NY Tax L § 301-L (2021)
2021 New York Laws TAX - Tax Article 13-A - Tax on Petroleum Businesses 301-L - Refund for Tax With Respect to In-Bulk Consumer Bad Debt.

§  301-l.  Refund  for  tax with respect to in-bulk consumer bad debt. There shall be allowed to a registered petroleum  business  or  aviation fuel  business  a  refund  under  this  section for the taxes imposed by sections three hundred one-a, three hundred  one-e,  and  three  hundred one-j  of this article for the tax paid under such sections with respect to gallonage which is represented by a worthless debt as follows:  (a) The refund shall be allowed to a registered petroleum business  or aviation fuel business for gallonage with respect to which tax liability for  the  taxes under this article is imposed on such petroleum business or aviation fuel business where (i) such gallonage has been included  in the  reports  filed by such petroleum business or aviation fuel business and all the taxes under this article with respect to such gallonage have been paid by such business, (ii) such gallonage was sold in-bulk by such petroleum or aviation fuel business to a purchaser for such  purchaser's own  use  and  consumption and (iii) such sale gave rise to a debt which became worthless, as that term is used for federal income tax  purposes, and  where  such debt is deducted as a worthless debt for federal income tax purposes for the taxable year  covering  the  month  in  which  such refund  claim relating to such debt is filed. Provided, however, for the purposes of this section, a sale of motor fuel and highway diesel  motor fuel  to a filling station shall be deemed to be a sale in-bulk for such filling station's own use and consumption and, provided, further, in  no event  shall  a  worthless  debt  qualify  with  respect  to  the refund hereunder where such debt arises from a retail sale at a filling station or sale wherein product is delivered directly into the fuel  tank  of  a motor vehicle, airplane or other conveyance.  (b) Partial payment. Where a debt became worthless only in part due to partial  payment,  the  amount of the refund under this section shall be determined by apportioning the amount of any partial payment  among  the components  of  the  total  purchase  price,  including  tax  under this article, and the amount of tax remaining unpaid after application of the partial payment shall be the amount of the refund.  (c) Upon receipt of a claim for refund in processible  form,  interest shall   be  allowed  and  paid  at  the  overpayment  rate  set  by  the commissioner pursuant to subdivision twenty-sixth of section one hundred seventy-one of this chapter from the date of the receipt of  the  refund claim  to  the  date  immediately preceding the date of the refund check except no such interest shall be allowed or paid if the refund check  is mailed  within  ninety days of such receipt and except no interest shall be allowed or paid if the amount thereof would be less than one  dollar. Provided, further, the refund shall be granted pro rata against sections three  hundred  one-a,  three  hundred one-e, and three hundred one-j of this article, as the case may be, to the same extent as  represented  by the  remittance of the petroleum business or aviation fuel business with respect to the gallonage represented by the worthless debt.  (d) In addition to the applicable report and evidence of tax  payment, the  commissioner  may  require  such  other  evidentiary  proof  as the commissioner deems appropriate  to  demonstrate  qualification  for  the refund  under  this  section.  Provided, further, that the refund of tax allowed under this section, for purposes of  the  income  and  franchise taxes  imposed  by this chapter, shall be reported in such detail as the commissioner may direct. Moreover, notwithstanding any provision to  the contrary,  all  state  agencies shall cooperate with the commissioner in administering the refund authorized by this section and shall share with such  commissioner  such  information  as  the  commissioner  may   deem appropriate in administering the refund under this section.  (e)  If  there is a disallowance of a bad debt with respect to which a refund under this section has been paid, such  disallowance  shall  have  the  effect  of and be treated as a report of federal change, correction or disallowance (as such effect and treatment is  described  in  section six  hundred  fifty-nine  and  subdivision  three of section two hundred eleven  of  this chapter) and the time to assess under this article with respect to such disallowance shall be determined as set  forth  in  such sections.