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This entry was published on 2014-09-22
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SECTION 1121
Refunds and credits with respect to cigarettes
Tax (TAX) CHAPTER 60, ARTICLE 28, PART 3
§ 1121. Refunds and credits with respect to cigarettes. (a) Retail
vendor. (1) A vendor of cigarettes who or which is required to collect
the taxes imposed by subdivision (a) of section eleven hundred five of
this article and any like tax imposed pursuant to the authority of
article twenty-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 cigarettes in the
amount of the tax on such cigarettes 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
vendor upon any cigarettes pursuant to the provisions of section eleven
hundred three of this article if such cigarettes are sold at retail by
such vendor under circumstances where the taxes imposed by section
eleven 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 cigarettes 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 cigarettes 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 cigarettes other than at retail shall be allowed such purchaser or
user upon the use of such cigarettes at retail if the purchase or use of
such cigarettes 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 cigarettes
upon which the prepaid tax imposed by section eleven hundred three of
this article has been paid have 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 cigarettes which will not be possessed for
sale or use in this state.

(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
applications 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 refund as
expeditiously as possible.