New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter I - Franchise and Certain Business Taxes
Subchapter I - Cigarette Tax, Cigarette Marketing Standards And Tobacco Products Tax
Article 1 - Cigarette Tax
Part 71 - Agent's License
Section 71.5 - Refusal to license
Universal Citation: 20 NY Comp Codes Rules and Regs ยง 71.5
Current through Register Vol. 46, No. 12, March 20, 2024
Tax Law, §§ 472(1), 480 and 482-a
(a)
(1)
Where a person files an application for a license as a cigarette agent, or for
relicensing as an agent, the Department of Taxation and Finance, in
circumstances described herein, may refuse to license such applicant and may
deny such application pursuant to the provisions of this section, provided an
opportunity for a hearing has been afforded the applicant.
(2) For purposes of this Part, the term
controlling person shall mean any person who is:
(i) an officer, director or partner of an
applicant for a license as a cigarette agent or of a licensee, or
(ii) a shareholder of a corporate applicant
or licensee who directly or indirectly owns more than 10 percent of the number
of shares of stock of such applicant or licensee entitling the shareholder to
vote for the election of the applicant's or licensee's directors or trustees.
In the case of a corporate applicant or licensee which at the relevant times
has four or fewer shareholders entitled to vote for the election of directors
or trustees, in lieu of the more than 10 percent threshold prescribed herein, a
direct or indirect ownership of 25 percent or more of the voting stock shall
apply.
(b)
(1) The Department of Taxation and Finance
may refuse to license or relicense the applicant if any tax imposed under the
Tax Law or by any law, ordinance or resolution enacted pursuant to the
authority of such law or the City Earnings Tax on Nonresidents imposed pursuant
to the authority of article two-E of the General City Law has been finally
determined to be due from the applicant or from any controlling person and such
tax has not been paid in full.
(2)
The department may refuse to license or relicense the applicant if the
applicant or any controlling person has been convicted within the preceding
five years of a crime provided for in the Tax Law.
(3) The department may refuse to license or
relicense the applicant if the license as a cigarette agent of the applicant
has been cancelled or suspended as provided in section
71.6
of this Part within the preceding five years.
(4) The department may refuse to license or
relicense the applicant if the applicant or any controlling person was a
controlling person of another cigarette agent at a time when:
(i) any tax imposed under the Tax Law or by
any law, ordinance or resolution enacted pursuant to the authority of such law
or the City Earnings Tax on Nonresidents imposed pursuant to the authority of
article two-E of the General City Law was finally determined to be due from
such other agent and such tax has not been paid in full;
(ii) such other agent was convicted of a
crime provided for in the Tax Law, but only if such conviction occurred within
the preceding five years; or
(iii)
the license as a cigarette agent of such other agent was cancelled or suspended
as provided in section
71.6
of this Part, but only if such cancellation or suspension occurred within the
preceding five years.
(5) The department may refuse to license or
relicense the applicant if the applicant or any controlling person has within
the preceding five years, committed any of the acts specified in section
71.6
of this Part.
(6) The department
may refuse to license or relicense the applicant if it has cause to believe
that such licensing would jeopardize the revenue due under article 20 of the
Tax Law, or the cigarette marketing standards contained in article 20-A of such
law. For example, the department may request and evaluate any information
concerning an applicant's nature and scope of operations, reliability, overall
financial status, liquidity or history of financial solvency and stability.
Should the department determine that the applicant is not financially sound,
lacks a legitimate profit motive or is seeking ostensible status as an agent
primarily for purposes of circumventing the Cigarette Marketing Standards Act,
it may refuse to license or relicense the applicant. The department may, in its
discretion, license an applicant upon such terms and conditions as it may deem
necessary for the protection of such revenue and standards.
(7) The department may refuse to license or
relicense the applicant if the applicant or any controlling person has been
finally determined to have violated any of the provisions of article 20 or
article 20-A of the Tax Law, or any rule or regulation adopted pursuant
thereto.
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