Authorizes the New York city commissioner of finance to approve suitable rewards for information that leads to the detection of violations of the tax on cigarettes

Title of bill

An act to amend the administrative code of the city of New York, in relation to authorizing the payment of rewards in connection with the enforcement of the cigarette tax

Summary of provisions

Section 1 of the bill amends Section 11-1308 of the Administrative Code of the City of New York to add a new subdivision 12 authorizing the Commissioner of Finance to approve suitable rewards for information that leads to the detection of violations of the tax on cigarettes authorized by Chapter 13 of title 11 of the administrative code. Such rewards are to be payable from amounts (exclusive of interest) collected by the Department of Finance in connection with enforcement of Chapter 13 and Sections 11-4007, 11-4008, 11-4009, 11-4012 and 11-4021 of title 11 by reason of the information provided. Section 1 further provides that, in general, a suitable reward will not exceed fifteen percent of amounts collected (other than interest) based on the information provided.

Section 2 provides that the act shall be effective immediately.

Justification

This bill enhances the New York City Department of Finance's ability to enforce the City's cigarette tax. The recent increase in the New York State and New York City cigarette taxes have lead to increased efforts to avoid payment of the City cigarette tax on sales of cigarettes in New York City. Enabling the Department of Finance to reward individuals who provide information that leads to the detection of violations of the City's cigarette tax would be a valuable enforcement tool. Increased detection of City cigarette tax avoidance would also bolster New York State cigarette and sales tax collections.

Legislative history

S.4565 of 2005-06, S.5352 of 2003-04, S.739/A.7323. Passed Senate 2007, 2008.

Fiscal implications

To be determined.

Effective date

Immediately.