Senate Bill S7654

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7654
 
                             I N  S E N A T E
 
                              January 5, 2022
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, the criminal procedure law and the alcohol-
   ic beverage control law, in relation to requiring the  pre-payment  of
   sales and compensating use tax on sales of beer intended for off prem-
   ises consumption

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new  section  1103-a  to
 read as follows:
   §  1103-A.  PREPAYMENT  OF  SALES TAX ON BEER TO BE SOLD AT RETAIL FOR
 CONSUMPTION OFF PREMISES. (A)(1) EVERY DISTRIBUTOR OF BEER SHALL PAY, AS
 A PREPAYMENT ON ACCOUNT OF THE TAXES IMPOSED BY THIS ARTICLE AND  PURSU-
 ANT  TO ARTICLE TWENTY-NINE OF THIS CHAPTER, A TAX ON BEER POSSESSED FOR
 SALE AT RETAIL FOR OFF PREMISES CONSUMPTION OR USE IN THIS STATE FOR THE
 SAME PURPOSES, AT THE TIME THAT THE DISTRIBUTOR IS REQUIRED TO  PAY  THE
 EXCISE  TAX ON BEER, OR AT SOME OTHER TIME PRESCRIBED BY THE COMMISSION-
 ER, AND THE PROVISIONS OF LAW IN RELATION TO THE EVIDENCE OF PAYMENT  OF
 SUCH  EXCISE  TAX  SHALL BE APPLICABLE TO THE PREPAYMENT IMPOSED BY THIS
 SECTION, EXCEPT NO TAX SHALL BE REQUIRED TO  BE  PREPAID  ON  BEER  SOLD
 UNDER  CIRCUMSTANCES  WHERE  THIS  STATE IS WITHOUT POWER TO IMPOSE SUCH
 PREPAYMENT, OR WHERE BEER IS SOLD TO THE UNITED STATES OR  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 WRITTEN POLICY STATEMENTS OF
 SUCH AN AGENCY APPLICABLE TO SUCH SALES.
   (2) THE TAX IMPOSED BY THIS SECTION SHALL BE PAID AT THE SAME TIME AND
 IN  THE  SAME  MANNER AS THE EXCISE TAX IMPOSED ON DISTRIBUTORS ON BEER.
 THE  COMMISSIONER  MAY,  IN  THE  COMMISSIONER'S  DISCRETION,  PERMIT  A
 DISTRIBUTOR  TO PAY THE TAX IMPOSED UNDER THIS SECTION AT ANY OTHER TIME
 AND MAY REQUIRE ANY SUCH DISTRIBUTOR TO FILE WITH THE DEPARTMENT A  BOND
 ISSUED  BY A SURETY COMPANY OF INSURANCE AS TO SOLVENCY AND RESPONSIBIL-
 ITY AND AUTHORIZED TO TRANSACT BUSINESS IN THE STATE OR  OTHER  SECURITY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14155-01-1
 S. 7654                             2
 
 ACCEPTABLE  TO  THE COMMISSIONER, IN SUCH AMOUNT AS THE COMMISSIONER MAY
 FIX, TO SECURE THE PAYMENT OF ANY SUMS DUE FROM SUCH DISTRIBUTOR  PURSU-
 ANT  TO THIS SECTION. 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 TO DO
 SO  IN  ORDER  TO  RECOVER ANY SUMS DUE FROM SUCH AGENT PURSUANT TO THIS
 SECTION, BUT NO SUCH SALE SHALL BE HAD UNTIL AFTER SUCH AGENT SHALL HAVE
 HAD AN OPPORTUNITY TO LITIGATE THE VALIDITY OF ANY  PREPAYMENT  OF  TAX.
 UPON  ANY  SUCH SALE, THE SURPLUS, IF ANY, ABOVE THE SUMS DUE UNDER THIS
 SECTION SHALL BE RETURNED TO SUCH  DISTRIBUTOR.  ANY  BOND  OR  SECURITY
 REQUIRED  UNDER  THIS SECTION SHALL SECURE PAYMENT OF THE SUMS DUE UNDER
 ANY OTHER PROVISION RELATING  TO  THE  TAX  UPON  BEER  AND  UNDER  THIS
 SECTION.
   (3)  EVERY  PERSON  OTHER THAN A DISTRIBUTOR WHO BRINGS BEER INTO THIS
 STATE TO BE SOLD AT RETAIL FOR OFF PREMISES CONSUMPTION SHALL PREPAY THE
 TAX IMPOSED BY THIS SECTION AT THE SAME TIME AND IN THE SAME  MANNER  AS
 THE  USE  TAX  IMPOSED BY THIS CHAPTER. THE COMMISSIONER MAY REQUIRE ANY
 COMPENSATING USE TAX IMPOSED BY THIS CHAPTER TO BE  PAID  AT  SUCH  TIME
 AFTER  ALLOWING  FOR  ANY  CREDIT PROVIDED BY SUBDIVISION (B) OF SECTION
 ELEVEN HUNDRED TWENTY-ONE OF THIS ARTICLE.
   (4) THE AMOUNT OF THE PREPAYMENT FOR SUCH TAX ON BEER IMPOSED BY  THIS
 SECTION  SHALL BE COMPUTED PURSUANT TO THE PROVISIONS OF SUBDIVISION (J)
 OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
   (B) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE  TAXES  REQUIRED
 TO  BE  PREPAID  PURSUANT  TO  THIS  SECTION  SHALL  BE ADMINISTERED AND
 COLLECTED IN A LIKE MANNER AS  THE  TAXES  IMPOSED  BY  SECTIONS  ELEVEN
 HUNDRED  FIVE AND ELEVEN HUNDRED TEN OF THIS ARTICLE. ALL THE PROVISIONS
 OF THIS  ARTICLE  RELATING  TO  OR  APPLICABLE  TO  THE  ADMINISTRATION,
 COLLECTION  AND  DISPOSITION OF THE TAXES IMPOSED BY SUCH SECTIONS SHALL
 APPLY TO THE TAX REQUIRED TO BE PREPAID UNDER THIS  SECTION  SO  FAR  AS
 SUCH  PROVISIONS  CAN BE MADE APPLICABLE TO SUCH PREPAYMENTS OF TAX WITH
 SUCH LIMITATIONS AS SET FORTH IN THIS ARTICLE AND SUCH MODIFICATIONS  AS
 MAY  BE NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE TAX SO IMPOSED;
 PROVIDED, HOWEVER, THAT THE PROVISIONS OF PARAGRAPH ONE  OF  SUBDIVISION
 (C)  OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS ARTICLE SHALL NOT BE
 APPLICABLE TO SUCH TAX REQUIRED TO BE PREPAID UNDER THIS  SECTION.  SUCH
 PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE
 OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL IN THIS SECTION EXCEPT TO
 THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF
 THIS  SECTION  OR  IS  NOT RELEVANT TO THE TAX REQUIRED TO BE PREPAID BY
 THIS SECTION. FOR PURPOSES OF THIS SECTION, ANY REFERENCE IN THIS  ARTI-
 CLE TO THE TAX OR TAXES IMPOSED BY THIS ARTICLE SHALL BE DEEMED TO REFER
 TO  THE  TAX  REQUIRED  TO  BE PREPAID PURSUANT TO THIS SECTION UNLESS A
 DIFFERENT MEANING IS CLEARLY REQUIRED. ALSO FOR PURPOSES OF SUCH PREPAY-
 MENT REQUIREMENT DISTRIBUTOR SHALL MEAN  AND  INCLUDE  A  NON-COMMERCIAL
 DISTRIBUTOR.
   (C)  NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE THE PAYMENT
 OF THE TAX REQUIRED TO BE PREPAID PURSUANT TO  THIS  SECTION  MORE  THAN
 ONCE  UPON  SUCH  BEER POSSESSED FOR SALE OR USED WITHIN THE STATE. WHEN
 THE PREPAID TAX IMPOSED PURSUANT TO THIS SECTION IS PAID, IT SHALL  HAVE
 BEEN  SO PAID ON ACCOUNT OF THE TAXES IMPOSED BY THIS ARTICLE AND PURSU-
 ANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER WITH RESPECT
 TO THE RETAIL SALE OR THE USE OF SUCH  BEER.  NOTHING  IN  THIS  SECTION
 SHALL MODIFY OR AFFECT THE TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE
 AND  ELEVEN  HUNDRED TEN OF THIS ARTICLE AS APPLIED TO RECEIPTS FROM THE
 SALE, OR TO THE USE, OF SUCH BEER.
 S. 7654                             3
 
   (D) (1) CONSISTENT WITH SECTIONS ELEVEN HUNDRED  FORTY-EIGHT  OF  THIS
 ARTICLE AND TWELVE HUNDRED SIXTY-ONE OF THIS CHAPTER, THE TAXES REQUIRED
 TO BE PREPAID PURSUANT TO THIS SECTION AND INTEREST AND PENALTIES THERE-
 ON  RECEIVED  BY  THE COMMISSIONER, AFTER DEDUCTING THE AMOUNT WHICH THE
 COMMISSIONER SHALL DETERMINE TO BE NECESSARY FOR REASONABLE COSTS OF THE
 COMMISSIONER  IN ADMINISTERING, COLLECTING, AND DISTRIBUTING SUCH TAXES,
 SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES  OR
 TRUST  COMPANIES, AS MAY BE DESIGNATED BY THE COMPTROLLER, TO THE CREDIT
 OF THE COMPTROLLER. OF THE TOTAL REVENUE  COLLECTED  OR  RECEIVED  UNDER
 THIS  SECTION,  THE  COMPTROLLER SHALL RETAIN IN THE COMPTROLLER'S HANDS
 SUCH AMOUNT AS THE  COMMISSIONER  MAY  DETERMINE  TO  BE  NECESSARY  FOR
 REFUNDS  UNDER  THIS  ARTICLE  AND  PURSUANT TO THE AUTHORITY OF ARTICLE
 TWENTY-NINE OF THIS CHAPTER.
   (2) ON OR BEFORE THE TWELFTH DAY OF EACH MONTH, AFTER  RESERVING  SUCH
 AMOUNT FOR SUCH REFUNDS AND SUCH COSTS, THE COMMISSIONER SHALL DETERMINE
 THE  AMOUNT  OF  ALL  REVENUES  SO  RECEIVED DURING THE PRIOR MONTH AS A
 RESULT OF THE TAXES, INTEREST AND PENALTIES SO IMPOSED AND, IN ADDITION,
 ON OR BEFORE THE LAST DAY OF JUNE AND DECEMBER  THE  COMMISSIONER  SHALL
 DETERMINE  IN  LIKE MANNER THE AMOUNT OF SUCH MONEYS RECEIVED DURING AND
 INCLUDING THE FIRST TWENTY-FIVE DAYS OF SAID  MONTHS.  THE  COMMISSIONER
 SHALL  DETERMINE THE PROPORTION OF REVENUES ATTRIBUTABLE TO RECEIPTS FOR
 THE PERIOD FOR WHICH THE DETERMINATION IS MADE PURSUANT TO THE PRECEDING
 SENTENCE FROM TAXES ON SALES AND USES OF PROPERTY AND SERVICES AND  RENT
 AND  AMUSEMENT  CHARGES  IMPOSED  BY  THIS  ARTICLE  AND PURSUANT TO THE
 AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER AND ADMINISTERED BY THE
 COMMISSIONER WHICH IS PAYABLE TO EACH  JURISDICTION  DETERMINED  WITHOUT
 REGARD TO THIS SECTION. THE AMOUNT OF REVENUES SO DETERMINED PURSUANT TO
 THIS  SECTION  SHALL  BE DEPOSITED AND DISTRIBUTED BY THE COMPTROLLER IN
 ACCORDANCE WITH THE SAME PERCENTAGE AMOUNT TO WHICH  A  JURISDICTION  IS
 ENTITLED  DETERMINED WITHOUT REGARD TO THIS SECTION. WHERE THE AMOUNT SO
 DETERMINED IN ANY DISTRIBUTION FROM  SUCH  TAXES  (OTHER  THAN  THE  TAX
 IMPOSED BY THIS SECTION) IS MORE OR LESS THAN THE AMOUNT DUE, THE AMOUNT
 OF THE OVERPAYMENT OR UNDERPAYMENT SHALL BE DETERMINED AS SOON AFTER THE
 DISCOVERY  OF  THE OVERPAYMENT OR UNDERPAYMENT AS IS REASONABLY POSSIBLE
 AND SUBSEQUENT DETERMINATIONS  SHALL  BE  ADJUSTED  BY  SUBTRACTING  THE
 AMOUNT  OF ANY SUCH OVERPAYMENT FROM OR BY ADDING THE AMOUNT OF ANY SUCH
 UNDERPAYMENT TO SUCH NUMBER OF SUBSEQUENT PAYMENTS  AS  THE  COMPTROLLER
 AND  THE COMMISSIONER SHALL CONSIDER REASONABLE IN VIEW OF THE AMOUNT OF
 THE OVERPAYMENT OR  UNDERPAYMENT  AND  ALL  OTHER  PERTINENT  FACTS  AND
 CIRCUMSTANCES. THE COMMISSIONER SHALL NOT BE LIABLE FOR ANY OVERESTIMATE
 OR  UNDERESTIMATE  OF  THE  AMOUNT  OF  THE  DISTRIBUTION. NOR SHALL THE
 COMMISSIONER BE LIABLE FOR ANY  INACCURACY  IN  ANY  DETERMINATION  WITH
 RESPECT  TO  THE  AMOUNT  OF THE DISTRIBUTION OR ANY REQUIRED ADJUSTMENT
 WITH RESPECT TO THE DISTRIBUTION, BUT THE COMMISSIONER SHALL AS SOON  AS
 PRACTICABLE  AFTER  DISCOVERY OF ANY ERROR ADJUST THE NEXT DETERMINATION
 UNDER THIS SECTION TO REFLECT ANY SUCH ERROR.
   § 2. Subdivision (d) of section 1111 of the tax  law,  as  amended  by
 chapter 2 of the laws of 1995, is amended to read as follows:
   (d)  The  commissioner  is  authorized and empowered to prescribe and,
 from time to time, to amend  schedules  of  the  amount  of  tax  to  be
 collected  upon  each gallon of motor fuel and diesel motor fuel sold at
 retail and upon each gallon of such fuel subject to the tax required  to
 be  prepaid  pursuant  to  section eleven hundred two of this article or
 upon each package of cigarettes sold at retail and upon each package  of
 cigarettes subject to the tax required to be prepaid under section elev-
 en hundred three of this article, AND UPON EACH CONTAINER OF BEER as the
 S. 7654                             4
 
 commissioner  shall determine is approximately equal to the average rate
 otherwise applicable, considering  the  regional  average  retail  sales
 prices  of such fuel, the amount of the prepaid tax per package of ciga-
 rettes  in  accordance  with  subdivision (j) of this section [and], THE
 AMOUNT OF THE PREPAID TAX ON BEER AND, in the case of a sale at  retail,
 the ordinary price ranges for such fuel and cigarettes AND BEER, in lieu
 of  the  regular  schedule  based on total receipts. Such rates shall be
 uniform in each county but may vary as between  counties,  depending  on
 the  general  price ranges in effect in each county, but counties wholly
 within a city shall have a uniform rate. If a political subdivision of a
 county imposes a retail  sales  and  use  tax,  separate  rates  may  be
 prescribed  for it. Such schedules with reference to the tax required to
 be prepaid on motor fuel and diesel motor fuel pursuant to section elev-
 en hundred two of this article or the tax  required  to  be  prepaid  on
 cigarettes  OR  BEER  under section eleven hundred three of this article
 may fix the rate per gallon or per package of cigarettes OR CONTAINER OF
 BEER in multiples of one-tenth of one cent, depending, in  the  case  of
 such  fuel,  on the regional average retail sales prices where such fuel
 is, as the case may be, imported, manufactured, sold or used. Such sche-
 dules with reference to such fuel  [or],  cigarettes  OR  BEER  sold  at
 retail  may  fix the rate per gallon or per package, as the case may be,
 in multiples of one-tenth of one cent depending on the  price  at  which
 such  fuel  or  cigarettes  OR BEER are sold. Where schedules fixing the
 rate per gallon in multiples of one-tenth of one cent have been  promul-
 gated,  the  price  shown on any metered pump or other dispensing device
 from which such fuel is sold to a purchaser of such fuel, to  be  deliv-
 ered  directly  to a vehicle propelled by any power other than muscular,
 shall include the tax at the rate so fixed, and the commissioner may  by
 regulation  prescribe  the  manner  in  which the amount of tax shall be
 shown for the information of customers by signs or placards on the prem-
 ises where such fuel is  sold.  When  determining  tax  required  to  be
 collected on the retail sale of motor fuel or diesel motor fuel or ciga-
 rettes  OR BEER, the receipts on which tax is computed shall not include
 the amount of tax required to be  prepaid  pursuant  to  section  eleven
 hundred  two  of  this  article with respect to such fuel or pursuant to
 section eleven hundred three of this article with respect to such  ciga-
 rettes OR BEER.
   §  3.  Section 1111 of the tax law is amended by adding a new subdivi-
 sion (j-1) to read as follows:
   (J-1) THE TAX REQUIRED  TO  BE  PREPAID  PURSUANT  TO  SECTION  ELEVEN
 HUNDRED THREE OF THIS ARTICLE ON BEER SOLD AT RETAIL FOR CONSUMPTION OFF
 PREMISES  SHALL  BE  COMPUTED  BY  MULTIPLYING  THE BASE RETAIL PRICE AS
 DETERMINED BY THE COMMISSIONER BY  A  TAX  RATE  AS  DETERMINED  BY  THE
 COMMISSIONER  TO  BE  APPROPRIATE AND CONSISTENT WITH THE SALES TAX RATE
 IMPOSED BY THE STATE AND ANY LOCALITY AS AUTHORIZED IN THIS CHAPTER.
   THE CALCULATION AND PUBLICATION OF THE BASE RETAIL PRICE SO  FIXED  BY
 PROVISIONS  OF  THIS  SECTION SHALL BE INCLUDED WITHIN THE DEFINITION OF
 "RULE" AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION  TWO  OF  SECTION  ONE
 HUNDRED  TWO  OF THE STATE ADMINISTRATIVE PROCEDURE ACT. THE BASE RETAIL
 PRICES DETERMINED PURSUANT TO THIS PARAGRAPH SHALL  BE  ROUNDED  TO  THE
 NEAREST ONE CENT FOR EACH CONTAINER.
   § 4. Paragraph 6 of subdivision (b) of section 1116 of the tax law, as
 added by chapter 2 of the laws of 1995, is amended to read as follows:
   (6)  purchases  of  cigarettes  OR  BEER  from  the tax required to be
 prepaid pursuant to section eleven hundred three of this article, except
 that no prepayment of tax shall be required on sales  of  cigarettes  OR
 S. 7654                             5
 
 BEER  sold  under such circumstances that this state is without power to
 impose such tax or sold to the United States or sold to or by  a  volun-
 tary  unincorporated  organization  of  the  armed  forces of the United
 States  operating  a  place  for  sale  of goods pursuant to regulations
 promulgated by the appropriate executive agency of the United States, to
 the extent provided in such regulations and written policy statements of
 such agency applicable to such sales.
   § 5. The tax law is amended by adding a new section 1121-a to read  as
 follows:
   § 1121-A. REFUNDS AND CREDITS WITH RESPECT TO BEER. (A) RETAIL VENDOR.
 (1)  A DISTRIBUTOR OF BEER WHO OR WHICH IS REQUIRED TO COLLECT THE TAXES
 IMPOSED BY SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS  ARTI-
 CLE  AND ANY LIKE TAX IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE TWEN-
 TY-NINE OF THIS CHAPTER SHALL BE ALLOWED A REFUND OR CREDIT AGAINST  THE
 AMOUNT  OF TAX COLLECTED AND REQUIRED TO BE REMITTED TO THE COMMISSIONER
 PURSUANT TO THE PROVISIONS OF SECTION  ELEVEN  HUNDRED  THIRTY-SEVEN  OF
 THIS ARTICLE UPON THE RETAIL SALE OF BEER OR BE IN THE AMOUNT OF THE TAX
 ON  SUCH  BEER PREPAID BY OR PASSED THROUGH TO AND INCLUDED IN THE PRICE
 PAID BY SUCH VENDOR PURSUANT TO THE PROVISIONS OF SECTION ELEVEN HUNDRED
 THREE OF THIS ARTICLE.
   (2) A REFUND OR CREDIT SHALL ALSO BE ALLOWED SUCH VENDOR FOR  THE  TAX
 PREPAID  BY  OR PASSED THROUGH TO AND INCLUDED IN THE PRICE PAID BY SUCH
 DISTRIBUTOR UPON ANY BEER PURSUANT TO THE PROVISIONS OF  SECTION  ELEVEN
 HUNDRED  THREE  OF  THIS  ARTICLE IF SUCH BEER IS SOLD AT RETAIL BY SUCH
 DISTRIBUTOR UNDER CIRCUMSTANCES WHERE THE TAXES IMPOSED BY SECTION ELEV-
 EN HUNDRED FIVE OF THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE
 TWENTY-NINE OF THIS CHAPTER ARE NOT REQUIRED BY THE PROVISIONS  OF  THIS
 ARTICLE  TO  BE  COLLECTED AND REMITTED UPON RECEIPTS FROM A RETAIL SALE
 THEREOF.
   (B) RETAIL USER. A PERSON WHO OR WHICH IS  REQUIRED  TO  PAY  THE  TAX
 IMPOSED  BY  SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE AND ANY LIKE TAX
 IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER
 WITH RESPECT TO THE PURCHASE OR USE OF SUCH  BEER  SHALL  BE  ALLOWED  A
 CREDIT AGAINST SUCH TAX REQUIRED TO BE PAID TO THE COMMISSIONER PURSUANT
 TO  SUCH  SECTION  AND  ARTICLE  IN  THE AMOUNT OF THE TAX PREPAID BY OR
 PASSED THROUGH TO AND INCLUDED IN THE PRICE PAID BY  SUCH  PURCHASER  OR
 USER  PURSUANT TO THE PROVISIONS OF SECTION ELEVEN HUNDRED THREE OF THIS
 ARTICLE.
   (C) SELF-USE OF BEER PURCHASED AT WHOLESALE. A REFUND OR CREDIT  EQUAL
 TO THE AMOUNT OF TAX PREPAID BY OR PASSED THROUGH TO AND INCLUDED IN THE
 PRICE  PAID BY A PURCHASER OR USER PURSUANT TO THE PROVISIONS OF SECTION
 ELEVEN HUNDRED THREE OF THIS ARTICLE WITH RESPECT TO A PURCHASE OF  BEER
 OTHER  THAN  AT  RETAIL SHALL BE ALLOWED SUCH PURCHASER OR USER UPON THE
 USE OF SUCH BEER AT RETAIL IF THE PURCHASE OR USE OF SUCH  BEER  BY  THE
 PURCHASER  OR  USER IS EXEMPT PURSUANT TO SECTION ELEVEN HUNDRED FIFTEEN
 OR SECTION ELEVEN HUNDRED SIXTEEN OF THIS ARTICLE.
   (D) EXPORT, DESTRUCTION, TAX PAID IN ERROR. WHENEVER  ANY  BEER,  UPON
 WHICH  THE  PREPAID  TAX IMPOSED BY SECTION ELEVEN HUNDRED THREE OF THIS
 ARTICLE HAS BEEN PAID, HAS BEEN SOLD AND SHIPPED TO  ANOTHER  STATE  FOR
 SALE  OR  USE  THERE  OR HAVE BECOME UNFIT FOR USE OR UNSALABLE, OR HAVE
 BEEN DESTROYED, OR WHENEVER THE COMMISSIONER SHALL HAVE DETERMINED  THAT
 ANY  TAX  REQUIRED  TO  BE  PREPAID BY SUCH SECTION ELEVEN HUNDRED THREE
 SHALL HAVE BEEN PAID IN ERROR, THE AGENT OR DEALER, AS THE CASE MAY  BE,
 SHALL  BE ENTITLED TO A REFUND OR CREDIT OF THE ACTUAL AMOUNT OF PREPAID
 TAX SO PAID WITH RESPECT TO BEER WHICH WILL NOT BE POSSESSED FOR SALE OR
 USE IN THIS STATE.
 S. 7654                             6
 
   (E) REFUNDS OF  THE  TAX  REQUIRED  TO  BE  PREPAID  PURSUANT  TO  THE
 PROVISIONS  OF  SECTION  ELEVEN  HUNDRED  THREE OF THIS ARTICLE SHALL BE
 ALLOWED ONLY TO THE EXTENT SUCH TAX PAID BY OR  PASSED  THROUGH  TO  THE
 RETAIL  VENDOR,  OR  THE  PURCHASER  OR  USER, EXCEEDS THE AMOUNT OF TAX
 REQUIRED  TO BE COLLECTED FROM SUCH PERSON OR REQUIRED TO BE REMITTED BY
 THE PROVISIONS OF THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF  ARTICLE
 TWENTY-NINE OF THIS CHAPTER.
   (F) A REFUND OR CREDIT SHALL BE ALLOWED UNDER THIS SECTION ONLY TO THE
 EXTENT  THAT  THE  TAX REQUIRED TO BE PREPAID PURSUANT TO SECTION ELEVEN
 HUNDRED THREE OF THIS ARTICLE HAS BEEN PREPAID BY OR PASSED  THROUGH  TO
 SUCH  VENDOR,  PURCHASER  OR  USER,  BUT ONLY TO THE EXTENT THAT THE TAX
 IMPOSED BY SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND ANY LIKE  TAX
 IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER
 TOGETHER  WITH  THE  TAX  IMPOSED  BY SECTION ELEVEN HUNDRED TEN OF THIS
 ARTICLE AND ANY LIKE TAX IMPOSED PURSUANT TO THE  AUTHORITY  OF  ARTICLE
 TWENTY-NINE  OF THIS CHAPTER REQUIRED TO BE PAID, COLLECTED AND REMITTED
 HAS BEEN PAID, COLLECTED AND REMITTED.
   (G) SUCH REFUNDS AND CREDITS SHALL BE SUBJECT  TO  THE  PROVISIONS  OF
 SECTIONS  ELEVEN HUNDRED NINETEEN AND ELEVEN HUNDRED THIRTY-NINE OF THIS
 ARTICLE AS IF SUCH SECTIONS WERE INCORPORATED IN FULL INTO THIS  SECTION
 AND HAD EXPRESSLY REFERRED TO THE REFUNDS AND CREDITS AUTHORIZED BY THIS
 SECTION  INCLUDING  THE  PERIODS OF LIMITATIONS ON PAYMENTS AND APPLICA-
 TIONS TO THE COMMISSIONER;  PROVIDED,  HOWEVER,  THAT,  AS  PROVIDED  IN
 SUBDIVISION  (E)  OF SECTION ELEVEN HUNDRED THIRTY-NINE OF THIS ARTICLE,
 NO INTEREST SHALL BE ALLOWED OR PAID UPON  ANY  REFUND  MADE  OR  CREDIT
 ALLOWED  PURSUANT  TO SUBDIVISIONS (A), (B) AND (D) OF THIS SECTION. THE
 COMMISSIONER SHALL PROCESS APPLICATIONS FOR REFUNDS AS EXPEDITIOUSLY  AS
 POSSIBLE.
   §  6.  Section 1132 of the tax law is amended by adding a new subdivi-
 sion (k-1) to read as follows:
   (K-1) (1) (I) NO PERSON SHALL PURCHASE BEER AT RETAIL FOR OFF PREMISES
 CONSUMPTION UNLESS THE TAX REQUIRED TO BE PREPAID BY SUBDIVISION (C)  OF
 SECTION ELEVEN HUNDRED THREE OF THIS ARTICLE HAS BEEN PAID BY A DISTRIB-
 UTOR  AND PASSED THROUGH BY A WHOLESALE DEALER OR RETAIL DEALER, AUTHOR-
 IZED, LICENSED OR REGISTERED UNDER THIS CHAPTER, IN  ACCORDANCE  WITH  A
 CERTIFICATION UNDER THIS PARAGRAPH OR PAID BY SUCH WHOLESALE DEALER AND,
 IS  PASSED THROUGH TO SUCH PURCHASER. IN ADDITION TO ANY OTHER CIVIL AND
 CRIMINAL PENALTIES WHICH MAY APPLY, ANY PERSON  WHO  PURCHASES  BEER  IN
 VIOLATION  OF THIS SUBPARAGRAPH SHALL BE JOINTLY AND SEVERALLY LIABLE TO
 PAY THE TAX REQUIRED TO BE PREPAID BY SECTION ELEVEN  HUNDRED  THREE  OF
 THIS ARTICLE WITH RESPECT TO SUCH BEER.
   (II)  FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND
 TO PREVENT EVASION OF THE TAX ON SALES AND USES OF BEER IMPOSED BY  THIS
 ARTICLE  AND  PURSUANT  TO  THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS
 CHAPTER, IT SHALL BE PRESUMED THAT ALL  BEER  POSSESSED  BY  A  RETAILER
 LICENSED  TO  SELL  BEER  FOR  OFF  PREMISES  CONSUMPTION  BY, OR IN THE
 POSSESSION OF, ANY PERSON, IS INTENDED FOR SALE OR USE IN THE STATE  AND
 SUBJECT  TO  THE  TAX  REQUIRED  TO BE PREPAID BY SECTION ELEVEN HUNDRED
 THREE OF THIS ARTICLE UNTIL THE CONTRARY IS ESTABLISHED  AND  THAT  SUCH
 PERSON IS RESPONSIBLE FOR SUCH PREPAYMENT.
   (III)  UPON EACH SALE OF SUCH BEER BY THE DISTRIBUTOR, THE DISTRIBUTOR
 MUST GIVE TO THE PURCHASER AND THE PURCHASER SHALL RECEIVE, AT THE  TIME
 OF DELIVERY OF SUCH BEER, A CERTIFICATION CONTAINING SUCH INFORMATION AS
 THE  COMMISSIONER  SHALL  REQUIRE WHICH SHALL INCLUDE A STATEMENT TO THE
 EFFECT (A) IF SUCH SELLER IS A DISTRIBUTOR, THAT  SUCH  DISTRIBUTOR  HAS
 PAID  THE AMOUNT OF TAX REQUIRED TO BE PREPAID BY SECTION ELEVEN HUNDRED
 S. 7654                             7
 
 THREE OF THIS ARTICLE AND IS PASSING THROUGH SUCH AMOUNT OF TAX, OR  (B)
 THAT  SUCH  SELLER  IS  PASSING  THROUGH SUCH AMOUNT OF TAX WHICH WAS SO
 PREVIOUSLY ASSUMED OR PAID.
   (IV)  IF  THE  CERTIFICATION  REQUIRED  BY  THIS  PARAGRAPH  HAS  BEEN
 FURNISHED TO THE PURCHASER BY THE DISTRIBUTOR AT DELIVERY  AND  ACCEPTED
 IN  GOOD FAITH THE BURDEN OF PROVING THAT THE TAX REQUIRED TO BE PAID BY
 SECTION ELEVEN HUNDRED THREE OF THIS ARTICLE WAS ASSUMED OR  PAID  BY  A
 DISTRIBUTOR AND PASSED THROUGH SHALL BE SOLELY ON THE DISTRIBUTOR.
   (V)  WHERE  THE  CERTIFICATION  REQUIRED  UNDER  THIS PARAGRAPH IS NOT
 FURNISHED BY THE SELLER TO THE PURCHASER AT DELIVERY OF  SUCH  BEER,  IT
 SHALL  BE  PRESUMED  THAT  NO  AMOUNT  OF  TAX REQUIRED TO BE PREPAID BY
 SECTION ELEVEN HUNDRED THREE OF THIS ARTICLE HAS BEEN PAID BY A DISTRIB-
 UTOR AND THAT THE PURCHASER IN SUCH CASE IS JOINTLY AND SEVERALLY LIABLE
 FOR THE TAX IMPOSED BY SUCH SECTION ELEVEN HUNDRED THREE.
   (2)(I) FOR THE PURPOSE OF THE PROPER ADMINISTRATION  OF  THIS  ARTICLE
 AND  TO  PREVENT EVASION OF THE TAX IMPOSED UNDER THIS ARTICLE, IT SHALL
 BE PRESUMED THAT ALL SALES OF BEER BY A DISTRIBUTOR IS  SUBJECT  TO  THE
 TAX  IMPOSED  BY  SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS
 ARTICLE AND REQUIRED TO BE COLLECTED BY THIS SECTION OR REQUIRED  TO  BE
 PAID  BY  THE  PROVISIONS  OF SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE
 UNTIL THE CONTRARY IS ESTABLISHED; AND IT SHALL  BE  PRESUMED  THAT  ALL
 BEER POSSESSED IN THIS STATE, WHICH SUCH PERSON CANNOT OTHERWISE ACCOUNT
 FOR AS HAVING BEEN SOLD SUBJECT TO THE TAX IMPOSED BY SUBDIVISION (A) OF
 SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND REQUIRED TO BE COLLECTED
 BY  THIS  SECTION  OR  REQUIRED  TO BE PAID BY THE PROVISIONS OF SECTION
 ELEVEN HUNDRED TEN OF THIS ARTICLE, HAVE BEEN SOLD SUBJECT  TO  THE  TAX
 IMPOSED  BY  SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE AND REQUIRED
 TO BE COLLECTED BY THIS SECTION OR REQUIRED TO BE PAID BY THE PROVISIONS
 OF SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE.
   (II) UNLESS THE DISTRIBUTOR HAS RECEIVED FROM THE RETAILER A STATEMENT
 OR CERTIFICATE, IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE,  THAT  THE
 RETAILER  PURSUANT TO THE PROVISIONS OF PARAGRAPH SIX OF SUBDIVISION (B)
 OF SECTION ELEVEN HUNDRED SIXTEEN OF THIS ARTICLE IS NOT SUBJECT TO  THE
 PROVISIONS  OF  THIS PARAGRAPH, SUCH SALE SHALL BE DEEMED A SALE SUBJECT
 TO THE PROVISIONS OF SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN
 OF THIS ARTICLE NOTWITHSTANDING ANY PROVISION OF SUBDIVISION (C) OF THIS
 SECTION.
   (III) WHERE ANY CERTIFICATE OR STATEMENT REQUIRED UNDER THIS PARAGRAPH
 HAS BEEN FURNISHED TO THE VENDOR AND ACCEPTED IN GOOD FAITH, THE  BURDEN
 OF  PROVING  THAT  THE  RECEIPT IS NOT TAXABLE HEREUNDER SHALL BE SOLELY
 UPON THE PURCHASER. THE VENDOR SHALL NOT BE  REQUIRED  TO  COLLECT  SUCH
 TAXES  FROM  PURCHASERS  WHO  FURNISH SUCH CERTIFICATES OR STATEMENTS IN
 PROPER FORM.
   § 7. Paragraph 1 of subdivision (a) of section 1134 of the tax law, as
 amended by section 160 of part A of chapter 389 of  the  laws  of  1997,
 subparagraph  (iii)  as amended by section 44 of part K of chapter 61 of
 the laws of 2011, subparagraph (vi) as amended by section 1 of part N of
 chapter 59 of the laws of 2021, is amended to read as follows:
   (1) (i) Every person required to collect any tax imposed by this arti-
 cle, other than a person who is a vendor solely by reason of clause (D),
 (E) or (F) of subparagraph (i) of paragraph eight of subdivision (b)  of
 section eleven hundred one of this article, commencing business or open-
 ing  a  new  place  of business, (ii) every person purchasing or selling
 tangible personal property for resale commencing business or  opening  a
 new  place  of  business,  (iii) every person selling petroleum products
 including persons who or which are not distributors, (iv)  every  person
 S. 7654                             8
 
 described  in this subdivision who takes possession of or pays for busi-
 ness assets under circumstances requiring notification by such person to
 the commissioner pursuant to subdivision (c) of section  eleven  hundred
 forty-one of this [chapter] ARTICLE, (v) every person selling cigarettes
 including  persons who or which are not agents, (VI) ANY DISTRIBUTOR WHO
 SELLS BEER TO RETAILERS FOR OFF PREMISES CONSUMPTION, and  [(vi)]  (VII)
 every  person described in subparagraph (i), (ii), (iii), (iv) [or], (v)
 OR (VI) of this paragraph or every person who  is  a  vendor  solely  by
 reason  of clause (D), (E) or (F) of subparagraph (i) of paragraph eight
 of subdivision (b) of section eleven hundred one of this article who  or
 which  has had its certificate of authority revoked under paragraph four
 of this subdivision, shall file with the commissioner a  certificate  of
 registration,  in a form prescribed by the commissioner, at least twenty
 days prior to commencing business or opening a new place of business  or
 such  purchasing,  selling or taking of possession or payment, whichever
 comes first. Every person who is a vendor solely by reason of clause (D)
 of subparagraph (i) of paragraph eight of  subdivision  (b)  of  section
 eleven  hundred  one  of this article shall file with the commissioner a
 certificate of registration, in a form prescribed by such  commissioner,
 within thirty days after the day on which the cumulative total number of
 occasions  that  such  person came into the state to deliver property or
 services, for the immediately preceding four quarterly periods ending on
 the last day of February, May,  August  and  November,  exceeds  twelve.
 Every  person who is a vendor solely by reason of clause (E) of subpara-
 graph (i) of paragraph  eight  of  subdivision  (b)  of  section  eleven
 hundred  one  of this article shall file with the commissioner a certif-
 icate of registration, in a form prescribed by such commissioner, within
 thirty days after the day on which the cumulative total, for  the  imme-
 diately  preceding  four  quarterly  periods  ending  on the last day of
 February, May, August and November, of such person's gross receipts from
 sales of property delivered in this state exceeds five hundred  thousand
 dollars  and  number of such sales exceeds one hundred. Every person who
 is a vendor solely by reason of clause (F) of subparagraph (i) of  para-
 graph  eight  of  subdivision  (b) of section eleven hundred one of this
 article shall file with the commissioner a certificate of  registration,
 in  a form prescribed by such commissioner, within thirty days after the
 day on which tangible personal property in which such person retains  an
 ownership interest is brought into this state by the person to whom such
 property is sold, where the person to whom such property is sold becomes
 or  is  a resident or uses such property in any manner in carrying on in
 this state any employment, trade, business  or  profession.  Information
 with  respect  to  the notice requirements of a purchaser, transferee or
 assignee and such person's  liability  pursuant  to  the  provisions  of
 subdivision  (c)  of  section  eleven  hundred forty-one of this chapter
 shall be included in or accompany the certificate of  registration  form
 furnished  the  applicant. The commissioner shall also include with such
 information furnished to each applicant general  information  about  the
 tax  imposed  under  this article including information on records to be
 kept, returns and payments, notification requirements  and  forms.  Such
 certificate  of  registration  may  be  amended in accordance with rules
 promulgated by the commissioner.
   § 8. Section 1135 of the tax law is amended by adding a  new  subdivi-
 sion (e-1) to read as follows:
   (E-1)  EVERY  DISTRIBUTOR  OF  BEER  SOLD FOR OFF PREMISES CONSUMPTION
 SHALL KEEP RECORDS FOR SUCH PERIODS AND IN THE MANNER PRESCRIBED BY  THE
 COMMISSIONER  PURSUANT TO RULES AND REGULATIONS. SUCH RECORDS SHALL SHOW
 S. 7654                             9
 
 (1) THE AMOUNT OF BEER PURCHASED, THE PRICE PAID  THEREFOR,  THE  PERSON
 FROM  WHOM  SUCH  IT  WAS  PURCHASED,  AND THE AMOUNT OF TAX PAID BY THE
 DISTRIBUTOR AS FOUND ON  HIS  RECEIPT  PURSUANT  TO  THE  PROVISIONS  OF
 SECTION  ELEVEN HUNDRED THREE OF THIS ARTICLE AND (2) THE AMOUNT OF BEER
 SOLD, THE RETAILER TO WHOM SUCH BEER IS SOLD AND THE PRICE PAID  BY  THE
 RETAILER  TO  WHOM  SUCH  PERSON  SELLS  THE BEER, AND THE AMOUNT OF TAX
 INCLUDED IN SUCH PRICE PURSUANT TO  THE  PROVISIONS  OF  SECTION  ELEVEN
 HUNDRED THREE OF THIS ARTICLE OR THE AMOUNT OF TAX COLLECTED PURSUANT TO
 THE PROVISIONS OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS
 ARTICLE  APPLICABLE TO SUCH SALE, TOGETHER WITH SUCH ADDITIONAL INFORMA-
 TION AS THE COMMISSIONER SHALL REQUIRE.
   § 9. Subdivision (a) of section 1136 of the  tax  law  is  amended  by
 adding a new paragraph 6-a to read as follows:
   (6-A)  THE RETURNS OF ANY DISTRIBUTOR OF BEER SHALL SHOW THE AMOUNT OF
 PREPAID TAX ASSUMED OR PAID THEREON AND PASSED  THROUGH,  TOGETHER  WITH
 SUCH  ADDITIONAL  INFORMATION AS THE COMMISSIONER SHALL REQUIRE. TAXABLE
 RECEIPTS AS USED IN THIS SECTION WITH  RESPECT  TO  BEER  SHALL  INCLUDE
 TAXABLE  RECEIPTS FROM THE SALE OF ANY BEER WHETHER OR NOT SUCH RECEIPTS
 ARE SUBJECT TO THE TAXES IMPOSED BY SECTION ELEVEN HUNDRED  TWO,  ELEVEN
 HUNDRED THREE, ELEVEN HUNDRED FIVE OR ELEVEN HUNDRED TEN OF THIS ARTICLE
 AND REGARDLESS OF WHETHER THE PROVISIONS OF SECTION ELEVEN HUNDRED TWEN-
 TY  OR  ELEVEN  HUNDRED TWENTY-ONE OF THIS ARTICLE ARE APPLICABLE TO THE
 TAXES IMPOSED IN RESPECT OF SUCH RECEIPTS.
   § 10. Paragraph 3 of subdivision (a) of section 1138 of the tax law is
 amended by adding a new subparagraph (D-1) to read as follows:
   (D-1) THE LIABILITY OF ANY PERSON, AS DISTRIBUTOR WHO SELLS BEER TO AN
 OWNER OF A PLACE OF BUSINESS SELLING BEER FOR OFF  PREMISES  CONSUMPTION
 FOR  THE  PENALTY  IMPOSED  BY  SUBPARAGRAPH  (VIII) OF PARAGRAPH ONE OF
 SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FORTY-FIVE OF  THIS  PART  AND
 THE  AMOUNT  OF  SUCH  PENALTY  SHALL BE DETERMINED BY THE COMMISSIONER.
 SUCH DETERMINATION SHALL FINALLY AND IRREVOCABLY FIX THE AMOUNT  OF  AND
 LIABILITY  FOR  SUCH  PENALTY  WITH  RESPECT TO SUCH PERSON, UNLESS SUCH
 PERSON, WITHIN NINETY DAYS AFTER THE GIVING OF NOTICE OF  SUCH  DETERMI-
 NATION,  SHALL  APPLY TO THE DIVISION OF TAX APPEALS FOR A HEARING.  THE
 COMMISSIONER  MAY,  NEVERTHELESS,  ON  THE  COMMISSIONER'S  OWN  MOTION,
 RE-DETERMINE  SUCH  DETERMINATION. FURTHERMORE, THE COMMISSIONER MAY, ON
 THE COMMISSIONER'S OWN MOTION, ABATE ANY PART OF THE PENALTY  DETERMINED
 TO  BE  ERRONEOUS  OR  EXCESSIVE  WHETHER OR NOT SUCH PENALTY HAS BECOME
 FINALLY AND IRREVOCABLY FIXED WITH RESPECT TO SUCH PERSON; BUT NO  CLAIM
 FOR  ABATEMENT  MAY  BE FILED BY ANY SUCH PERSON. THE PROVISIONS OF THIS
 PARAGRAPH SHALL NOT BE CONSTRUED TO LIMIT IN ANY MANNER  THE  POWERS  OF
 THE  ATTORNEY  GENERAL  UNDER  SUBDIVISION (A) OF SECTION ELEVEN HUNDRED
 FORTY-ONE OF THIS PART OR THE POWERS OF  THE  COMMISSIONER  TO  ISSUE  A
 WARRANT  UNDER  SUBDIVISION (B) OF SUCH SECTION AGAINST ANY PERSON WHOSE
 LIABILITY HAS BECOME FINALLY AND IRREVOCABLY FIXED.
   § 11. Section 1142 of the tax law is amended by adding a new  subdivi-
 sion 12-a to read as follows:
   12-A. TO MAKE SUCH PROVISION PURSUANT TO RULES AND REGULATIONS FOR THE
 JOINT  ADMINISTRATION, IN WHOLE OR IN PART, OF THE TAXES IMPOSED BY THIS
 ARTICLE AND PURSUANT TO THE AUTHORITY OF  ARTICLE  TWENTY-NINE  OF  THIS
 CHAPTER  UPON  THE  SALE  OR  USE  OF  BEER FOR OFF PREMISES CONSUMPTION
 INCLUDING  THE  REPORTING,  ASSESSMENT,  COLLECTION,  DETERMINATION  AND
 REFUND  OF  SUCH  TAXES, AND, FOR THAT PURPOSE, TO PRESCRIBE THAT ANY OF
 THE COMMISSIONER'S FUNCTIONS UNDER SUCH ARTICLES,  ANY  RETURNS,  FORMS,
 STATEMENTS, DOCUMENTS OR INFORMATION TO BE SUBMITTED TO THE COMMISSIONER
 UNDER  SUCH  ARTICLES, ANY BOOKS AND TAXES IMPOSED OR AUTHORIZED BY SUCH
 S. 7654                            10
 
 ARTICLES, ANY SCHEDULES OF AMOUNTS TO BE COLLECTED UNDER SUCH  ARTICLES,
 ANY REGISTRATION REQUIRED UNDER SUCH ARTICLES.
   § 12. Paragraph 1 of subdivision (a) of section 1145 of the tax law is
 amended by adding a new subparagraph (x) to read as follows:
   (X) ANY PERSON REQUIRED TO COLLECT TAX WHO SELLS BEER FOR OFF PREMISES
 CONSUMPTION  WHO  SHALL  WILLFULLY  AND  KNOWINGLY HAVE IN SUCH PERSON'S
 CUSTODY OR POSSESSION OR UNDER SUCH PERSON'S CONTROL ANY  SUCH  BEER  ON
 WHICH  (A)  THE  PREPAID  TAX IMPOSED BY SECTION ELEVEN HUNDRED THREE OF
 THIS ARTICLE HAS NOT BEEN ASSUMED OR PAID BY AN AGENT LICENSED  AS  SUCH
 UNDER  ARTICLE TWENTY OF THIS CHAPTER, OR (B) THE PREPAID TAX IMPOSED BY
 SUCH SECTION ELEVEN HUNDRED THREE  WAS  REQUIRED  TO  HAVE  BEEN  PASSED
 THROUGH  TO  SUCH  PERSON  AND HAS NOT BEEN INCLUDED IN THE COST OF SUCH
 BEER TO SUCH PERSON, SHALL BE LIABLE FOR A  PENALTY  IN  THE  AMOUNT  OF
 TWICE THE TAX NOT SO ASSUMED OR PAID, OR INCLUDED. SUCH PENALTY SHALL BE
 DETERMINED,  ASSESSED,  COLLECTED  AND  PAID IN THE SAME MANNER AS TAXES
 IMPOSED BY THIS ARTICLE AND ALL THE PROVISIONS OF THIS ARTICLE  RELATING
 THERETO  SHALL  BE  DEEMED  ALSO TO REFER TO THE PENALTY IMPOSED BY THIS
 SUBPARAGRAPH.  SUCH PENALTY MAY BE DETERMINED AT ANY TIME  WITHIN  THREE
 YEARS  AFTER  SUCH  BEER  SHALL  HAVE COME INTO SUCH PERSON'S CUSTODY OR
 POSSESSION OR UNDER SUCH PERSON'S CONTROL. FOR PURPOSES OF THIS SUBPARA-
 GRAPH, SUCH PERSON SHALL WILLFULLY AND KNOWINGLY HAVE IN  SUCH  PERSON'S
 CUSTODY  OR  POSSESSION OR UNDER SUCH PERSON'S CONTROL BEER ON WHICH (A)
 SUCH PREPAID TAX HAS NOT BEEN ASSUMED OR PAID BY A  WHOLESALER  PURSUANT
 TO  THIS  CHAPTER,  OR  (B)  SUCH  TAX  WAS REQUIRED TO HAVE BEEN PASSED
 THROUGH TO SUCH PERSON AND HAS NOT BEEN INCLUDED IN  THE  COST  OF  SUCH
 BEER  TO SUCH PERSON, WHERE SUCH PERSON HAS KNOWLEDGE OF THE REQUIREMENT
 THAT SUCH TAXES BE PAID OR ASSUMED OR SO INCLUDED  AND  WHERE,  TO  SUCH
 PERSON'S  KNOWLEDGE,  SUCH  TAXES HAVE NOT BEEN SO PAID OR ASSUMED OR SO
 INCLUDED.  FOR PURPOSES OF THIS SUBPARAGRAPH, IT  SHALL  BE  PRESUMPTIVE
 EVIDENCE  THAT  SUCH  PERSON  SHALL WILLFULLY AND KNOWINGLY HAVE IN SUCH
 PERSON'S CUSTODY OR POSSESSION OR UNDER SUCH PERSON'S CONTROL,  BEER  ON
 WHICH  (A) SUCH TAX HAS NOT BEEN ASSUMED OR PAID BY A WHOLESALER AUTHOR-
 IZED AS SUCH UNDER SUCH ARTICLE TWENTY OF THIS CHAPTER OR (B)  SUCH  TAX
 WAS REQUIRED TO HAVE BEEN PASSED THROUGH TO SUCH PERSON AND HAS NOT BEEN
 INCLUDED  IN  THE COST OF SUCH BEER TO SUCH PERSON WHERE SUCH PERSON HAS
 NOT RECEIVED THE CERTIFICATION REQUIRED BY SUBDIVISION  (K)  OF  SECTION
 ELEVEN  HUNDRED  THIRTY-TWO OF THIS PART AT THE TIME OF DELIVERY OF SUCH
 BEER OR, IN THOSE CIRCUMSTANCES WHERE THE  COMMISSIONER  HAS  AUTHORIZED
 THE DELIVERY OF SUCH CERTIFICATION AT A TIME AFTER DELIVERY OF THE BEER,
 AT THE TIME PRESCRIBED BY THE COMMISSIONER.
   §  13.  Subparagraph  (i) of paragraph 3 of subdivision (a) of section
 1145 of the tax law, as amended by section 48 of part K of chapter 61 of
 the laws of 2011, is amended to read as follows:
   (i) Any person required to obtain a  certificate  of  authority  under
 section  eleven hundred thirty-four of this part who, without possessing
 a valid certificate of authority, (A) sells tangible  personal  property
 or  services  subject  to  tax, receives amusement charges or operates a
 hotel, (B) purchases or sells tangible personal property for resale, (C)
 sells petroleum products, or (D) sells  cigarettes  OR  BEER  shall,  in
 addition  to  any other penalty imposed by this chapter, be subject to a
 penalty in an amount not exceeding five hundred dollars  for  the  first
 day  on  which  such  sales  or  purchases  are made, plus an amount not
 exceeding two hundred dollars for each  subsequent  day  on  which  such
 sales  or  purchases are made, not to exceed ten thousand dollars in the
 aggregate.
 S. 7654                            11
 
   § 14. Section 1817 of the tax law, is amended by adding a new subdivi-
 sion (o) to read as follows:
   (O)  ANY  OWNER  OF A PLACE OF BUSINESS SELLING BEER AT RETAIL FOR OFF
 PREMISES CONSUMPTION WHO SHALL WILLFULLY  AND  KNOWINGLY  HAVE  IN  SUCH
 OWNER'S  CUSTODY OR POSSESSION OR UNDER SUCH OWNER'S CONTROL ANY BEER ON
 WHICH (1) THE PREPAID TAX IMPOSED BY SECTION  ELEVEN  HUNDRED  THREE  OF
 THIS  CHAPTER  HAS  NOT  BEE  ASSUMED  OR (2) THE PREPAID TAX IMPOSED BY
 SECTION ELEVEN HUNDRED THREE OF THIS CHAPTER WAS REQUIRED TO  HAVE  BEEN
 PASSED  THROUGH  TO  SUCH OWNER AND HAS NOT BEEN INCLUDED IN THE COST OF
 SUCH BEER TO SUCH OWNER SHALL, IN EITHER CASE, BE GUILTY OF A  MISDEMEA-
 NOR.  FOR  PURPOSES  OF THIS SUBDIVISION, SUCH OWNER SHALL WILLFULLY AND
 KNOWINGLY HAVE IN SUCH OWNER'S  CUSTODY  OR  POSSESSION  OR  UNDER  SUCH
 OWNER'S  CONTROL ANY BEER ON WHICH SUCH TAX HAS NOT BEEN ASSUMED OR PAID
 WHERE SUCH OWNER HAS KNOWLEDGE OF  THE  REQUIREMENT  THAT  SUCH  TAX  BE
 ASSUMED  OR  PAID AND WHERE, TO SUCH OWNER'S KNOWLEDGE, SUCH TAX HAS NOT
 BEEN ASSUMED OR PAID. SUCH OWNER SHALL WILLFULLY AND KNOWINGLY  HAVE  IN
 SUCH OWNER'S CUSTODY OR POSSESSION OR UNDER SUCH OWNER'S CONTROL BEER ON
 WHICH SUCH TAX IS REQUIRED TO HAVE BEEN PASSED THROUGH TO SUCH OWNER AND
 HAS  NOT  BEEN  INCLUDED  IN THE COST TO SUCH OWNER WHERE SUCH OWNER HAS
 KNOWLEDGE OF THE REQUIREMENT THAT SUCH TAX BE PASSED THROUGH AND HAS NOT
 BEEN SO INCLUDED.
   § 15. Paragraph (q) of subdivision 34 of section 1.20 of the  criminal
 procedure  law,  as amended by section 55 of part K of chapter 61 of the
 laws of 2011, is amended to read as follows:
   (q) An employee of the department of taxation and finance (i) assigned
 to enforcement of the taxes imposed under or pursuant to  the  authority
 of  article twelve-A of the tax law and administered by the commissioner
 of taxation and finance, taxes imposed under or pursuant to the authori-
 ty of article eighteen of the tax law and administered  by  the  commis-
 sioner,  taxes  imposed under article twenty of the tax law, or sales or
 compensating use taxes relating to petroleum products or  cigarettes  OR
 BEER  imposed under article twenty-eight or pursuant to the authority of
 article twenty-nine of the tax law and administered by the  commissioner
 or  (ii)  designated  as a revenue crimes specialist and assigned to the
 enforcement of the taxes described in paragraph (c) of subdivision  four
 of  section  2.10  of  this  title,  for the purpose of applying for and
 executing search warrants under article six hundred ninety of this chap-
 ter, for the purpose of acting as a claiming agent under  article  thir-
 teen-A  of  the  civil  practice  law  and  rules in connection with the
 enforcement of the taxes referred  to  above  and  for  the  purpose  of
 executing warrants of arrest relating to the respective crimes specified
 in subdivision four of section 2.10 of this title.
   §  16.  Paragraph (a) of subdivision 4 of section 2.10 of the criminal
 procedure law, as amended by section 56 of part K of chapter 61  of  the
 laws of 2011, is amended to read as follows:
   (a)  to  the enforcement of any of the criminal or seizure and forfei-
 ture provisions of the tax law relating to (i) taxes  imposed  under  or
 pursuant  to the authority of article twelve-A of the tax law and admin-
 istered by the commissioner, (ii) taxes imposed under or pursuant to the
 authority of article eighteen of the tax law  and  administered  by  the
 commissioner,  (iii)  taxes imposed under article twenty of the tax law,
 or (iv) sales or compensating use taxes relating to  petroleum  products
 or  cigarettes OR BEER imposed under article twenty-eight or pursuant to
 the authority of article twenty-nine of the tax law and administered  by
 the commissioner or
 S. 7654                            12
 
   §  17.  The  alcoholic beverage control law is amended by adding a new
 section 53-b to read as follows:
   § 53-B. MANNER  OF POSTING AND CHANGING BEER PRICES TO WHOLESALERS AND
 RETAIL LICENSEES IN CITIES OF ONE MILLION OR MORE.
   1. IT IS HEREBY DECLARED AS THE POLICY OF THE STATE THAT THE SALE  AND
 DISTRIBUTION  OF BEER SHALL BE SUBJECT TO CERTAIN RESTRICTIONS, PROHIBI-
 TIONS AND REGULATIONS WHICH TEND  TO  MAINTAIN  AN  ORDERLY  MARKET  AND
 PREVENT DESTRUCTIVE COMPETITION. THE NECESSITY OF THE PROVISIONS OF THIS
 SECTION IS THEREFORE DECLARED AS A MATTER OF LEGISLATIVE NECESSITY.
   2. AS USED IN THIS SECTION, THE FOLLOWING WORDS SHALL HAVE THE FOLLOW-
 ING MEANINGS:
   A.  "BEER  WHOLESALER"  OR  "WHOLESALER"  MEANS THE HOLDER OF A WHOLE-
 SALER'S LICENSE, PURSUANT TO SECTION FIFTY-THREE OF  THIS  ARTICLE,  WHO
 PURCHASES,  OFFERS  TO SELL, MARKETS, PROMOTES, WAREHOUSES OR PHYSICALLY
 DISTRIBUTES BEER SOLD BY A BREWER.
   B. "BREWER/WHOLESALER" MEANS THE HOLDER  OF  A  WHOLESALER'S  LICENSE,
 PURSUANT  TO  SECTION FIFTY-THREE OF THIS ARTICLE, WHO PURCHASES, OFFERS
 TO SELL, MARKETS, PROMOTES, WAREHOUSES, OR PHYSICALLY  DISTRIBUTES  BEER
 PREDOMINANTLY BREWED BY THE LICENSEE.
   C.  "CASE",  "DRAFT  PACKAGE"  OR  "SPECIAL  PACKAGE"  MEANS A PACKAGE
 PRODUCED BY A BREWER AND SOLD TO A BEER WHOLESALER.
   D. "COD" MEANS CASH, CHECK OR ELECTRONIC PAYMENT AT THE TIME OF DELIV-
 ERY.
   E. "FORKLIFT" MEANS ANY MECHANICAL SYSTEM ABLE TO UNLOAD PALLETS OFF A
 DELIVERY VEHICLE.
   F. "LOADING DOCK" MEANS A PLATFORM WHERE TRUCKS, SEMI-TRUCKS, AND  SEA
 OR RAIL CONTAINERS ARE UNLOADED BY FORKLIFTS.
   G.  "NON-CONTRACTED  WHOLESALER"  MEANS  THE  HOLDER OF A WHOLESALER'S
 LICENSE ISSUED OR RENEWED PRIOR TO JULY FIRST, NINETEEN  HUNDRED  SIXTY,
 AND  THEREAFTER RENEWED OR TRANSFERRED WHO (1) PURCHASES PRODUCTS FROM A
 BEER WHOLESALER AND (2) IS NOT SUBJECT TO ANY AGREEMENT WITH A BREWER OR
 BEER WHOLESALER PURSUANT TO SECTION FIFTY-FIVE-C OF THIS ARTICLE AND (3)
 IS LOCATED IN A CITY OF ONE MILLION OR MORE.
   H. "PALLET" MEANS A QUANTITY OF CASES, DRAFT PACKAGES OR SPECIAL PACK-
 AGES PRODUCED BY A BREWER AND STACKED ON A DEVICE MOVABLE BY A  FORKLIFT
 OR OTHER MECHANICAL METHOD.
   I.  "TRUCKLOAD"  MEANS  A  QUANTITY OF PALLETS CONTAINING CASES, DRAFT
 PACKAGES OR SPECIAL PACKAGES OF  NOT  LESS  THAN  THE  MAXIMUM  QUANTITY
 FITTING TYPE OF VEHICLE OR LEGAL WEIGHT LIMIT.
   3. BEER WHOLESALERS AND BREWER/WHOLESALERS SHALL POST WITH THE AUTHOR-
 ITY THE PRICE PER CASE, DRAFT PACKAGE OR SPECIAL PACKAGE OF BEER SOLD TO
 RETAIL LICENSEES EVERY ONE HUNDRED EIGHTY DAYS. THE POSTED PRICE ON SUCH
 CASE,  DRAFT  PACKAGE  OR  SPECIAL PACKAGE TO RETAIL LICENSEES MUST BE A
 MINIMUM OF:
   A. TWO AND ONE-HALF PERCENT ABOVE THE POSTED PRICE  TO  NON-CONTRACTED
 WHOLESALERS IF PURCHASED BY THE CASE, DRAFT PACKAGE OR SPECIAL PACKAGE;
   B.  FIVE PERCENT ABOVE THE POSTED CASE, DRAFT PACKAGE OR SPECIAL PACK-
 AGE PRICE TO NON-CONTRACTED WHOLESALERS IF PURCHASED BY THE PALLET;
   C. SEVEN AND ONE-HALF PERCENT ABOVE THE POSTED CASE, DRAFT PACKAGE  OR
 SPECIAL  PACKAGE PRICE TO NON-CONTRACTED WHOLESALERS IF PURCHASED BY THE
 TRUCKLOAD;
   D. TEN PERCENT ABOVE THE POSTED CASE, DRAFT PACKAGE OR SPECIAL PACKAGE
 PRICE TO NON-CONTRACTED WHOLESALERS IF PURCHASED BY THE TRAILERLOAD; AND
   E. IF A FORKLIFT AND/OR A LOADING DOCK IS USED TO UNLOAD  THE  PALLETS
 FROM  THE  DELIVERY VEHICLE, A MINIMUM OF AN ADDITIONAL TWO AND ONE-HALF
 PERCENT SHALL BE DEDUCTED FROM THE CASE, DRAFT PACKAGE OR SPECIAL  PACK-
 S. 7654                            13
 
 AGE  PRICE. IF THE NON-CONTRACTED WHOLESALER PAYS COD FOR THE PURCHASE A
 MINIMUM OF TWO AND ONE-HALF PERCENT SHALL BE DEDUCTED FROM THE PRICE PER
 CASE, DRAFT PACKAGE OR SPECIAL PACKAGE.  FURTHERMORE,  NOTHING  IN  THIS
 SECTION  SHALL  REQUIRE A NON-CONTRACTED WHOLESALER TO POST PRICING. THE
 PRICE PER CASE, DRAFT PACKAGE OR SPECIAL PACKAGE OF BEER  SOLD  TO  NON-
 CONTRACTED WHOLESALERS OR RETAIL LICENSEES ON THE FIRST DAY OF THE MONTH
 FOLLOWING  THE  EFFECTIVE  DATE  OF THIS SUBDIVISION SHALL BE DEEMED THE
 BASE PRICE, TO OR FROM WHICH PRICE INCREASES OR DECREASES MAY BE MADE IN
 ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
   4. THE  AUTHORITY  IS  AUTHORIZED  AND  EMPOWERED  TO  DO  SUCH  ACTS,
 PRESCRIBE  SUCH  FORMS  AND  ADOPT  RULES AND REGULATIONS AS IT MAY DEEM
 NECESSARY OR PROPER TO CARRY INTO EFFECT THE PURPOSE AND  PROVISIONS  OF
 THIS SECTION AND TO PREVENT CIRCUMVENTION OR EVASION THEREOF.
   WITHOUT  LIMITING  THE GENERALITY OF THE FOREGOING, AND IN ADDITION TO
 ITS OTHER POWERS, THE AUTHORITY MAY, IN ITS DISCRETION, ADOPT  RULES  OR
 REGULATIONS:
   A. PARTICULARIZING THE STANDARDS OF PACKAGING WHICH CONSTITUTE A CASE,
 SPECIAL PACKAGE AND DRAFT PACKAGE OF BEER.
   B.  DEFINING  THE GUIDELINES RELATING TO "PRICE" WITHIN THE PURVIEW OF
 THIS SECTION WHICH GUIDELINES MAY PROVIDE, WITHOUT  LIMITATION  THERETO,
 POSTING OF PRICE ON THE AUTHORITY'S WEBSITE.
   C.  REQUIRING  LICENSEES TO FILE WITH THE AUTHORITY REPORTS CERTIFYING
 THEIR PRICES OF BEER, THE DATES OF ANY CHANGES IN THE PRICE OF ANY  ITEM
 OF BEER, AND SUCH OTHER MATTERS AS THE AUTHORITY MAY DETERMINE FROM TIME
 TO  TIME TO BE NECESSARY TO DISCLOSE ACCURATELY THE PRICE OF BEER DURING
 THE PREVIOUS TWELVE  MONTHS  AND  REQUIRING  LICENSEES  TO  KEEP  FORMS,
 RECORDS AND MEMORANDA PRESCRIBED BY THE AUTHORITY.
   D.  REQUIRING BEER WHOLESALERS AND BREWER/WHOLESALERS TO REGISTER WITH
 THE AUTHORITY EACH CONTRACT AND AGREEMENT, INCLUDING THE NAMES OF  BREW-
 ERS  AND  IMPORTERS  WITH  WHICH SUCH WHOLESALER HAS CONTRACTS OR AGREE-
 MENTS, AND REQUIRING WHOLESALERS TO MAINTAIN FORMS, RECORDS AND MEMORAN-
 DA PRESCRIBED BY THE AUTHORITY.
   5. FOR THE PURPOSE OF DEFRAYING THE EXPENSES INCURRED IN THE  ADMINIS-
 TRATION  OF  THIS  SECTION, THERE SHALL BE PAID TO THE AUTHORITY BY EACH
 PERSON HEREAFTER APPLYING FOR A LICENSE AS A BEER WHOLESALER THE FOLLOW-
 ING SUMS: BEER WHOLESALER, FIVE THOUSAND DOLLARS; FOR EACH  CONTRACT  OR
 AGREEMENT  ENTERED  INTO  BY A BEER WHOLESALER, FIVE THOUSAND DOLLARS; A
 NON-CONTRACTED WHOLESALER, FIVE THOUSAND DOLLARS; A LIKE  SUM  SHALL  BE
 PAID  BY  EACH  PERSON HEREAFTER APPLYING FOR THE ISSUANCE OR RENEWAL OF
 ANY SUCH LICENSE AND/OR FOR EACH CONTRACT OR  AGREEMENT,  AND  SUCH  SUM
 SHALL  ACCOMPANY  THE APPLICATION AND THE LICENSE FEE PRESCRIBED BY THIS
 CHAPTER FOR SUCH LICENSE OR RENEWAL THEREOF, AS THE CASE MAY  BE.    THE
 SUMS  PRESCRIBED  BY  THIS  SUBDIVISION  SHALL  NOT  BE PRORATED FOR ANY
 PORTION OF THE LICENSE FEE AND SHALL HAVE NO REFUND VALUE.
   6. FOR ANY VIOLATION OF ANY PROVISION OF THIS SECTION OR OF  ANY  RULE
 OR  REGULATION  DULY  PROMULGATED  UNDER  THIS SECTION THE AUTHORITY MAY
 REVOKE, CANCEL OR SUSPEND A LICENSE OR RECOVER, AS PROVIDED  IN  SECTION
 ONE  HUNDRED  TWELVE OF THIS CHAPTER, THE PENAL SUM OF THE BOND FILED BY
 THE LICENSEE.
   § 18. (a) In order to ensure collection of the prepaid  sales  tax  on
 beer  for off premises consumption imposed under section 1103 of the tax
 law, as of the date such prepayment becomes applicable, there is  hereby
 imposed  and  shall be paid, as a prepayment on account of the sales and
 compensating use taxes administered by the commissioner of taxation  and
 finance and imposed by article 28 and pursuant to the authority of arti-
 cle  29  of  the tax law, a special floor tax on all such beer possessed
 S. 7654                            14
 
 for sale in the state on June 1, 2022, by any person. The amount of such
 prepayment shall be computed as provided  in  subdivision  (b)  of  this
 section.
   (b)(1)  All persons possessing beer subject to the tax imposed by this
 section on such date shall compute the floor tax amount required  to  be
 prepaid  by  multiplying the base retail price of such beer in effect on
 such date by a tax rate of eight percent.
   (2) For purposes of this section, the "base retail price of such beer"
 shall be in an amount as determined by the commissioner.
   (c) The tax imposed by this section shall be due and  payable  to  the
 commissioner of taxation and finance on or before June 20, 2022.
   (d)  All  the provisions of section 1103 of the tax law and all of the
 provisions of article 28 appertaining thereto, including, but not limit-
 ed  to,  provisions  relating  to  administration,  collection,  review,
 payment,  definitions, personal liability for the tax, exemptions, cred-
 iting, enforcement, deposit and disposition, and the provisions of arti-
 cle 37 of such law applicable to such section 1103 shall  be  applicable
 to  the  tax  imposed  by this section with such modifications as may be
 necessary in order to adapt such language to the tax  so  imposed.  Such
 provisions shall apply with the same force and effect as if the language
 of  such provisions had been set forth in full in this section except to
 the extent that any provision is either inconsistent with a provision of
 this section or is not relevant to the tax imposed by this section.
   (e) The commissioner of taxation and finance is hereby  authorized  to
 promulgate such regulations and require such reports as the commissioner
 deems necessary to effectuate the provisions of this section.
   (f)  The  provisions of this section notwithstanding, the commissioner
 of taxation and finance shall have the authority, in the  commissioner's
 sole  discretion, to require that the inventory necessary to account for
 the tax imposed by this section be taken on a  date  determined  by  the
 commissioner  of  taxation  and finance no more than seven days prior to
 the date required pursuant to subdivision (a) of this section.
   § 19. Severability. If any clause,  sentence,  paragraph,  section  or
 part  of this act shall for any reason be finally adjudged by a court of
 competent jurisdiction to be invalid or unconstitutional, such  judgment
 shall  not affect, impair or invalidate the remainder thereof, but shall
 be confined in its operation to the clause, sentence, paragraph, section
 or part of this act directly involved in the controversy in  which  such
 judgment  shall  have  been  rendered,  and  the  applicability  of such
 provision to other persons or circumstances shall not be affected there-
 by.
   § 20. This act shall take effect on the first day  of  the  sales  tax
 quarter  which  commences not less than ninety days after this act shall
 have become a law.