N.Y. Tax Law § 301-L — Refund for tax with respect to in-bulk consumer bad debt

§ 301-l. Refund for tax with respect to in-bulk consumer bad debt.\nThere shall be allowed to a registered petroleum business or aviation\nfuel business a refund under this section for the taxes imposed by\nsections three hundred one-a, three hundred one-e, and three hundred\none-j of this article for the tax paid under such sections with respect\nto gallonage which is represented by a worthless debt as follows:\n (a) The refund shall be allowed to a registered petroleum business or\naviation fuel business for gallonage with respect to which tax liability\nfor the taxes under this article is imposed on such petroleum business\nor aviation fuel business where (i) such gallonage has been included in\nthe reports filed by such petroleum business or aviation fuel business\nand all the taxes under this article with respect to such gallonage have\nbeen paid by such business, (ii) such gallonage was sold in-bulk by such\npetroleum or aviation fuel business to a purchaser for such purchaser's\nown use and consumption and (iii) such sale gave rise to a debt which\nbecame worthless, as that term is used for federal income tax purposes,\nand where such debt is deducted as a worthless debt for federal income\ntax purposes for the taxable year covering the month in which such\nrefund claim relating to such debt is filed. Provided, however, for the\npurposes of this section, a sale of motor fuel and highway diesel motor\nfuel to a filling station shall be deemed to be a sale in-bulk for such\nfilling station's own use and consumption and, provided, further, in no\nevent shall a worthless debt qualify with respect to the refund\nhereunder where such debt arises from a retail sale at a filling station\nor sale wherein product is delivered directly into the fuel tank of a\nmotor vehicle, airplane or other conveyance.\n (b) Partial payment. Where a debt became worthless only in part due to\npartial payment, the amount of the refund under this section shall be\ndetermined by apportioning the amount of any partial payment among the\ncomponents of the total purchase price, including tax under this\narticle, and the amount of tax remaining unpaid after application of the\npartial payment shall be the amount of the refund.\n (c) Upon receipt of a claim for refund in processible form, interest\nshall be allowed and paid at the overpayment rate set by the\ncommissioner pursuant to subdivision twenty-sixth of section one hundred\nseventy-one of this chapter from the date of the receipt of the refund\nclaim to the date immediately preceding the date of the refund check\nexcept no such interest shall be allowed or paid if the refund check is\nmailed within ninety days of such receipt and except no interest shall\nbe allowed or paid if the amount thereof would be less than one dollar.\nProvided, further, the refund shall be granted pro rata against sections\nthree hundred one-a, three hundred one-e, and three hundred one-j of\nthis article, as the case may be, to the same extent as represented by\nthe remittance of the petroleum business or aviation fuel business with\nrespect to the gallonage represented by the worthless debt.\n (d) In addition to the applicable report and evidence of tax payment,\nthe commissioner may require such other evidentiary proof as the\ncommissioner deems appropriate to demonstrate qualification for the\nrefund under this section. Provided, further, that the refund of tax\nallowed under this section, for purposes of the income and franchise\ntaxes imposed by this chapter, shall be reported in such detail as the\ncommissioner may direct. Moreover, notwithstanding any provision to the\ncontrary, all state agencies shall cooperate with the commissioner in\nadministering the refund authorized by this section and shall share with\nsuch commissioner such information as the commissioner may deem\nappropriate in administering the refund under this section.\n (e) If there is a disallowance of a bad debt with respect to which a\nrefund under this section has been paid, such disallowance shall have\nthe effect of and be treated as a report of federal change, correction\nor disallowance (as such effect and treatment is described in section\nsix hundred fifty-nine and subdivision three of section two hundred\neleven of this chapter) and the time to assess under this article with\nrespect to such disallowance shall be determined as set forth in such\nsections.\n