N.Y. Comp. Codes R. & Regs. tit. 5 § 220.14

Current through Register Vol. 46, No. 53, December 31, 2024

Section 220.14 - Removal of business from the program

(a) A business that violates any New York State laws, including but not limited to tax, labor and civil rights laws, or is found to have materially misrepresented facts in its application for participation in the program, or moves out of a tax-free NY area will be subject to immediate termination from the program.

(b) If the sponsor determines that a business no longer satisfies any of the eligibility criteria set forth in section 220.6 of this Part or any other requirement, as well as the intended purpose, of article 21 of the EDL, the sponsor may recommend to the commissioner that the business be immediately removed from participation in the program.

(c) The commissioner shall remove any business from the program for failing to meet any of the eligibility criteria set forth in section 220.6 of this Part or any other requirement, as well as the intended purpose, of article 21 of the EDL.

(d) If the commissioner has removed the business from the program, the commissioner shall notify the sponsor and the business of such removal in writing. Such notice of removal shall explain the reason or reasons for the removal from the program. The notice of removal shall state the effective date of removal, and advise the business that it may appeal the removal in accordance with section 220.15 of this Part. Such notice may be served by the department on the business by certified, registered or overnight mail sent to the business at the address last provided to the department by the business and shall be deemed served three business days after being sent.

(e) A copy of the notice of removal shall be sent to the Commissioner of Taxation and Finance within 30 days following a final appeal determination or waiver of appeal.

(f) Upon such removal, such business shall not be eligible for the tax benefits described under section 39 of the Tax Law for that or any future taxable year, calendar quarter or sales tax quarter, although an employee of such business may continue to claim the tax benefit for their wages during the remainder of that employee's taxable year.

(g) Any lease or contract between a sponsor and a business removed from the program shall be rescinded, effective on the 30th day after the commissioner serves a removal notice on such business, and the land or space and any improvements thereon shall revert to the sponsor.

N.Y. Comp. Codes R. & Regs. Tit. 5 § 220.14

Amended New York State Register November 20, 2019/Volume XLI, Issue 47, eff. 11/20/2019