N.Y. Tax Law § 1121 — Refunds and credits with respect to cigarettes

§ 1121. Refunds and credits with respect to cigarettes. (a) Retail\nvendor. (1) A vendor of cigarettes who or which is required to collect\nthe taxes imposed by subdivision (a) of section eleven hundred five of\nthis article and any like tax imposed pursuant to the authority of\narticle twenty-nine of this chapter shall be allowed a refund or credit\nagainst the amount of tax collected and required to be remitted to the\ncommissioner pursuant to the provisions of section eleven hundred\nthirty-seven of this article upon the retail sale of cigarettes in the\namount of the tax on such cigarettes prepaid by or passed through to and\nincluded in the price paid by such vendor pursuant to the provisions of\nsection eleven hundred three of this article.\n (2) A refund or credit shall also be allowed such vendor for the tax\nprepaid by or passed through to and included in the price paid by such\nvendor upon any cigarettes pursuant to the provisions of section eleven\nhundred three of this article if such cigarettes are sold at retail by\nsuch vendor under circumstances where the taxes imposed by section\neleven hundred five of this article and pursuant to the authority of\narticle twenty-nine of this chapter are not required by the provisions\nof this article to be collected and remitted upon receipts from a retail\nsale thereof.\n (b) Retail user. A person who or which is required to pay the tax\nimposed by section eleven hundred ten of this article and any like tax\nimposed pursuant to the authority of article twenty-nine of this chapter\nwith respect to the purchase or use of such cigarettes shall be allowed\na credit against such tax required to be paid to the commissioner\npursuant to such section and article in the amount of the tax prepaid by\nor passed through to and included in the price paid by such purchaser or\nuser pursuant to the provisions of section eleven hundred three of this\narticle.\n (c) Self-use of cigarettes purchased at wholesale. A refund or credit\nequal to the amount of tax prepaid by or passed through to and included\nin the price paid by a purchaser or user pursuant to the provisions of\nsection eleven hundred three of this article with respect to a purchase\nof cigarettes other than at retail shall be allowed such purchaser or\nuser upon the use of such cigarettes at retail if the purchase or use of\nsuch cigarettes by the purchaser or user is exempt pursuant to section\neleven hundred fifteen or section eleven hundred sixteen of this\narticle.\n (d) Export, destruction, tax paid in error. Whenever any cigarettes\nupon which the prepaid tax imposed by section eleven hundred three of\nthis article has been paid have been sold and shipped to another state\nfor sale or use there or have become unfit for use or unsalable, or have\nbeen destroyed, or whenever the commissioner shall have determined that\nany tax required to be prepaid by such section eleven hundred three\nshall have been paid in error, the agent or dealer, as the case may be,\nshall be entitled to a refund or credit of the actual amount of prepaid\ntax so paid with respect to cigarettes which will not be possessed for\nsale or use in this state.\n (e) Refunds of the tax required to be prepaid pursuant to the\nprovisions of section eleven hundred three of this article shall be\nallowed only to the extent such tax paid by or passed through to the\nretail vendor, or the purchaser or user, exceeds the amount of tax\nrequired to be collected from such person or required to be remitted by\nthe provisions of this article and pursuant to the authority of article\ntwenty-nine of this chapter.\n (f) A refund or credit shall be allowed under this section only to the\nextent that the tax required to be prepaid pursuant to section eleven\nhundred three of this article has been prepaid by or passed through to\nsuch vendor, purchaser or user, but only to the extent that the tax\nimposed by section eleven hundred five of this article and any like tax\nimposed pursuant to the authority of article twenty-nine of this chapter\ntogether with the tax imposed by section eleven hundred ten of this\narticle and any like tax imposed pursuant to the authority of article\ntwenty-nine of this chapter required to be paid, collected and remitted\nhas been paid, collected and remitted.\n (g) Such refunds and credits shall be subject to the provisions of\nsections eleven hundred nineteen and eleven hundred thirty-nine of this\narticle as if such sections were incorporated in full into this section\nand had expressly referred to the refunds and credits authorized by this\nsection including the periods of limitations on payments and\napplications to the commissioner; provided, however, that, as provided\nin subdivision (e) of section eleven hundred thirty-nine of this\narticle, no interest shall be allowed or paid upon any refund made or\ncredit allowed pursuant to subdivisions (a), (b) and (d) of this\nsection. The commissioner shall process applications for refund as\nexpeditiously as possible.\n