Current through Register Vol. 46, No. 12, March 20, 2024
Tax Law, §§ 471(1), 471-a, 475 and
481(2)
(a) Diplomatic missions and
diplomatic personnel, as purchasers of cigarettes for their own use or
consumption and not for purposes of resale, are exempt from the cigarette tax
imposed pursuant to article 20 of the Tax Law to the extent provided for by the
United States Department of State, Office of Foreign Missions' national tax
exemption program.
(b)
(1)
Diplomatic missions as
used in this section means permanent missions to public international
organizations, such as the United Nations and the Organization of American
States, and foreign embassies and consulates.
(2)
Diplomatic personnel as
used in this section means foreign embassy and consular officials, certain
foreign embassy and consular employees, certain officers and employees of the
United Nations, of other public international organizations and of permanent
missions to such organizations and certain employees of the Coordination
Council for North American Affairs.
(c) Generally, in order for diplomatic
missions and diplomatic personnel to receive an exemption from the cigarette
tax, such missions or personnel must establish their exempt status with the
United State Department of State or, in the case of employees of the
Coordination Council for North American Affairs, with the American Institute in
Taiwan. The United States Department of State or the American Institute in
Taiwan will certify that such missions or personnel are exempt from tax and
arrange, or cause the arrangements, for such missions of personnel to receive
from designated bonded warehouses cigarettes upon which the seller has not
prepaid and precollected the cigarette tax.
(d)
(1)
Diplomatic missions and diplomatic personnel may purchase cigarettes upon which
the seller has not prepaid and precollected the cigarette tax by issuing to the
seller of such cigarettes proof of exempt status as certified by the Department
of State or the American Institute in Taiwan. Such proof should be given to the
seller at the time of the initial purchase. Separate proof of exempt status
need not be given for each additional purchase of cigarettes, provided each
delivery of cigarettes is substantiated as being exempt from tax with an
individual bill, invoice, receipt or other form of written evidence given by
the seller showing the diplomatic missions or diplomatic personnel as the
purchasers. Every bill, invoice, receipt or other form of written evidence must
indicate the quantity of cigarettes delivered, the purchase price of the
cigarettes without regard to any exemption and the price paid or to be paid by
the exempt purchasers for such cigarettes. In addition, such evidence of
exemption must be signed and dated by the individual who will take delivery of
the cigarettes on behalf of such missions or personnel.
(2) Sellers of cigarettes must establish an
acceptable system of associating copies of these individual bills, invoices,
receipts and other forms of evidence of exemption from tax with the proof of
exempt status initially received from the purchasers. All purchases of
cigarettes upon which the seller has not prepaid and precollected the cigarette
tax by diplomatic missions or diplomatic personnel must be billed directly to
the entities or persons and paid from the funds of such entities or
persons.
(3) A licensed cigarette
agent must report all sales of cigarette to diplomatic missions and diplomatic
personnel in its monthly cigarette tax return.
(e)
(1) Tax
exemption cards issued to diplomatic missions and diplomatic personnel by the
United States Department of State or the American Institute in Taiwan may not
be used to purchase cigarettes upon which the seller has not prepaid and
precollected the cigarette tax.
(2)
Notwithstanding any other provision in this Subchapter, no tax exemption will
be provided nor will a refund or credit by granted where diplomatic missions
and diplomatic personnel purchase cigarettes by any means other than as
provided for in this section. The possession within this State at any one time
of more than 400 cigarettes in unstamped (or unlawfully stamped) packages by
any diplomatic mission or diplomatic personnel, except as provided herein,
shall be presumptive evidence that such cigarettes are subject to tax.
Diplomatic missions and diplomatic personnel who or which purchase cigarettes
under any other circumstances must pay the cigarette tax at the time of
purchase by remitting the tax to the seller as part of the purchase price of
the cigarettes.
