senate Bill S1958A

Amended

Increases the presumed "cost of the agent" relating to cigarette marketing standards and establishes the cigarette tax enforcement account; appropriation

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Sponsor

Bill Status


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

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Feb / 2013
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Feb / 2013
    • PRINT NUMBER 1958A
  • 05 / Jun / 2013
    • AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 05 / Jun / 2013
    • PRINT NUMBER 1958B
  • 18 / Jun / 2013
    • AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 18 / Jun / 2013
    • PRINT NUMBER 1958C
  • 21 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 21 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1576
  • 21 / Jun / 2013
    • PASSED SENATE
  • 21 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 21 / Jun / 2013
    • REFERRED TO WAYS AND MEANS
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 19 / Feb / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 19 / Feb / 2014
    • PRINT NUMBER 1958D

Summary

Increases the presumed "cost of the agent" for purposes of cigarette marketing; establishes the cigarette tax enforcement account; makes an appropriation from such account to support cigarette tax enforcement activities.

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Bill Details

Versions:
S1958
S1958A
S1958B
S1958C
S1958D
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง483, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S4736A
2009-2010: S8428

Sponsor Memo

BILL NUMBER:S1958A

TITLE OF BILL: An act to amend the tax law, in relation to increasing
the presumed "cost of the agent" relating to cigarette marketing stand-
ards

PURPOSE: This bill increases the presumed "cost to the agent" for
purposes of Cigarette Marketing Standards Act.

SUMMARY OF PROVISIONS:

Section 1 amends subparagraph (B) of paragraph 1 of subdivision (b) of
section 483 of the Tax Law, as amended by chapter 1 of the laws of 1999,
to provide that the presumed cost of doing business by the agent selling
to a wholesale dealer shall increase from seven-eighths of one percent
of the basic cost of cigarettes plus two cents to seven-eighths of one
percent of the basic cost of cigarettes plus fourteen cents for a stand-
ard pack of 20 cigarettes. For sales to chain stores, the presumed cost
of doing business shall increase from one and one-half percent of the
basic cost of cigarettes plus two cents to one and one-half percent of
the basic cost of cigarettes plus fourteen cents for a standard pack of
20 cigarettes. For sales to retail dealers, the presumed cost of doing
business shall increase from three and seven-eighths percent of the
basic cost of cigarettes plus two cents to three and seven-eighths
percent of the basic cost of cigarettes plus fourteen cents for a stand-
ard pack of 20 cigarettes.

Section 2: Effective date.

EXISTING LAW: Currently, for a standard pack of twenty cigarettes, the
cost of agent for sales from an agent to a wholesaler, chain store, or
retailer is a percentage of the basic cost of cigarettes plus two cents.

JUSTIFICATION: The "presumed cost of doing business" for cigarette
stamping agents, which was enacted to help defer the cost of acting as
the State's agent for the collection of the cigarette excise tax, has
not increased 1999. Since 1999, the cigarette excise tax has increased
almost three hundred percent, which stamping agents are required to
prepay. This prepayment burden, in addition to a variety of other
factors, has caused the cost of doing business for cigarette stamping
agents to well exceed the "presumed cost of doing business" provided by
the Tax Law. To bring the "presumed cost of doing business" more in line
with the actual cost of doing business, the "presumed cost of doing
business" requires an adjustment.- The "presumed cost of doing business"
will be adjusted from two cents to twelve cents per pack of twenty ciga-
rettes, with corresponding adjustments for packages of ten and twenty-
five cigarettes. This increase will enable the stamping agents to remain
in business and help secure tax collection.

Note: In each instance where a pack contains twenty cigarettes, the
increase is from two cents to fourteen cents. Where a pack contains

twenty-five cigarettes, the handling fee is increased from two cents to
seventeen cents. Where a pack contains ten cigarettes, the handling fee
is increased from one cent to seven cents.

LEGISLATIVE HISTORY: 2011-2: S.4763-A - Passed Senate both years

FISCAL IMPLICATIONS: By increasing the minimum price of cigarettes sold
in New York, the State will collect increased sales tax revenues.

EFFECTIVE DATE: This act shall take effect on the first day of the
sales tax quarterly period, as described in subdivision (b) of section
1136 of the tax law, next succeeding the 90th day after it shall have
become law and shall apply in accordance with the applicable transi-
tional provisions of sections 1106 and 1217 of the tax law.

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

                                 1958--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the  tax law, in relation to increasing the presumed
  "cost of the agent" relating to cigarette marketing standards

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

  Section  1.  Subparagraph  (B)  of  paragraph  1 of subdivision (b) of
section 483 of the tax law, as amended by chapter 1 of the laws of 1999,
is amended to read as follows:
  (B) In the absence of the filing with the commissioner of satisfactory
proof of a lesser cost of doing business of the agent making  the  sale,
the  cost  of doing business by the agent shall be presumed to be seven-
eighths of one percent of the basic cost  of  cigarettes  for  sales  to
wholesale  dealers  plus [one cent] SEVEN CENTS per package of ten ciga-
rettes, [two] FOURTEEN cents per package of twenty cigarettes and in the
case of a package containing more than twenty cigarettes,  [two]  SEVEN-
TEEN  cents and one-half of a cent for each five cigarettes in excess of
twenty cigarettes, one and one-half percent of the basic cost  of  ciga-
rettes  for  sales to chain stores plus [one cent] SIX CENTS per package
of ten cigarettes, [two] TWELVE cents per package of  twenty  cigarettes
and  in  the  case  of a package containing more than twenty cigarettes,
[two] SEVENTEEN cents and one-half of a cent for each five cigarettes in
excess of twenty cigarettes and three and seven-eighths percent  of  the
basic  cost  of  cigarettes with respect to sales to retail dealers plus
[one cent] SIX CENTS per package of ten cigarettes, [two]  TWELVE  cents
per package of twenty cigarettes and in the case of a package containing
more  than  twenty  cigarettes,  [two] SEVENTEEN cents and one-half of a
cent for each five cigarettes in excess of  twenty  cigarettes  and  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02219-02-3

S. 1958--A                          2

foregoing  cents  per pack shall be included in the "cost of doing busi-
ness by the agent" referred to in  paragraphs  two  and  three  of  this
subdivision.
  S  2.  This  act  shall  take effect on the first day of the sales tax
quarterly period, as described in subdivision (b) of section 1136 of the
tax law, next succeeding the ninetieth day after it shall have become  a
law  and  shall  apply  in  accordance  with the applicable transitional
provisions of sections 1106 and 1217 of the tax law.

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