2023 New York Laws › TAX - Tax › Article 13-A - Tax on Petroleum Businesses › 301-L - Refund for Tax With Respect to In-Bulk Consumer Bad Debt.

§  301-l.  Refund  for  tax with respect to in-bulk consumer bad debt.
There shall be allowed to a registered petroleum  business  or  aviation
fuel  business  a  refund  under  this  section for the taxes imposed by
sections three hundred one-a, three hundred  one-e,  and  three  hundred
one-j  of this article for the tax paid under such sections with respect
to gallonage which is represented by a worthless debt as follows:
(a) The refund shall be allowed to a registered petroleum business  or
aviation fuel business for gallonage with respect to which tax liability
for  the  taxes under this article is imposed on such petroleum business
or aviation fuel business where (i) such gallonage has been included  in
the  reports  filed by such petroleum business or aviation fuel business
and all the taxes under this article with respect to such gallonage have
been paid by such business, (ii) such gallonage was sold in-bulk by such
petroleum or aviation fuel business to a purchaser for such  purchaser's
own  use  and  consumption and (iii) such sale gave rise to a debt which
became worthless, as that term is used for federal income tax  purposes,
and  where  such debt is deducted as a worthless debt for federal income
tax purposes for the taxable year  covering  the  month  in  which  such
refund  claim relating to such debt is filed. Provided, however, for the
purposes of this section, a sale of motor fuel and highway diesel  motor
fuel  to a filling station shall be deemed to be a sale in-bulk for such
filling station's own use and consumption and, provided, further, in  no
event  shall  a  worthless  debt  qualify  with  respect  to  the refund
hereunder where such debt arises from a retail sale at a filling station
or sale wherein product is delivered directly into the fuel  tank  of  a
motor vehicle, airplane or other conveyance.
(b) Partial payment. Where a debt became worthless only in part due to
partial  payment,  the  amount of the refund under this section shall be
determined by apportioning the amount of any partial payment  among  the
components  of  the  total  purchase  price,  including  tax  under this
article, and the amount of tax remaining unpaid after application of the
partial payment shall be the amount of the refund.
(c) Upon receipt of a claim for refund in processible  form,  interest
shall   be  allowed  and  paid  at  the  overpayment  rate  set  by  the
commissioner pursuant to subdivision twenty-sixth of section one hundred
seventy-one of this chapter from the date of the receipt of  the  refund
claim  to  the  date  immediately preceding the date of the refund check
except no such interest shall be allowed or paid if the refund check  is
mailed  within  ninety days of such receipt and except no interest shall
be allowed or paid if the amount thereof would be less than one  dollar.
Provided, further, the refund shall be granted pro rata against sections
three  hundred  one-a,  three  hundred one-e, and three hundred one-j of
this article, as the case may be, to the same extent as  represented  by
the  remittance of the petroleum business or aviation fuel business with
respect to the gallonage represented by the worthless debt.
(d) In addition to the applicable report and evidence of tax  payment,
the  commissioner  may  require  such  other  evidentiary  proof  as the
commissioner deems appropriate  to  demonstrate  qualification  for  the
refund  under  this  section.  Provided, further, that the refund of tax
allowed under this section, for purposes of  the  income  and  franchise
taxes  imposed  by this chapter, shall be reported in such detail as the
commissioner may direct. Moreover, notwithstanding any provision to  the
contrary,  all  state  agencies shall cooperate with the commissioner in
administering the refund authorized by this section and shall share with
such  commissioner  such  information  as  the  commissioner  may   deem
appropriate in administering the refund under this section.
(e)  If  there is a disallowance of a bad debt with respect to which a
refund under this section has been paid, such  disallowance  shall  have

the  effect  of and be treated as a report of federal change, correction
or disallowance (as such effect and treatment is  described  in  section
six  hundred  fifty-nine  and  subdivision  three of section two hundred
eleven  of  this chapter) and the time to assess under this article with
respect to such disallowance shall be determined as set  forth  in  such
sections.