Senate Bill S2866

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2866
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 18, 2017
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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 increasing the  tax  imposed
   upon  the  sale  or  use of cigarettes; and to amend the state finance
   law, in relation to the tobacco use  prevention  and  control  program
   fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 471 of the tax law, as amended  by
 section  1  of  part D of chapter 134 of the laws of 2010, is amended to
 read as follows:
   1. There is hereby imposed and shall be paid a tax on  all  cigarettes
 possessed  in the state by any person for sale, except that no tax shall
 be imposed on cigarettes sold under such circumstances that  this  state
 is  without power to impose such tax, including sales to qualified Indi-
 ans for their own use and consumption on their nations' or tribes' qual-
 ified reservation, 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.  The tax imposed by this section is
 imposed on all cigarettes sold on an Indian reservation  to  non-members
 of  the  Indian  nation or tribe and to non-Indians and evidence of such
 tax shall be by means of an affixed cigarette tax stamp. Indian  nations
 or  tribes  may  elect to participate in the Indian tax exemption coupon
 system established in section four hundred seventy-one-e of this article
 which provides a mechanism for the collection of the tax imposed by this
 section on cigarette sales on qualified reservations to such non-members
 and non-Indians and for the delivery of quantities of  tax-exempt  ciga-

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

                                                            LBD07363-01-7

 S. 2866                             2
 
 rettes  to Indian nations or tribes for the personal use and consumption
 of qualified members of the Indian nation or tribe. If an Indian  nation
 or  tribe  does  not  elect  to  participate in the Indian tax exemption
 coupon  system, the prior approval system shall be the mechanism for the
 delivery of quantities of tax-exempt cigarettes  to  Indian  nations  or
 tribes  for the personal use and consumption of qualified members of the
 Indian nation or tribe as provided for in paragraph (b)  of  subdivision
 five  of  this  section.  Such tax on cigarettes shall be at the rate of
 [four] SIX dollars [and thirty-five cents] for each twenty cigarettes or
 fraction thereof, provided, however, that if  a  package  of  cigarettes
 contains  more than twenty cigarettes, the rate of tax on the cigarettes
 in such package in excess of twenty shall be one dollar and  [eight  and
 three-quarters]  FIFTY cents for each five cigarettes or fraction there-
 of. Such tax is intended to be imposed upon only one sale  of  the  same
 package  of  cigarettes. It shall be presumed that all cigarettes within
 the state are subject to tax until the contrary is established, and  the
 burden  of  proof that any cigarettes are not taxable hereunder shall be
 upon the person in possession thereof.
   § 2. Section 471-a of the tax law, as amended by section 5 of  part  D
 of chapter 134 of the laws of 2010, is amended to read as follows:
   §  471-a.  Use tax on cigarettes. There is hereby imposed and shall be
 paid a tax on all cigarettes used in the state  by  any  person,  except
 that  no  tax  shall  be imposed (1) if the tax provided in section four
 hundred seventy-one of this article is paid, (2) on  the  use  of  ciga-
 rettes  which are exempt from the tax imposed by said section, or (3) on
 the use of four hundred or less cigarettes, brought into the  state  on,
 or  in the possession of, any person. Such tax on cigarettes shall be at
 the rate of [four] SIX dollars [and thirty-five cents] for  each  twenty
 cigarettes  or fraction thereof, provided, however, that if a package of
 cigarettes contains more than twenty cigarettes, the rate of tax on  the
 cigarettes  in  such package in excess of twenty shall be one dollar and
 [eight and three-quarters] FIFTY cents for each five cigarettes or frac-
 tion thereof. Within twenty-four  hours  after  liability  for  the  tax
 accrues,  each  such person shall file with the commissioner a return in
 such form as the commissioner may prescribe together with  a  remittance
 of  the  tax  shown to be due thereon. For purposes of this article, the
 word "use" means the exercise of any right or power actual or  construc-
 tive and shall include but is not limited to the receipt, storage or any
 keeping  or  retention  for  any  length  of time, but shall not include
 possession for sale. All other provisions of this article if not  incon-
 sistent  shall  apply  to  the administration and enforcement of the tax
 imposed by this section in the same manner as if the  language  of  said
 provisions had been incorporated in full into this section.
   §  3. Section 482 of the tax law, as amended by section 2 of part T of
 chapter 61 of the laws of 2011, is amended to read as follows:
   § 482. Deposit and disposition of revenue. (a) All taxes, fees, inter-
 est and penalties collected or received by the commissioner  under  this
 article  and  article  twenty-A  of  this chapter shall be deposited and
 disposed of pursuant to the provisions of section one  hundred  seventy-
 one-a  of  this  chapter,  AS ADDED BY CHAPTER SIXTY-NINE OF THE LAWS OF
 NINETEEN HUNDRED SEVENTY-EIGHT, AS AMENDED. (b) From the taxes, interest
 and penalties collected or received by the commissioner  under  sections
 four hundred seventy-one and four hundred seventy-one-a of this article,
 effective  on and after March first, two thousand, forty-nine and fifty-
 five hundredths, and effective on and after February first, two thousand
 two, forty-three and seventy hundredths; and effective on and after  May

 S. 2866                             3
 
 first,  two  thousand  two,  sixty-four  and  fifty-five hundredths; and
 effective on and after April first, two thousand  three,  sixty-one  and
 twenty-two  hundredths  percent;  and effective on and after June third,
 two  thousand  eight,  seventy  and  sixty-three hundredths percent; and
 effective on and after July first, two thousand ten, seventy-six percent
 collected or received under those sections  must  be  deposited  to  the
 credit  of  the  tobacco  control  and  insurance initiatives pool to be
 established and distributed by the commissioner of health in  accordance
 with  section  twenty-eight  hundred  seven-v  of the public health law.
 NOTWITHSTANDING THE PROVISIONS OF SECTION ONE HUNDRED  SEVENTY-ONE-A  OF
 THIS  CHAPTER,  AS  ADDED  BY CHAPTER SIXTY-NINE OF THE LAWS OF NINETEEN
 HUNDRED SEVENTY-EIGHT, AS AMENDED, TWENTY-ONE AND  ONE-HALF  PERCENT  OF
 THE TAXES COLLECTED OR RECEIVED BY THE COMMISSIONER PURSUANT TO SECTIONS
 FOUR  HUNDRED SEVENTY-ONE AND FOUR HUNDRED SEVENTY-ONE-A OF THIS ARTICLE
 SHALL BE CREDITED TO AND DEPOSITED IN THE  TOBACCO  USE  PREVENTION  AND
 CONTROL  PROGRAM  FUND ESTABLISHED PURSUANT TO SECTION EIGHTY-SIX OF THE
 STATE FINANCE LAW.
   § 4. The state finance law is amended by adding a new  section  86  to
 read as follows:
   §  86.  TOBACCO  USE  PREVENTION AND CONTROL PROGRAM FUND. 1. THERE IS
 HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
 COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN  AS  THE
 "TOBACCO USE PREVENTION AND CONTROL PROGRAM FUND".
   2.  THE  TOBACCO USE PREVENTION AND CONTROL PROGRAM FUND SHALL CONSIST
 OF MONEYS APPROPRIATED THERETO, AND FUNDS  TRANSFERRED  FROM  ANY  OTHER
 FUND  OR  SOURCES INCLUDING TAX REVENUE REQUIRED TO BE DEPOSITED THEREIN
 PURSUANT TO SECTION FOUR HUNDRED EIGHTY-TWO OF THE TAX LAW.
   3. THE MONEYS RECEIVED BY SUCH FUND  SHALL  BE  EXPENDED  PURSUANT  TO
 APPROPRIATION  ONLY  FOR  THE  PURPOSES  OF IMPLEMENTING THE TOBACCO USE
 PREVENTION AND CONTROL PROGRAM  PURSUANT  TO  SECTION  THIRTEEN  HUNDRED
 NINETY-NINE-II OF THE PUBLIC HEALTH LAW.
   §  5. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.