2023 New York Laws › CCT - Cigarettes, Cigars, Tobacco 235/52

An  act  to  enable  any  city of the state having a population of one
million or more  to  adopt,  and  amend  local  laws,  imposing  certain
specified types of taxes on cigarettes, cigars and smoking tobacco which
the  legislature  has  or  would  have power and authority to impose, to
provide for the review of such taxes, and to limit  the  application  of
such local laws
Section  1.  (1)  Notwithstanding  any  other  provision of law to the
contrary, any city of the state having a population of  one  million  or
more  inhabitants,  acting through its local legislative body, is hereby
authorized and empowered to adopt and amend local laws imposing  in  any
such  city  taxes  on  cigarettes, cigars or smoking tobacco such as the
legislature has or would have power and authority to impose. Such  taxes
may be collected and administered by the fiscal officers of such city by
such means and in such manner as may be provided by such local laws. The
taxes  may  be  imposed  on  the use, sale, exchange, transfer, storage,
withdrawal, possession or retention of  cigarettes,  cigars  or  smoking
tobacco, provided, however, that nothing in this act shall authorize the
imposition  of a tax on the use, possession or retention (otherwise than
for sale) of two hundred cigarettes or less, of fifty cigars or less  or
of two pounds of smoking tobacco or less brought into the city on, or in
possession of, any person.
* (a) The rate of such tax on cigarettes shall not exceed seventy-five
cents  for  each  ten cigarettes or fraction thereof, provided, however,
that if a package of cigarettes contains more  than  twenty  cigarettes,
the  rate  of  tax on the cigarettes in such package in excess of twenty
shall be  thirty-eight  cents  for  each  five  cigarettes  or  fraction
thereof.  Such  tax  is  intended  to  be  imposed only once on the same
package of cigarettes.
* NB Effective until December 31, 2020
* (a) The basic rate of such tax on cigarettes shall  not  exceed  two
cents  for each ten cigarettes or fraction thereof and is intended to be
imposed only once on the same package of cigarettes; in addition to such
tax there may be imposed an additional tax at the following rates
(1) One and one-half cents for each ten cigarettes where either  their
tar content exceeds seventeen milligrams per cigarette or their nicotine
content exceeds one and one-tenth milligrams per cigarette;
(2)  Two cents for each ten cigarettes where their tar content exceeds
seventeen milligrams per cigarette and their  nicotine  content  exceeds
one and one-tenth milligrams per cigarette.
* NB Effective December 31, 2020
(b)  The  rate of such tax on cigars shall not exceed one cent on each
cigar sold at a price of not less than seven cents  and  not  more  than
fifteen  cents; two cents on each cigar sold at a price of not less than
sixteen cents and not more than twenty-nine cents; and  three  cents  on
each  cigar sold at a price of thirty cents or more. Where more than one
cigar is sold, whether or not in a package, box or container,  such  tax
shall  be  applied to each cigar on the basis of the price applicable to
each cigar. The tax shall not be applicable to cigars sold  at  a  price
less than seven cents a cigar.
(c)  The rate of such tax on smoking tobacco shall not exceed one cent
for each twenty cents or fraction thereof of the  price  at  which  such
smoking tobacco is sold.
(2)  As  used  herein, the term "cigarette" shall mean and include (a)
any roll for smoking made wholly or in part of tobacco or of  any  other
substance  wrapped  in  paper  or  in any other substance not containing
tobacco, and (b) any roll for smoking made wholly or in part of  tobacco
wrapped  in  any  substance  containing  tobacco  that,  because  of its
appearance, the type of tobacco used in the filler, or its packaging and

labeling, is likely to be offered to, or purchased by,  consumers  as  a
cigarette  described  in  paragraph  (a) of this subdivision. However, a
roll will not be considered to be a cigarette for purposes of  paragraph
(b)  of this subdivision if it is not treated as a cigarette for federal
excise tax purposes under the applicable federal statute  in  effect  on
April  first,  two thousand eight. The term "cigar" does not include any
cigarette as defined in this subdivision.
(3) A tax imposed hereunder shall have  application  only  within  the
territorial  limits of any such city and shall be in addition to any and
all other taxes. The method of collecting  any  tax  imposed  hereunder,
either with or without adhesive or meter stamps, shall be subject to the
approval of the state tax commission.
(4)   Any  tax  imposed  hereunder  shall  be  refunded  whenever  any
cigarettes upon which the tax has been paid have been sold  and  shipped
into another state for sale or use there.
(5) No tax imposed pursuant to this section shall apply to the sale of
cigarettes  under such circumstances that this state is without power to
impose such tax or to  cigarettes  sold  to  the  United  States  or  to
cigarettes  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.
(6) Any final determination of the amount of any tax payable hereunder
shall be reviewable for error, illegality or unconstitutionality or  any
other  reason  whatsoever by a proceeding under article seventy-eight of
the civil practice law and rules if application therefor is made to  the
supreme  court within four months after the giving of the notice of such
final determination, provided, however, that any such  proceeding  under
article  seventy-eight  of the civil practice law and rules shall not be
instituted by a person liable for the tax unless the amount of  any  tax
sought  to  be reviewed, with such interest and penalties thereon as may
be provided for by local law or regulation, shall be first deposited and
an undertaking filed, in such amount and with such sureties as a justice
of the supreme court shall approve to the effect that if such proceeding
be dismissed or the tax confirmed such person will  pay  all  costs  and
charges which may accrue in the prosecution of such proceeding.
(7)  Where  any  tax  imposed  hereunder  shall have been erroneously,
illegally or unconstitutionally collected and application for the refund
thereof duly made to the proper fiscal officer  or  officers,  and  such
officer  or  officers  or,  in the case of a city of one million or more
which has established tax appeals tribunal, such tax  appeals  tribunal,
shall  have made a determination denying such refund, such determination
shall be reviewable by a proceeding under article seventy-eight  of  the
civil practice law and rules, provided, however, that such proceeding is
instituted  within  four  months  after the giving of the notice of such
denial, that a final determination of tax due was not  previously  made,
and  that  an  undertaking  is  filed  with the proper fiscal officer or
officers in such amount and with such  sureties  as  a  justice  of  the
supreme  court  shall  approve  to the effect that if such proceeding be
dismissed or the tax confirmed, the person liable for the tax  will  pay
all  costs  and  charges  which  may  accrue  in the prosecution of such
proceeding.
(8) Except in the case of a wilfully false or fraudulent  return  with
intent  to  evade the tax, no assessment of additional tax shall be made
with respect to taxes imposed hereunder after  the  expiration  of  more
than  three  years  from  the  date of the filing of a return, provided,
however, that where no return has been filed as provided by law the  tax
may be assessed at any time.
§  2.  Revenues  resulting  from the imposition of taxes authorized by
this act shall be paid into the treasury of any such city and  shall  be
credited  to  and deposited in the general fund of any such city, except
that, after the payment of refunds with respect to such taxes, effective
on  and  after  July  2,  2002, 46.5 percent and, effective on and after
April 1, 2003, 46 percent of such revenues  (including  taxes,  interest
and  penalties)  collected  or  received  shall  be  paid  to  the state
comptroller. The state comptroller is hereby authorized and directed  to
transfer  all  such amounts so paid to the credit of the tobacco control
and insurance initiatives pool to be distributed by the commissioner  of
health in accordance with section 2807-v of the public health law.