Bill Text: NY A10128 | 2009-2010 | General Assembly | Amended

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Bill Title: Directs all cigarette wholesalers to sell only tax-stamped cigarettes to everyone, unless presented with an Indian tax exemption coupon; provides that the failure of the department of taxation and finance to establish and distribute such coupons, shall not relieve wholesalers from the duty to collect cigarette taxes on cigarettes sold to Indian tribes and nations; provides for the refund of taxes paid by Indians because of the failure of the department of taxation and finance to issue Indian tax exemption coupons; directs such department to take all actions necessary to implement provisions relating to the imposition of cigarettes taxes on Indian reservations; establishes cause of action against such department for failure to take such actions.

Spectrum: Strong Partisan Bill (Democrat 23-2)

Status: (Introduced - Dead) 2010-03-10 - print number 10128a [A10128 Detail]

Download: New_York-2009-A10128-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                       10128--A
                                 I N  A S S E M B L Y
                                     March 5, 2010
                                      ___________
       Introduced  by M. of A. MAGEE -- 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 the tax law, in relation to cigarette taxes imposed on
         qualified Indian reservations; and to direct the department  of  taxa-
         tion and finance to fully implement such provisions
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraph (d) of subdivision 3 of section 471-e of the  tax
    2  law,  as added by section 2 of part K of chapter 61 of the laws of 2005,
    3  is amended to read as follows:
    4    (d)  [A  wholesale  dealer]  WHOLESALER  DEALERS   shall   SELL   ONLY
    5  TAX-STAMPED  CIGARETTES TO INDIAN NATIONS AND TRIBES, QUALIFIED RESERVA-
    6  TION CIGARETTE SELLERS AND ALL OTHER PURCHASERS, BUT SHALL  not  collect
    7  the  cigarette  tax from any purchaser to the extent the purchaser gives
    8  such  wholesale  dealer  Indian  tax  exemption  coupons  entitling  the
    9  purchaser  to  purchase  such quantities of cigarettes as allowed for on
   10  each such Indian tax exemption coupon without paying the cigarette tax.
   11    S 2. Section 471-e of the tax law is amended by adding a new  subdivi-
   12  sion 6 to read as follows:
   13    6.  (A)  THE FAILURE OF THE DEPARTMENT TO ESTABLISH, ISSUE AND PROVIDE
   14  INDIAN TAX EXEMPTION COUPONS, PURSUANT TO SUBDIVISIONS ONE  AND  TWO  OF
   15  THIS  SECTION,  OR  TO  PROMULGATE  ANY RULES, REGULATIONS OR DIRECTIVES
   16  NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION, SHALL NOT RELIEVE
   17  WHOLESALE DEALERS OF THE OBLIGATION TO SELL ONLY TAX-STAMPED  CIGARETTES
   18  TO  INDIAN  NATIONS  AND  TRIBES, AND TO QUALIFIED RESERVATION CIGARETTE
   19  SELLERS.
   20    (B) FOR ANY CIGARETTES SOLD TO QUALIFIED INDIANS UPON WHICH  CIGARETTE
   21  TAXES  WERE IMPOSED ON OR AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH AND
   22  PRIOR TO THE ISSUANCE OF INDIAN TAX EXEMPTION COUPONS BY THE DEPARTMENT,
   23  THE RECOGNIZED GOVERNING BODY OF THE INDIAN NATION OR TRIBE OF THE INDI-
   24  ANS WHO PURCHASED SUCH CIGARETTES SHALL BE ENTITLED TO FILE A CLAIM  FOR
   25  REFUND  FROM THE DEPARTMENT OF THE TAXES PAID UPON THE QUANTITY OF CIGA-
   26  RETTES SOLD TO QUALIFIED INDIANS OF SUCH TRIBE OR NATION FOR PURPOSES OF
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD16222-04-0
       A. 10128--A                         2
    1  PERSONAL CONSUMPTION. EVERY SUCH REFUND SHALL BE PAID WITHIN THIRTY DAYS
    2  OF THE FILING OF THE CLAIM THEREFOR. ANY FAILURE OF  THE  DEPARTMENT  TO
    3  ISSUE REFUNDS OR TAKE ANY OTHER ADMINISTRATIVE ACTION FOR THE PAYMENT OF
    4  REFUNDS  SHALL NOT RELIEVE WHOLESALE DEALERS OF THE OBLIGATION TO COMPLY
    5  WITH THE PROVISIONS OF PARAGRAPH (A)  OF  THIS  SUBDIVISION,  BUT  SHALL
    6  ENTITLE  AN  INDIAN NATION OR TRIBE WITH AN UNPAID CLAIM FOR A REFUND TO
    7  COMMENCE A CAUSE OF ACTION FOR INJUNCTIVE RELIEF DIRECTING  THE  DEPART-
    8  MENT TO ISSUE REFUNDS AS REQUIRED BY THIS PARAGRAPH.
    9    S  3.  Within  60  days  after the effective date of this section, the
   10  department of taxation and finance shall promulgate any rules and  regu-
   11  lations  and  take  any  other  actions necessary to fully implement the
   12  provisions of section 471-e of the tax law, including, but  not  limited
   13  to,  the  establishment,  issuance and provision of Indian tax exemption
   14  coupons, pursuant to subdivisions 1 and 2 of such section.  Furthermore,
   15  within 90 days after the effective date of this section, the commission-
   16  er of taxation and finance shall submit a written report to the legisla-
   17  ture  explaining  all  actions  taken  by the department of taxation and
   18  finance to comply with the provisions of this section.
   19    S 4. Any Indian nation or tribe, distributor as defined in subdivision
   20  12 of section 470 of the tax law, dealer as defined in subdivision 7  of
   21  section  470 of the tax law, or interested party may commence a cause of
   22  action for injunctive relief ordering the  department  of  taxation  and
   23  finance to comply with the provisions of section three of this act.
   24    S  5. This act shall take effect immediately, except that sections one
   25  and two of this act shall take effect on the sixtieth day after it shall
   26  have become a law.