senate Bill S7022

Relates to the tax on certain tobacco products

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 23 / Apr / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 31 / May / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 19 / Jun / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 19 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1365
  • 19 / Jun / 2012
    • PASSED SENATE
  • 19 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 19 / Jun / 2012
    • REFERRED TO WAYS AND MEANS

Summary

Relates to the imposition of tax on cigars; provides that such tax shall be imposed upon tobacco products sold, shipped or delivered within this state.

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Bill Details

See Assembly Version of this Bill:
A10066
Versions:
S7022
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §§471-b & 473-a, Tax L

Sponsor Memo

BILL NUMBER:S7022 REVISED 05/01/12

TITLE OF BILL:
An act
to amend the tax law, in relation to the tax on certain tobacco
products

PURPOSE:
This bill changes the timing of the imposition, reporting and payment
of the tax on tobacco products to provide the state with a stream of
revenue it can depend upon, allowing the state to continue collecting
revenue, and establishing ourselves as more competitive to
surrounding states on cigars and other tobacco products.

SUMMARY OF PROVISIONS:
Section 1 of the bill amends the opening paragraph of subdivision 1 of
Tax Law §471-b to change the tax on tobacco products from being
imposed on the importation and possession of tobacco products in the
state for sale to being imposed on tobacco products sold, shipped or
delivered within the state.

Section 2 of the bill amends subdivision 1 of Tax Law § 473-a to
change the distributors' reporting requirements to conform to the
amendment made by section 1 of this bill.

EXISTING LAW:
Section 471-b and 473-a of the tax law.

JUSTIFICATION:
New York companies that manufacture, distribute and sell cigars are an
important part of the State's economy, providing well-paying jobs,
and paying significant amounts in taxes to the State and local
governments. Changing the timing of the imposition, reporting and
payment of the tax on tobacco products will help small business
owners across the state remain in business in New York State. By
simply changing the timing this will enable small cigar shops across
New York State to remain competitive with surrounding states. The
bill will increase their revenue, enable them to carry more products
and thus increase tax revenues on their products. This measure will
save jobs in New York, have no negative budgetary ramifications and
reduce the demand for purchases over the Internet.

Currently, some New York consumers are avoiding the high tax by
purchasing the cigars over the Internet, or from non-taxed sources
such as Native American smoke shops. Some consumers can also go to
neighboring states with lower tax rates including Pennsylvania (which
does not tax
cigars), Connecticut (which levies a 50% tax or a 50 cent cap), New
Jersey or Massachusetts (both which levy a 30% tax).

FISCAL IMPLICATIONS:

The net impact of this bill is an increase in tax revenue.

EFFECTIVE DATE:
This act will take effect on the first day of the month next
commencing at least ninety days after his act shall have become a law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7022

                            I N  S E N A T E

                             April 23, 2012
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to the tax on  certain  tobacco
  products

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The opening paragraph of subdivision 1 of section 471-b  of
the  tax  law,  as amended by section 2 of part QQ1 of chapter 57 of the
laws of 2008, is amended to read as follows:
  There is hereby imposed and  shall  be  paid  a  tax  on  all  tobacco
products  [possessed in this state by any person for sale] SOLD, SHIPPED
OR DELIVERED WITHIN THIS STATE BY ANY PERSON, except that no  tax  shall
be  imposed  on tobacco products sold under such circumstances that this
state is without power to impose such tax, or sold to the United States,
or sold to or by a voluntary unincorporated organization  of  the  armed
forces  of  the  United  States  operating a place for the sale of goods
pursuant to regulations promulgated by the appropriate executive  agency
of  the  United  States,  to the extent provided in such regulations and
policy statements of such an agency applicable to such sales.
  S 2. Subdivision 1 of section 473-a of the tax law, as added by  chap-
ter 61 of the laws of 1989, is amended to read as follows:
  1.  Every  distributor  shall,  on or before the twentieth day of each
month, file with the commissioner of taxation and finance  a  return  on
forms  to  be  prescribed and furnished by the commissioner, showing the
quantity and wholesale price of all tobacco products [imported or caused
to be imported into the state by him or manufactured  in  the  state  by
him],  SOLD,  SHIPPED OR DELIVERED WITHIN THIS STATE BY SUCH DISTRIBUTOR
during the preceding calendar month. Every distributor authorized by the
commissioner to make returns and pay the tax on tobacco  products  sold,
shipped  or  delivered  by  [him]  SUCH DISTRIBUTOR to any person in the
state shall file a return showing the quantity and  wholesale  price  of
all  tobacco products so sold, shipped or delivered during the preceding
calendar month. Provided, however, the commissioner may, if  he  OR  SHE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15476-01-2

S. 7022                             2

deems  it  necessary in order to insure the payment of the taxes imposed
by this article, require returns to be made at such times  and  covering
such  periods  as  he OR SHE may deem necessary, and, by regulation, may
permit  the  filing  of  returns  on  a quarterly, semi-annual or annual
basis, or may waive the filing of returns by a distributor for such time
and upon such terms as he OR SHE may deem proper if  satisfied  that  no
tax imposed by this article is or will be payable by [him] SUCH DISTRIB-
UTOR  during  the  time for which returns are waived. Such returns shall
contain such further information as the commissioner may require.
  S 3. The commissioner of taxation and finance shall  establish  proce-
dures  to  provide  for  a credit against taxes paid by distributors for
periods prior to the effective date of this act to offset the taxes  due
on or after the effective date of this act.
  S  4.  This  act  shall take effect on the first day of the month next
commencing at least ninety days after this act shall have become a  law;
provided  that the commissioner of taxation and finance shall be author-
ized on and after the date this act shall have become a law to adopt and
amend any rules and  regulations  and  issue  any  procedure,  forms  or
instructions  necessary  to  implement the provisions of this act on its
effective date.

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