NY Tax L § 302 (2021)
2021 New York Laws TAX - Tax Article 13-A - Tax on Petroleum Businesses 302 - Registration of Petroleum Businesses.

§   302.   Registration  of  petroleum  businesses.  (a)  Registration required.  Each petroleum business with respect to motor  fuel  must  be registered  with the department of taxation and finance as a distributor of motor fuel under article twelve-A of  this  chapter.  Each  petroleum business  with  respect to diesel motor fuel must be registered with the department of taxation and finance as a distributor of diesel motor fuel under article twelve-A of  this  chapter  or,  where  applicable,  as  a "distributor  of  kero-jet fuel only" under such article. Each petroleum business with respect to residual petroleum product must  be  registered as  a  residual petroleum product business under subdivision (b) of this section. No petroleum business unless  so  registered,  shall  make  any sale,  transfer,  use  or  other disposition of motor fuel, diesel motor fuel or residual petroleum product within  the  state,  except  a  sale, transfer, use or other disposition, if any, as to which the state cannot impose such condition by reason of the United States constitution and of laws  of  the  United States enacted pursuant thereto. No person, unless registered as a residual petroleum product business under this  section, shall (i) import or cause residual petroleum product to be imported into this  state,  (ii)  produce,  refine,  manufacture  or compound residual petroleum product within the state, or (iii)  make  a  sale  or  use  of residual  petroleum  product  in  the  state  other  than  a self-use of residual petroleum product which has been the subject of a  retail  sale to such person.  (b)  Residual  petroleum  product  business.  The department, upon the application of a corporation or unincorporated business, shall  register such  corporation  or  unincorporated  business  as a residual petroleum product business except that the commissioner may refuse to register  an applicant for any of the grounds specified in subdivision two or five of section  two  hundred eighty-three of this chapter or in subdivision (d) of this section. The application shall be in such form and contain  such information  as  the commissioner shall prescribe. All of the provisions of subdivisions two, four, five, six, seven,  eight,  nine  and  ten  of section   two   hundred   eighty-three   of  this  chapter  relating  to registration of distributors shall be applicable to the registration  of residual  petroleum  product businesses under this section with the same force and effect as if the  language  of  those  subdivisions  had  been incorporated  in  full in this section and had expressly referred to the registration of  residual  petroleum  product  businesses  and  the  tax imposed  by  this article, with such modification as may be necessary in order to adapt the language of such provisions to the provisions of this article, provided, specifically, that the term  "distributor"  shall  be read  as "residual petroleum product business" and the term "motor fuel" shall be read as "residual petroleum product". Provided,  however,  that if   the  commissioner  is  satisfied  that  the  requirements  of  such provisions for registration are not necessary in order  to  protect  tax revenues,  the  commissioner  may limit or modify such requirements with respect to corporations or unincorporated businesses not required to  be registered as distributors of motor fuel or diesel motor fuel.  (c)  Bond  or other security. The commissioner may require a petroleum business to file with it a bond issued by a surety company  approved  by the   superintendent   of   financial   services   as  to  solvency  and responsibility and authorized to transact  business  in  this  state  or other  security  acceptable  to  the commissioner, in such amount as the commissioner may fix in an amount determined in  accordance  with  rules and regulations prescribed by the commissioner, to secure the payment of any  sums due from such petroleum business pursuant to this article. The commissioner may require that such a bond or  other  security  be  filed before a petroleum business is registered, and the amount thereof may be  increased  at  any  time when in the commissioner's judgment the same is necessary as a  protection  to  the  revenues  under  this  article.  If securities  are  deposited  as  security  under  this  subdivision, such securities shall be kept in the joint custody of the comptroller and the commissioner of taxation and finance. Such securities may be sold by the commissioner  if  it  becomes necessary so to do in order to recover any sums due from such petroleum business pursuant to this article,  but  no such  sale  shall  be had until after such petroleum business shall have had opportunity to litigate the validity of any tax if it elects  so  to do.  Upon  any  such  sale the surplus, if any, above the sums due under this article shall be returned to such petroleum business.  All  of  the provisions  of  paragraph  (b) of subdivision six of section two hundred eighty-three of this chapter relating to increasing the  amount  of  the bond or other security required to be filed pursuant to article twelve-A of  this chapter shall be applicable to bonds or other security required to be filed pursuant to this subdivision.  (d) Refusal to register. For the purposes of  determining  whether  to refuse  an  application  for registration under article twelve-A of this chapter as a distributor of motor fuel, diesel motor  fuel  or  kero-jet fuel  only  or  under  this  section  as  a  residual  petroleum product business, the references in  subdivision  two  of  section  two  hundred eighty-three  of  this chapter to employees or shareholders under a duty to file a return under or pursuant to the authority of article  twelve-A of this chapter or pay the taxes imposed by or pursuant to the authority of  such  article  on behalf of the applicant or another person shall be deemed to also include an employee under a duty to file a return or  pay taxes  under  or  pursuant to the authority of this article on behalf of such applicant or other person. In addition to the grounds specified  in section  two  hundred eighty-three of this chapter, the commissioner may refuse to register an applicant as a distributor of motor  fuel,  diesel motor  fuel  or  kero-jet  fuel  only or as a residual petroleum product business where  the  commissioner  ascertains  that  the  applicant,  an officer, director or partner of the applicant, a shareholder directly or indirectly owning more than ten percent of the number of shares of stock of  such applicant (where such applicant is a corporation) entitling the holder thereof to vote for the election of directors or trustees, or  an employee  or shareholder of such applicant under a duty to file a return under or pursuant to the authority of this article or  article  twelve-A of  this  chapter  or  to  pay  the  taxes imposed by or pursuant to the authority of this article or article twelve-A of this chapter on  behalf of  the  applicant, (1) has committed any of the acts or omissions which are, or was convicted as, specified in subdivision (e) of  this  section within  the  preceding  five  years,  or (2) was an officer, director or partner of another person, or who directly or indirectly owned more than ten percent of the shares of stock of another person (where  such  other person  is  a  corporation) entitling the holder thereof to vote for the election of directors or trustees, or who was an employee or shareholder of another person under a duty to file a return under or pursuant to the authority of this article or article twelve-A of this chapter or pay the taxes imposed by or pursuant to the authority of this article or article twelve-A of this chapter on behalf of such other person at the time such other person committed any of the acts or omissions which  are,  or  was convicted  as,  specified  in subdivision (e) of this section within the preceding five years.  (e) Cancellation or suspension of  registration.  The  grounds  for  a cancellation  or  suspension of a registration under article twelve-A of this chapter as a distributor  of  motor  fuel,  diesel  motor  fuel  or kero-jet fuel only or under this section as a residual petroleum product  business are those grounds specified in section two hundred eighty-three of  this chapter and, in addition to such grounds, the following grounds relating to this article shall apply:  (1)  A  registration as a distributor of motor fuel, diesel motor fuel or kero-jet fuel only or as a residual petroleum product business may be cancelled or suspended if the commissioner determines that a  registrant or  an  officer,  director  or  partner of the registrant, a shareholder directly or indirectly owning more than ten percent  of  the  number  of shares  of  stock  of  such  registrant  (where  such  registrant  is  a corporation) entitling the holder thereof to vote for  the  election  of directors  or trustees, or an employee or shareholder of such registrant under a duty to file a return under or pursuant to the authority of this article or article twelve-A of this chapter or to pay the taxes  imposed by  or  pursuant to the authority of this article or article twelve-A of this chapter on behalf of the registrant (A) fails to file  or  maintain in full force and effect a bond or other security when required pursuant to  subdivision  (c)  of  this  section  or  when  the amount thereof is increased,  (B) fails to comply with any of the provisions of this article or  any rule or regulation adopted pursuant to this article by the commissioner,  (C)  knowingly  aids  and abets another person in violating any of the provisions of this article or any rule or regulation adopted pursuant to this article by the commissioner,  (D) transfers its registration as a  petroleum  business  without  the prior written approval of the commissioner,  (E)  with  respect to a petroleum business which is a corporation, has been dissolved pursuant to section two hundred three-a of  this  chapter and subdivision (d) of section three hundred ten of this article,  (F)  commits  fraud  or deceit in his or its operations as a petroleum business or has committed fraud  or  deceit  in  procuring  his  or  its registration,  (G) has impersonated any person represented to be a petroleum business under  this article but not in fact registered as a distributor of motor fuel, diesel motor fuel or kero-jet fuel only or  a  residual  petroleum product business, or  (H)  has  knowingly  aided and abetted the distribution of motor fuel, diesel motor fuel  or  residual  petroleum  product  by  corporation  or unincorporated business which such registrant or such other person knows (i)  has  not  been  registered  by the commissioner as a distributor of motor fuel, diesel motor fuel or kero-jet fuel only  or  as  a  residual petroleum  product business and (ii) is a petroleum business pursuant to the terms of subdivision (b) of section three hundred of this article.  (2) A registration as a distributor of motor fuel, diesel  motor  fuel or kero-jet fuel only or as a residual petroleum product business may be cancelled  or suspended if the commissioner determines that a registrant or an officer, director or partner  of  the  registrant,  a  shareholder directly  or  indirectly  owning  more than ten percent of the number of shares  of  stock  of  such  registrant  (where  such  registrant  is  a corporation)  entitling  the  holder thereof to vote for the election of directors or trustees, or an employee or shareholder of such  registrant under a duty to file a return under or pursuant to the authority of this article or article twelve-A of this chapter on behalf of the registrant, was  an  officer,  director  or  partner  of  another  person  or  was a shareholder directly or indirectly owning more than ten percent  of  the number  of shares of stock of another person (where such other person is a corporation) entitling the holder thereof to vote for the election  of directors  or  trustees,  or  was  an employee or shareholder of another person under a duty to file a return under or pursuant to the  authority  of  this article or article twelve-A of this chapter or to pay the taxes imposed by or pursuant to the  authority  of  this  article  or  article twelve-A of this chapter on behalf of such other person at the time such other  person  committed  any  of the acts specified in paragraph one of this subdivision within the preceding five years.  (f) Cancellation or suspension of registration prior to a hearing. The grounds for  cancelling  or  suspending  a  registration  under  article twelve-A  of  this  chapter as a distributor of motor fuel, diesel motor fuel or kero-jet fuel only or under this section as a residual petroleum product business prior to a hearing are those specified  in  subdivision five  of  section  two  hundred  eighty-three  of  this  chapter and, in addition to such grounds, the following grounds relating to this article shall apply:  (1) the failure  to  file  a  return  within  ten  days  of  the  date prescribed  for  filing a return under this article or nonpayment of any tax due pursuant to this article if the registrant shall have failed  to file  such  return  or pay such taxes within ten days after the date the demand therefor is sent by registered or certified mail to  the  address of   the  distributor  or  residual  petroleum  business  given  in  its application,  or  an  address  substituted  therefor  as   provided   in subdivision five of section two hundred eighty-three of this chapter,  (2)  the  failure  to continue to maintain in full force and effect at all times the bond or other security required to be  filed  pursuant  to subdivision  (c)  of  this  section, provided, however, that if a surety bond is cancelled  prior  to  expiration,  the  commissioner  may  after considering all the relevant circumstances make such other arrangements, and  may  require  the filing of such other bond or other security as it deems appropriate,  (3) the transfer of a registration as a  residual  petroleum  business without the prior written approval of the commissioner, or  (4)  with  respect to a petroleum business which is a corporation, the dissolution or annulment of such corporation pursuant to  section  three hundred ten of this article.