§ 1133. Liability for the tax. (a) (1) Except as otherwise provided in
paragraph two of this subdivision and in section eleven hundred
thirty-seven of this part, every person required to collect any tax
imposed by this article shall be personally liable for the tax imposed,
collected or required to be collected under this article. Any such
person shall have the same right in respect to collecting the tax from
his customer or in respect to nonpayment of the tax by the customer as
if the tax were a part of the purchase price of the property or service,
amusement charge or rent, as the case may be, and payable at the same
time; provided, however, that the tax commission shall be joined as a
party in any action or proceeding brought to collect the tax.

(2) Notwithstanding any other provision of this article: (i) The
commissioner shall grant the relief described in subparagraph (iii) of
this paragraph to a limited partner of a limited partnership (but not a
partner of a limited liability partnership) or a member of a limited
liability company if such limited partner or member demonstrates to the
satisfaction of the commissioner that such limited partner's or member's
ownership interest and the percentage of the distributive share of the
profits and losses of such limited partnership or limited liability
company are each less than fifty percent, and such limited partner or
member was not under a duty to act for such limited partnership or
limited liability company in complying with any requirement of this
article. Provided, however, the commissioner may deny an application for
relief to any such limited partner or member who the commissioner finds
has acted on behalf of such limited partnership or limited liability
company in complying with any requirement of this article or has been
convicted of a crime provided in this chapter or who has a past-due
liability, as such term is defined in section one hundred seventy-one-v
of this chapter.

(ii) Such limited partner or member must submit an application for
relief, on a form prescribed by the commissioner, and the information
provided in such application must be true and complete in all material
respects. Providing materially false or fraudulent information on such
application shall disqualify such limited partner or member for the
relief described in subparagraph (iii) of this paragraph, shall void any
agreement with the commissioner with respect to such relief, and shall
result in such limited partner or member bearing strict liability for
the total amount of tax, interest and penalty owed by their respective
limited partnership or limited liability company pursuant to this
subdivision.

(iii) A limited partner of a limited partnership or member of a
limited liability company, who meets the requirements set forth in this
paragraph and whose application for relief is approved by the
commissioner, shall be liable for the percentage of the original sales
and use tax liability of their respective limited partnership or limited
liability company that reflects such limited partner's or member's
ownership interest of distributive share of the profits and losses of
such limited partnership or limited liability company, whichever is
higher. Such original liability shall include any interest accrued
thereon up to and including the date of payment by such limited partner
or member at the underpayment rate set by the commissioner pursuant to
section eleven hundred forty-two of this part, and shall be reduced by
the sum of any payments made by (A) the limited partnership or limited
liability company; (B) any person required to collect tax not eligible
for relief; and (C) any person required to collect tax who was eligible
for relief but had not been approved for relief by the commissioner at
the time such payment was made. Provided, however, such limited partner
or member shall not be liable for any penalty owed by such limited
partnership or limited liability company or any other partner or member
of such limited partnership or limited liability company. Any payment
made by a limited partner or member pursuant to the provisions of this
paragraph shall not be credited against the liability of other limited
partners or members of their respective limited partnership or limited
liability company who are eligible for the same relief; provided,
however that the sum of the amounts owed by all of the persons required
to collect tax of a limited partnership or limited liability company
shall not exceed the total liability of such limited partnership or
limited liability company.

(b) Where any customer has failed to pay a tax imposed by this article
to the person required to collect the same, then in addition to all
other rights, obligations and remedies provided, such tax shall be
payable by the customer directly to the tax commission and it shall be
the duty of the customer to file a return with the tax commission and to
pay the tax to it within twenty days of the date the tax was required to
be paid.

(c) The tax commission may, whenever it deems it necessary for the
proper enforcement of this article, provide by regulation that customers
shall file returns and pay directly to the tax commission any tax herein
imposed, at such times as returns are required to be filed and payment
made by persons required to collect the tax.

(d) (1) no person required to collect any tax imposed by this article
shall advertise or hold out to the public in any manner, directly or
indirectly, that the tax imposed by this article is not considered as an
element in the price, amusement charge or rent payable by customers.
However, such person required to collect tax may advertise, hold out, or
state to a retail purchaser or to the public, that such person will pay
the tax imposed by section eleven hundred five of this article on behalf
of a retail purchaser, subject to the following conditions:

(i) In so advertising, holding out, or stating to a retail purchaser
or to the public, such person required to collect tax shall expressly
state on every bill, memorandum, receipt or other statement of the
price, amusement charge or rent paid or payable given to such purchaser,
that such person will pay the tax imposed by section eleven hundred five
of this article on behalf of such purchaser, and such person shall not
indicate or imply that the transaction is exempt or excluded from any
tax imposed by this article; and

(ii) Every bill, memorandum, receipt or other statement of the price,
amusement charge or rent paid or payable given to such purchaser shall
separately state the amount of tax due pursuant to such section eleven
hundred five and that the tax was not collected from such purchaser.
Such person required to collect tax shall hold such tax as trustee for
and on account of the state; and

(iii) A retail purchaser, who in good faith accepts from a person
required to collect any tax imposed by this article, a bill, memorandum,
receipt or other statement of the price, amusement charge or rent that
indicates the amount of tax due pursuant to such section eleven hundred
five and that such person required to collect tax will be paying such
tax on behalf of such purchaser, shall not be liable for the tax imposed
by such section eleven hundred five, or any interest or penalties
thereon; provided, however that nothing in this subdivision shall exempt
such purchaser from any additional tax due pursuant to section eleven
hundred ten of this article.

(e) Applicability of Mobile Telecommunications Sourcing Act. The
provisions of sections 119(c), 120, 121 and 122 of title 4 of the United
States Code as enacted and in effect on July twenty-eighth, two
thousand, to the extent relevant and to the extent required by
preemption, shall apply to the provisions of this article in the same
manner and with the same force and effect as if the language of such
sections of such title 4 of the United States Code had been incorporated
in full into this article and had expressly referred to the taxes under
this article, with such modifications as may be necessary in order to
adapt the language of such provisions to the taxes imposed by this
article.

(f) A marketplace provider is relieved of liability under this section
for failure to collect the correct amount of tax to the extent that the
marketplace provider can show that the error was due to incorrect or
insufficient information given to the marketplace provider by the
marketplace seller. Provided, however, this subdivision shall not apply
if the marketplace seller and marketplace provider are affiliated within
the meaning of paragraph one of subdivision (e) of section eleven
hundred one of this article.