NY Tax L § 472 (2021)
2021 New York Laws TAX - Tax Article 20 - Tax on Cigarettes and Tobacco Products 472 - Preparation and Sale of Stamps; Commissions; Distributors.

§  472.  Preparation and sale of stamps; commissions; distributors. 1.   The commissioner shall prescribe, prepare and  furnish  stamps  of  such   denominations  and quantities as may be necessary for the payment of the   tax on cigarettes imposed by this article, and may from time to time and   as often as he deems advisable provide for the  issuance  and  exclusive   use  of stamps of a new design and forbid the use of stamps of any other   design, in the manner and  with  the  effect  provided  in  section  two   hundred  seventy-four  of  this  chapter.  The  commissioner  shall make   provisions for the sale of such stamps at such places and at such  times   as  he  may  deem necessary and may license agents for such purpose. The   commissioner may license dealers in cigarettes,  who  maintain  separate   warehousing  facilities  for  the  purpose of receiving and distributing   cigarettes and conducting their business, who have received  commitments   from  at  least two cigarette manufacturers whose aggregate market share   is at least forty percent of the New York state  cigarette  market,  and   importers,  exporters and manufacturers of cigarettes, and other persons   within or without the state as agents to buy or affix stamps to be  used   in  paying  the tax herein imposed, but an agent shall at all times have   the right to appoint the person in his employ who is to affix the stamps   to any cigarettes under the agent's control. The  fee  for  filing  such   application  for  an  agent's license shall be one thousand five hundred   dollars, unless such fee has  been  paid  during  the  preceding  twelve   months,  in  which case, the fee for a new license shall be one thousand   dollars. All of the provisions of section four hundred  eighty  relating   to  wholesale dealers' licenses, including the procedure for suspension,   revocation, refusal to license and for hearings, except  for  paragraphs   (c)  and  (g) of subdivision one of such section, shall be applicable to   agents' licenses applied for or granted pursuant to this section, as  if   such  provisions  had been set forth in full in this subdivision and had   expressly referred to the applicant for, or the holder  of,  an  agent's   license.  Whenever  the  commissioner shall sell and deliver to any such   agent any such stamps, such  agent  shall  be  entitled  to  receive  as   compensation  for  his services and expenses as such agent in selling or   affixing such stamps, and to retain out of the moneys to be paid by  him   for such stamps, a commission on the par value thereof. The commissioner   is  hereby  authorized  to  prescribe  a  schedule  of  commissions, not   exceeding five per centum,  allowable  to  such  agent  for  buying  and   affixing such stamps. Such schedule shall be uniform with respect to the   different  types  of  stamps  used, and may be on a graduated scale with   respect to the number of stamps purchased. The commissioner may, in  his   discretion,  permit  an  agent to pay for such stamps within thirty days   after the date of purchase and may require any such agent to  file  with   the department of taxation and finance 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 article. 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  so  to  do  in  order to recover any sums due from such agent   pursuant to this article, but no such sale shall be had until after such   agent 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 agent.2. A manufacturer or agent  who  intends  to  sell  within  the  state   packages  of  cigarettes  containing  more  than  twenty cigarettes must   notify the tax commission, in writing, of  such  intention  one  hundred    twenty  days  prior  to  the  time such packages will be sold within the   state, except that such tax commission shall waive such  requirement  if   it  has  already prescribed, prepared and furnished, or is in a position   to  prescribe,  prepare  and  furnish in a timely manner, stamps of such   denomination and quantities as may be necessary for the payment  of  the   tax  imposed  by  this  article on cigarettes in such package; provided,   however, that a notice provided  pursuant  to  this  subdivision  within   fifteen  days  of the effective date of this subdivision shall be deemed   to have been provided on the effective date of this subdivision.3. The commissioner of taxation and finance  may  appoint  dealers  in   tobacco  products,  manufacturers  of tobacco products and other persons   within or without the state as distributors and may  authorize  them  to   make  returns  and  to  pay the tax on tobacco products sold, shipped or   delivered by them to any person in the state. The commissioner  may,  in   his discretion, require the deposit of 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 an amount and form   satisfactory to him as a condition of appointing any such  person  as  a   distributor.   If  securities  are  deposited  as  security  under  this   subdivision, such securities  shall  be  kept  in  the  custody  of  the   commissioner of taxation and finance and may be sold by the commissioner   if  it  becomes necessary so to do in order to recover any sums due from   such distributor pursuant to this article, but no such sale shall be had   until after such distributor shall have had an 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 distributor.