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 75 - Returns, Payments And Records To Be Kept
Section 75.5 - Records to be kept by agents and others

Universal Citation: 20 NY Comp Codes Rules and Regs § 75.5

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

Tax Law, §§ 474, 475, 482-a and 488

(a) General.

(1)

(i) Every licensed cigarette agent must keep complete and accurate records of every purchase, sale or other acquisition or disposition of cigarettes and cigarette tax stamps handled. In addition, every wholesale dealer and retail dealer must keep such records with respect to all cigarettes handled. All records of such acquisitions and dispositions of cigarettes and cigarette tax stamps, as the case may be, must be either separate and distinct from all other records possessed or the cigarette transactions thereon must be clearly distinct from all other transactions. Moreover, separate records must be maintained for each of an agent's or dealer's business locations and such records must be further divided to reflect separately a person's activities as an agent, as a wholesale dealer and as a retail dealer if such person serves in more than one capacity. Such records may be used to satisfy, in part, a vendor's obligations for sales tax purposes pursuant to section 533.2 of this Title; however, unless a vendor's records are clearly in accord with this section, such vendor's records may not be used with respect to the cigarette tax. Complete and accurate records must also be kept by agents, dealers and any other persons subject to the provision of article 20 and/or article 20-A of the Tax Law for any other information that the Department of Taxation and Finance may require, including sufficient information so as to complete and substantiate any return, application or other document required by or pursuant to the authority of such articles.

(ii) In addition to the recordkeeping requirements of subparagraph (i) of this paragraph, licensed cigarette agents must also keep complete and accurate records relating to the schedule required to be filed by section 75.1(f) of this Part.

(2) Every person who transports cigarettes in the State and every person who stores cigarettes in the State must keep a complete and accurate record of:

(i) the names and addresses of the persons for whom such cigarettes are transported or stored;

(ii) the names and addresses of the persons to whom such cigarettes are delivered or released from storage;

(iii) the quantities of cigarettes transported or stored; and

(iv) the dates of such transportation or storage.

(b)

(1) At the time of delivering cigarettes to any person in New York State, other than the ultimate consumer, each agent and each dealer of cigarettes must make a true duplicate invoice for each shipment of cigarettes. The invoice must be either separate and distinct from any other invoice or the cigarette transactions thereon must be reflected in a portion of the invoice exclusively designated for cigarette transactions. Such invoice must show the following information:

(i) the name and address of the consignor or seller of such cigarettes;

(ii) the name and address of the consignee or purchaser to whom delivery is made;

(iii) the date of delivery; and

(iv) the number of packages of each type of cigarettes delivered (i.e., regular/king size, 100/120 mm size or any other description indicative of a price differential for purposes of the Cigarette Marketing Standards Act) and the number of cigarettes contained therein.

Agents and dealers delivering cigarettes must retain, as part of their records of cigarettes sold or otherwise disposed, one such invoice and shall deliver or cause the delivery of such duplicate invoice to the consignee or purchaser. Agents and dealers receiving such cigarettes, as consignees or purchasers, must procure such second invoice, indicate the date of receipt thereon and retain such invoice as part of their records of cigarettes purchased or otherwise acquired.

(2) Every person who possesses or transports any unstamped packages of cigarettes upon the public highways, roads or streets of the State, is required to have, in such person's actual possession, invoices or delivery tickets for such cigarettes. Such invoices or delivery tickets must show:

(i) the name and address of the consignor or seller;

(ii) the name and address of the consignee or purchaser;

(iii) the quantity and brands of the cigarettes transported; and

(iv) the name and address of the licensed cigarette agent who has or who shall assume the payment of the cigarette tax.

In the event such cigarettes are exempt from tax as provided in this Title, in lieu of subparagraph (iv) of this paragraph, such invoices or delivery tickets must clearly indicate the basis of such exemption. The absence of such invoices or delivery tickets will be prima facie evidence that such person is a dealer in cigarettes in this State and is subject to the provisions of articles 20 and 37 of the Tax Law.

(c)

(1) Records, including invoices, required pursuant to this section, must be in such form and contain such other information as the Department of Taxation and Finance prescribes. Such records must be preserved for a period of three years, and upon oral or written demand by the Commissioner of Taxation and Finance or any duly authorized representative of the Commissioner such records must be made available for use and inspection by the department.

(2) The Commissioner of Taxation and Finance and such duly authorized representatives may in verification of the amount of any tax due under article 20 of the Tax Law examine the books, papers, invoices and other records of any person in possession, control or occupancy of any premises where cigarettes are placed, stored, sold or offered for sale, and the equipment of any such person pertaining to the stamping, sale and delivery of cigarettes taxable under such article, as well as the stock of cigarettes in any such premises or vehicle. Each such person must give to the Commissioner or such duly authorized representatives the means, facilities and opportunities for such inspection and examination.

(3) See Part 2402 of this Title for taxpayer record retention formats.

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