§ 1103. Prepayment of sales tax on cigarettes. (a)(1) Every cigarette\nagent shall pay, as a prepayment on account of the taxes imposed by this\narticle and pursuant to the authority of article twenty-nine of this\nchapter, a tax on cigarettes possessed for sale or use in this state and\nto which an agent is required to affix cigarette tax stamps under\narticle twenty of this chapter, at the time that the agent is required\nto purchase and affix such stamps (or as otherwise prescribed by the\ncommissioner pursuant to such article twenty) and the provisions of such\narticle twenty in relation to the use of stamps to evidence payment of\nthe tax imposed by such article twenty shall be applicable to the\nprepayment imposed by this section, except no tax shall be required to\nbe prepaid on cigarettes sold under circumstances that this state is\nwithout power to impose such prepayment or sold to the United States or\nsold to or by a voluntary unincorporated organization of the armed\nforces of the United States operating a place for the sale of goods\npursuant to regulations promulgated by the appropriate executive agency\nof the United States, to the extent provided in such regulations and\nwritten policy statements of such an agency applicable to such sales.\n (2) The tax imposed by this section shall be paid at the same time and\nin the same manner as the tax imposed by such article twenty with\nrespect to cigarettes. The commissioner may, in the commissioner's\ndiscretion, permit an agent to pay the tax imposed under this section at\nthe same time that the agent pays for cigarette tax stamps under article\ntwenty of this chapter and may require any such agent to file with the\ndepartment a bond issued by a surety company approved by the\nsuperintendent of financial services as to solvency and responsibility\nand authorized to transact business in the state or other security\nacceptable to the commissioner, in such amount as the commissioner may\nfix, to secure the payment of any sums due from such agent pursuant to\nthis section. If securities are deposited as security under this\nsubdivision, such securities shall be kept in the custody of the\ncommissioner and may be sold by the commissioner if it becomes necessary\nto do so in order to recover any sums due from such agent pursuant to\nthis section, but no such sale shall be had until after such agent shall\nhave had an opportunity to litigate the validity of any prepayment of\ntax if it elects to do so. Upon any such sale, the surplus, if any,\nabove the sums due under this section shall be returned to such agent.\nAny bond or security required under this section may be jointly\nadministered with the bond or security required of the agent under\nsection four hundred seventy-two of this chapter and in such event shall\nsecure payment of the sums due under such article twenty and under this\nsection. The tax imposed by this section and the portion of the cost of\nany stamp which evidences payment of the tax imposed by this section and\nwhich is attributable to the tax imposed by this section shall not be\nincluded in the term "basic cost of cigarettes" as such term is defined\nin section four hundred eighty-three of this chapter.\n (3) Every person other than an agent shall prepay the tax imposed by\nthis section at the same time and in the same manner as the use tax\nimposed by section four hundred seventy-one-a of this chapter. The\ncommissioner may require any compensating use tax imposed by section\neleven hundred ten and pursuant to the authority of article twenty-nine\nof this chapter to be paid at such time after allowing for the credit\nprovided by subdivision (b) of section eleven hundred twenty-one of this\narticle.\n (4) The amount of the prepayment for cigarettes imposed by this\nsection shall be computed pursuant to the provisions of subdivision (j)\nof section eleven hundred eleven of this article.\n (b) Except as otherwise provided in this section, the taxes
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