NY Tax L § 1103 (2021)
2021 New York Laws TAX - Tax Article 28 - Sales and Compensating Use Taxes Part 1 - Definitions 1103 - Prepayment of Sales Tax on Cigarettes.

§  1103. Prepayment of sales tax on cigarettes. (a)(1) Every cigarette agent shall pay, as a prepayment on account of the taxes imposed by this article and pursuant to the authority of  article  twenty-nine  of  this chapter, a tax on cigarettes possessed for sale or use in this state and to  which  an  agent  is  required  to  affix cigarette tax stamps under article twenty of this chapter, at the time that the agent  is  required to  purchase  and  affix  such stamps (or as otherwise prescribed by the commissioner pursuant to such article twenty) and the provisions of such article twenty in relation to the use of stamps to evidence  payment  of the  tax  imposed  by  such  article  twenty  shall be applicable to the prepayment imposed by this section, except no tax shall be  required  to be  prepaid  on  cigarettes  sold under circumstances that this state is without power to impose such prepayment or sold to the United States  or sold  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  tax  imposed by such article twenty with respect to cigarettes.  The  commissioner  may,  in  the  commissioner's discretion, permit an agent to pay the tax imposed under this section at the same time that the agent pays for cigarette tax stamps under article twenty  of  this chapter and may require any such agent to file with the department  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  the  state  or  other  security acceptable  to  the commissioner, in such amount as the commissioner may fix, to secure the payment of any sums due from such agent  pursuant  to this  section.  If  securities  are  deposited  as  security  under this subdivision, such securities  shall  be  kept  in  the  custody  of  the commissioner 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  if  it  elects  to  do so. Upon any such sale, the surplus, if any, above the sums due under this section shall be returned to  such  agent. Any  bond  or  security  required  under  this  section  may  be jointly administered with the bond or  security  required  of  the  agent  under section four hundred seventy-two of this chapter and in such event shall secure  payment of the sums due under such article twenty and under this section. The tax imposed by this section and the portion of the cost  of any stamp which evidences payment of the tax imposed by this section and which  is  attributable  to the tax imposed by this section shall not be included in the term "basic cost of cigarettes" as such term is  defined in section four hundred eighty-three of this chapter.  (3)  Every  person other than an agent shall prepay the tax imposed by this section at the same time and in the same  manner  as  the  use  tax imposed  by  section  four  hundred  seventy-one-a  of this chapter. The commissioner may require any compensating use  tax  imposed  by  section eleven  hundred ten and pursuant to the authority of article twenty-nine of this chapter to be paid at such time after allowing  for  the  credit provided by subdivision (b) of section eleven hundred twenty-one of this article.  (4)  The  amount  of  the  prepayment  for  cigarettes 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 article 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.  (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 cigarettes 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 pursuant  to  the  authority of article twenty-nine of this chapter with respect to the retail sale or the use of  cigarettes.  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 cigarettes.  (d)  Deposit  and disposition of revenue. (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 thereon 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.