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 71.6 - Cancellation or suspension of a license as a cigarette agent

Universal Citation: 20 NY Comp Codes Rules and Regs ยง 71.6

Current through Register Vol. 46, No. 12, March 20, 2024

Tax Law, §§ 472(1), 480, 482-a, 484(a), 1081(c), 1094

(a) The license of any cigarette agent may be cancelled or suspended by the Department of Taxation and Finance pursuant to the provisions of this section. A determination as to whether a license should be cancelled or suspended and the duration of suspension will be made by the department on the basis of the circumstances in each case. The department may, in its discretion, continue such license upon such terms and conditions as it may deem necessary for the protection of the revenue under article 20 of the Tax Law and the cigarette marketing standards contained in article 20-A of such law.

(b)

(1) Generally, a license as a cigarette agent will not be cancelled nor suspended unless the agent has had an opportunity for a hearing prior to such action (see subdivision [c] of this section for exceptions). A license may be cancelled or suspended upon a licensee's:
(i) failure to file, deposit or maintain in full force and effect the credit bond or other acceptable security, or increase the amount thereof, as required by the Department of Taxation and Finance (if such agent has elected and has been approved by the department to purchase cigarette stamps on credit);

(ii) failure to comply with any of the provisions of article 20 or article 20-A of the Tax law or any rule or regulation adopted pursuant thereto (see also article 2 of this Subchapter); or

(iii) knowingly aiding and abetting another person in violating any of the provisions of such articles or of such rules or regulations.

(2) A license as a cigarette agent may also be cancelled or suspended if it is determined that the licensee or any controlling person as defined in section 71.5 of this Part:
(i) has committed fraud or deceit in operating the cigarette agency or has committed fraud or deceit in procuring a license as a cigarette agent;

(ii) has been convicted in a court of competent jurisdiction, either within or without the State of New York, of a felony bearing on the licensee's duties and obligations under any article of the Tax Law;

(iii) has impersonated any person represented to be a cigarette agent pursuant to article 20 of the Tax Law but who has in fact not been so licensed; or

(iv) has knowingly aided and abetted the sale of cigarettes by a person which such licensee or controlling person knows has not been licensed as a cigarette agent by the Department of Taxation and Finance and who is conducting activities as such an agent.

(c) A license as a cigarette agent may be cancelled or suspended prior to a hearing if the Department of Taxation and Finance believes that the assessment or collection of any tax imposed by article 20 of the Tax Law will be jeopardized by the delay of such cancellation or suspension.

(d) If a cigarette agent's license is cancelled or suspended, such former agent or suspended agent is prohibited from conducting any activities as a cigarette agent in New York State. Upon notice of cancellation or suspension, a former or suspended agent must immediately surrender its certificates of license as a cigarette agent to the Department of Taxation and Finance. Immediately following the effective date of cancellation or suspension any taxes outstanding, including taxes not yet due, pursuant to article 20 of the Tax Law must be paid in full and any appropriate returns or reports must be filed with the department.

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