N.Y. Comp. Codes R. & Regs. tit. 20 § 564.1

Current through Register Vol. 46, No. 25, June 18, 2024

Section 564.1 - Joint administration by the Department of Taxation and Finance of State and local sales and compensating use and cigarette taxes

Tax Law, § 1142(12)

(a)General.

All of the functions of the Department of Taxation and Finance under articles 20, 28 and 29 of the Tax Law shall, to the extent practicable, be performed on a joint basis with respect to administration of the State and local taxes imposed with respect to cigarettes by or under the authority of those articles, including joint reporting, assessment, collection, determination and refund of such taxes.

(b)Returns and payments.

The returns required under section 75.1 of this Title and sections 475, 1136 and 1251 of the Tax Law may be made in one return covering the prepaid tax on sales of cigarettes and State sales and compensating use taxes imposed by article 28 of the Tax Law, local sales and compensating use taxes imposed pursuant to the authority of article 29 of the Tax Law and the State tax imposed on cigarettes by article 20 of the Tax Law. Reporting and payment of such taxes on a joint or several basis shall be made upon such returns as the Department of Taxation and Finance may prescribe and pursuant to such terms and conditions as the department may authorize. Any other returns, forms, statements, documents or other information to be submitted may, where authorized by the department, be made on a joint basis.

(c)Bond requirements.

(1) The Department of Taxation and Finance may, in its discretion, permit a cigarette agent licensed under article 20 of the Tax Law to pay the prepaid tax imposed by section 1103 of the Tax Law within 30 days after the date of purchase of the corresponding cigarette tax stamps under article 20 of the Tax Law, at the same time and in the same manner that the agent pays for such stamps under such article 20, provided the agent has filed with the Department of Taxation and Finance a credit bond, issued by a surety company approved by the Superintendent of Insurance as to solvency and responsibility and authorized to transact business in this State (or has deposited other acceptable security with the Department of Taxation and Finance), in such amount as the Department of Taxation and Finance may fix, to secure the payment of any sums due from such agent pursuant to section 1103. Every applicant for a license as a cigarette agent, and every agent, who desires to establish credit for purposes of paying such prepaid tax under section 1103 must file or deposit and maintain with the department such a credit bond, or in lieu thereof, such other acceptable security.

(2) When other acceptable securities are deposited with the Department of Taxation and Finance under this subdivision, such securities shall be kept in the custody of the Commissioner of Taxation and Finance and may be sold by the Department of Taxation and Finance should it become necessary in order to recover any sums due from such agent pursuant to section 1103 of the Tax Law. No such sale shall be conducted until after such agent shall have had an opportunity to litigate the validity of any tax required to be prepaid under section 1103 if such agent elects to do so. Upon any such sale of securities, the surplus, if any, above the sums due under section 1103 of the Tax Law, together with any applicable interest and penalty thereon, shall be returned to such agent.

(3) The Department of Taxation and Finance may require that the amount of a credit bond or the amount of deposited security in lieu of the credit bond be increased at any time when, in its judgment, such increase becomes necessary to protect the revenue under section 1103 of the Tax Law. Unless otherwise required, such increase must be filed within 30 days from the date of the notice and demand therefor. Any determination pursuant to this paragraph with respect to any increase to the amounts of such bond or security may be challenged through a hearing process, provided a petition for review of such determination is timely filed. See Part 3000 of this Title for hearing procedures in the Division of Tax Appeals and Part 4000 of this Title for conciliation proceedings in the Bureau of Conciliation and Mediation Services of the Division of Taxation.

(4) All the provisions of Part 331 of this Title relating to or applicable to the credit bonds or other acceptable security required by such Part shall apply to the credit bonds or other acceptable security required under this subdivision, so far as such provisions can be made applicable to the credit bonds or other acceptable security required under this subdivision, with such limitations and such modifications as may be necessary in order to adapt such language to such credit bonds or other security required by section 1103 of the Tax Law. Any bond or security required under section 1103 of the Tax Law and this Part may be jointly administered with the bond or security required of the agent under section 472 of the Tax Law and Part 331 of this Title and in such event shall secure payment of the sums due under article 20 of the Tax Law and section 1103 of the Tax Law, together with any applicable interest and penalty thereon.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 564.1