S T A T E O F N E W Y O R K
________________________________________________________________________
5886
2017-2018 Regular Sessions
I N S E N A T E
May 4, 2017
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Cities
AN ACT to amend the administrative code of the city of New York and the
tax law, in relation to authorizing the payment of rewards in
connection with the enforcement of the cigarette tax
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 11-1308 of the administrative code of the city of
New York is amended by adding a new subdivision 12 to read as follows:
12. IN HIS OR HER SOLE DISCRETION, TO APPROVE A REWARD, IN A SUITABLE
AMOUNT, FOR INFORMATION THAT LEADS TO (I) THE DETECTION OF UNDERPAYMENTS
OF TAX OR FEES REQUIRED TO BE PAID UNDER THIS CHAPTER, (II) THE
DETECTION OF AND ASSESSMENT OF PENALTIES ON PERSONS VIOLATING OR
CONSPIRING TO VIOLATE ANY PROVISION OF THIS CHAPTER, (III) THE DETECTION
AND CONVICTION UNDER CHAPTER FORTY OF THIS TITLE OF PERSONS GUILTY OF
VIOLATING OR CONSPIRING TO VIOLATE ANY PROVISIONS OF THIS CHAPTER, (IV)
A SEIZURE AND FORFEITURE OF CIGARETTES UNDER SECTION 11-4021 OF THIS
TITLE, OR (V) A SUSPENSION OR REVOCATION OF A LICENSE ISSUED UNDER THIS
CHAPTER. THE REWARDS PROVIDED FOR BY THIS SUBDIVISION WILL BE PAID FROM
THE PROCEEDS OF AMOUNTS (OTHER THAN INTEREST) COLLECTED IN CONNECTION
WITH THE ADMINISTRATION OF THIS CHAPTER AND SECTIONS 11-4007, 11-4008,
11-4009, 11-4012 AND 11-4021 OF THIS TITLE BY REASON OF THE INFORMATION
PROVIDED. FOR PURPOSES OF THIS SUBDIVISION, PROCEEDS OF AMOUNTS (OTHER
THAN INTEREST) COLLECTED IN CONNECTION WITH THE ADMINISTRATION OF THIS
CHAPTER AND SECTIONS 11-4007, 11-4008, 11-4009, 11-4012 AND 11-4021 OF
THIS TITLE BECAUSE OF THE INFORMATION PROVIDED INCLUDE BOTH ADDITIONAL
AMOUNTS COLLECTED AND AMOUNTS COLLECTED PRIOR TO RECEIPT OF THE INFORMA-
TION IF THE INFORMATION LEADS TO THE DENIAL OF A CLAIM FOR REFUND THAT
OTHERWISE WOULD HAVE BEEN PAID. A "SUITABLE AMOUNT" FOR PURPOSES OF THIS
SUBDIVISION WILL DEPEND ON THE FACTS AND CIRCUMSTANCES, BUT GENERALLY
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11393-01-7
S. 5886 2
WILL NOT EXCEED FIFTEEN PERCENT OF THE AMOUNT (OTHER THAN INTEREST)
COLLECTED BY REASON OF THE INFORMATION PROVIDED.
§ 2. The tax law is amended by adding a new section 479-a to read as
follows:
§ 479-A. REWARD FOR DETECTION OF CIGARETTE TAX FRAUD. THE COMMISSIONER
MAY, IN HIS OR HER SOLE DISCRETION, APPROVE A REWARD, IN A SUITABLE
AMOUNT, FOR INFORMATION THAT LEADS TO (1) THE DETECTION OF UNDERPAYMENTS
OF TAX OR FEES REQUIRED TO BE PAID ON CIGARETTES UNDER THIS ARTICLE, (2)
THE DETECTION OF AND ASSESSMENT OF PENALTIES ON PERSONS VIOLATING OR
CONSPIRING TO VIOLATE ANY PROVISION OF THIS ARTICLE PERTAINING TO THE
CIGARETTE TAX, (3) THE DETECTION AND CONVICTION OF PERSONS GUILTY OF
VIOLATING OR CONSPIRING TO VIOLATE ANY PROVISIONS OF THIS ARTICLE
PERTAINING TO THE CIGARETTE TAX, (4) A SEIZURE AND FORFEITURE OF CIGA-
RETTES UNDER THIS ARTICLE, OR (5) A SUSPENSION OR REVOCATION OF A
LICENSE ISSUED UNDER THIS ARTICLE. THE REWARDS PROVIDED FOR BY THIS
SECTION WILL BE PAID FROM THE PROCEEDS OF AMOUNTS (OTHER THAN INTEREST)
COLLECTED IN CONNECTION WITH THE ADMINISTRATION OF THIS ARTICLE AND
FORFEITURES BY REASON OF THE INFORMATION PROVIDED. FOR PURPOSES OF THIS
SECTION, PROCEEDS OF AMOUNTS (OTHER THAN INTEREST) COLLECTED IN
CONNECTION WITH THE ADMINISTRATION OF THIS ARTICLE AND FORFEITURES
BECAUSE OF THE INFORMATION PROVIDED INCLUDE BOTH ADDITIONAL AMOUNTS
COLLECTED AND AMOUNTS COLLECTED PRIOR TO RECEIPT OF THE INFORMATION IF
THE INFORMATION LEADS TO THE DENIAL OF A CLAIM FOR REFUND THAT OTHERWISE
WOULD HAVE BEEN PAID. A "SUITABLE AMOUNT" FOR PURPOSES OF THIS SECTION
WILL DEPEND ON THE FACTS AND CIRCUMSTANCES, BUT GENERALLY WILL NOT
EXCEED FIFTEEN PERCENT OF THE AMOUNT (OTHER THAN INTEREST) COLLECTED BY
REASON OF THE INFORMATION PROVIDED.
§ 3. This act shall take effect immediately.