2023 New York Laws › TAX - Tax › Article 12-A - Tax on Gasoline and Similar Motor Fuel › 283-D - Registration of Wholesalers of Motor Fuel.

§  283-d.  Registration of wholesalers of motor fuel. (a) Registration
required. Each wholesaler of motor fuel  must  be  registered  with  the
department  under this section. No wholesaler of motor fuel shall make a
sale of motor fuel in this state other than a retail sale  not  in  bulk
unless  such  wholesaler  is  so  registered.  The  department, upon the
application of a person, shall register such person as a  wholesaler  of
motor  fuel  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 article or in  subdivision  (c)
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   article   relating   to
registration  of distributors shall be applicable to the registration of
wholesalers of motor fuel under this section with  the  same  force  and
effect  as if the language of such subdivisions had been incorporated in
full in this section and had expressly referred to the  registration  of
wholesalers of motor fuel, with such modification as may be necessary in
order to adapt the language of such provisions to the provisions of this
section,  provided,  specifically,  that the term "distributor" shall be
read as "wholesaler of motor  fuel."  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 any
person not required to be registered as a distributor of motor fuel.
(b) Bond or other security. The commissioner may require a  wholesaler
of  motor fuel seeking a registration to file with the department 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 to secure the performance  by
such  wholesaler  of  motor  fuel  of  the  duties  and responsibilities
required (i) pursuant to this article  and  (ii)  pursuant  to  articles
twenty-eight and twenty-nine of this chapter with respect to motor fuel.
The commissioner may require that such a bond or other security be filed
before  a wholesaler of motor fuel is registered, and the amount thereof
may be increased at any time when in  the  commissioner's  judgment  the
same  is  necessary.  If securities are deposited as security under this
subdivision, such securities shall be kept in the joint custody  of  the
comptroller  and the commissioner and may be sold by the commissioner if
it becomes  necessary  so  to  do  in  order  to  recover  against  such
wholesaler  of motor fuel but no such sale shall be had until after such
wholesaler of motor fuel shall have  had  opportunity  to  litigate  the
validity  of the liability if it elects to do so. Upon any such sale the
surplus, if any, above the sums due shall be returned to such wholesaler
of motor fuel. The department, when  authorized  by  the  wholesaler  of
motor  fuel, shall furnish information regarding the registration of the
wholesaler of motor fuel and any other information which the  wholesaler
of motor fuel authorizes it to disclose.
(c)  Refusal  to  register. For the purposes of determining whether to
refuse  an  application  for  registration  under  this   section,   the
references  in  subdivision  two  of section two hundred eighty-three of
this article to employees or shareholders under a duty to file a  return
under  or  pursuant  to  the  authority of this article or pay the taxes
imposed by or pursuant to the authority of this 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  article,  the commissioner may refuse to register an applicant
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  who,  as  such  employee  or
shareholder  is  under  a duty to file a return under or pursuant to the
authority of this article or to pay the taxes imposed by or pursuant  to
the  authority  of  this  article  on  behalf  of the applicant; (1) has
committed any of the acts or omissions which are, or was  convicted  as,
specified  in  subdivision (d) 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 pay the taxes imposed by or pursuant to the authority of this
article 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 (d) of this section within the  preceding  five
years.
(d)  Cancellation  or  suspension  of  registration. The grounds for a
cancellation or suspension of a registration under  this  section  as  a
wholesaler  of  motor  fuel  are  the same as those grounds specified in
section two hundred eighty-three of this article  and,  in  addition  to
such  grounds,  the  following  grounds  relating  to this article shall
apply:
(1) A registration as a wholesaler of motor fuel 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
to pay the taxes imposed by or pursuant to the authority of this article
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 (b) 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 wholesaler of motor fuel without
the prior written approval of the commissioner,
(E) with respect to a wholesaler of motor fuel which is a corporation,
has  been  dissolved  pursuant  to  section  two  hundred  three-a   and
subdivision (d) of section three hundred ten of this chapter,
(F)  commits  fraud  or  deceit  in  his,  her  or its operations as a
wholesaler of motor fuel or has committed fraud or deceit  in  procuring
his, her or its registration,
(G)  has  impersonated  any  person  represented to be a wholesaler of
motor fuel under this article but not in fact registered as a wholesaler
of motor fuel, or
(H) has knowingly aided and abetted the distribution of motor fuel, by
any person which such registrant or such other person knows has not been
registered by the commissioner as required under this article.
(2)  A  registration as a wholesaler of motor fuel 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
to pay the taxes imposed by or pursuant to the authority of this article
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 to pay the taxes imposed by
or pursuant to the authority of this article 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.
(e) Cancellation or suspension of registration prior to a hearing. The
grounds  for  cancelling or suspending a registration as a wholesaler of
motor fuel prior to a hearing shall be the same as  those  specified  in
subdivision  five  of  section  two hundred eighty-three of this article
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 if the registrant
shall have failed to file such return within ten days after the date the
demand therefor is sent by registered or certified mail to  the  address
of  the wholesaler of motor fuel given in its application, or an address
substituted therefor as provided in  subdivision  five  of  section  two
hundred eighty-three of this article,
(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  (b)  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  wholesaler  of  motor  fuel
without the prior written approval of the commissioner, or
(4) with respect to a wholesaler of motor fuel which is a corporation,
the  dissolution  or  annulment  of such corporation pursuant to section
three hundred ten of this chapter.