48 school district elects otherwise as to either such [residential] solar
49 energy systems equipment exemption or such clothing and footwear
50 exemption.
51 S 4. Paragraph 1 of subdivision (n) of section 1210 of the tax law, as
52 added by chapter 306 of the laws of 2005, is amended to read as follows:
53 (1) Any city having a population of one million or more in which the
54 taxes imposed by section eleven hundred seven of this chapter are in
55 effect, acting through its local legislative body, is hereby authorized
56 and empowered to elect to provide the same exemptions from such taxes as
S. 6259--A 38 A. 9059--A
1 the [residential] solar energy systems equipment exemption from state
2 sales and compensating use taxes described in subdivision (ee) of
3 section eleven hundred fifteen of this chapter by enacting a resolution
4 in the form set forth in paragraph two of this subdivision; whereupon,
5 upon compliance with the provisions of subdivisions (d) and (e) of this
6 section, such enactment of such resolution shall be deemed to be an
7 amendment to such section eleven hundred seven and such section eleven
8 hundred seven shall be deemed to incorporate such exemptions as if they
9 had been duly enacted by the state legislature and approved by the
10 governor.
11 S 5. This act shall take effect immediately, provided that:
12 (1) section one of this act shall apply to leases of solar energy
13 system equipment and purchases of power under written agreements entered
14 into on or after such effective date; provided further, however, that
15 the amendments to paragraph 2 of subsection (g-1) of section 606 of the
16 tax law made by section one of this act shall not apply to any taxable
17 year commencing on or after January 1, 2015; and
18 (2) sections two, three and four of this act shall apply to sales made
19 or uses occurring on or after September 1, 2012 in accordance with the
20 applicable transitional provisions of sections 1106 and 1217 of the tax
21 law.
22 PART I
23 Section 1. Paragraph 1 of subdivision (a) of section 28 of the tax
24 law, as amended by chapter 440 of the laws of 2006, is amended to read
25 as follows:
26 (1) A taxpayer which is a qualified commercial production company, or
27 which is a sole proprietor of a qualified commercial production company,
28 and which is subject to tax under article nine-A or twenty-two of this
29 chapter, shall be allowed a credit against such tax, pursuant to the
30 provisions referenced in subdivision [(d)] (C) of this section, to be
31 computed as provided in this section. Provided, however, to be eligible
32 for such credit, at least seventy-five percent of the production costs
33 (excluding post production costs) paid or incurred directly and predomi-
34 nantly in the actual filming or recording of the qualified commercial
35 must be costs incurred in New York state. THE TAX CREDIT ALLOWED PURSU-
36 ANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANU-
37 ARY FIRST, TWO THOUSAND SEVENTEEN.
38 S 2. Paragraph (a) of subdivision 38 of section 210 of the tax law, as
39 added by section 3 of part V of chapter 62 of the laws of 2006, is
40 amended to read as follows:
41 (a) Allowance of credit. A taxpayer that is eligible pursuant to
42 provisions of section twenty-eight of this chapter shall be allowed a
43 credit to be computed as provided in such section against the tax
44 imposed by this article. THE TAX CREDIT ALLOWED PURSUANT TO THIS
45 SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
46 THOUSAND SEVENTEEN.
47 S 3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as
48 added by section 5 of part V of chapter 62 of the laws of 2006, is
49 amended to read as follows:
50 (1) Allowance of credit. A taxpayer that is eligible pursuant to the
51 provisions of section twenty-eight of this chapter shall be allowed a
52 credit to be computed as provided in such section against the tax
53 imposed by this article. THE TAX CREDIT ALLOWED PURSUANT TO THIS
S. 6259--A 39 A. 9059--A
1 SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
2 THOUSAND SEVENTEEN.
3 S 4. Section 10 of part V of chapter 62 of the laws of 2006, relating
4 to the empire state commercial production tax credit, is amended to read
5 as follows:
6 S 10. This act shall take effect immediately [and shall apply to taxa-
7 ble years beginning on and after January 1, 2007 and shall expire and be
8 deemed repealed on December 31, 2011]; provided, however that the IMB
9 credit for energy taxes under subsection (t-1) and the state film
10 production credit under subsection (gg) of section 606 of the tax law
11 contained in section four of this act shall expire on the same date as
12 provided in subdivision (a) of section 49 of part Y of chapter 63 of the
13 laws of 2000, as amended and section 9 of part P of chapter 60 of the
14 laws of 2004, as amended, respectively.
15 S 5. This act shall take effect immediately.
16 PART J
17 Section 1. Subdivision 4 of section 22 of the public housing law, as
18 amended by section 1 of part F of chapter 61 of the laws of 2011, is
19 amended to read as follows:
20 4. Statewide limitation. The aggregate dollar amount of credit which
21 the commissioner may allocate to eligible low-income buildings under
22 this article shall be [thirty-two] FORTY million dollars. The limitation
23 provided by this subdivision applies only to allocation of the aggregate
24 dollar amount of credit by the commissioner, and does not apply to
25 allowance to a taxpayer of the credit with respect to an eligible low-
26 income building for each year of the credit period.
27 S 2. Subdivision 4 of section 22 of the public housing law, as amended
28 by section one of this act, is amended to read as follows:
29 4. Statewide limitation. The aggregate dollar amount of credit which
30 the commissioner may allocate to eligible low-income buildings under
31 this article shall be [forty] FORTY-EIGHT million dollars. The limita-
32 tion provided by this subdivision applies only to allocation of the
33 aggregate dollar amount of credit by the commissioner, and does not
34 apply to allowance to a taxpayer of the credit with respect to an eligi-
35 ble low-income building for each year of the credit period.
36 S 3. Subdivision 4 of section 22 of the public housing law, as amended
37 by section two of this act, is amended to read as follows:
38 4. Statewide limitation. The aggregate dollar amount of credit which
39 the commissioner may allocate to eligible low-income buildings under
40 this article shall be [forty-eight] FIFTY-SIX million dollars. The limi-
41 tation provided by this subdivision applies only to allocation of the
42 aggregate dollar amount of credit by the commissioner, and does not
43 apply to allowance to a taxpayer of the credit with respect to an eligi-
44 ble low-income building for each year of the credit period.
45 S 4. Subdivision 4 of section 22 of the public housing law, as amended
46 by section three of this act, is amended to read as follows:
47 4. Statewide limitation. The aggregate dollar amount of credit which
48 the commissioner may allocate to eligible low-income buildings under
49 this article shall be [fifty-six] SIXTY-FOUR million dollars. The limi-
50 tation provided by this subdivision applies only to allocation of the
51 aggregate dollar amount of credit by the commissioner, and does not
52 apply to allowance to a taxpayer of the credit with respect to an eligi-
53 ble low-income building for each year of the credit period.
S. 6259--A 40 A. 9059--A
1 S 5. Subdivision 4 of section 22 of the public housing law, as amended
2 by section four of this act, is amended to read as follows:
3 4. Statewide limitation. The aggregate dollar amount of credit which
4 the commissioner may allocate to eligible low-income buildings under
5 this article shall be [sixty-four] SEVENTY-TWO million dollars. The
6 limitation provided by this subdivision applies only to allocation of
7 the aggregate dollar amount of credit by the commissioner, and does not
8 apply to allowance to a taxpayer of the credit with respect to an eligi-
9 ble low-income building for each year of the credit period.
10 S 6. This act shall take effect immediately; provided, however,
11 section two of this act shall take effect April 1, 2013, section three
12 of this act shall take effect April 1, 2014, section four of this act
13 shall take effect April 1, 2015 and section five of this act shall take
14 effect April 1, 2016.
15 PART K
16 Section 1. Subdivision (a) of section 28 of the tax law, as amended by
17 section 1 of part A of chapter 57 of the laws of 2010, is amended to
18 read as follows:
19 (a) General. A taxpayer subject to tax under article nine, nine-A or
20 twenty-two of this chapter shall be allowed a credit against such tax
21 pursuant to the provisions referenced in subdivision (d) of this
22 section. The credit (or pro rata share of earned credit in the case of a
23 partnership) for each gallon of biofuel produced at a biofuel plant on
24 or after January first, two thousand six shall equal fifteen cents per
25 gallon after the production of the first forty thousand gallons per year
26 presented to market. The credit under this section shall be capped at
27 two and one-half million dollars per taxpayer per taxable year for up to
28 no more than four consecutive taxable years per biofuel plant. If the
29 taxpayer is a partner in a partnership or shareholder of a New York S
30 corporation, then the cap imposed by the preceding sentence shall be
31 applied at the entity level, so that the aggregate credit allowed to all
32 the partners or shareholders of each such entity in the taxable year
33 does not exceed two and one-half million dollars. THE TAX CREDIT ALLOWED
34 PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE
35 JANUARY FIRST, TWO THOUSAND TWENTY.
36 S 2. Section 187-c of the tax law, as added by section 2 of part X of
37 chapter 62 of the laws of 2006, is amended to read as follows:
38 S 187-c. Biofuel production credit. A taxpayer shall be allowed a
39 credit to be computed as provided in section twenty-eight of this chap-
40 ter, AS ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND
41 SIX, against the tax imposed by this article. Provided, however, that
42 the amount of such credit allowed against the tax imposed by section one
43 hundred eighty-four of this article shall be the excess of the amount of
44 such credit over the amount of any credit allowed by this section
45 against the tax imposed by section one hundred eighty-three of this
46 article. In no event shall the credit under this section be allowed in
47 an amount which will reduce the tax payable to less than the applicable
48 minimum tax fixed by section one hundred eighty-three or one hundred
49 eighty-five of this article. If, however, the amount of the credit
50 allowed under this section for any taxable year reduces the tax to such
51 amount, the excess shall be treated as an overpayment of tax to be cred-
52 ited or refunded in accordance with the provisions of section six
53 hundred eighty-six of this chapter. Provided, however, the provisions of
54 subsection (c) of section one thousand eighty-eight of this chapter
S. 6259--A 41 A. 9059--A
1 notwithstanding, no interest shall be paid thereon. THE TAX CREDIT
2 ALLOWED PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING
3 BEFORE JANUARY FIRST, TWO THOUSAND TWENTY.
4 S 3. Subdivision 38 of section 210 of the tax law, as added by section
5 3 of part X of chapter 62 of the laws of 2006, is amended to read as
6 follows:
7 38. Biofuel production credit. A taxpayer shall be allowed a credit,
8 to be computed as provided in section twenty-eight of this chapter, AS
9 ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND SIX,
10 against the tax imposed by this article. The credit allowed under this
11 subdivision for any taxable year shall not reduce the tax due for such
12 year to less than the higher of the amounts prescribed in paragraphs (c)
13 and (d) of subdivision one of this section. However, if the amount of
14 credit allowed under this subdivision for any taxable year reduces the
15 tax to such amount, any amount of credit thus not deductible in such
16 taxable year shall be treated as an overpayment of tax to be credited or
17 refunded in accordance with the provisions of section one thousand
18 eighty-six of this chapter. Provided, however, the provisions of
19 subsection (c) of section one thousand eighty-eight of this chapter
20 notwithstanding, no interest shall be paid thereon. THE TAX CREDIT
21 ALLOWED PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING
22 BEFORE JANUARY FIRST, TWO THOUSAND TWENTY.
23 S 4. Subsection (jj) of section 606 of the tax law, as added by
24 section 5 of part X of chapter 62 of the laws of 2006, is amended to
25 read as follows:
26 (jj) Biofuel production credit. A taxpayer shall be allowed a credit
27 to be computed as provided in section twenty-eight of this chapter, AS
28 ADDED BY PART X OF CHAPTER SIXTY-TWO OF THE LAWS OF TWO THOUSAND SIX,
29 against the tax imposed by this article. If the amount of the credit
30 allowed under this subsection for any taxable year shall exceed the
31 taxpayer's tax for such year, the excess shall be treated as an overpay-
32 ment of tax to be credited or refunded in accordance with the provisions
33 of section six hundred eighty-six of this article, provided, however,
34 that no interest shall be paid thereon. THE TAX CREDIT ALLOWED PURSUANT
35 TO THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING BEFORE JANUARY
36 FIRST, TWO THOUSAND TWENTY.
37 S 5. Section 6 of part X of chapter 62 of the laws of 2006, amending
38 the tax law relating to providing tax credits for biofuel production
39 plants, is amended to read as follows:
40 S 6. This act shall take effect immediately [and shall apply to taxa-
41 ble years commencing on and after January 1, 2006 and before January 1,
42 2013]; provided, however that the IMB credit for energy taxes under
43 subsection (t-1) and the state film production credit under subsection
44 (gg) of section 606 of the tax law contained in section four of this act
45 shall expire on the same date as provided in subdivision (a) of section
46 49 of part Y of chapter 63 of the laws of 2000, as amended and section 9
47 of part P of chapter 60 of the laws of 2004, as amended, respectively.
48 S 6. This act shall take effect immediately.
49 PART L
50 Section 1. Section 2 of part I of chapter 58 of the laws of 2006,
51 relating to providing an enhanced earned income tax credit, is amended
52 to read as follows:
S. 6259--A 42 A. 9059--A
1 S 2. This act shall take effect immediately and shall apply to taxable
2 years beginning on or after January 1, 2006 [and before January 1,
3 2013].
4 S 2. This act shall take effect immediately.
5 PART M
6 Section 1. Section 5232 of the civil practice law and rules is amended
7 by adding a new subdivision (i) to read as follows:
8 (I) NO BANKING INSTITUTION SHALL SETOFF AND APPLY A LEVY PROCESSING
9 FEE AGAINST THE PROCEEDS OF A LEVY FOR TAXES IMPOSED BY OR PURSUANT TO
10 THE AUTHORITY OF THE TAX LAW OR FOR CHILD SUPPORT REGARDLESS OF ANY
11 TERMS OF AGREEMENT, OR SCHEDULE OF FEES, OR OTHER CONTRACT BETWEEN THE
12 DEBTOR AND THE BANKING INSTITUTION.
13 S 2. Subdivision (d) of section 151 of the debtor and creditor law, as
14 amended by chapter 553 of the laws of 1990, is amended to read as
15 follows:
16 (d) the issuance of any execution against any of the property of a
17 creditor, EXCEPT AS PROVIDED FOR IN SUBDIVISION (I) OF SECTION FIFTY-TWO
18 HUNDRED THIRTY-TWO OF THE CIVIL PRACTICE LAW AND RULES;
19 S 3. This act shall take effect on the ninetieth day after it shall
20 have become a law.
21 PART N
22 Section 1. Subsection (a) of section 801 of the tax law, as amended by
23 section 2 of part B of chapter 56 of the laws of 2011, is amended to
24 read as follows:
25 (a) For the sole purpose of providing an additional stable and reli-
26 able dedicated funding source for the metropolitan transportation
27 authority and its subsidiaries and affiliates to preserve, operate and
28 improve essential transit and transportation services in the metropol-
29 itan commuter transportation district, a tax is hereby imposed on
30 EMPLOYERS AND INDIVIDUALS AS FOLLOWS: (1) FOR employers who engage in
31 business within the MCTD [(1)], THE TAX IS IMPOSED at a rate of (A)
32 eleven hundredths (.11) percent OF THE PAYROLL EXPENSE for employers
33 with payroll expense no greater than three hundred seventy-five thousand
34 dollars in any calendar quarter, (B) twenty-three hundredths (.23)
35 percent OF THE PAYROLL EXPENSE for employers with payroll expense great-
36 er than three hundred seventy-five thousand dollars and no greater than
37 four hundred thirty-seven thousand five hundred dollars in any calendar
38 quarter, and (C) thirty-four hundredths (.34) percent OF THE PAYROLL
39 EXPENSE for employers with payroll expense in excess of four hundred
40 thirty-seven thousand five hundred dollars in any calendar quarter[,
41 and]. IF THE EMPLOYER IS A PROFESSIONAL EMPLOYER ORGANIZATION, AS
42 DEFINED IN SECTION NINE HUNDRED SIXTEEN OF THE LABOR LAW, THE EMPLOYER'S
43 TAX SHALL BE CALCULATED BY DETERMINING THE PAYROLL EXPENSE ATTRIBUTABLE
44 TO EACH CLIENT WHO HAS ENTERED INTO A PROFESSIONAL EMPLOYER AGREEMENT
45 WITH SUCH ORGANIZATION AND THE PAYROLL EXPENSE ATTRIBUTABLE TO SUCH
46 ORGANIZATION ITSELF, MULTIPLYING EACH OF THOSE PAYROLL EXPENSE AMOUNTS
47 BY THE APPLICABLE RATE SET FORTH IN THIS PARAGRAPH AND ADDING THOSE
48 PRODUCTS TOGETHER. (2) FOR INDIVIDUALS, THE TAX IS IMPOSED at a rate of
49 thirty-four hundredths (.34) percent of the net earnings from self-em-
50 ployment of individuals that are attributable to the MCTD if such earn-
51 ings attributable to the MCTD exceed fifty thousand dollars for the tax
52 year.
S. 6259--A 43 A. 9059--A
1 S 2. Section 4 of part B of chapter 56 of the laws of 2011 amending
2 the tax law relating to the tax rates and exclusions under the metropol-
3 itan commuter transportation mobility tax is amended to read as follows:
4 S 4. This act shall take effect immediately AND SHALL APPLY TO TAXABLE
5 YEARS BEGINNING ON OR AFTER JANUARY 1, 2012; provided however, that
6 section one of this act and the amendments in section two of this act
7 that concern employers shall take effect for the quarter beginning on
8 April 1, 2012.
9 S 3. This act shall take effect immediately; provided however that the
10 amendment in section one of this act concerning professional employer
11 organizations shall take effect for the quarter beginning on April 1,
12 2012.
13 PART O
14 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
15 racing, pari-mutuel wagering and breeding law, as amended by section 1
16 of part S of chapter 61 of the laws of 2011, is amended to read as
17 follows:
18 (a) Any racing association or corporation or regional off-track
19 betting corporation, authorized to conduct pari-mutuel wagering under
20 this chapter, desiring to display the simulcast of horse races on which
21 pari-mutuel betting shall be permitted in the manner and subject to the
22 conditions provided for in this article may apply to the board for a
23 license so to do. Applications for licenses shall be in such form as may
24 be prescribed by the board and shall contain such information or other
25 material or evidence as the board may require. No license shall be
26 issued by the board authorizing the simulcast transmission of thorough-
27 bred races from a track located in Suffolk county. The fee for such
28 licenses shall be five hundred dollars per simulcast facility per year
29 payable by the licensee to the board for deposit into the general fund.
30 Except as provided herein, the board shall not approve any application
31 to conduct simulcasting into individual or group residences, homes or
32 other areas for the purposes of or in connection with pari-mutuel wager-
33 ing. The board may approve simulcasting into residences, homes or other
34 areas to be conducted jointly by one or more regional off-track betting
35 corporations and one or more of the following: a franchised corporation,
36 thoroughbred racing corporation or a harness racing corporation or asso-
37 ciation; provided (i) the simulcasting consists only of those races on
38 which pari-mutuel betting is authorized by this chapter at one or more
39 simulcast facilities for each of the contracting off-track betting
40 corporations which shall include wagers made in accordance with section
41 one thousand fifteen, one thousand sixteen and one thousand seventeen of
42 this article; provided further that the contract provisions or other
43 simulcast arrangements for such simulcast facility shall be no less
44 favorable than those in effect on January first, two thousand five; (ii)
45 that each off-track betting corporation having within its geographic
46 boundaries such residences, homes or other areas technically capable of
47 receiving the simulcast signal shall be a contracting party; (iii) the
48 distribution of revenues shall be subject to contractual agreement of
49 the parties except that statutory payments to non-contracting parties,
50 if any, may not be reduced; provided, however, that nothing herein to
51 the contrary shall prevent a track from televising its races on an
52 irregular basis primarily for promotional or marketing purposes as found
53 by the board. For purposes of this paragraph, the provisions of section
54 one thousand thirteen of this article shall not apply. Any agreement
S. 6259--A 44 A. 9059--A
1 authorizing an in-home simulcasting experiment commencing prior to May
2 fifteenth, nineteen hundred ninety-five, may, and all its terms, be
3 extended until June thirtieth, two thousand [twelve] THIRTEEN; provided,
4 however, that any party to such agreement may elect to terminate such
5 agreement upon conveying written notice to all other parties of such
6 agreement at least forty-five days prior to the effective date of the
7 termination, via registered mail. Any party to an agreement receiving
8 such notice of an intent to terminate, may request the board to mediate
9 between the parties new terms and conditions in a replacement agreement
10 between the parties as will permit continuation of an in-home experiment
11 until June thirtieth, two thousand [twelve] THIRTEEN; and (iv) no
12 in-home simulcasting in the thoroughbred special betting district shall
13 occur without the approval of the regional thoroughbred track.
14 S 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
15 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
16 section 2 of part S of chapter 61 of the laws of 2011, is amended to
17 read as follows:
18 (iii) Of the sums retained by a receiving track located in Westchester
19 county on races received from a franchised corporation, for the period
20 commencing January first, two thousand eight and continuing through June
21 thirtieth, two thousand [twelve] THIRTEEN, the amount used exclusively
22 for purses to be awarded at races conducted by such receiving track
23 shall be computed as follows: of the sums so retained, two and one-half
24 percent of the total pools. Such amount shall be increased or decreased
25 in the amount of fifty percent of the difference in total commissions
26 determined by comparing the total commissions available after July twen-
27 ty-first, nineteen hundred ninety-five to the total commissions that
28 would have been available to such track prior to July twenty-first,
29 nineteen hundred ninety-five.
30 S 3. The opening paragraph of subdivision 1 of section 1014 of the
31 racing, pari-mutuel wagering and breeding law, as amended by section 3
32 of part S of chapter 61 of the laws of 2011, is amended to read as
33 follows:
34 The provisions of this section shall govern the simulcasting of races
35 conducted at thoroughbred tracks located in another state or country on
36 any day during which a franchised corporation is conducting a race meet-
37 ing in Saratoga county at Saratoga thoroughbred racetrack until June
38 thirtieth, two thousand [twelve] THIRTEEN and on any day regardless of
39 whether or not a franchised corporation is conducting a race meeting in
40 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
41 two thousand [twelve] THIRTEEN. On any day on which a franchised corpo-
42 ration has not scheduled a racing program but a thoroughbred racing
43 corporation located within the state is conducting racing, every off-
44 track betting corporation branch office and every simulcasting facility
45 licensed in accordance with section one thousand seven (that have
46 entered into a written agreement with such facility's representative
47 horsemen's organization, as approved by the board), one thousand eight,
48 or one thousand nine of this article shall be authorized to accept
49 wagers and display the live simulcast signal from thoroughbred tracks
50 located in another state or foreign country subject to the following
51 provisions:
52 S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
53 and breeding law, as amended by section 4 of part S of chapter 61 of the
54 laws of 2011, is amended to read as follows:
55 1. The provisions of this section shall govern the simulcasting of
56 races conducted at harness tracks located in another state or country
S. 6259--A 45 A. 9059--A
1 during the period July first, nineteen hundred ninety-four through June
2 thirtieth, two thousand [twelve] THIRTEEN. This section shall supersede
3 all inconsistent provisions of this chapter.
4 S 5. The opening paragraph of subdivision 1 of section 1016 of the
5 racing, pari-mutuel wagering and breeding law, as amended by section 5
6 of part S of chapter 61 of the laws of 2011, is amended to read as
7 follows:
8 The provisions of this section shall govern the simulcasting of races
9 conducted at thoroughbred tracks located in another state or country on
10 any day during which a franchised corporation is not conducting a race
11 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
12 thirtieth, two thousand [twelve] THIRTEEN. Every off-track betting
13 corporation branch office and every simulcasting facility licensed in
14 accordance with section one thousand seven that have entered into a
15 written agreement with such facility's representative horsemen's organ-
16 ization as approved by the board, one thousand eight or one thousand
17 nine of this article shall be authorized to accept wagers and display
18 the live full-card simulcast signal of thoroughbred tracks (which may
19 include quarter horse or mixed meetings provided that all such wagering
20 on such races shall be construed to be thoroughbred races) located in
21 another state or foreign country, subject to the following provisions;
22 provided, however, no such written agreement shall be required of a
23 franchised corporation licensed in accordance with section one thousand
24 seven of this article:
25 S 6. The opening paragraph of section 1018 of the racing, pari-mutuel
26 wagering and breeding law, as amended by section 6 of part S of chapter
27 61 of the laws of 2011, is amended to read as follows:
28 Notwithstanding any other provision of this chapter, for the period
29 July twenty-fifth, two thousand one through September eighth, two thou-
30 sand [eleven] TWELVE, when a franchised corporation is conducting a race
31 meeting within the state at Saratoga Race Course, every off-track
32 betting corporation branch office and every simulcasting facility
33 licensed in accordance with section one thousand seven (that has entered
34 into a written agreement with such facility's representative horsemen's
35 organization as approved by the board), one thousand eight or one thou-
36 sand nine of this article shall be authorized to accept wagers and
37 display the live simulcast signal from thoroughbred tracks located in
38 another state, provided that such facility shall accept wagers on races
39 run at all in-state thoroughbred tracks which are conducting racing
40 programs subject to the following provisions; provided, however, no such
41 written agreement shall be required of a franchised corporation licensed
42 in accordance with section one thousand seven of this article.
43 S 7. Section 32 of chapter 281 of the laws of 1994, amending the
44 racing, pari-mutuel wagering and breeding law and other laws relating to
45 simulcasting, as amended by section 7 of part S of chapter 61 of the
46 laws of 2011, is amended to read as follows:
47 S 32. This act shall take effect immediately and the pari-mutuel tax
48 reductions in section six of this act shall expire and be deemed
49 repealed on July 1, [2012] 2013; provided, however, that nothing
50 contained herein shall be deemed to affect the application, qualifica-
51 tion, expiration, or repeal of any provision of law amended by any
52 section of this act, and such provisions shall be applied or qualified
53 or shall expire or be deemed repealed in the same manner, to the same
54 extent and on the same date as the case may be as otherwise provided by
55 law; provided further, however, that sections twenty-three and twenty-
S. 6259--A 46 A. 9059--A
1 five of this act shall remain in full force and effect only until May 1,
2 1997 and at such time shall be deemed to be repealed.
3 S 8. Section 54 of chapter 346 of the laws of 1990, amending the
4 racing, pari-mutuel wagering and breeding law and other laws relating to
5 simulcasting and the imposition of certain taxes, as amended by section
6 8 of part S of chapter 61 of the laws of 2011, is amended to read as
7 follows:
8 S 54. This act shall take effect immediately; provided, however,
9 sections three through twelve of this act shall take effect on January
10 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
11 ing law, as added by section thirty-eight of this act, shall expire and
12 be deemed repealed on July 1, [2012] 2013; and section eighteen of this
13 act shall take effect on July 1, 2008 and sections fifty-one and fifty-
14 two of this act shall take effect as of the same date as chapter 772 of
15 the laws of 1989 took effect.
16 S 9. Paragraph (a) of subdivision 1 of section 238 of the racing,
17 pari-mutuel wagering and breeding law, as amended by section 9 of part S
18 of chapter 61 of the laws of 2011, is amended to read as follows:
19 (a) The franchised corporation authorized under this chapter to
20 conduct pari-mutuel betting at a race meeting or races run thereat shall
21 distribute all sums deposited in any pari-mutuel pool to the holders of
22 winning tickets therein, provided such tickets be presented for payment
23 before April first of the year following the year of their purchase,
24 less an amount which shall be established and retained by such fran-
25 chised corporation of between twelve to seventeen per centum of the
26 total deposits in pools resulting from on-track regular bets, and four-
27 teen to twenty-one per centum of the total deposits in pools resulting
28 from on-track multiple bets and fifteen to twenty-five per centum of the
29 total deposits in pools resulting from on-track exotic bets and fifteen
30 to thirty-six per centum of the total deposits in pools resulting from
31 on-track super exotic bets, plus the breaks. The retention rate to be
32 established is subject to the prior approval of the racing and wagering
33 board. Such rate may not be changed more than once per calendar quarter
34 to be effective on the first day of the calendar quarter. "Exotic bets"
35 and "multiple bets" shall have the meanings set forth in section five
36 hundred nineteen of this chapter. "Super exotic bets" shall have the
37 meaning set forth in section three hundred one of this chapter. For
38 purposes of this section, a "pick six bet" shall mean a single bet or
39 wager on the outcomes of six races. The breaks are hereby defined as the
40 odd cents over any multiple of five for payoffs greater than one dollar
41 five cents but less than five dollars, over any multiple of ten for
42 payoffs greater than five dollars but less than twenty-five dollars,
43 over any multiple of twenty-five for payoffs greater than twenty-five
44 dollars but less than two hundred fifty dollars, or over any multiple of
45 fifty for payoffs over two hundred fifty dollars. Out of the amount so
46 retained there shall be paid by such franchised corporation to the
47 commissioner of taxation and finance, as a reasonable tax by the state
48 for the privilege of conducting pari-mutuel betting on the races run at
49 the race meetings held by such franchised corporation, the following
50 percentages of the total pool for regular and multiple bets five per
51 centum of regular bets and four per centum of multiple bets plus twenty
52 per centum of the breaks; for exotic wagers seven and one-half per
53 centum plus twenty per centum of the breaks, and for super exotic bets
54 seven and one-half per centum plus fifty per centum of the breaks. For
55 the period June first, nineteen hundred ninety-five through September
56 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
S. 6259--A 47 A. 9059--A
1 three per centum and such tax on multiple wagers shall be two and one-
2 half per centum, plus twenty per centum of the breaks. For the period
3 September tenth, nineteen hundred ninety-nine through March thirty-
4 first, two thousand one, such tax on all wagers shall be two and six-
5 tenths per centum and for the period April first, two thousand one
6 through December thirty-first, two thousand [twelve] THIRTEEN, such tax
7 on all wagers shall be one and six-tenths per centum, plus, in each such
8 period, twenty per centum of the breaks. Payment to the New York state
9 thoroughbred breeding and development fund by such franchised corpo-
10 ration shall be one-half of one per centum of total daily on-track pari-
11 mutuel pools resulting from regular, multiple and exotic bets and three
12 per centum of super exotic bets provided, however, that for the period
13 September tenth, nineteen hundred ninety-nine through March thirty-
14 first, two thousand one, such payment shall be six-tenths of one per
15 centum of regular, multiple and exotic pools and for the period April
16 first, two thousand one through December thirty-first, two thousand
17 [twelve] THIRTEEN, such payment shall be seven-tenths of one per centum
18 of such pools.
19 S 10. Subdivision 5 of section 1012 of the racing, pari-mutuel wager-
20 ing and breeding law, as amended by section 10 of part S of chapter 61
21 of the laws of 2011, is amended to read as follows:
22 5. The provisions of this section shall expire and be of no further
23 force and effect after June thirtieth, two thousand [twelve] THIRTEEN.
24 S 11. This act shall take effect immediately.
25 PART P
26 Section 1. Subdivision 3 of section 205 of the tax law, as added by
27 section 8 of part U1 of chapter 62 of the laws of 2003, is amended to
28 read as follows:
29 3. [From the] THE moneys collected from the taxes imposed by sections
30 one hundred eighty-three and one hundred eighty-four of this article on
31 and after April first, two thousand [four] TWELVE, after reserving
32 amounts for refunds or reimbursements, SHALL BE DISTRIBUTED AS FOLLOWS:
33 twenty percent of such moneys shall be deposited to the credit of the
34 dedicated highway and bridge trust fund established by section eighty-
35 nine-b of the state finance law[. The remainder], FIFTY-FOUR PERCENT OF
36 SUCH MONEYS shall be deposited in the mass transportation operating
37 assistance fund to the credit of the metropolitan mass transportation
38 operating assistance account created pursuant to section eighty-eight-a
39 of the state finance law AND TWENTY-SIX PERCENT OF SUCH MONEYS SHALL BE
40 DEPOSITED IN THE MASS TRANSPORTATION OPERATING ASSISTANCE FUND TO THE
41 CREDIT OF THE PUBLIC TRANSPORTATION SYSTEMS OPERATING ASSISTANCE ACCOUNT
42 CREATED PURSUANT TO SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW.
43 S 2. This act shall take effect immediately and shall be deemed to be
44 in full force and effect on and after April 1, 2012; provided, however,
45 that the amendments to subdivision 3 of section 205 of the tax law made
46 by section one of this act shall not affect the repeal of such subdivi-
47 sion and shall be deemed to be repealed therewith.
48 PART Q
49 Section 1. Subdivision (e) of section 1105 of the tax law, as amended
50 by section 4 of part AA of chapter 57 of the laws of 2010, is amended to
51 read as follows:
S. 6259--A 48 A. 9059--A
1 (e) (1) The rent for every occupancy of a room or rooms in a hotel in
2 this state, except that the tax shall not be imposed upon (i) a perma-
3 nent resident, or (ii) where the rent is not more than at the rate of
4 two dollars per day.
5 (2) [When] EXCEPT AS PROVIDED IN SUBDIVISION (R) OF SECTION ELEVEN
6 HUNDRED ELEVEN OF THIS PART, WHEN occupancy is provided, for a single
7 consideration, with property, services, amusement charges, or any other
8 items, the separate sale of which is not subject to tax under this arti-
9 cle, the entire consideration shall be treated as rent subject to tax
10 under paragraph one of this subdivision; provided, however, that where
11 the amount of the rent for occupancy is stated separately from the price
12 of such property, services, amusement charges, or other items, on any
13 sales slip, invoice, receipt, or other statement given the occupant, and
14 such rent is reasonable in relation to the value of such property,
15 services, amusement charges or other items, only such separately stated
16 rent will be subject to tax under paragraph one of this subdivision.
17 S 2. Section 1111 of the tax law is amended by adding a new subdivi-
18 sion (r) to read as follows:
19 (R) (1) IN REGARD TO THE COLLECTION OF SALES TAX ON OCCUPANCIES BY
20 ROOM REMARKETERS, WHEN OCCUPANCY IS PROVIDED FOR A SINGLE CONSIDERATION
21 WITH PROPERTY, SERVICES, AMUSEMENT CHARGES, OR ANY OTHER ITEMS, WHETHER
22 OR NOT SUCH OTHER ITEMS ARE TAXABLE, THE RENT PORTION OF THE CONSIDER-
23 ATION FOR SUCH TRANSACTION SHALL BE COMPUTED AS FOLLOWS: EITHER THE
24 TOTAL CONSIDERATION RECEIVED BY THE ROOM REMARKETER MULTIPLIED BY A
25 FRACTION, THE NUMERATOR OF WHICH SHALL BE THE CONSIDERATION PAYABLE FOR
26 THE OCCUPANCY BY THE ROOM REMARKETER AND THE DENOMINATOR OF WHICH SHALL
27 BE SUCH CONSIDERATION PAYABLE FOR THE OCCUPANCY PLUS THE CONSIDERATION
28 PAYABLE BY THE REMARKETER FOR THE OTHER ITEMS BEING SOLD, OR BY ANY
29 OTHER METHOD AS MAY BE AUTHORIZED BY THE COMMISSIONER. IF THE ROOM
30 REMARKETER FAILS TO SEPARATELY STATE THE TAX ON THE RENT SO COMPUTED ON
31 A SALES SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT GIVEN TO THE OCCUPANT
32 IN THE MANNER PRESCRIBED BY PARAGRAPH TWO OF THIS SUBDIVISION OR FAILS
33 TO MAINTAIN RECORDS OF THE PRICES OF ALL COMPONENTS OF A TRANSACTION
34 COVERED BY THIS PARAGRAPH, THE ENTIRE CONSIDERATION SHALL BE TREATED AS
35 RENT SUBJECT TO TAX UNDER PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION
36 ELEVEN HUNDRED FIVE OF THIS PART. NOTHING HEREIN SHALL BE CONSTRUED TO
37 SUBJECT TO TAX OR EXEMPT FROM TAX ANY SERVICE OR PROPERTY OR AMUSEMENT
38 CHARGE OR OTHER ITEMS OTHERWISE SUBJECT TO TAX OR EXEMPT FROM TAX UNDER
39 THIS ARTICLE OR PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS
40 CHAPTER. A ROOM REMARKETER'S RECORDS OF THE CONSIDERATION PAYABLE FOR
41 ALL COMPONENTS OF A TRANSACTION COVERED BY THIS PARAGRAPH ARE RECORDS
42 REQUIRED TO BE MAINTAINED FOR PURPOSES OF SUBDIVISION (A) OF SECTION
43 ELEVEN HUNDRED THIRTY-FIVE OF THIS ARTICLE.
44 (2) IN REGARD TO THE COLLECTION OF SALES TAX ON OCCUPANCIES BY ROOM
45 REMARKETERS, INCLUDING A TRANSACTION DESCRIBED IN PARAGRAPH ONE OF THIS
46 SUBDIVISION, THE REQUIREMENTS OF THE SECOND SENTENCE OF PARAGRAPH ONE OF
47 SUBDIVISION (A) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS ARTICLE
48 SHALL BE DEEMED SATISFIED IF THE REMARKETER GIVES THE CUSTOMER A SALES
49 SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE ("INVOICE")
50 PRIOR TO THE CUSTOMER'S COMPLETION OF HIS OR HER OCCUPANCY, ON WHICH THE
51 AMOUNT OF TAX DUE UNDER THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF
52 ARTICLE TWENTY-NINE OF THIS CHAPTER IS STATED. THE ROOM REMARKETER MUST
53 KEEP EITHER A COPY OF THE INVOICE AS REQUIRED BY SUBDIVISION (A) OF
54 SECTION ELEVEN HUNDRED THIRTY-FIVE OF THIS ARTICLE, OR ELECTRONIC
55 RECORDS THAT ACCURATELY REFLECT THE INFORMATION THAT IS ON THE INVOICE
56 PROVIDED TO THE CUSTOMER.
S. 6259--A 49 A. 9059--A
1 (3) IN REGARD TO THE REPORTING AND THE PAYMENT TO THE COMMISSIONER BY
2 ROOM REMARKETERS OF SALES TAX DUE ON OCCUPANCIES, SUBDIVISION (A) OF
3 SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS ARTICLE SHALL BE READ TO
4 REQUIRE A ROOM REMARKETER TO REPORT SUCH SALES TAX DUE, INCLUDING IN
5 REGARD TO A TRANSACTION DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION,
6 ON THE RETURN DUE FOR THE FILING PERIOD IN WHICH THE OCCUPANCY ENDS AND,
7 AT THE TIME OF FILING SUCH RETURN, TO PAY TO THE COMMISSIONER THE TOTAL
8 AMOUNT DESCRIBED BY SUCH SUBDIVISION (A).
9 S 3. Subdivision (e) of section 1119 of the tax law, as added by
10 section 5 of part AA of chapter 57 of the laws of 2010, is amended to
11 read as follows:
12 (e) Subject to conditions and limitations provided in this subdivi-
13 sion, a room remarketer shall be allowed a refund or credit against the
14 amount of tax collected and required to be remitted under section eleven
15 hundred thirty-seven of this article in the amount of the tax it paid to
16 an operator of a hotel under section eleven hundred four of this arti-
17 cle, where applicable, and subdivision (e) of section eleven hundred
18 five of this article. Provided, however, that, in order to qualify for a
19 refund or credit under this subdivision for any sales tax quarterly
20 period, the room remarketer must, for that quarter, (1) be registered
21 for sales tax purposes under section eleven hundred thirty-four of this
22 article; (2) collect the taxes imposed by section eleven hundred four of
23 this article, where applicable, and subdivision (e) of section eleven
24 hundred five of this article; and (3) furnish the certificate of author-
25 ity number of the operator to whom the applicant paid the tax in its
26 application for refund or credit if required on that form or upon
27 request. PROVIDED THAT IF THE ROOM REMARKETER REQUESTS THE OPERATOR'S
28 CERTIFICATE OF AUTHORITY NUMBER AND IS NOT PROVIDED WITH THAT NUMBER,
29 THE ROOM REMARKETER MAY SATISFY THIS REQUIREMENT BY PROVIDING THE OPERA-
30 TOR'S NAME, BUSINESS ADDRESS, TELEPHONE NUMBER, AND THE ADDRESS OF THE
31 HOTEL WHERE THE OCCUPANCY TOOK PLACE. An application for refund or cred-
32 it under this subdivision must be filed with the commissioner within the
33 time provided by subdivision (a) of section eleven hundred thirty-nine
34 of this article. The application must be in the form prescribed by the
35 commissioner. Where an application for credit has been filed, the appli-
36 cant may immediately take the credit on the return that is due coinci-
37 dent with or immediately subsequent to the time that the applicant files
38 the application for credit. However, the taking of the credit on the
39 return is deemed to be part of the application for credit. The procedure
40 for granting or denying the applications for refund or credit and review
41 of those determinations shall be as provided in subdivision (e) of
42 section eleven hundred thirty-nine of this article. An operator, includ-
43 ing a room remarketer, who is paid tax by a room remarketer must upon
44 request provide the remarketer with its certificate of authority number,
45 provided that the operator's failure to do so does not change the
46 requirement set forth in paragraph three of this subdivision.
47 S 4. Paragraph 4 of subdivision a of section 11-2502 of the adminis-
48 trative code of the city of New York, as amended by section 8 of part AA
49 of chapter 57 of the laws of 2010, is amended to read as follows:
50 (4) (I) When occupancy is provided, for a single consideration, with
51 property, services, amusement charges, or any other items, the separate
52 sale of which is not subject to tax under this chapter, the entire
53 consideration shall be treated as rent subject to tax under paragraph
54 one of this subdivision; provided, however, that where the amount of the
55 rent for occupancy is stated separately from the price of such property,
56 services, amusement charges or other items on any sales slip, invoice,
S. 6259--A 50 A. 9059--A
1 receipt, or other statement given the occupant and such rent is reason-
2 able in relation to the value of such property, services, amusement
3 charges, or other items, only such separately stated rent will be
4 subject to tax under [paragraph one of] this subdivision.
5 (II) IN REGARD TO THE COLLECTION OF TAX ON OCCUPANCIES BY REMARKETERS,
6 WHEN OCCUPANCY IS PROVIDED, FOR A SINGLE CONSIDERATION, WITH PROPERTY,
7 SERVICES, AMUSEMENT CHARGES, OR ANY OTHER ITEMS, WHETHER OR NOT SUCH
8 OTHER ITEMS ARE TAXABLE, THE RENT PORTION OF THE CONSIDERATION FOR SUCH
9 SALE SHALL BE COMPUTED AS FOLLOWS: THE TOTAL CONSIDERATION FOR THE SALE
10 MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE CONSIDER-
11 ATION PAID TO THE HOTEL FOR THE OCCUPANCY AND THE DENOMINATOR OF WHICH
12 SHALL BE THE CONSIDERATION PAID TO THE HOTEL FOR THE OCCUPANCY PLUS THE
13 CONSIDERATION PAID TO THE PROVIDERS OF THE OTHER ITEMS BEING SOLD, OR BY
14 ANY OTHER REASONABLE METHOD PURSUANT TO WHICH THE RENT PORTION OF
15 CONSIDERATION WOULD BE NO LESS THAN THE COMPUTATION OF RENT PORTION OF
16 CONSIDERATION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH. NOTHING HEREIN
17 SHALL BE CONSTRUED TO SUBJECT TO TAX OR EXEMPT FROM TAX ANY SERVICE OR
18 PROPERTY OR AMUSEMENT CHARGE OR OTHER ITEMS OTHERWISE SUBJECT TO TAX OR
19 EXEMPT FROM TAX UNDER THIS CHAPTER.
20 S 5. Paragraph 5 of subdivision a of section 11-2502 of the adminis-
21 trative code of the city of New York, as amended by section 8 of part AA
22 of chapter 57 of the laws of 2010, is amended to read as follows:
23 (5) A room remarketer shall be allowed a refund or credit against the
24 taxes collected and required to be remitted pursuant to section 11-2505
25 of this chapter in the amount of the tax it paid to the operator of the
26 hotel or another room remarketer under [paragraph three of] this subdi-
27 vision. Provided, however, that in order to qualify for a refund or
28 credit under this paragraph with respect to any quarterly period, as
29 described in subdivision a of section 11-2504 of this chapter, the room
30 remarketer must, with respect to such quarter, (i) be registered for
31 hotel room occupancy tax purposes under section 11-2514 of this chapter,
32 and (ii) collect the taxes imposed by paragraphs two and three of this
33 subdivision. Subject to the conditions and limitations of this para-
34 graph, the provisions of section 11-2507 of this chapter shall apply to
35 refunds or credits under this paragraph.
36 S 6. Subdivision f of section 11-2502 of the administrative code of
37 the city of New York, as amended by local law number 43 of the city of
38 New York for the year 2009 and paragraph 2 as renumbered by section 9 of
39 part AA of chapter 57 of the laws of 2010, is amended to read as
40 follows:
41 f. The tax to be collected shall be stated [and charged] separately
42 from the rent [and shown separately on any record thereof, at the time
43 when the occupancy is arranged or contracted for and charged for and
44 upon every evidence of occupancy or any bill or statement or charge made
45 for said occupancy issued or delivered by the operator or room remarket-
46 er] ON A SALES SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE
47 ("INVOICE") GIVEN TO THE OCCUPANT PRIOR TO THE OCCUPANT'S COMPLETION OF
48 HIS OR HER OCCUPANCY AND BE VERIFIABLE FROM THE BOOKS AND RECORDS OF AN
49 OPERATOR OR ROOM REMARKETER RESPONSIBLE FOR COLLECTING AND REMITTING THE
50 TAX.
51 (1) Where an occupant rents a room directly from an operator, the tax
52 shall be paid by the occupant to the operator as trustee for and on
53 account of the city, and the operator shall be liable for the collection
54 of the tax on the rent and for the payment of the tax on the rent.
55 (2) The operator or room remarketer and any officer of any corporate
56 operator or room remarketer shall be personally liable for the portion
S. 6259--A 51 A. 9059--A
1 of the tax collected or required to be collected under this chapter, and
2 the operator shall have the same right in respect to collecting the tax
3 from the occupant, or in respect to nonpayment of the tax by the occu-
4 pant as if the tax were a part of the rent for the occupancy payable at
5 the time such tax shall become due and owing, including all rights of
6 eviction, dispossession, repossession and enforcement of any innkeeper's
7 lien that he or she may have in the event of nonpayment of rent by the
8 occupant; provided however, that the commissioner of finance shall be
9 joined as a party in any action or proceeding brought by the operator to
10 collect or enforce collection of the tax.
11 S 7. This act shall take effect September 1, 2012 and shall apply to
12 occupancies that commence on or after such date.
13 S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
14 sion, section or part of this act shall be adjudged by any court of
15 competent jurisdiction to be invalid, such judgment shall not affect,
16 impair, or invalidate the remainder thereof, but shall be confined in
17 its operation to the clause, sentence, paragraph, subdivision, section
18 or part thereof directly involved in the controversy in which such judg-
19 ment shall have been rendered. It is hereby declared to be the intent of
20 the legislature that this act would have been enacted even if such
21 invalid provisions had not been included herein.
22 S 3. This act shall take effect immediately provided, however, that
23 the applicable effective date of Parts A through Q of this act shall be
24 as specifically set forth in the last section of such Parts.
