S T A T E O F N E W Y O R K
________________________________________________________________________
6636--A
2009-2010 Regular Sessions
I N A S S E M B L Y
March 11, 2009
___________
Introduced by M. of A. MORELLE, SCHIMMINGER -- read once and referred to
the Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to amending the percentages
used to determine the presumed cost of doing business for agents and
wholesale dealers of cigarettes
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 and subparagraph (B) of
paragraph 2 of subdivision (b) of section 483 of the tax law, subpara-
graph (B) of paragraph 1 as amended by chapter 1 of the laws of 1999 and
subparagraph (B) of paragraph 2 as amended by chapter 4 of the laws of
1988, are 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] TWO AND FIVE-EIGHTHS percent of the basic cost of ciga-
rettes for sales to wholesale dealers plus one cent per package of ten
cigarettes, two cents per package of twenty cigarettes and in the case
of a package containing more than twenty cigarettes, two cents and one-
half of a cent for each five cigarettes in excess of twenty cigarettes,
[one] FOUR and one-half percent of the basic cost of cigarettes for
sales to chain stores plus one cent per package of ten cigarettes, two
cents per package of twenty cigarettes and in the case of a package
containing more than twenty cigarettes, two cents and one-half of a cent
for each five cigarettes in excess of twenty cigarettes and [three and
seven-eighths] SIX AND ONE-HALF percent of the basic cost of cigarettes
with respect to sales to retail dealers plus one cent per package of ten
cigarettes, two cents per package of twenty cigarettes and in the case
of a package containing more than twenty cigarettes, two cents and one-
half of a cent for each five cigarettes in excess of twenty cigarettes
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02907-07-9
A. 6636--A 2
and the foregoing cents per pack shall be included in the "cost of doing
business by the agent" referred to in paragraphs two and three of this
subdivision.
(B) In the absence of the filing with the tax commission of satisfac-
tory proof of a lesser cost of doing business of the wholesale dealer
making the sale, the cost of doing business by the wholesale dealer with
respect to sales to retail dealers shall be presumed to be three AND
SEVEN-EIGHTHS per centum of the basic cost of cigarettes, and with
respect to sales to chain stores, [five-eighths of] one AND
SEVEN-EIGHTHS percent of the basic cost of cigarettes.
S 2. Subparagraph (B) of paragraph 3 of subdivision (b) of section 483
of the tax law, as amended by chapter 744 of the laws of 1990, is
amended to read as follows:
(B) In the absence of the filing with the commissioner of taxation and
finance of satisfactory proof of a lesser cost of doing business by the
retail dealer making the sale, the cost of doing business by the retail
dealer shall be presumed to be [seven] ELEVEN per centum of the sum of
the basic cost of cigarettes plus the cost of doing business by the
agent with respect to cigarettes sold to retail dealers.
S 3. This act shall take effect on the fourteenth day after it shall
have become a law.