NY Tax L § 481 (2021)
2021 New York Laws TAX - Tax Article 20 - Tax on Cigarettes and Tobacco Products 481 - Penalties and Interest.

§ 481. Penalties and interest. 1. (a)(i)(A) An agent or distributor or other  person  treated as a distributor pursuant to section four hundred seventy-one-d who or which fails to file a return  or  to  pay  any  tax within the time required by or pursuant to this article (determined with regard  to  any extension of time for filing or paying) shall be subject to a penalty of ten per centum of the amount of tax determined to be due as provided in this article plus one per centum of such amount for  each month  or fraction thereof during which such failure continues after the expiration of the first month after such return was required to be filed or such  tax  became  due,  not  exceeding  thirty  per  centum  in  the aggregate.  (B)  If  a tax on cigarettes or on tobacco products under this article is not paid when due by any other person,  the  person  liable  for  the payment of such tax shall be subject to a penalty of fifty per centum of the  amount of such tax determined to be due as provided in this article plus one per centum of such amount for each month  or  fraction  thereof during  which  such failure to pay continues after the expiration of the first month after such tax became due.  (C) In the case of a failure to file such return within sixty days  of the  date  prescribed  for  filing of such return by or pursuant to this article (determined with regard to any extension of  time  for  filing), the  penalty imposed by this paragraph shall not be less than the lesser of one hundred dollars or one hundred per centum of the amount  required to  be  shown  as  tax  on such return. For the purpose of the preceding sentence, the amount of tax required to be shown on the return shall  be reduced  by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and  by  the  amount  of  any credit against the tax which may be claimed upon the return.  (ii)  If  any  amount  of  tax  is not paid on or before the last date prescribed in this article for payment, interest on such amount  at  the underpayment  rate  set  by  the  commissioner  of  taxation and finance pursuant to subdivision twenty-sixth of section one hundred  seventy-one of  this chapter shall be paid for the period from such last date to the date paid, whether or not any extension of time for payment was granted. Interest under this subparagraph shall not be paid if the amount thereof is less than one dollar.  (iii) If the tax commission determines that such failure or delay  was due  to  reasonable cause and not due to willful neglect, it shall remit all or part of such penalty. The tax commission shall  promulgate  rules and regulations as to what constitutes reasonable cause.  (iv)  If  the  failure  to  pay any tax within the time required by or pursuant to this article is due to fraud, in lieu of the  penalties  and interest  provided  for in subparagraphs (i) and (ii) of this paragraph, there shall be added to the tax (A) a penalty of two times the amount of tax due, plus (B) interest on such unpaid tax at the  underpayment  rate set  by the commissioner of taxation and finance pursuant to subdivision twenty-sixth of section one hundred seventy-one of this chapter for  the period  beginning  on  the  last  day prescribed by this article for the payment of such tax (determined without regard to any extension of  time for paying) and ending on the day on which such tax is paid.  (v) The penalties and interest provided for in this paragraph shall be determined, assessed, collected and paid in the same manner as the taxes imposed by this article and shall be disposed of as hereinafter provided with  respect  to  moneys  derived  from  the  tax.  Interest under this paragraph shall be compounded daily.  (b) (i) In addition to any other penalty imposed by this article,  the commissioner  may  (A)  impose  a  penalty  of not more than six hundred dollars for each two hundred cigarettes, or fraction thereof, in  excess  of  one  thousand cigarettes in unstamped or unlawfully stamped packages in the possession or under the control of any person  or  (B)  impose  a penalty  of  not  more  than  two hundred dollars for each ten unaffixed false,   altered  or  counterfeit  cigarette  tax  stamps,  imprints  or impressions, or fraction thereof, in the possession or under the control of any person. In addition, the commissioner may impose a penalty of not more than seventy-five dollars for each fifty cigars  or  one  pound  of tobacco,  or  fraction thereof, in excess of two hundred fifty cigars or five pounds of tobacco in the possession or under  the  control  of  any person and a penalty of not more than one hundred fifty dollars for each fifty cigars or pound of tobacco, or fraction thereof, in excess of five hundred  cigars  or ten pounds of tobacco in the possession or under the control of any person, with respect to which the  tobacco  products  tax has  not  been  paid  or  assumed  by  a distributor or tobacco products dealer; provided, however, that  any  such  penalty  imposed  shall  not exceed  seven  thousand  five  hundred  dollars  in  the  aggregate. The commissioner may impose a penalty of not more than seventy-five  dollars for  each  fifty cigars or one pound of tobacco, or fraction thereof, in excess of fifty cigars or one pound of  tobacco  in  the  possession  or under  the  control  of  any  tobacco  products  dealer  or  distributor appointed by the commissioner, and  a  penalty  of  not  more  than  one hundred  fifty  dollars  for  each  fifty cigars or pound of tobacco, or fraction thereof, in excess of two hundred fifty cigars or  five  pounds of  tobacco in the possession or under the control of any such dealer or distributor, with respect to which the tobacco products tax has not been paid or assumed by a distributor or a tobacco products dealer; provided, however, that any such penalty imposed shall not exceed fifteen thousand dollars in the aggregate.  (ii) The penalties imposed by this subparagraph may be imposed by  the commissioner  in  addition to any other penalty imposed by this article, but in lieu of  the  penalties  imposed  by  subparagraph  (i)  of  this paragraph:  (A)(I)(1)  not  less than thirty dollars but not more than two hundred dollars for each two hundred cigarettes, or fraction thereof, in  excess of  one  thousand  cigarettes  but  less  than or equal to five thousand cigarettes in unstamped or unlawfully stamped packages knowingly in  the possession  or knowingly under the control of any person or (2) not less than thirty dollars but not more than two hundred dollars for  each  ten unaffixed  false,  altered or counterfeit cigarette tax stamps, imprints or impressions, or fraction thereof, less than or equal to  two  hundred fifty  unaffixed  false,  altered  or  counterfeit cigarette tax stamps, imprints or impressions, knowingly in the possession  or  knowing  under the control of any person;  (II)(1)  not  less  than  seventy-five  dollars  but not more than two hundred dollars for each two hundred cigarettes, or fraction thereof, in excess of five thousand cigarettes but less  than  or  equal  to  twenty thousand   cigarettes   in  unstamped  or  unlawfully  stamped  packages knowingly in the possession or knowingly under the control of any person or (2) not less than seventy-five dollars but not more than two  hundred dollars  for  each ten unaffixed false, altered or counterfeit cigarette tax stamps, imprints or impressions, or fraction thereof, in  excess  of two  hundred fifty unaffixed false, altered or counterfeit cigarette tax stamps, imprints or impressions but less than or equal to  one  thousand unaffixed  false,  altered or counterfeit cigarette tax stamps, imprints or impressions, knowingly in  the  possession  or  knowingly  under  the control of any person; and  (III)(1)  not  less  than  one  hundred  dollars but not more than two hundred dollars for each two hundred cigarettes, or fraction thereof, in  excess of twenty thousand cigarettes in unstamped or unlawfully  stamped packages,  knowingly in the possession or knowingly under the control of any person or (2) not less than one hundred dollars but  not  more  than two hundred dollars for each ten unaffixed false, altered or counterfeit cigarette  tax  stamps, imprints or impressions, or fraction thereof, in excess of one thousand unaffixed false, altered or counterfeit cigarette tax stamps, imprints or impressions,  knowingly  in  the  possession  or knowingly under the control of any person.  (B)(I) not less than twenty-five dollars but not more than one hundred dollars  for  each  fifty  cigars  or  one pound of tobacco, or fraction thereof, in excess of two hundred fifty cigars or five pounds of tobacco knowingly in the possession  or  knowingly  under  the  control  of  any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; and  (II) not less than fifty dollars but not more than two hundred dollars for  each  fifty  cigars  or  pound  of tobacco, or fraction thereof, in excess of five hundred cigars or ten pounds of tobacco knowingly in  the possession or knowingly under the control of any person, with respect to which  the  tobacco  products  tax  has  not  been  paid or assumed by a distributor or tobacco products dealer; provided, however, that any such penalty imposed under this clause shall not exceed ten thousand  dollars in the aggregate.  (C)(I) not less than twenty-five dollars but not more than one hundred dollars  for  each  fifty  cigars  or  one pound of tobacco, or fraction thereof, in excess of fifty cigars or one pound of tobacco knowingly  in the  possession  or  knowingly  under  the  control  of any person, with respect to which the tobacco products tax has not been paid  or  assumed by a distributor or tobacco products dealer; and  (II) not less than fifty dollars but not more than two hundred dollars for  each  fifty  cigars  or  pound  of tobacco, or fraction thereof, in excess of two hundred fifty cigars or five pounds of  tobacco  knowingly in  the  possession  or  knowingly under the control of any person, with respect to which the tobacco products tax has not been paid  or  assumed by  a  distributor or a tobacco products dealer; provided, however, that any such penalty imposed under  this  clause  shall  not  exceed  twenty thousand dollars in the aggregate.  (iii)  Any  penalty provided for in this paragraph shall be determined as provided in section four hundred seventy-eight of this  chapter,  and may  be  reviewed  only  pursuant to such section. Such penalty shall be collected in the same manner as the taxes imposed by this  article.  The commissioner  in the commissioner's discretion, may remit all or part of such penalty. Such penalty shall be paid to the department and  disposed of as hereinafter provided with respect to moneys derived from the tax.  (c) In addition to any other penalties that may be imposed by law, the commissioner  may  impose  a  civil  penalty not to exceed five thousand dollars against any tobacco product manufacturer or cigarette tax  agent who  violates  the  provisions  of section four hundred eighty-b of this article,  including  but  not  limited  to  the  filing   of   a   false certification,   and   may  seek  to  suspend  or  cancel  any  license, registration or  appointment  which  has  been  issued  to  such  person pursuant to this chapter.  (d) In addition to any other penalties that may be imposed by law, the commissioner  may  impose  a  civil  penalty not to exceed five thousand dollars against any tobacco  product  manufacturer  or  distributor  who violates  the  provisions  of  section  four  hundred  eighty-c  of this article,  including  but  not  limited  to  the  filing   of   a   false certification,   and   may  seek  to  suspend  or  cancel  any  license,  registration or appointment that has been issued to the tobacco  product manufacturer or distributor under this chapter.   2.  (a)  The  possession  within  this state of more than four hundred cigarettes in unstamped or unlawfully stamped packages or more than  two hundred  fifty  cigars,  or  more than five pounds of tobacco other than roll-your-own tobacco, or more than thirty-six ounces  of  roll-your-own tobacco  by  any  person other than an agent or distributor, as the case may be, at  any  one  time  shall  be  presumptive  evidence  that  such cigarettes  or  tobacco  products are subject to tax as provided by this article.  (b) Nothing in this section shall apply to common or contract carriers or warehousemen  while  engaged  in  lawfully  transporting  or  storing tobacco products or unstamped packages of cigarettes as merchandise, nor to  any employee of such carrier or warehouseman acting within the scope of  his  employment,  nor  to  public  officers  or  employees  in   the performance  of their official duties requiring possession or control of tobacco  products  or  unstamped  or  unlawfully  stamped  packages   of cigarettes,  nor  to  temporary  incidental  possession  by employees or agents of persons lawfully entitled to possession, nor to persons  whose possession  is  for  the purpose of aiding police officers in performing their duties.   3. For purposes of this chapter, the certificate of  the  commissioner of  taxation and finance to the effect that a tax or fee imposed by this article has not been paid, that  a  return  required  by  or  under  the provisions  of  this article has not been filed, or that information has not been supplied, as required  by  or  under  the  provisions  of  this article, or that a bond or other security required by or pursuant to the provisions  of this article has not been filed, or that books, accounts, records, memoranda, documents  or  papers  have  not  been  supplied  as required  by  or  pursuant  to  the authority of this article, or that a retail dealer or vending machine owner or operator is not  currently  or validly  registered  as  required  by  this article shall be prima facie evidence that such tax or fee has not been paid, such return not  filed, such  information  not  supplied, such bond or other security not filed, that such books, accounts, records, memoranda, documents or papers  have not  been  supplied, or that such retail dealer or vending machine owner or operator is not currently or validly registered.   4. Cross-reference: For criminal penalties, see  article  thirty-seven of this chapter.