S T A T E O F N E W Y O R K
________________________________________________________________________
7590
2009-2010 Regular Sessions
I N A S S E M B L Y
April 16, 2009
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Introduced by M. of A. AMEDORE, KOLB, TOWNSEND, WALKER, OAKS, ERRIGO,
McDONOUGH -- Multi-Sponsored by -- M. of A. BACALLES, CALHOUN, CROUCH,
DUPREY, SAYWARD -- read once and referred to the Committee on Ways and
Means
AN ACT to amend the tax law, in relation to extending the grace period
allowed for payment of tax stamps for cigarettes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 472 of the tax law, as amended by
chapter 629 of the laws of 1996, is amended to read as follows:
1. The commissioner shall prescribe, prepare and furnish stamps of
such denominations and quantities as may be necessary for the payment of
the tax on cigarettes imposed by this article, and may from time to time
and as often as he OR SHE deems advisable provide for the issuance and
exclusive use of stamps of a new design and forbid the use of stamps of
any other design, in the manner and with the effect provided in section
two hundred seventy-four of this chapter. The commissioner shall make
provisions for the sale of such stamps at such places and at such times
as he OR SHE may deem necessary and may license agents for such purpose.
The commissioner may license dealers in cigarettes, who maintain sepa-
rate warehousing facilities for the purpose of receiving and distribut-
ing cigarettes and conducting their business, who have received commit-
ments from at least two cigarette manufacturers whose aggregate market
share is at least forty percent of the New York state cigarette market,
and importers, exporters and manufacturers of cigarettes, and other
persons within or without the state as agents to buy or affix stamps to
be used in paying the tax [herein] imposed PURSUANT TO THIS SECTION, but
an agent shall at all times have the right to appoint the person in his
OR HER employ who is to affix the stamps to any cigarettes under the
agent's control. The fee for filing such application for an agent's
license shall be one thousand five hundred dollars, unless such fee has
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08734-01-9
A. 7590 2
been paid during the preceding twelve months, in which case, the fee for
a new license shall be one thousand dollars. All of the provisions of
section four hundred eighty relating to wholesale dealers' licenses,
including the procedure for suspension, revocation, refusal to license
and for hearings, except for paragraphs (c) and (g) of subdivision one
of such section, shall be applicable to agents' licenses applied for or
granted pursuant to this section, as if such provisions had been set
forth in full in this subdivision and had expressly referred to the
applicant for, or the holder of, an agent's license. Whenever the
commissioner shall sell and deliver to any such agent any such stamps,
such agent shall be entitled to receive as compensation for his OR HER
services and expenses as such agent in selling or affixing such stamps,
and to retain out of the moneys to be paid by him OR HER for such
stamps, a commission on the par value thereof. The commissioner is here-
by authorized to prescribe a schedule of commissions, not exceeding five
per centum, allowable to such agent for buying and affixing such stamps.
Such schedule shall be uniform with respect to the different types of
stamps used, and may be on a graduated scale with respect to the number
of stamps purchased. The commissioner may, in his OR HER discretion,
permit an agent to pay for such stamps within [thirty] SIXTY days after
the date of purchase and may require any such agent to file with the
department [of taxation and finance] a bond issued by a surety company
approved by the superintendent of insurance as to solvency and responsi-
bility and authorized to transact business in the state or other securi-
ty acceptable to the commissioner, in such amount as the commissioner
may fix, to secure the payment of any sums due from such agent pursuant
to this article. If securities are deposited as security under this
subdivision, such securities shall be kept in the custody of the commis-
sioner and may be sold by the commissioner if it becomes necessary so to
do in order to recover any sums due from such agent pursuant to this
article, but no such sale shall be had until after such agent shall have
had opportunity to litigate the validity of any tax if it elects so to
do. Upon any such sale, the surplus, if any, above the sums due under
this article shall be returned to such agent.
S 2. This act shall take effect immediately.