New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter I - Cigarette Tax, Cigarette Marketing Standards And Tobacco Products Tax › Article 1 - Cigarette Tax › Part 74 - Imposition Of Cigarette Taxes › Section 74.2 - Payment of tax on cigarettes possessed for sale; cigarette tax stamps

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, §§ 274, 471, 472, 475 and 476
(a) The tax on cigarettes possessed for sale
					 in the State is paid by the purchase of stamps as hereinafter provided and the
					 payment of the tax is evidenced by the affixation of such stamps to individual
					 packages of cigarettes. In the case of cigarettes possessed for sale in the
					 City of New York, both State and city taxes must be paid. This is done by
					 purchasing and affixing joint stamps showing payment of both taxes.
(b)
(1) The
					 Department of Taxation and Finance is directed to, and periodically enters into
					 and executes, for and on behalf of the State, contracts necessary for the
					 manufacture of cigarette tax stamps. Stamps manufactured are in such forms,
					 denominations and quantities as the department deems necessary for the payment
					 of the tax or taxes on the possession of cigarettes for sale imposed and/or
					 administered pursuant to the authority of article 20 of the Tax Law. The
					 department may, from time to time and as often as it 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.
(2)
(i) The department will furnish State of New
					 York cigarette stamps in $4.35 and $5.4375 denominations or the equivalent
					 thereof. In addition, joint stamps of a distinctive color and design will be
					 furnished in $5.85 ($4.35 State tax plus $1.50 city tax per package of 20
					 cigarettes) and $7.3175 ($5.4375 State tax plus $1.88 city tax per package of
					 25 cigarettes) denominations, or the equivalent thereof, for use on packages of
					 cigarettes to be sold in the City of New York. Such stamps will be of an
					 adhesive and/or heat transfer nature. (Stamps will also reflect prepayment of
					 sales tax on cigarettes imposed under section 1103  of the Tax Law.)
(ii) Any manufacturer, dealer or agent who
					 intends to sell within the State packages of cigarettes containing more than 25
					 cigarettes, must notify the department, in writing, of such intention at least
					 120 days prior to the time that such packages will be sold. Notification shall
					 not be required if the department has already prescribed, prepared and
					 furnished cigarette stamps of such form, denomination and quantity as may be
					 necessary for the proper payment of the cigarette taxes on such
					 packages.
(3) Cigarette
					 stamps so manufactured will be delivered or caused to be delivered to a fiscal
					 agent or agent bank which is appointed or licensed by the Department of
					 Taxation and Finance for the purpose of making authorized sales of such stamps
					 to licensed cigarette agents. No person, other than a duly appointed or
					 licensed fiscal agent or agent bank, may sell or offer for sale any cigarette
					 tax stamps without the express written permission of the Commissioner of
					 Taxation and Finance. Such a fiscal agent or agent bank shall be charged with
					 the lawful sale and distribution of cigarette stamps, the expeditious
					 remittance of the cigarette tax revenue to the department and the performance
					 of any and all acts pursuant to a written agreement entered into with the State
					 with respect to such services.
(4)
					 The department may review the activities of a manufacturer of cigarette tax
					 stamps, or of a fiscal agent or agent bank for purposes of verification of the
					 amount of any revenue due the State pursuant to article 20 of the Tax Law
					 and/or compliance with contractual agreements.