N.Y. Tax Law § 302 — Registration of petroleum businesses

§ 302. Registration of petroleum businesses. (a) Registration\nrequired. Each petroleum business with respect to motor fuel must be\nregistered with the department of taxation and finance as a distributor\nof motor fuel under article twelve-A of this chapter. Each petroleum\nbusiness with respect to diesel motor fuel must be registered with the\ndepartment of taxation and finance as a distributor of diesel motor fuel\nunder article twelve-A of this chapter or, where applicable, as a\n"distributor of kero-jet fuel only" under such article. Each petroleum\nbusiness with respect to residual petroleum product must be registered\nas a residual petroleum product business under subdivision (b) of this\nsection. No petroleum business unless so registered, shall make any\nsale, transfer, use or other disposition of motor fuel, diesel motor\nfuel or residual petroleum product within the state, except a sale,\ntransfer, use or other disposition, if any, as to which the state cannot\nimpose such condition by reason of the United States constitution and of\nlaws of the United States enacted pursuant thereto. No person, unless\nregistered as a residual petroleum product business under this section,\nshall (i) import or cause residual petroleum product to be imported into\nthis state, (ii) produce, refine, manufacture or compound residual\npetroleum product within the state, or (iii) make a sale or use of\nresidual petroleum product in the state other than a self-use of\nresidual petroleum product which has been the subject of a retail sale\nto such person.\n (b) Residual petroleum product business. The department, upon the\napplication of a corporation or unincorporated business, shall register\nsuch corporation or unincorporated business as a residual petroleum\nproduct business except that the commissioner may refuse to register an\napplicant for any of the grounds specified in subdivision two or five of\nsection two hundred eighty-three of this chapter or in subdivision (d)\nof this section. The application shall be in such form and contain such\ninformation as the commissioner shall prescribe. All of the provisions\nof subdivisions two, four, five, six, seven, eight, nine and ten of\nsection two hundred eighty-three of this chapter relating to\nregistration of distributors shall be applicable to the registration of\nresidual petroleum product businesses under this section with the same\nforce and effect as if the language of those subdivisions had been\nincorporated in full in this section and had expressly referred to the\nregistration of residual petroleum product businesses and the tax\nimposed by this article, with such modification as may be necessary in\norder to adapt the language of such provisions to the provisions of this\narticle, provided, specifically, that the term "distributor" shall be\nread as "residual petroleum product business" and the term "motor fuel"\nshall be read as "residual petroleum product". Provided, however, that\nif the commissioner is satisfied that the requirements of such\nprovisions for registration are not necessary in order to protect tax\nrevenues, the commissioner may limit or modify such requirements with\nrespect to corporations or unincorporated businesses not required to be\nregistered as distributors of motor fuel or diesel motor fuel.\n (c) Bond or other security. The commissioner may require a petroleum\nbusiness to file with it a bond issued by a surety company approved by\nthe superintendent of financial services as to solvency and\nresponsibility and authorized to transact business in this state or\nother security acceptable to the commissioner, in such amount as the\ncommissioner may fix in an amount determined in accordance with rules\nand regulations prescribed by the commissioner, to secure the payment of\nany sums due from such petroleum business pursuant to this article. The\ncommissioner may require that such a bond or other security be filed\nbefore a petroleum business is registered, and the amount thereof may be\nincreased at any time when in the commissioner's judgment the same is\nnecessary as a protection to the revenues under this article. If\nsecurities are deposited as security under this subdivision, such\nsecurities shall be kept in the joint custody of the comptroller and the\ncommissioner of taxation and finance. Such securities may be sold by the\ncommissioner if it becomes necessary so to do in order to recover any\nsums due from such petroleum business pursuant to this article, but no\nsuch sale shall be had until after such petroleum business shall have\nhad opportunity to litigate the validity of any tax if it elects so to\ndo. Upon any such sale the surplus, if any, above the sums due under\nthis article shall be returned to such petroleum business. All of the\nprovisions of paragraph (b) of subdivision six of section two hundred\neighty-three of this chapter relating to increasing the amount of the\nbond or other security required to be filed pursuant to article twelve-A\nof this chapter shall be applicable to bonds or other security required\nto be filed pursuant to this subdivision.\n (d) Refusal to register. For the purposes of determining whether to\nrefuse an application for registration under article twelve-A of this\nchapter as a distributor of motor fuel, diesel motor fuel or kero-jet\nfuel only or under this section as a residual petroleum product\nbusiness, the references in subdivision two of section two hundred\neighty-three of this chapter to employees or shareholders under a duty\nto file a return under or pursuant to the authority of article twelve-A\nof this chapter or pay the taxes imposed by or pursuant to the authority\nof such article on behalf of the applicant or another person shall be\ndeemed to also include an employee under a duty to file a return or pay\ntaxes under or pursuant to the authority of this article on behalf of\nsuch applicant or other person. In addition to the grounds specified in\nsection two hundred eighty-three of this chapter, the commissioner may\nrefuse to register an applicant as a distributor of motor fuel, diesel\nmotor fuel or kero-jet fuel only or as a residual petroleum product\nbusiness where the commissioner ascertains that the applicant, an\nofficer, director or partner of the applicant, a shareholder directly or\nindirectly owning more than ten percent of the number of shares of stock\nof such applicant (where such applicant is a corporation) entitling the\nholder thereof to vote for the election of directors or trustees, or an\nemployee or shareholder of such applicant under a duty to file a return\nunder or pursuant to the authority of this article or article twelve-A\nof this chapter or to pay the taxes imposed by or pursuant to the\nauthority of this article or article twelve-A of this chapter on behalf\nof the applicant, (1) has committed any of the acts or omissions which\nare, or was convicted as, specified in subdivision (e) of this section\nwithin the preceding five years, or (2) was an officer, director or\npartner of another person, or who directly or indirectly owned more than\nten percent of the shares of stock of another person (where such other\nperson is a corporation) entitling the holder thereof to vote for the\nelection of directors or trustees, or who was an employee or shareholder\nof another person under a duty to file a return under or pursuant to the\nauthority of this article or article twelve-A of this chapter or pay the\ntaxes imposed by or pursuant to the authority of this article or article\ntwelve-A of this chapter on behalf of such other person at the time such\nother person committed any of the acts or omissions which are, or was\nconvicted as, specified in subdivision (e) of this section within the\npreceding five years.\n (e) Cancellation or suspension of registration. The grounds for a\ncancellation or suspension of a registration under article twelve-A of\nthis chapter as a distributor of motor fuel, diesel motor fuel or\nkero-jet fuel only or under this section as a residual petroleum product\nbusiness are those grounds specified in section two hundred eighty-three\nof this chapter and, in addition to such grounds, the following grounds\nrelating to this article shall apply:\n (1) A registration as a distributor of motor fuel, diesel motor fuel\nor kero-jet fuel only or as a residual petroleum product business may be\ncancelled or suspended if the commissioner determines that a registrant\nor an officer, director or partner of the registrant, a shareholder\ndirectly or indirectly owning more than ten percent of the number of\nshares of stock of such registrant (where such registrant is a\ncorporation) entitling the holder thereof to vote for the election of\ndirectors or trustees, or an employee or shareholder of such registrant\nunder a duty to file a return under or pursuant to the authority of this\narticle or article twelve-A of this chapter or to pay the taxes imposed\nby or pursuant to the authority of this article or article twelve-A of\nthis chapter on behalf of the registrant (A) fails to file or maintain\nin full force and effect a bond or other security when required pursuant\nto subdivision (c) of this section or when the amount thereof is\nincreased,\n (B) fails to comply with any of the provisions of this article or any\nrule or regulation adopted pursuant to this article by the commissioner,\n (C) knowingly aids and abets another person in violating any of the\nprovisions of this article or any rule or regulation adopted pursuant to\nthis article by the commissioner,\n (D) transfers its registration as a petroleum business without the\nprior written approval of the commissioner,\n (E) with respect to a petroleum business which is a corporation, has\nbeen dissolved pursuant to section two hundred three-a of this chapter\nand subdivision (d) of section three hundred ten of this article,\n (F) commits fraud or deceit in his or its operations as a petroleum\nbusiness or has committed fraud or deceit in procuring his or its\nregistration,\n (G) has impersonated any person represented to be a petroleum business\nunder this article but not in fact registered as a distributor of motor\nfuel, diesel motor fuel or kero-jet fuel only or a residual petroleum\nproduct business, or\n (H) has knowingly aided and abetted the distribution of motor fuel,\ndiesel motor fuel or residual petroleum product by corporation or\nunincorporated business which such registrant or such other person knows\n(i) has not been registered by the commissioner as a distributor of\nmotor fuel, diesel motor fuel or kero-jet fuel only or as a residual\npetroleum product business and (ii) is a petroleum business pursuant to\nthe terms of subdivision (b) of section three hundred of this article.\n (2) A registration as a distributor of motor fuel, diesel motor fuel\nor kero-jet fuel only or as a residual petroleum product business may be\ncancelled or suspended if the commissioner determines that a registrant\nor an officer, director or partner of the registrant, a shareholder\ndirectly or indirectly owning more than ten percent of the number of\nshares of stock of such registrant (where such registrant is a\ncorporation) entitling the holder thereof to vote for the election of\ndirectors or trustees, or an employee or shareholder of such registrant\nunder a duty to file a return under or pursuant to the authority of this\narticle or article twelve-A of this chapter on behalf of the registrant,\nwas an officer, director or partner of another person or was a\nshareholder directly or indirectly owning more than ten percent of the\nnumber of shares of stock of another person (where such other person is\na corporation) entitling the holder thereof to vote for the election of\ndirectors or trustees, or was an employee or shareholder of another\nperson under a duty to file a return under or pursuant to the authority\nof this article or article twelve-A of this chapter or to pay the taxes\nimposed by or pursuant to the authority of this article or article\ntwelve-A of this chapter on behalf of such other person at the time such\nother person committed any of the acts specified in paragraph one of\nthis subdivision within the preceding five years.\n (f) Cancellation or suspension of registration prior to a hearing. The\ngrounds for cancelling or suspending a registration under article\ntwelve-A of this chapter as a distributor of motor fuel, diesel motor\nfuel or kero-jet fuel only or under this section as a residual petroleum\nproduct business prior to a hearing are those specified in subdivision\nfive of section two hundred eighty-three of this chapter and, in\naddition to such grounds, the following grounds relating to this article\nshall apply:\n (1) the failure to file a return within ten days of the date\nprescribed for filing a return under this article or nonpayment of any\ntax due pursuant to this article if the registrant shall have failed to\nfile such return or pay such taxes within ten days after the date the\ndemand therefor is sent by registered or certified mail to the address\nof the distributor or residual petroleum business given in its\napplication, or an address substituted therefor as provided in\nsubdivision five of section two hundred eighty-three of this chapter,\n (2) the failure to continue to maintain in full force and effect at\nall times the bond or other security required to be filed pursuant to\nsubdivision (c) of this section, provided, however, that if a surety\nbond is cancelled prior to expiration, the commissioner may after\nconsidering all the relevant circumstances make such other arrangements,\nand may require the filing of such other bond or other security as it\ndeems appropriate,\n (3) the transfer of a registration as a residual petroleum business\nwithout the prior written approval of the commissioner, or\n (4) with respect to a petroleum business which is a corporation, the\ndissolution or annulment of such corporation pursuant to section three\nhundred ten of this article.\n