Senate Bill S6985

2009-2010 Legislative Session

Directs all cigarette wholesalers to sell only tax-stamped cigarettes to everyone, unless presented with an Indian tax exemption coupon

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 10, 2010	print number 6985a
Mar 10, 2010	amend and recommit to investigations and government operations
Mar 03, 2010	referred to investigations and government operations

Bill Amendments

Original

A (Active)

co-Sponsors

2009-S6985 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §471-e, Tax L

2009-S6985 - Summary

Directs all cigarette wholesalers to sell only tax-stamped cigarettes to everyone, unless presented with an Indian tax exemption coupon; provides that the failure of the department of taxation and finance to establish and distribute such coupons, shall not relieve wholesalers from the duty to collect cigarette taxes on cigarettes sold to Indian tribes and nations; provides for the refund of taxes paid by Indians because of the failure of the department of taxation and finance to issue Indian tax exemption coupons; directs such department to take all actions necessary to implement provisions relating to the imposition of cigarettes taxes on Indian reservations

2009-S6985 - Sponsor Memo

                                 BILL NUMBER:  S6985

 TITLE OF BILL :

An act to amend the tax law, in relation to cigarette taxes imposed on
qualified Indian reservations; and to direct the department of
taxation and finance to fully implement such provisions


 PURPOSE OR GENERAL IDEA OF BILL :

Directs all cigarette wholesalers to sell only tax-stamped cigarettes
to everyone, unless presented with an Indian tax exemption coupon

 SUMMARY OF SPECIFIC PROVISIONS :

Section one: Amends paragraph (d) of subdivision 3 of section 471-e of
the tax law, as amended by section 2 of part K of chapter 61 of the
laws of 2005 to provide that wholesale dealers shall sell only tax
stamped cigarettes to all purchasers, including qualified reservation
sellers, but that the tax shall not be collected on any purchase for
which the purchaser presents a valid Indian tax exemption coupon.

Section two: Adds a new subdivision 6 to section 471-e of the tax law
providing that the obligation of wholesalers to sell tax-stamped
cigarettes shall not be relieved by the failure of the department to

issue Indian tax exemption coupons. If such coupons are not issued to
qualified reservation sellers in a timely manner, then those sellers
will be entitled to file for a refund of any cigarette taxes collected
on sales to qualified Indians for personal consumption.  Eligible
refunds shall be issued within 30 days of the filing of a refund
claim.

Section three: Directs the department of taxation and finance to
promulgate any necessary rules and regulations to implement section
471-e of the tax law within 60 days of the effective date of this bill
and to issue a report on its actions to the legislature within 90
days.

Section four: Allows a cause of action for injunctive relief to any
interested party if the department fails to comply with section three
in a timely manner.

 JUSTIFICATION :

New York forfeits an estimated $1 billion each year in uncollected
taxes from cigarette sales to non-tribal members on Native American
reservations. Section 471-e of the tax law already directs the
department of taxation and finance to implement a system of Indian tax
exemption coupons to ensure that existing state and local cigarette
taxes are collected on all taxable cigarette sales to New York
consumers, but the required rules and regulation have never been
promulgated. Governor Paterson's Executive Budget also directs the
department to implement the Indian tax exemption coupon system, but
fails to provide a deadline or even a timetable for implementation.

This legislation would impose a 60-day deadline, from the date of
enactment, with tax collections on all sales without a valid Indian
tax exemption coupon to start immediately after that date. New York
State is well into its second decade of non-enforcement of a cigarette
tax that was upheld by the U.S. Supreme Court in 1994, and without a
deadline, there is no reason to believe that the department will ever
take the necessary action to collect taxes on reservation sales to
non-tribal consumers.

 PRIOR LEGISLATIVE HISTORY :
This is a new bill.

 FISCAL IMPLICATION :
Revenue generating.

 EFFECTIVE DATE :
This act shall take effect immediately, except that sections one and
two of this act shall take effect on the sixtieth day after it shall
have become a law.

2009-S6985 - Bill Text download pdf

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

                                  6985

                            I N  S E N A T E

                              March 3, 2010
                               ___________

Introduced by Sens. KLEIN, KRUGER -- read twice and ordered printed, and
  when  printed  to  be committed to the Committee on Investigations and
  Government Operations

AN ACT to amend the tax law, in relation to cigarette taxes  imposed  on
  qualified  Indian  reservations; and to direct the department of taxa-
  tion and finance to fully implement such provisions

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

  Section  1. Paragraph (d) of subdivision 3 of section 471-e of the tax
law, as added by section 2 of part K of chapter 61 of the laws of  2005,
is amended to read as follows:
  (d)   [A   wholesale   dealer]  WHOLESALER  DEALERS  shall  SELL  ONLY
TAX-STAMPED CIGARETTES TO INDIAN NATIONS AND TRIBES, QUALIFIED  RESERVA-
TION  CIGARETTE  SELLERS AND ALL OTHER PURCHASERS, BUT SHALL not collect
the cigarette tax from any purchaser to the extent the  purchaser  gives
such  wholesale  dealer  Indian  tax  exemption  coupons  entitling  the
purchaser to purchase such quantities of cigarettes as  allowed  for  on
each such Indian tax exemption coupon without paying the cigarette tax.
  S  2. Section 471-e of the tax law is amended by adding a new subdivi-
sion 6 to read as follows:
  6. (A) THE FAILURE OF THE DEPARTMENT TO ESTABLISH, ISSUE  AND  PROVIDE
INDIAN  TAX  EXEMPTION  COUPONS, PURSUANT TO SUBDIVISIONS ONE AND TWO OF
THIS SECTION, OR TO PROMULGATE  ANY  RULES,  REGULATIONS  OR  DIRECTIVES
NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION, SHALL NOT RELIEVE
WHOLESALE  DEALERS OF THE OBLIGATION TO SELL ONLY TAX-STAMPED CIGARETTES
TO INDIAN NATIONS AND TRIBES, AND  TO  QUALIFIED  RESERVATION  CIGARETTE
SELLERS.
  (B)  FOR ANY CIGARETTES SOLD TO QUALIFIED INDIANS UPON WHICH CIGARETTE
TAXES WERE IMPOSED ON OR AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH  AND
PRIOR TO THE ISSUANCE OF INDIAN TAX EXEMPTION COUPONS BY THE DEPARTMENT,
THE RECOGNIZED GOVERNING BODY OF THE INDIAN NATION OR TRIBE OF THE INDI-
ANS  WHO PURCHASED SUCH CIGARETTES SHALL BE ENTITLED TO FILE A CLAIM FOR
REFUND, PURSUANT TO SUBDIVISION FOUR OF THIS SECTION, FROM  THE  DEPART-
MENT OF THE TAXES PAID UPON THE QUANTITY OF CIGARETTES SOLD TO QUALIFIED

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

                                                           LBD16222-01-0

S. 6985                             2

INDIANS  OF  SUCH  TRIBE OR NATION FOR PURPOSES OF PERSONAL CONSUMPTION.
EVERY SUCH REFUND SHALL BE PAID WITHIN THIRTY DAYS OF THE FILING OF  THE
CLAIM  THEREFOR.  ANY FAILURE OF THE DEPARTMENT TO ISSUE REFUNDS OR TAKE
ANY  OTHER  ADMINISTRATIVE  ACTION  FOR THE PAYMENT OF REFUNDS SHALL NOT
RELIEVE  WHOLESALE  DEALERS  OF  THE  OBLIGATION  TO  COMPLY  WITH   THE
PROVISIONS  OF  PARAGRAPH  (A) OF THIS SUBDIVISION, BUT SHALL ENTITLE AN
INDIAN NATION OR TRIBE WITH AN UNPAID CLAIM FOR A REFUND TO  COMMENCE  A
CAUSE  OF ACTION FOR INJUNCTIVE RELIEF DIRECTING THE DEPARTMENT TO ISSUE
REFUNDS AS REQUIRED BY THIS PARAGRAPH.
  S 3. Within 60 days after the effective  date  of  this  section,  the
department  of taxation and finance shall promulgate any rules and regu-
lations and take any other actions  necessary  to  fully  implement  the
provisions  of  section 471-e of the tax law, including, but not limited
to, the establishment, issuance and provision of  Indian  tax  exemption
coupons,  pursuant to subdivisions 1 and 2 of such section. Furthermore,
within 90 days after the effective date of this section, the commission-
er of taxation and finance shall submit a written report to the legisla-
ture explaining all actions taken by  the  department  of  taxation  and
finance to comply with the provisions of this section.
  S 4. Any Indian nation or tribe, distributor as defined in subdivision
12  of section 470 of the tax law, dealer as defined in subdivision 7 of
section 470 of the tax law, or interested party may commence a cause  of
action  for  injunctive  relief  ordering the department of taxation and
finance to comply with the provisions of section three of this act.
  S 5. This act shall take effect immediately, except that sections  one
and two of this act shall take effect on the sixtieth day after it shall
have become a law.

co-Sponsors

2009-S6985A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §471-e, Tax L

2009-S6985A (ACTIVE) - Summary

2009-S6985A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6985A

 TITLE OF BILL :
An act to amend the tax law, in relation to cigarette taxes imposed on
qualified Indian reservations; and to direct the department of
taxation and finance to fully implement such provisions


 PURPOSE OR GENERAL IDEA OF BILL :
Directs all cigarette wholesalers to sell only tax-stamped cigarettes
to everyone, unless presented with an Indian tax exemption coupon.

 SUMMARY OF SPECIFIC PROVISIONS :
Section one: Amends paragraph (d) of subdivision 3 of section 471-e of
the tax law, as amended by section 2 of part K of chapter 61 of the
laws of 2005 to provide that wholesale dealers shall sell only tax
stamped cigarettes to all purchasers, including qualified reservation
sellers, but that the tax shall not be collected on any purchase for
which the purchaser presents a valid Indian tax exemption coupon.

Section two: Adds a new subdivision 6 to section 471-e of the tax law
providing that the obligation of wholesalers to sell tax-stamped
cigarettes shall not be relieved by the failure of the department to
issue Indian tax exemption coupons. If such coupons are not issued to
qualified reservation sellers in a timely manner, then those sellers
will be entitled to file for a refund of any cigarette taxes collected

on sales to qualified Indians for personal consumption.  Eligible
refunds shall be issued within 30 days of the filing of a refund
claim.

Section three: Directs the department of taxation and finance to
promulgate any necessary rules and regulations to implement section
471-e of the tax law within 60 days of the effective date of this bill
and to issue a report on its actions to the legislature within 90
days.

Section four: Allows a cause of action for injunctive relief to any
interested party if the department fails to comply with section three
in a timely manner.

 JUSTIFICATION :

New York forfeits an estimated $1 billion each year in uncollected
taxes from cigarette sales to non-tribal members on Native American
reservations. Section 471-e of the tax law already directs the
department of taxation and finance to implement a system of Indian tax
exemption coupons to ensure that existing state and local cigarette
taxes are collected on all taxable cigarette sales to New York
consumers, but the required rules and regulation have never been
promulgated. Governor Paterson's Executive Budget also directs the
department to implement the Indian tax exemption coupon system, but
fails to provide a deadline or even a timetable for implementation.

This legislation would impose a 60-day deadline, from the date of
enactment, with tax collections on all sales without a valid Indian
tax exemption coupon to start immediately after that date. New York
State is well into its second decade of non-enforcement of a cigarette
tax that was upheld by the U.S. Supreme Court in 1994, and without a
deadline, there is no reason to believe that the department will ever
take the necessary action to collect taxes on reservation sales to
non-tribal consumers.

 PRIOR LEGISLATIVE HISTORY :
This is a new bill.

 FISCAL IMPLICATION :
Revenue generating.

 EFFECTIVE DATE :
This act shall take effect immediately, except that sections one and
two of this act shall take effect on the sixtieth day after it shall
have become a law.

2009-S6985A (ACTIVE) - Bill Text download pdf

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

                                 6985--A

                            I N  S E N A T E

                              March 3, 2010
                               ___________

Introduced by Sens. KLEIN, KRUGER -- read twice and ordered printed, and
  when  printed  to  be committed to the Committee on Investigations and
  Government Operations -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to amend the tax law, in relation to cigarette taxes imposed on
  qualified Indian reservations; and to direct the department  of  taxa-
  tion and finance to fully implement such provisions

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

  Section 1. Paragraph (d) of subdivision 3 of section 471-e of the  tax
law,  as added by section 2 of part K of chapter 61 of the laws of 2005,
is amended to read as follows:
  (d)  [A  wholesale  dealer]  WHOLESALER  DEALERS   shall   SELL   ONLY
TAX-STAMPED  CIGARETTES TO INDIAN NATIONS AND TRIBES, QUALIFIED RESERVA-
TION CIGARETTE SELLERS AND ALL OTHER PURCHASERS, BUT SHALL  not  collect
the  cigarette  tax from any purchaser to the extent the purchaser gives
such  wholesale  dealer  Indian  tax  exemption  coupons  entitling  the
purchaser  to  purchase  such quantities of cigarettes as allowed for on
each such Indian tax exemption coupon without paying the cigarette tax.
  S 2. Section 471-e of the tax law is amended by adding a new  subdivi-
sion 6 to read as follows:
  6.  (A)  THE FAILURE OF THE DEPARTMENT TO ESTABLISH, ISSUE AND PROVIDE
INDIAN TAX EXEMPTION COUPONS, PURSUANT TO SUBDIVISIONS ONE  AND  TWO  OF
THIS  SECTION,  OR  TO  PROMULGATE  ANY RULES, REGULATIONS OR DIRECTIVES
NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION, SHALL NOT RELIEVE
WHOLESALE DEALERS OF THE OBLIGATION TO SELL ONLY TAX-STAMPED  CIGARETTES
TO  INDIAN  NATIONS  AND  TRIBES, AND TO QUALIFIED RESERVATION CIGARETTE
SELLERS.
  (B) FOR ANY CIGARETTES SOLD TO QUALIFIED INDIANS UPON WHICH  CIGARETTE
TAXES  WERE IMPOSED ON OR AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH AND
PRIOR TO THE ISSUANCE OF INDIAN TAX EXEMPTION COUPONS BY THE DEPARTMENT,
THE RECOGNIZED GOVERNING BODY OF THE INDIAN NATION OR TRIBE OF THE INDI-
ANS WHO PURCHASED SUCH CIGARETTES SHALL BE ENTITLED TO FILE A CLAIM  FOR
REFUND  FROM THE DEPARTMENT OF THE TAXES PAID UPON THE QUANTITY OF CIGA-

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

                                                           LBD16222-03-0

S. 6985--A                          2

RETTES SOLD TO QUALIFIED INDIANS OF SUCH TRIBE OR NATION FOR PURPOSES OF
PERSONAL CONSUMPTION. EVERY SUCH REFUND SHALL BE PAID WITHIN THIRTY DAYS
OF THE FILING OF THE CLAIM THEREFOR. ANY FAILURE OF  THE  DEPARTMENT  TO
ISSUE REFUNDS OR TAKE ANY OTHER ADMINISTRATIVE ACTION FOR THE PAYMENT OF
REFUNDS  SHALL NOT RELIEVE WHOLESALE DEALERS OF THE OBLIGATION TO COMPLY
WITH THE PROVISIONS OF PARAGRAPH (A)  OF  THIS  SUBDIVISION,  BUT  SHALL
ENTITLE  AN  INDIAN NATION OR TRIBE WITH AN UNPAID CLAIM FOR A REFUND TO
COMMENCE A CAUSE OF ACTION FOR INJUNCTIVE RELIEF DIRECTING  THE  DEPART-
MENT TO ISSUE REFUNDS AS REQUIRED BY THIS PARAGRAPH.
  S  3.  Within  60  days  after the effective date of this section, the
department of taxation and finance shall promulgate any rules and  regu-
lations  and  take  any  other  actions necessary to fully implement the
provisions of section 471-e of the tax law, including, but  not  limited
to,  the  establishment,  issuance and provision of Indian tax exemption
coupons, pursuant to subdivisions 1 and 2 of such section.  Furthermore,
within 90 days after the effective date of this section, the commission-
er of taxation and finance shall submit a written report to the legisla-
ture  explaining  all  actions  taken  by the department of taxation and
finance to comply with the provisions of this section.
  S 4. Any Indian nation or tribe, distributor as defined in subdivision
12 of section 470 of the tax law, dealer as defined in subdivision 7  of
section  470 of the tax law, or interested party may commence a cause of
action for injunctive relief ordering the  department  of  taxation  and
finance to comply with the provisions of section three of this act.
  S  5. This act shall take effect immediately, except that sections one
and two of this act shall take effect on the sixtieth day after it shall
have become a law.

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Senate Bill S6985

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

Bill Amendments

co-Sponsors

2009-S6985 - Details

2009-S6985 - Summary

2009-S6985 - Sponsor Memo

2009-S6985 - Bill Text download pdf

co-Sponsors

2009-S6985A (ACTIVE) - Details

2009-S6985A (ACTIVE) - Summary

2009-S6985A (ACTIVE) - Sponsor Memo

2009-S6985A (ACTIVE) - Bill Text download pdf

Comments

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Senate Bill S6985

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Sponsored By

Jeffrey D. Klein

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

Bill Amendments

co-Sponsors

Carl Kruger

2009-S6985 - Details

2009-S6985 - Summary

2009-S6985 - Sponsor Memo

2009-S6985 - Bill Text download pdf

co-Sponsors

Carl Kruger

Michael F. Nozzolio

Joseph P. Addabbo Jr.

2009-S6985A (ACTIVE) - Details

2009-S6985A (ACTIVE) - Summary

2009-S6985A (ACTIVE) - Sponsor Memo

2009-S6985A (ACTIVE) - Bill Text download pdf

Comments