N.Y. Tax Law § 472 — Preparation and sale of stamps; commissions; distributors

§ 472. Preparation and sale of stamps; commissions; distributors. 1.\nThe commissioner shall prescribe, prepare and furnish stamps of such\ndenominations and quantities as may be necessary for the payment of the\ntax on cigarettes imposed by this article, and may from time to time and\nas often as he deems advisable provide for the issuance and exclusive\nuse of stamps of a new design and forbid the use of stamps of any other\ndesign, in the manner and with the effect provided in section two\nhundred seventy-four of this chapter. The commissioner shall make\nprovisions for the sale of such stamps at such places and at such times\nas he may deem necessary and may license agents for such purpose. The\ncommissioner may license dealers in cigarettes, who maintain separate\nwarehousing facilities for the purpose of receiving and distributing\ncigarettes and conducting their business, who have received commitments\nfrom at least two cigarette manufacturers whose aggregate market share\nis at least forty percent of the New York state cigarette market, and\nimporters, exporters and manufacturers of cigarettes, and other persons\nwithin or without the state as agents to buy or affix stamps to be used\nin paying the tax herein imposed, but an agent shall at all times have\nthe right to appoint the person in his employ who is to affix the stamps\nto any cigarettes under the agent's control. The fee for filing such\napplication for an agent's license shall be one thousand five hundred\ndollars, unless such fee has been paid during the preceding twelve\nmonths, in which case, the fee for a new license shall be one thousand\ndollars. All of the provisions of section four hundred eighty relating\nto wholesale dealers' licenses, including the procedure for suspension,\nrevocation, refusal to license and for hearings, except for paragraphs\n(c) and (g) of subdivision one of such section, shall be applicable to\nagents' licenses applied for or granted pursuant to this section, as if\nsuch provisions had been set forth in full in this subdivision and had\nexpressly referred to the applicant for, or the holder of, an agent's\nlicense. Whenever the commissioner shall sell and deliver to any such\nagent any such stamps, such agent shall be entitled to receive as\ncompensation for his services and expenses as such agent in selling or\naffixing such stamps, and to retain out of the moneys to be paid by him\nfor such stamps, a commission on the par value thereof. The commissioner\nis hereby authorized to prescribe a schedule of commissions, not\nexceeding five per centum, allowable to such agent for buying and\naffixing such stamps. Such schedule shall be uniform with respect to the\ndifferent types of stamps used, and may be on a graduated scale with\nrespect to the number of stamps purchased. The commissioner may, in his\ndiscretion, permit an agent to pay for such stamps within thirty days\nafter the date of purchase and may require any such agent to file with\nthe department of taxation and finance a bond issued by a surety company\napproved by the superintendent of financial services as to solvency and\nresponsibility and authorized to transact business in the state or other\nsecurity acceptable to the commissioner, in such amount as the\ncommissioner may fix, to secure the payment of any sums due from such\nagent pursuant to this article. If securities are deposited as security\nunder this subdivision, such securities shall be kept in the custody of\nthe commissioner and may be sold by the commissioner if it becomes\nnecessary so to do in order to recover any sums due from such agent\npursuant to this article, but no such sale shall be had until after such\nagent shall have had opportunity to litigate the validity of any tax if\nit elects so to do. Upon any such sale, the surplus, if any, above the\nsums due under this article shall be returned to such agent.\n 2. A manufacturer or agent who intends to sell within the state\npackages of cigarettes containing more than twenty cigarettes must\nnotify the tax commission, in writing, of such intention one hundred\ntwenty days prior to the time such packages will be sold within the\nstate, except that such tax commission shall waive such requirement if\nit has already prescribed, prepared and furnished, or is in a position\nto prescribe, prepare and furnish in a timely manner, stamps of such\ndenomination and quantities as may be necessary for the payment of the\ntax imposed by this article on cigarettes in such package; provided,\nhowever, that a notice provided pursuant to this subdivision within\nfifteen days of the effective date of this subdivision shall be deemed\nto have been provided on the effective date of this subdivision.\n 3. The commissioner of taxation and finance may appoint dealers in\ntobacco products, manufacturers of tobacco products and other persons\nwithin or without the state as distributors and may authorize them to\nmake returns and to pay the tax on tobacco products sold, shipped or\ndelivered by them to any person in the state. The commissioner may, in\nhis discretion, require the deposit of a bond issued by a surety company\napproved by the 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 an amount and form\nsatisfactory to him as a condition of appointing any such person as a\ndistributor. If securities are deposited as security under this\nsubdivision, such securities shall be kept in the custody of the\ncommissioner of taxation and finance and may be sold by the commissioner\nif it becomes necessary so to do in order to recover any sums due from\nsuch distributor pursuant to this article, but no such sale shall be had\nuntil after such distributor shall have had an opportunity to litigate\nthe validity of any tax if it elects so to do. Upon any such sale, the\nsurplus, if any, above the sums due under this article shall be returned\nto such distributor.\n