2023 New York Laws › TAX - Tax › Article 28 - Sales and Compensating Use Taxes › Part 3 - Exemptions › 1121 - Refunds and Credits With Respect to Cigarettes.

§  1121.  Refunds  and  credits with respect to cigarettes. (a) Retail
vendor. (1) A vendor of cigarettes who or which is required  to  collect
the  taxes  imposed by subdivision (a) of section eleven hundred five of
this article and any like tax  imposed  pursuant  to  the  authority  of
article  twenty-nine of this chapter shall be allowed a refund or credit
against the amount of tax collected and required to be remitted  to  the
commissioner  pursuant  to  the  provisions  of  section  eleven hundred
thirty-seven of this article upon the retail sale of cigarettes  in  the
amount of the tax on such cigarettes prepaid by or passed through to and
included  in the price paid by such vendor pursuant to the provisions of
section eleven hundred three of this article.
(2) A refund or credit shall also be allowed such vendor for  the  tax
prepaid  by  or passed through to and included in the price paid by such
vendor upon any cigarettes pursuant to the provisions of section  eleven
hundred  three  of this article if such cigarettes are sold at retail by
such vendor under circumstances  where  the  taxes  imposed  by  section
eleven  hundred  five  of  this article and pursuant to the authority of
article twenty-nine of this chapter are not required by  the  provisions
of this article to be collected and remitted upon receipts from a retail
sale thereof.
(b)  Retail  user.  A  person  who or which is required to pay the tax
imposed by section eleven hundred ten of this article and any  like  tax
imposed pursuant to the authority of article twenty-nine of this chapter
with  respect to the purchase or use of such cigarettes shall be allowed
a credit against such tax  required  to  be  paid  to  the  commissioner
pursuant to such section and article in the amount of the tax prepaid by
or passed through to and included in the price paid by such purchaser or
user  pursuant to the provisions of section eleven hundred three of this
article.
(c) Self-use of cigarettes purchased at wholesale. A refund or  credit
equal  to the amount of tax prepaid by or passed through to and included
in the price paid by a purchaser or user pursuant to the  provisions  of
section  eleven hundred three of this article with respect to a purchase
of cigarettes other than at retail shall be allowed  such  purchaser  or
user upon the use of such cigarettes at retail if the purchase or use of
such  cigarettes  by the purchaser or user is exempt pursuant to section
eleven hundred  fifteen  or  section  eleven  hundred  sixteen  of  this
article.
(d)  Export,  destruction,  tax paid in error. Whenever any cigarettes
upon which the prepaid tax imposed by section eleven  hundred  three  of
this  article  has been paid have been sold and shipped to another state
for sale or use there or have become unfit for use or unsalable, or have
been destroyed, or whenever the commissioner shall have determined  that
any  tax  required  to  be  prepaid by such section eleven hundred three
shall have been paid in error, the agent or dealer, as the case may  be,
shall  be entitled to a refund or credit of the actual amount of prepaid
tax so paid with respect to cigarettes which will not be  possessed  for
sale or use in this state.
(e)  Refunds  of  the  tax  required  to  be  prepaid  pursuant to the
provisions of section eleven hundred three  of  this  article  shall  be
allowed  only  to  the  extent such tax paid by or passed through to the
retail vendor, or the purchaser or  user,  exceeds  the  amount  of  tax
required  to be collected from such person or required to be remitted by
the provisions of this article and pursuant to the authority of  article
twenty-nine of this chapter.
(f) A refund or credit shall be allowed under this section only to the
extent  that  the  tax required to be prepaid pursuant to section eleven
hundred three of this article has been prepaid by or passed  through  to

such  vendor,  purchaser  or  user,  but only to the extent that the tax
imposed by section eleven hundred five of this article and any like  tax
imposed pursuant to the authority of article twenty-nine of this chapter
together  with  the  tax  imposed  by section eleven hundred ten of this
article and any like tax imposed pursuant to the  authority  of  article
twenty-nine  of this chapter required to be paid, collected and remitted
has been paid, collected and remitted.
(g) Such refunds and credits shall be subject  to  the  provisions  of
sections  eleven hundred nineteen and eleven hundred thirty-nine of this
article as if such sections were incorporated in full into this  section
and had expressly referred to the refunds and credits authorized by this
section   including   the   periods   of  limitations  on  payments  and
applications to the commissioner; provided, however, that,  as  provided
in  subdivision  (e)  of  section  eleven  hundred  thirty-nine  of this
article, no interest shall be allowed or paid upon any  refund  made  or
credit  allowed  pursuant  to  subdivisions  (a),  (b)  and  (d) of this
section.   The commissioner shall process  applications  for  refund  as
expeditiously as possible.