S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                10128--A

                          I N  A S S E M B L Y

                              March 5, 2010
                               ___________

Introduced  by M. of A. MAGEE -- read once and referred to the Committee
  on Ways and Means  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to amend the tax law, in relation to cigarette taxes imposed on
  qualified Indian reservations; and to direct the department  of  taxa-
  tion and finance to fully implement such provisions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (d) of subdivision 3 of section 471-e of the  tax
law,  as added by section 2 of part K of chapter 61 of the laws of 2005,
is amended to read as follows:
  (d)  [A  wholesale  dealer]  WHOLESALER  DEALERS   shall   SELL   ONLY
TAX-STAMPED  CIGARETTES TO INDIAN NATIONS AND TRIBES, QUALIFIED RESERVA-
TION CIGARETTE SELLERS AND ALL OTHER PURCHASERS, BUT SHALL  not  collect
the  cigarette  tax from any purchaser to the extent the purchaser gives
such  wholesale  dealer  Indian  tax  exemption  coupons  entitling  the
purchaser  to  purchase  such quantities of cigarettes as allowed for on
each such Indian tax exemption coupon without paying the cigarette tax.
  S 2. Section 471-e of the tax law is amended by adding a new  subdivi-
sion 6 to read as follows:
  6.  (A)  THE FAILURE OF THE DEPARTMENT TO ESTABLISH, ISSUE AND PROVIDE
INDIAN TAX EXEMPTION COUPONS, PURSUANT TO SUBDIVISIONS ONE  AND  TWO  OF
THIS  SECTION,  OR  TO  PROMULGATE  ANY RULES, REGULATIONS OR DIRECTIVES
NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION, SHALL NOT RELIEVE
WHOLESALE DEALERS OF THE OBLIGATION TO SELL ONLY TAX-STAMPED  CIGARETTES
TO  INDIAN  NATIONS  AND  TRIBES, AND TO QUALIFIED RESERVATION CIGARETTE
SELLERS.
  (B) FOR ANY CIGARETTES SOLD TO QUALIFIED INDIANS UPON WHICH  CIGARETTE
TAXES  WERE IMPOSED ON OR AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH AND
PRIOR TO THE ISSUANCE OF INDIAN TAX EXEMPTION COUPONS BY THE DEPARTMENT,
THE RECOGNIZED GOVERNING BODY OF THE INDIAN NATION OR TRIBE OF THE INDI-
ANS WHO PURCHASED SUCH CIGARETTES SHALL BE ENTITLED TO FILE A CLAIM  FOR
REFUND  FROM THE DEPARTMENT OF THE TAXES PAID UPON THE QUANTITY OF CIGA-
RETTES SOLD TO QUALIFIED INDIANS OF SUCH TRIBE OR NATION FOR PURPOSES OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD16222-04-0

A. 10128--A                         2

PERSONAL CONSUMPTION. EVERY SUCH REFUND SHALL BE PAID WITHIN THIRTY DAYS
OF THE FILING OF THE CLAIM THEREFOR. ANY FAILURE OF  THE  DEPARTMENT  TO
ISSUE REFUNDS OR TAKE ANY OTHER ADMINISTRATIVE ACTION FOR THE PAYMENT OF
REFUNDS  SHALL NOT RELIEVE WHOLESALE DEALERS OF THE OBLIGATION TO COMPLY
WITH THE PROVISIONS OF PARAGRAPH (A)  OF  THIS  SUBDIVISION,  BUT  SHALL
ENTITLE  AN  INDIAN NATION OR TRIBE WITH AN UNPAID CLAIM FOR A REFUND TO
COMMENCE A CAUSE OF ACTION FOR INJUNCTIVE RELIEF DIRECTING  THE  DEPART-
MENT TO ISSUE REFUNDS AS REQUIRED BY THIS PARAGRAPH.
  S  3.  Within  60  days  after the effective date of this section, the
department of taxation and finance shall promulgate any rules and  regu-
lations  and  take  any  other  actions necessary to fully implement the
provisions of section 471-e of the tax law, including, but  not  limited
to,  the  establishment,  issuance and provision of Indian tax exemption
coupons, pursuant to subdivisions 1 and 2 of such section.  Furthermore,
within 90 days after the effective date of this section, the commission-
er of taxation and finance shall submit a written report to the legisla-
ture  explaining  all  actions  taken  by the department of taxation and
finance to comply with the provisions of this section.
  S 4. Any Indian nation or tribe, distributor as defined in subdivision
12 of section 470 of the tax law, dealer as defined in subdivision 7  of
section  470 of the tax law, or interested party may commence a cause of
action for injunctive relief ordering the  department  of  taxation  and
finance to comply with the provisions of section three of this act.
  S  5. This act shall take effect immediately, except that sections one
and two of this act shall take effect on the sixtieth day after it shall
have become a law.