§ 472. Preparation and sale of stamps; commissions; distributors. 1.
The commissioner shall prescribe, prepare and furnish stamps of such
denominations and quantities as may be necessary for the payment of the
tax on cigarettes imposed by this article, and may from time to time and
as often as he deems advisable provide for the issuance and exclusive
use of stamps of a new design and forbid the use of stamps of any other
design, in the manner and with the effect provided in section two
hundred seventy-four of this chapter. The commissioner shall make
provisions for the sale of such stamps at such places and at such times
as he may deem necessary and may license agents for such purpose. The
commissioner may license dealers in cigarettes, who maintain separate
warehousing facilities for the purpose of receiving and distributing
cigarettes and conducting their business, who have received commitments
from at least two cigarette manufacturers whose aggregate market share
is at least forty percent of the New York state cigarette market, and
importers, exporters and manufacturers of cigarettes, and other persons
within or without the state as agents to buy or affix stamps to be used
in paying the tax herein imposed, but an agent shall at all times have
the right to appoint the person in his employ who is to affix the stamps
to any cigarettes under the agent's control. The fee for filing such
application for an agent's license shall be one thousand five hundred
dollars, unless such fee has been paid during the preceding twelve
months, in which case, the fee for a new license shall be one thousand
dollars. All of the provisions of section four hundred eighty relating
to wholesale dealers' licenses, including the procedure for suspension,
revocation, refusal to license and for hearings, except for paragraphs
(c) and (g) of subdivision one of such section, shall be applicable to
agents' licenses applied for or granted pursuant to this section, as if
such provisions had been set forth in full in this subdivision and had
expressly referred to the applicant for, or the holder of, an agent's
license. Whenever the commissioner shall sell and deliver to any such
agent any such stamps, such agent shall be entitled to receive as
compensation for his services and expenses as such agent in selling or
affixing such stamps, and to retain out of the moneys to be paid by him
for such stamps, a commission on the par value thereof. The commissioner
is hereby authorized to prescribe a schedule of commissions, not
exceeding five per centum, allowable to such agent for buying and
affixing such stamps. Such schedule shall be uniform with respect to the
different types of stamps used, and may be on a graduated scale with
respect to the number of stamps purchased. The commissioner may, in his
discretion, permit an agent to pay for such stamps within thirty days
after the date of purchase and may require any such agent to file with
the department of taxation and finance a bond issued by a surety company
approved by the superintendent of financial services as to solvency and
responsibility and authorized to transact business in the state or other
security acceptable to the commissioner, in such amount as the
commissioner may fix, to secure the payment of any sums due from such
agent pursuant to this article. If securities are deposited as security
under this subdivision, such securities shall be kept in the custody of
the commissioner and may be sold by the commissioner if it becomes
necessary so to do in order to recover any sums due from such agent
pursuant to this article, but no such sale shall be had until after such
agent shall have had opportunity to litigate the validity of any tax if
it elects so to do. Upon any such sale, the surplus, if any, above the
sums due under this article shall be returned to such agent.

2. A manufacturer or agent who intends to sell within the state
packages of cigarettes containing more than twenty cigarettes must
notify the tax commission, in writing, of such intention one hundred
twenty days prior to the time such packages will be sold within the
state, except that such tax commission shall waive such requirement if
it has already prescribed, prepared and furnished, or is in a position
to prescribe, prepare and furnish in a timely manner, stamps of such
denomination and quantities as may be necessary for the payment of the
tax imposed by this article on cigarettes in such package; provided,
however, that a notice provided pursuant to this subdivision within
fifteen days of the effective date of this subdivision shall be deemed
to have been provided on the effective date of this subdivision.

3. The commissioner of taxation and finance may appoint dealers in
tobacco products, manufacturers of tobacco products and other persons
within or without the state as distributors and may authorize them to
make returns and to pay the tax on tobacco products sold, shipped or
delivered by them to any person in the state. The commissioner may, in
his discretion, require the deposit of a bond issued by a surety company
approved by the superintendent of financial services as to solvency and
responsibility and authorized to transact business in this state, or
other security acceptable to the commissioner in an amount and form
satisfactory to him as a condition of appointing any such person as a
distributor. If securities are deposited as security under this
subdivision, such securities shall be kept in the custody of the
commissioner of taxation and finance and may be sold by the commissioner
if it becomes necessary so to do in order to recover any sums due from
such distributor pursuant to this article, but no such sale shall be had
until after such distributor shall have had an opportunity to litigate
the validity of any tax if it elects so to do. Upon any such sale, the
surplus, if any, above the sums due under this article shall be returned
to such distributor.