§ 301-l. Refund for tax with respect to in-bulk consumer bad debt.
There shall be allowed to a registered petroleum business or aviation
fuel business a refund under this section for the taxes imposed by
sections three hundred one-a, three hundred one-e, and three hundred
one-j of this article for the tax paid under such sections with respect
to gallonage which is represented by a worthless debt as follows:

(a) The refund shall be allowed to a registered petroleum business or
aviation fuel business for gallonage with respect to which tax liability
for the taxes under this article is imposed on such petroleum business
or aviation fuel business where (i) such gallonage has been included in
the reports filed by such petroleum business or aviation fuel business
and all the taxes under this article with respect to such gallonage have
been paid by such business, (ii) such gallonage was sold in-bulk by such
petroleum or aviation fuel business to a purchaser for such purchaser's
own use and consumption and (iii) such sale gave rise to a debt which
became worthless, as that term is used for federal income tax purposes,
and where such debt is deducted as a worthless debt for federal income
tax purposes for the taxable year covering the month in which such
refund claim relating to such debt is filed. Provided, however, for the
purposes of this section, a sale of motor fuel and highway diesel motor
fuel to a filling station shall be deemed to be a sale in-bulk for such
filling station's own use and consumption and, provided, further, in no
event shall a worthless debt qualify with respect to the refund
hereunder where such debt arises from a retail sale at a filling station
or sale wherein product is delivered directly into the fuel tank of a
motor vehicle, airplane or other conveyance.

(b) Partial payment. Where a debt became worthless only in part due to
partial payment, the amount of the refund under this section shall be
determined by apportioning the amount of any partial payment among the
components of the total purchase price, including tax under this
article, and the amount of tax remaining unpaid after application of the
partial payment shall be the amount of the refund.

(c) Upon receipt of a claim for refund in processible form, interest
shall be allowed and paid at the overpayment rate set by the
commissioner pursuant to subdivision twenty-sixth of section one hundred
seventy-one of this chapter from the date of the receipt of the refund
claim to the date immediately preceding the date of the refund check
except no such interest shall be allowed or paid if the refund check is
mailed within ninety days of such receipt and except no interest shall
be allowed or paid if the amount thereof would be less than one dollar.
Provided, further, the refund shall be granted pro rata against sections
three hundred one-a, three hundred one-e, and three hundred one-j of
this article, as the case may be, to the same extent as represented by
the remittance of the petroleum business or aviation fuel business with
respect to the gallonage represented by the worthless debt.

(d) In addition to the applicable report and evidence of tax payment,
the commissioner may require such other evidentiary proof as the
commissioner deems appropriate to demonstrate qualification for the
refund under this section. Provided, further, that the refund of tax
allowed under this section, for purposes of the income and franchise
taxes imposed by this chapter, shall be reported in such detail as the
commissioner may direct. Moreover, notwithstanding any provision to the
contrary, all state agencies shall cooperate with the commissioner in
administering the refund authorized by this section and shall share with
such commissioner such information as the commissioner may deem
appropriate in administering the refund under this section.

(e) If there is a disallowance of a bad debt with respect to which a
refund under this section has been paid, such disallowance shall have
the effect of and be treated as a report of federal change, correction
or disallowance (as such effect and treatment is described in section
six hundred fifty-nine and subdivision three of section two hundred
eleven of this chapter) and the time to assess under this article with
respect to such disallowance shall be determined as set forth in such
sections.