S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5430
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2025
                                ___________
 
 Introduced  by M. of A. TAPIA -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in relation  to  making  technical  changes
   relating to the rescindment of certificates of authority
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subparagraph (A) of  paragraph  4  of  subdivision  (a)  of
 section  1134 of the tax law, as amended by section 2 of part P of chap-
 ter 59 of the laws of 2021, is amended to read as follows:
   (A) Where a person who holds a  certificate  of  authority,  AND  WITH
 RESPECT  TO  ONLY  THE  PERSON'S  OBLIGATION TO PAY TAXES, (i) willfully
 fails to file a report or return required by this article, (ii) willful-
 ly files, causes to be filed, gives or causes  to  be  given  a  report,
 return,  certificate  or  affidavit required under this article which is
 false, (iii) willfully fails to comply with the provisions of  paragraph
 two  or  three of subdivision (e) of section eleven hundred thirty-seven
 of this [article] PART, (iv) willfully fails to prepay, collect,  truth-
 fully  account  for  or  pay  over any tax imposed under this article or
 pursuant to the authority of article twenty-nine of  this  chapter,  (v)
 fails  to  obtain a bond pursuant to paragraph two of subdivision (e) of
 section eleven hundred thirty-seven of this part,  or  fails  to  comply
 with  a notice issued by the commissioner pursuant to paragraph three of
 such subdivision, (vi) has been convicted of a  crime  provided  for  in
 this  chapter,  (vii)  where  such person, or any person affiliated with
 such person as such term is defined in subdivision twenty-one of section
 four hundred seventy of this chapter, has had a retail dealer  registra-
 tion  issued  pursuant  to section four hundred eighty-a of this chapter
 revoked pursuant to subparagraph (iii) of paragraph (a)  of  subdivision
 four of such section four hundred eighty-a, or (viii) has not obtained a
 valid  retail dealer registration under section four hundred eighty-a of
 this chapter and such person possesses or sells unstamped or  unlawfully
 stamped  packages  of  cigarettes three or more times within a period of
 five years, the commissioner may revoke or suspend such  certificate  of
 authority  and  all  duplicates  thereof.    Provided, however, that the
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08163-01-5
 A. 5430                             2
 
 commissioner may revoke or suspend a certificate of authority  based  on
 (a) the grounds set forth in clause (vi) of this subparagraph only where
 the  conviction referred to occurred not more than one year prior to the
 date  of  revocation  or suspension; and provided further that where the
 commissioner revokes or suspends a certificate of authority based on the
 grounds set forth in clause (vii) of this subparagraph, such  suspension
 or revocation shall continue for as long as the revocation of the retail
 dealer  registration  pursuant  to section four hundred eighty-a of this
 chapter remains in effect, or (b) the grounds set forth in clause (viii)
 of this subparagraph, such suspension or revocation shall be for a peri-
 od of five years.
   § 2. Subparagraph (A) of paragraph 4 of  subdivision  (a)  of  section
 1134  of  the tax law, as amended by section 2-a of part P of chapter 59
 of the laws of 2021, is amended to read as follows:
   (A) Where a person who holds a  certificate  of  authority,  AND  WITH
 RESPECT  TO  ONLY  THE  PERSON'S  OBLIGATION TO PAY TAXES, (i) willfully
 fails to file a report or return required by this article, (ii) willful-
 ly files, causes to be filed, gives or causes  to  be  given  a  report,
 return,  certificate  or  affidavit required under this article which is
 false, (iii) willfully fails to comply with the provisions of  paragraph
 two  or  three of subdivision (e) of section eleven hundred thirty-seven
 of this [article] PART, (iv) willfully fails to prepay, collect,  truth-
 fully  account  for  or  pay  over any tax imposed under this article or
 pursuant to the authority of article twenty-nine of  this  chapter,  (v)
 has  been  convicted of a crime provided for in this chapter, (vi) where
 such person, or any person affiliated with such person as such  term  is
 defined  in  subdivision  twenty-one  of section four hundred seventy of
 this chapter, has had a retail dealer registration  issued  pursuant  to
 section  four  hundred  eighty-a  of  this  chapter suspended or revoked
 pursuant to subparagraph (iii) of paragraph (a) of subdivision  four  of
 such  section  four  hundred eighty-a, or (vii) has not obtained a valid
 retail dealer registration under section four hundred eighty-a  of  this
 chapter  and  such  person  possesses  or  sells unstamped or unlawfully
 stamped packages of cigarettes three or more times within  a  period  of
 five  years,  the commissioner may revoke or suspend such certificate of
 authority and  all  duplicates  thereof.  Provided,  however,  that  the
 commissioner  may  revoke or suspend a certificate of authority based on
 (a) the grounds set forth in clause (v) of this subparagraph only  where
 the  conviction referred to occurred not more than one year prior to the
 date of revocation or suspension; and provided further  that  where  the
 commissioner revokes or suspends a certificate of authority based on the
 grounds  set  forth in clause (vi) of this subparagraph, such suspension
 or revocation shall continue for as long as the revocation of the retail
 dealer registration pursuant to section four hundred  eighty-a  of  this
 chapter  remains in effect, or (b) the grounds set forth in clause (vii)
 of this subparagraph, such suspension or revocation shall be for a peri-
 od of five years.
   § 3. This act shall take effect immediately and shall apply to any and
 all notices for  rescindment  issued  on  and  after  January  1,  2016;
 provided  that  the  amendments  to  subparagraph  (A) of paragraph 4 of
 subdivision (a) of section 1134 of the tax law made by  section  one  of
 this  act  shall  be subject to the   expiration   and reversion of such
 subparagraph pursuant to subdivision (e) of section  23  of  part  U  of
 chapter  61  of  the laws of 2011,   as amended, when upon such date the
 provisions of section two of this act shall take effect.