2023 New York Laws › TAX - Tax › Article 13-A - Tax on Petroleum Businesses › 302 - Registration of Petroleum Businesses.

§   302.   Registration  of  petroleum  businesses.  (a)  Registration
required.  Each petroleum business with respect to motor  fuel  must  be
registered  with the department of taxation and finance as a distributor
of motor fuel under article twelve-A of  this  chapter.  Each  petroleum
business  with  respect to diesel motor fuel must be registered with the
department of taxation and finance as a distributor of diesel motor fuel
under article twelve-A of  this  chapter  or,  where  applicable,  as  a
"distributor  of  kero-jet fuel only" under such article. Each petroleum
business with respect to residual petroleum product must  be  registered
as  a  residual petroleum product business under subdivision (b) of this
section. No petroleum business unless  so  registered,  shall  make  any
sale,  transfer,  use  or  other disposition of motor fuel, diesel motor
fuel or residual petroleum product within  the  state,  except  a  sale,
transfer, use or other disposition, if any, as to which the state cannot
impose such condition by reason of the United States constitution and of
laws  of  the  United States enacted pursuant thereto. No person, unless
registered as a residual petroleum product business under this  section,
shall (i) import or cause residual petroleum product to be imported into
this  state,  (ii)  produce,  refine,  manufacture  or compound residual
petroleum product within the state, or (iii)  make  a  sale  or  use  of
residual  petroleum  product  in  the  state  other  than  a self-use of
residual petroleum product which has been the subject of a  retail  sale
to such person.
(b)  Residual  petroleum  product  business.  The department, upon the
application of a corporation or unincorporated business, shall  register
such  corporation  or  unincorporated  business  as a residual petroleum
product business except that the commissioner may refuse to register  an
applicant for any of the grounds specified in subdivision two or five of
section  two  hundred eighty-three of this chapter or in subdivision (d)
of this section. The application shall be in such form and contain  such
information  as  the commissioner shall prescribe. All of the provisions
of subdivisions two, four, five, six, seven,  eight,  nine  and  ten  of
section   two   hundred   eighty-three   of  this  chapter  relating  to
registration of distributors shall be applicable to the registration  of
residual  petroleum  product businesses under this section with the same
force and effect as if the  language  of  those  subdivisions  had  been
incorporated  in  full in this section and had expressly referred to the
registration of  residual  petroleum  product  businesses  and  the  tax
imposed  by  this article, with such modification as may be necessary in
order to adapt the language of such provisions to the provisions of this
article, provided, specifically, that the term  "distributor"  shall  be
read  as "residual petroleum product business" and the term "motor fuel"
shall be read as "residual petroleum product". Provided,  however,  that
if   the  commissioner  is  satisfied  that  the  requirements  of  such
provisions for registration are not necessary in order  to  protect  tax
revenues,  the  commissioner  may limit or modify such requirements with
respect to corporations or unincorporated businesses not required to  be
registered as distributors of motor fuel or diesel motor fuel.
(c)  Bond  or other security. The commissioner may require a petroleum
business to file with it 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 such amount as the
commissioner may fix in an amount determined in  accordance  with  rules
and regulations prescribed by the commissioner, to secure the payment of
any  sums due from such petroleum business pursuant to this article. The
commissioner may require that such a bond or  other  security  be  filed
before a petroleum business is registered, and the amount thereof may be

increased  at  any  time when in the commissioner's judgment the same is
necessary as a  protection  to  the  revenues  under  this  article.  If
securities  are  deposited  as  security  under  this  subdivision, such
securities shall be kept in the joint custody of the comptroller and the
commissioner of taxation and finance. Such securities may be sold by the
commissioner  if  it  becomes necessary so to do in order to recover any
sums due from such petroleum business pursuant to this article,  but  no
such  sale  shall  be had until after such petroleum business 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 petroleum business.  All  of  the
provisions  of  paragraph  (b) of subdivision six of section two hundred
eighty-three of this chapter relating to increasing the  amount  of  the
bond or other security required to be filed pursuant to article twelve-A
of  this chapter shall be applicable to bonds or other security required
to be filed pursuant to this subdivision.
(d) Refusal to register. For the purposes of  determining  whether  to
refuse  an  application  for registration under article twelve-A of this
chapter as a distributor of motor fuel, diesel motor  fuel  or  kero-jet
fuel  only  or  under  this  section  as  a  residual  petroleum product
business, the references in  subdivision  two  of  section  two  hundred
eighty-three  of  this chapter to employees or shareholders under a duty
to file a return under or pursuant to the authority of article  twelve-A
of this chapter or pay the taxes imposed by or pursuant to the authority
of  such  article  on behalf of the applicant or another person shall be
deemed to also include an employee under a duty to file a return or  pay
taxes  under  or  pursuant to the authority of this article on behalf of
such applicant or other person. In addition to the grounds specified  in
section  two  hundred eighty-three of this chapter, the commissioner may
refuse to register an applicant as a distributor of motor  fuel,  diesel
motor  fuel  or  kero-jet  fuel  only or as a residual petroleum product
business where  the  commissioner  ascertains  that  the  applicant,  an
officer, director or partner of the applicant, a shareholder directly or
indirectly owning more than ten percent of the number of shares of stock
of  such applicant (where such applicant is a corporation) entitling the
holder thereof to vote for the election of directors or trustees, or  an
employee  or shareholder of such applicant under a duty to file a return
under or pursuant to the authority of this article or  article  twelve-A
of  this  chapter  or  to  pay  the  taxes imposed by or pursuant to the
authority of this article or article twelve-A of this chapter on  behalf
of  the  applicant, (1) has committed any of the acts or omissions which
are, or was convicted as, specified in subdivision (e) of  this  section
within  the  preceding  five  years,  or (2) was an officer, director or
partner of another person, or who directly or indirectly owned more than
ten percent of the shares of stock of another person (where  such  other
person  is  a  corporation) entitling the holder thereof to vote for the
election of directors or trustees, or who was an employee or shareholder
of another person under a duty to file a return under or pursuant to the
authority of this article or article twelve-A of this chapter or pay the
taxes imposed by or pursuant to the authority of this article or article
twelve-A of this chapter on behalf of such other person at the time such
other person committed any of the acts or omissions which  are,  or  was
convicted  as,  specified  in subdivision (e) of this section within the
preceding five years.
(e) Cancellation or suspension of  registration.  The  grounds  for  a
cancellation  or  suspension of a registration under article twelve-A of
this chapter as a distributor  of  motor  fuel,  diesel  motor  fuel  or
kero-jet fuel only or under this section as a residual petroleum product

business are those grounds specified in section two hundred eighty-three
of  this chapter and, in addition to such grounds, the following grounds
relating to this article shall apply:
(1)  A  registration as a distributor of motor fuel, diesel motor fuel
or kero-jet fuel only or as a residual petroleum product business may be
cancelled or suspended if the commissioner determines that a  registrant
or  an  officer,  director  or  partner of the registrant, a shareholder
directly or indirectly owning more than ten percent  of  the  number  of
shares  of  stock  of  such  registrant  (where  such  registrant  is  a
corporation) entitling the holder thereof to vote for  the  election  of
directors  or trustees, or an employee or shareholder of such registrant
under a duty to file a return under or pursuant to the authority of this
article or article twelve-A of this chapter or to pay the taxes  imposed
by  or  pursuant to the authority of this article or article twelve-A of
this chapter on behalf of the registrant (A) fails to file  or  maintain
in full force and effect a bond or other security when required pursuant
to  subdivision  (c)  of  this  section  or  when  the amount thereof is
increased,
(B) fails to comply with any of the provisions of this article or  any
rule or regulation adopted pursuant to this article by the commissioner,
(C)  knowingly  aids  and abets another person in violating any of the
provisions of this article or any rule or regulation adopted pursuant to
this article by the commissioner,
(D) transfers its registration as a  petroleum  business  without  the
prior written approval of the commissioner,
(E)  with  respect to a petroleum business which is a corporation, has
been dissolved pursuant to section two hundred three-a of  this  chapter
and subdivision (d) of section three hundred ten of this article,
(F)  commits  fraud  or deceit in his or its operations as a petroleum
business or has committed fraud  or  deceit  in  procuring  his  or  its
registration,
(G) has impersonated any person represented to be a petroleum business
under  this article but not in fact registered as a distributor of motor
fuel, diesel motor fuel or kero-jet fuel only or  a  residual  petroleum
product business, or
(H)  has  knowingly  aided and abetted the distribution of motor fuel,
diesel motor fuel  or  residual  petroleum  product  by  corporation  or
unincorporated business which such registrant or such other person knows
(i)  has  not  been  registered  by the commissioner as a distributor of
motor fuel, diesel motor fuel or kero-jet fuel only  or  as  a  residual
petroleum  product business and (ii) is a petroleum business pursuant to
the terms of subdivision (b) of section three hundred of this article.
(2) A registration as a distributor of motor fuel, diesel  motor  fuel
or kero-jet fuel only or as a residual petroleum product business may be
cancelled  or suspended if the commissioner determines that a registrant
or an officer, director or partner  of  the  registrant,  a  shareholder
directly  or  indirectly  owning  more than ten percent of the number of
shares  of  stock  of  such  registrant  (where  such  registrant  is  a
corporation)  entitling  the  holder thereof to vote for the election of
directors or trustees, or an employee or shareholder of such  registrant
under a duty to file a return under or pursuant to the authority of this
article or article twelve-A of this chapter on behalf of the registrant,
was  an  officer,  director  or  partner  of  another  person  or  was a
shareholder directly or indirectly owning more than ten percent  of  the
number  of shares of stock of another person (where such other person is
a corporation) entitling the holder thereof to vote for the election  of
directors  or  trustees,  or  was  an employee or shareholder of another
person under a duty to file a return under or pursuant to the  authority

of  this article or article twelve-A of this chapter or to pay the taxes
imposed by or pursuant to the  authority  of  this  article  or  article
twelve-A of this chapter on behalf of such other person at the time such
other  person  committed  any  of the acts specified in paragraph one of
this subdivision within the preceding five years.
(f) Cancellation or suspension of registration prior to a hearing. The
grounds for  cancelling  or  suspending  a  registration  under  article
twelve-A  of  this  chapter as a distributor of motor fuel, diesel motor
fuel or kero-jet fuel only or under this section as a residual petroleum
product business prior to a hearing are those specified  in  subdivision
five  of  section  two  hundred  eighty-three  of  this  chapter and, in
addition to such grounds, the following grounds relating to this article
shall apply:
(1) the failure  to  file  a  return  within  ten  days  of  the  date
prescribed  for  filing a return under this article or nonpayment of any
tax due pursuant to this article if the registrant shall have failed  to
file  such  return  or pay such taxes within ten days after the date the
demand therefor is sent by registered or certified mail to  the  address
of   the  distributor  or  residual  petroleum  business  given  in  its
application,  or  an  address  substituted  therefor  as   provided   in
subdivision five of section two hundred eighty-three of this chapter,
(2)  the  failure  to continue to maintain in full force and effect at
all times the bond or other security required to be  filed  pursuant  to
subdivision  (c)  of  this  section, provided, however, that if a surety
bond is cancelled  prior  to  expiration,  the  commissioner  may  after
considering all the relevant circumstances make such other arrangements,
and  may  require  the filing of such other bond or other security as it
deems appropriate,
(3) the transfer of a registration as a  residual  petroleum  business
without the prior written approval of the commissioner, or
(4)  with  respect to a petroleum business which is a corporation, the
dissolution or annulment of such corporation pursuant to  section  three
hundred ten of this article.