New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter IV - Sales And Use And Other Miscellaneous Taxes › Subchapter A - Sales And Use Taxes › Part 564 - Prepayment Of Sales Tax On Cigarettes › Section 564.1 - Joint administration by the Department of Taxation and Finance of State and local sales and compensating use and cigarette taxes

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 1142(12)
(a)
General.
All of the functions of the Department of Taxation and
					 Finance under articles 20, 28 and 29 of the Tax Law shall, to the extent
					 practicable, be performed on a joint basis with respect to administration of
					 the State and local taxes imposed with respect to cigarettes by or under the
					 authority of those articles, including joint reporting, assessment, collection,
					 determination and refund of such taxes.
(b)
Returns and payments.
The returns required under section
					 75.1 
					 of this Title and sections 475, 1136 and 1251  of the Tax Law may be made in one
					 return covering the prepaid tax on sales of cigarettes and State sales and
					 compensating use taxes imposed by article 28 of the Tax Law, local sales and
					 compensating use taxes imposed pursuant to the authority of article 29 of the
					 Tax Law and the State tax imposed on cigarettes by article 20 of the Tax Law.
					 Reporting and payment of such taxes on a joint or several basis shall be made
					 upon such returns as the Department of Taxation and Finance may prescribe and
					 pursuant to such terms and conditions as the department may authorize. Any
					 other returns, forms, statements, documents or other information to be
					 submitted may, where authorized by the department, be made on a joint
					 basis.
(c)
Bond
				  requirements.
(1) The Department of
				  Taxation and Finance may, in its discretion, permit a cigarette agent licensed
				  under article 20 of the Tax Law to pay the prepaid tax imposed by section 1103  of the Tax Law within 30 days after
				  the date of purchase of the corresponding cigarette tax stamps under article 20
				  of the Tax Law, at the same time and in the same manner that the agent pays for
				  such stamps under such article 20, provided the agent has filed with the
				  Department of Taxation and Finance a credit bond, issued by a surety company
				  approved by the Superintendent of Insurance as to solvency and responsibility
				  and authorized to transact business in this State (or has deposited other
				  acceptable security with the Department of Taxation and Finance), in such
				  amount as the Department of Taxation and Finance may fix, to secure the payment
				  of any sums due from such agent pursuant to section 1103. Every applicant for a
				  license as a cigarette agent, and every agent, who desires to establish credit
				  for purposes of paying such prepaid tax under section 1103 must file or deposit
				  and maintain with the department such a credit bond, or in lieu thereof, such
				  other acceptable security.
(2) When
				  other acceptable securities are deposited with the Department of Taxation and
				  Finance under this subdivision, such securities shall be kept in the custody of
				  the Commissioner of Taxation and Finance and may be sold by the Department of
				  Taxation and Finance should it become necessary in order to recover any sums
				  due from such agent pursuant to section 1103  of the Tax Law. No such sale shall be
				  conducted until after such agent shall have had an opportunity to litigate the
				  validity of any tax required to be prepaid under section 1103 if such agent
				  elects to do so. Upon any such sale of securities, the surplus, if any, above
				  the sums due under section 1103  of the Tax Law, together with any
				  applicable interest and penalty thereon, shall be returned to such
				  agent.
(3) The Department of
				  Taxation and Finance may require that the amount of a credit bond or the amount
				  of deposited security in lieu of the credit bond be increased at any time when,
				  in its judgment, such increase becomes necessary to protect the revenue under
				  section 1103  of the Tax Law. Unless otherwise
				  required, such increase must be filed within 30 days from the date of the
				  notice and demand therefor. Any determination pursuant to this paragraph with
				  respect to any increase to the amounts of such bond or security may be
				  challenged through a hearing process, provided a petition for review of such
				  determination is timely filed. See Part 3000 of this Title for hearing
				  procedures in the Division of Tax Appeals and Part 4000 of this Title for
				  conciliation proceedings in the Bureau of Conciliation and Mediation Services
				  of the Division of Taxation.
(4)
				  All the provisions of Part 331 of this Title relating to or applicable to the
				  credit bonds or other acceptable security required by such Part shall apply to
				  the credit bonds or other acceptable security required under this subdivision,
				  so far as such provisions can be made applicable to the credit bonds or other
				  acceptable security required under this subdivision, with such limitations and
				  such modifications as may be necessary in order to adapt such language to such
				  credit bonds or other security required by section 1103  of the Tax Law. Any bond or security
				  required under section 1103  of the Tax Law and this Part may be
				  jointly administered with the bond or security required of the agent under
				  section 472  of the Tax Law and Part 331 of this
				  Title and in such event shall secure payment of the sums due under article 20
				  of the Tax Law and section 1103  of the Tax Law, together with any
				  applicable interest and penalty thereon.