2023 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.