S T A T E O F N E W Y O R K
________________________________________________________________________
6985--A
I N S E N A T E
March 3, 2010
___________
Introduced by Sens. KLEIN, KRUGER -- read twice and ordered printed, and
when printed to be committed to the Committee on Investigations and
Government Operations -- 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-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16222-03-0
S. 6985--A 2
1 RETTES SOLD TO QUALIFIED INDIANS OF SUCH TRIBE OR NATION FOR PURPOSES OF
2 PERSONAL CONSUMPTION. EVERY SUCH REFUND SHALL BE PAID WITHIN THIRTY DAYS
3 OF THE FILING OF THE CLAIM THEREFOR. ANY FAILURE OF THE DEPARTMENT TO
4 ISSUE REFUNDS OR TAKE ANY OTHER ADMINISTRATIVE ACTION FOR THE PAYMENT OF
5 REFUNDS SHALL NOT RELIEVE WHOLESALE DEALERS OF THE OBLIGATION TO COMPLY
6 WITH THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVISION, BUT SHALL
7 ENTITLE AN INDIAN NATION OR TRIBE WITH AN UNPAID CLAIM FOR A REFUND TO
8 COMMENCE A CAUSE OF ACTION FOR INJUNCTIVE RELIEF DIRECTING THE DEPART-
9 MENT TO ISSUE REFUNDS AS REQUIRED BY THIS PARAGRAPH.
10 S 3. Within 60 days after the effective date of this section, the
11 department of taxation and finance shall promulgate any rules and regu-
12 lations and take any other actions necessary to fully implement the
13 provisions of section 471-e of the tax law, including, but not limited
14 to, the establishment, issuance and provision of Indian tax exemption
15 coupons, pursuant to subdivisions 1 and 2 of such section. Furthermore,
16 within 90 days after the effective date of this section, the commission-
17 er of taxation and finance shall submit a written report to the legisla-
18 ture explaining all actions taken by the department of taxation and
19 finance to comply with the provisions of this section.
20 S 4. Any Indian nation or tribe, distributor as defined in subdivision
21 12 of section 470 of the tax law, dealer as defined in subdivision 7 of
22 section 470 of the tax law, or interested party may commence a cause of
23 action for injunctive relief ordering the department of taxation and
24 finance to comply with the provisions of section three of this act.
25 S 5. This act shall take effect immediately, except that sections one
26 and two of this act shall take effect on the sixtieth day after it shall
27 have become a law.