§ 1137. Payment of tax. (a) Every person required to file a return
under the preceding section whose total taxable receipts (as "taxable
receipts" are described in subdivision (a) of such section), amusement
charges and rents are subject to the tax imposed pursuant to
subdivisions (a), (c), (d), (e) and (f) of section eleven hundred five
of this article shall, at the time of filing such return, pay to the
commissioner the total of the following:

(i) Four percent of the total of all receipts, amusement charges and
rents subject to tax under this article, and if any of such receipts,
amusement charges and rents are subject to local tax imposed pursuant to
article twenty-nine of this chapter, an additional percentage of the
total thereof equal to the percentage rate of such local tax;

(ii) All taxes imposed by section eleven hundred ten or pursuant to
article twenty-nine of this chapter upon such person's use of property
or services;

(iii) All moneys collected by such person, purportedly as tax imposed
by this article or pursuant to article twenty-nine of this chapter, with
respect to any receipt, gallon of motor fuel or diesel motor fuel sold,
amusement charge or rent not subject to tax, and all moneys collected
with respect to any receipt, gallon of such fuel, amusement charge or
rent subject to tax, purportedly in accordance with a schedule
prescribed by the commissioner but actually in excess of the amount
stated in such schedule as the amount to be collected; and

(iv) The correct number of cents per gallon of motor fuel and diesel
motor fuel sold subject to tax under this article, and, if any of such
gallons sold are subject to local tax imposed pursuant to article
twenty-nine of this chapter, an additional number of cents per gallon
sold subject to such local taxes equal to the rates of such taxes.

(b) Every person required to file a return under the preceding section
and not subject to the provisions of subdivision (a) of this section
shall, at the time of filing such return, pay to the commissioner the
taxes imposed by this article and pursuant to article twenty-nine of
this chapter as well as all other moneys collected by such person acting
or purporting to act under the provisions of this article or of any
local law, ordinance or resolution adopted pursuant to such article
twenty-nine; provided, however, that if the commissioner shall have
fixed an effective rate of tax applicable to any or all of his or her
receipts, amusement charges and rents as provided in subdivision (d) of
this section, any such person may elect, with reference to such
receipts, amusement charges and rents and subject to approval by the
commissioner and to such regulations as the commissioner may promulgate,
to pay to the commissioner at the time of filing his or her return the
total of the following:

(i) The percentage of such receipts, amusement charges and rents fixed
by the commissioner as the effective rate of tax applicable thereto;

(ii) All taxes imposed by section eleven hundred ten or pursuant to
article twenty-nine of this chapter upon such person's use of property
or services;

(iii) All moneys collected by such person, purportedly as tax imposed
by this article or pursuant to article twenty-nine of this chapter, with
respect to any receipt, gallon of motor fuel or diesel motor fuel sold,
amusement charge or rent not subject to tax, and all moneys collected
with respect to any receipt, gallon of such fuel, amusement charge or
rent subject to tax, purportedly in accordance with a schedule
prescribed by the commissioner but actually in excess of the amount
stated in such schedule as the amount to be collected;

(iv) The amount of the taxes imposed by this article and pursuant to
article twenty-nine of this chapter with respect to all receipts,
amusement charges and rents as to which no effective rate of tax fixed
by the commissioner is applicable; and

(v) The correct number of cents per gallon of motor fuel and diesel
motor fuel sold subject to tax under this article, and, if any of such
gallons sold are subject to local tax imposed pursuant to article
twenty-nine of this chapter, an additional number of cents per gallon
sold subject to such local taxes equal to the rates of such taxes.

(c) (1) The provisions of subdivisions (a) and (b) of this section
shall not be applicable to: (i) a person filing a short-form,
part-quarterly return as defined in paragraph (ii) of subdivision (a) of
section eleven hundred thirty-six hereof who, at the time of such filing
shall pay to the tax commission one-third of the total state and local
sales and compensating use taxes payable by the person to the tax
commission in the comparable quarter of the immediately preceding year
under this article and as taxes imposed pursuant to the authority of
article twenty-nine with respect to all receipts, amusement charges and
rents, or (ii) a person filing a March estimated return as described in
paragraph (ii) of subdivision (c) of section eleven hundred
thirty-seven-A hereof who, at the time of such filing shall pay to the
tax commission one-third of the sales and compensating use taxes payable
by such person to the tax commission in the comparable quarter of the
immediately preceding year under this article. Notwithstanding the
preceding sentence, for the purposes of subparagraph (ii) of this
paragraph, the sales and compensating use taxes payable in the
comparable quarter of the immediately preceding year shall not include
taxes imposed by section eleven hundred seven or eleven hundred eight of
this article or pursuant to the authority of article twenty-nine of this
chapter.

(2) The provisions of subdivisions (a) and (b) of this section,
however, shall apply to a person filing a March estimated return as
described in paragraph (i) of subdivision (c) of section eleven hundred
thirty-seven-A hereof who, at the time of such filing shall pay to the
tax commission the sales and compensating use taxes, that are estimated
to be payable by such person for such month of March. Notwithstanding
the preceding sentence, for the purposes of this paragraph, the sales
and compensating use taxes that are estimated to be payable by such
person for such month of March shall not include taxes imposed by
section eleven hundred seven or eleven hundred eight of this article or
pursuant to the authority of article twenty-nine of this chapter.

(d) The tax commission is hereby authorized to fix the effective rate
of tax applicable to any or all of the taxable receipts, amusement
charges and rents of any person required to collect tax, or of any group
or classification of such persons. Any effective rate so fixed shall be
fixed at such a percentage rate as to require, so far as practicable,
payment of an amount equal to the total taxes imposed by this article
and pursuant to article twenty-nine.

(e) (1) The amount so payable to the tax commission for the period for
which a return is required to be filed shall be due and payable to the
tax commission on the date limited for the filing of the return for such
period, without regard to whether a return is filed or whether the
return which is filed correctly shows the amount of receipts, amusement
charges or rents or the value of property or services sold or purchased
or the taxes due thereon.

(2) Where the tax commission, in its discretion, deems it necessary to
protect the revenues to be obtained under this article, it may require
any person required to collect any tax imposed by this article to file
with it a bond, issued by a surety company authorized to transact
business in this state and approved by the superintendent of financial
services of this state as to solvency and responsibility or other
security acceptable to the tax commission, in such amount as the tax
commission may fix, to secure the payment or payment over of any tax,
penalties or interest due or which may become due from such person under
this article. In the event that the tax commission determines that such
person is to file such bond or other security, it shall give notice to
him to that effect specifying the amount of the bond or other security
required. Such person shall file such bond or other security within
thirty days after the giving of such notice unless within five days
after the giving of such notice he shall request, in writing, a hearing
before the tax commission at which the necessity, propriety and amount
of the bond or other security shall be determined by the tax commission.
Such determination shall be final and shall be complied with within
thirty days after the giving of notice thereof. If securities are
deposited as security under this paragraph, such securities shall be
kept in the custody of the commissioner of taxation and finance and may
be sold by the tax commission if it becomes necessary so to do in order
to recover any sums due from such person pursuant to this article, but
no such sale shall be had until after such person shall have had
opportunity to litigate the validity of any tax if he elects so to do.
Upon any such sale, the surplus, if any, above the sums due under this
article shall be returned to such person.

* (3) As an additional or alternate requirement, whenever any person
fails to collect, truthfully account for, pay over the tax, or file
returns of the tax as required in this article, the commissioner, in his
or her discretion where he or she deems necessary to protect the
revenues to be obtained under this article, may give notice requiring
such person to collect the taxes which become collectible after the
giving of such notice, to deposit such taxes at least one time per week
in a separate account in any banking institution approved by the
commissioner and located in this state the deposits in which are insured
by any agency of the federal government. Such notice may require either
(i) that such account be held in trust for and payable to the
commissioner, and that the amount of such tax shall be kept in such
account until payment over to the commissioner; or (ii) that such person
authorize the commissioner to debit such account. Any notice given by
the commissioner under this paragraph shall remain in effect until a
notice of cancellation is given by the commissioner. Any such person who
fails to comply with a notice issued under this paragraph shall be
required to file a bond pursuant to paragraph two of this subdivision.

* NB Effective until December 31, 2024

* (3) As an additional or alternate requirement, whenever any person
fails to collect, truthfully account for, pay over the tax, or file
returns of the tax as required in this article, the tax commission, in
its discretion where it deems necessary to protect the revenues to be
obtained under this article, may give notice requiring such person to
collect the taxes which become collectible after the giving of such
notice, to deposit such taxes in any banking institution approved by the
tax commission and located in this state the deposits in which are
insured by any agency of the federal government, in a separate account,
in trust for and payable to the tax commission, and to keep the amount
of such tax in such account until payment over to the tax commission.
Such notice shall remain in effect until a notice of cancellation is
given by the tax commission.

* NB Effective December 31, 2024

(f) (1) Except as otherwise provided in this subdivision, a person
required to collect tax who files a return required to be filed under
section eleven hundred thirty-six of this part for a quarterly or longer
period shall be allowed a credit against the taxes and fees required to
be reported on, and paid with, such return, in an amount as determined
in paragraph two of this subdivision, but only where such person files
the return on or before the filing due date and pays or pays over with
such return the total amount shown on such return (determined with
regard to this subdivision); provided, however, that no credit pursuant
to this subdivision shall be allowed for any person who files or is
required to file a return pursuant to paragraph two of subdivision (a)
of section eleven hundred thirty-six of this part or any person who pays
or is required to pay tax pursuant to section ten of this chapter.

(2) The amount of the credit authorized by paragraph one of this
subdivision shall be five percent of the amount of taxes and fees (but
not including any penalty or interest thereon) required to be reported
on, and paid or paid over with, the return but only if the return is
filed on or before the filing due date, but not more than two hundred
dollars, for each quarterly or longer period, except that, with respect
to returns required to be filed for quarterly or longer periods ending
on or before the last day of February, two thousand seven, the amount of
the credit shall be not more than one hundred seventy-five dollars for
each such quarterly or longer period.

(3) Notwithstanding any other provision of law: The credit afforded by
this subdivision shall be taken only on the return for the quarterly or
longer period to which the credit applies. No refund, carryforward or
carryback of any credit, or any interest thereon, and no application for
credit or refund of any tax, penalty or interest shall be allowed or
paid under this subdivision. No claim for credit may be filed or allowed
under this subdivision other than with the original return for such
period and any later claim, whether sought to be taken on an amended
return or otherwise, shall be void and any allowance erroneous. The
commissioner may, on the commissioner's own motion, correct any
erroneous disallowance of the credit provided by this subdivision.

(4) Notwithstanding any other provision of law: The credit authorized
by this subdivision shall be computed with reference to state and local
taxes and fees described in paragraph two of this subdivision, but shall
be charged and allowed only against revenues from taxes imposed by
sections eleven hundred five and eleven hundred ten of this article. The
commissioner shall account for the aggregate amounts of such credits
monthly in accordance with the schedule for certifications to the state
comptroller in section twelve hundred sixty-one of this chapter. Such
aggregate monthly amounts of credits shall be netted against revenues
from the taxes under such sections eleven hundred five and eleven
hundred ten, to ensure that revenues from the taxes and fees imposed by
other sections of law or by counties, cities and school districts
pursuant to the authority of article twenty-nine of this chapter are not
reduced and are deposited as provided with respect to the taxes and fees
imposed by such other sections or as provided in such article
twenty-nine of this chapter with respect to taxes of counties, cities
and school districts. Any overpayment or underpayment of revenues of a
county, city or school district or of revenues from another tax or fee,
on account of the allowance of credits under this subdivision, shall be
adjusted in the manner described in subdivision (c) of such section
twelve hundred sixty-one of this chapter. The credit authorized by this
subdivision shall not be incorporated into article twenty-nine of this
chapter or into local laws, ordinances or resolutions enacted pursuant
to the authority of such article twenty-nine of this chapter.

(5) (i) Where a person takes a credit pursuant to this subdivision in
an amount greater than allowed or under circumstances where the credit
is not authorized, or (ii) where a person takes a credit pursuant to
this subdivision at the time of filing a return for a quarterly or
longer period and such person later becomes subject to a penalty imposed
under subparagraph (vi) of paragraph one of subdivision (a) or under
paragraph two of subdivision (a) of section eleven hundred forty-five of
this part or is later found guilty of a crime or offense under section
eighteen hundred three, eighteen hundred four, eighteen hundred five,
eighteen hundred six, or eighteen hundred seventeen of this chapter,
relating to the period for which the return was filed, the amount of
such credit taken in such greater amount, under such circumstances or
for such period shall be disallowed and the person shall be required to
pay, as tax, an amount equal to the credit so taken, at such time and in
such manner as prescribed by the commissioner; provided, however, that
such amount shall be paid and disposed of in the same manner as other
revenues from this article, and may be determined, assessed, collected
and enforced in the same manner as the tax imposed by this article.