S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  701--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2017
                                ___________
 
 Introduced by M. of A. DINOWITZ, GALEF -- Multi-Sponsored by -- M. of A.
   McDONOUGH,  McKEVITT  --  read  once  and referred to the Committee on
   Cities -- reported 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 administrative code of the city of New York and  the
   tax  law,  in  relation  to  authorizing  the  payment  of  rewards in
   connection with the enforcement of the cigarette tax
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 11-1308 of the administrative code of the city of
 New York is amended by adding a new subdivision 12 to read as follows:
   12. IN HIS OR HER SOLE DISCRETION, TO APPROVE A REWARD, IN A  SUITABLE
 AMOUNT, FOR INFORMATION THAT LEADS TO (I) THE DETECTION OF UNDERPAYMENTS
 OF  TAX  OR  FEES  REQUIRED  TO  BE  PAID  UNDER  THIS CHAPTER, (II) THE
 DETECTION OF  AND  ASSESSMENT  OF  PENALTIES  ON  PERSONS  VIOLATING  OR
 CONSPIRING TO VIOLATE ANY PROVISION OF THIS CHAPTER, (III) THE DETECTION
 AND  CONVICTION  UNDER  CHAPTER FORTY OF THIS TITLE OF PERSONS GUILTY OF
 VIOLATING OR CONSPIRING TO VIOLATE ANY PROVISIONS OF THIS CHAPTER,  (IV)
 A  SEIZURE  AND  FORFEITURE  OF CIGARETTES UNDER SECTION 11-4021 OF THIS
 TITLE, OR (V) A SUSPENSION OR REVOCATION OF A LICENSE ISSUED UNDER  THIS
 CHAPTER.  THE REWARDS PROVIDED FOR BY THIS SUBDIVISION WILL BE PAID FROM
 THE PROCEEDS OF AMOUNTS (OTHER THAN INTEREST)  COLLECTED  IN  CONNECTION
 WITH  THE  ADMINISTRATION OF THIS CHAPTER AND SECTIONS 11-4007, 11-4008,
 11-4009, 11-4012 AND 11-4021 OF THIS TITLE BY REASON OF THE  INFORMATION
 PROVIDED.  FOR  PURPOSES OF THIS SUBDIVISION, PROCEEDS OF AMOUNTS (OTHER
 THAN INTEREST) COLLECTED IN CONNECTION WITH THE ADMINISTRATION  OF  THIS
 CHAPTER  AND  SECTIONS 11-4007, 11-4008, 11-4009, 11-4012 AND 11-4021 OF
 THIS TITLE BECAUSE OF THE INFORMATION PROVIDED INCLUDE  BOTH  ADDITIONAL
 AMOUNTS COLLECTED AND AMOUNTS COLLECTED PRIOR TO RECEIPT OF THE INFORMA-
 TION  IF  THE INFORMATION LEADS TO THE DENIAL OF A CLAIM FOR REFUND THAT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03781-02-7

 A. 701--A                           2
 
 OTHERWISE WOULD HAVE BEEN PAID. A "SUITABLE AMOUNT" FOR PURPOSES OF THIS
 SUBDIVISION WILL DEPEND ON THE FACTS AND  CIRCUMSTANCES,  BUT  GENERALLY
 WILL  NOT  EXCEED  FIFTEEN  PERCENT  OF THE AMOUNT (OTHER THAN INTEREST)
 COLLECTED BY REASON OF THE INFORMATION PROVIDED.
   §  2.  The tax law is amended by adding a new section 479-a to read as
 follows:
   § 479-A. REWARD FOR DETECTION OF CIGARETTE TAX FRAUD. THE COMMISSIONER
 MAY, IN HIS OR HER SOLE DISCRETION, APPROVE  A  REWARD,  IN  A  SUITABLE
 AMOUNT, FOR INFORMATION THAT LEADS TO (1) THE DETECTION OF UNDERPAYMENTS
 OF TAX OR FEES REQUIRED TO BE PAID ON CIGARETTES UNDER THIS ARTICLE, (2)
 THE  DETECTION  OF  AND  ASSESSMENT OF PENALTIES ON PERSONS VIOLATING OR
 CONSPIRING TO VIOLATE ANY PROVISION OF THIS ARTICLE  PERTAINING  TO  THE
 CIGARETTE  TAX,  (3)  THE  DETECTION AND CONVICTION OF PERSONS GUILTY OF
 VIOLATING OR CONSPIRING  TO  VIOLATE  ANY  PROVISIONS  OF  THIS  ARTICLE
 PERTAINING  TO  THE CIGARETTE TAX, (4) A SEIZURE AND FORFEITURE OF CIGA-
 RETTES UNDER THIS ARTICLE, OR  (5)  A  SUSPENSION  OR  REVOCATION  OF  A
 LICENSE  ISSUED  UNDER  THIS  ARTICLE.  THE REWARDS PROVIDED FOR BY THIS
 SECTION WILL BE PAID FROM THE PROCEEDS OF AMOUNTS (OTHER THAN  INTEREST)
 COLLECTED  IN  CONNECTION  WITH  THE  ADMINISTRATION OF THIS ARTICLE AND
 FORFEITURES BY REASON OF THE INFORMATION PROVIDED. FOR PURPOSES OF  THIS
 SECTION,   PROCEEDS  OF  AMOUNTS  (OTHER  THAN  INTEREST)  COLLECTED  IN
 CONNECTION WITH THE  ADMINISTRATION  OF  THIS  ARTICLE  AND  FORFEITURES
 BECAUSE  OF  THE  INFORMATION  PROVIDED  INCLUDE BOTH ADDITIONAL AMOUNTS
 COLLECTED AND AMOUNTS COLLECTED PRIOR TO RECEIPT OF THE  INFORMATION  IF
 THE INFORMATION LEADS TO THE DENIAL OF A CLAIM FOR REFUND THAT OTHERWISE
 WOULD  HAVE  BEEN PAID. A "SUITABLE AMOUNT" FOR PURPOSES OF THIS SECTION
 WILL DEPEND ON THE FACTS  AND  CIRCUMSTANCES,  BUT  GENERALLY  WILL  NOT
 EXCEED  FIFTEEN PERCENT OF THE AMOUNT (OTHER THAN INTEREST) COLLECTED BY
 REASON OF THE INFORMATION PROVIDED.
   § 3. This act shall take effect immediately.