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History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
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Title of bill
An act to amend the tax law, in relation to scannable cigarette tax stamps
Purpose
This legislation would create a state of the art hi-tech track and trace encrypted excise tax stamp to help stop the loss of cigarette excise tax dollars to illegal operations.
Summary of specific provisions
Section 1. The tax law is amended by adding a new section 471-f which explains the requirement of cigarette wholesalers to affix scannable cigarette tax stamps to each carton of cigarettes sold in New York State. It also describes the 5 pieces of information as well as any other information that may be required by the comptroller that must be to be encrypted into such stamps.
Section 2. This act shall take effect January 1, 2010
Justification
This legislation would require a cigarette wholesaler to affix cigarette tax stamps that are capable of being read by a scanner and encrypted with the following information: (1) the name and address of the distributer affixing the stamp; (2) the date the stamp was affixed; (3) the denominated value of the stamp; (4) the cigarette manufacturer; (5) the cigarette brand; and (6) any other information required by the comptroller.
Cigarette manufacturers sell their brands to approximately 94 "registered cigarette agents" who are licensed by the state and required to apply the NYS cigarette excise tax stamp. In turn, each "agent" markets a variety of brands to approximately 243 locations operated by 201 cigarette wholesalers who sell tobacco products to over 27,000 NYS retailers. Thirty-nine of the above mentioned "wholesalers", however, are not located in New York. Without a state of the art hi-tech track and trace encrypted excise tax stamp in use in New York, the task of tracing cigarettes from the points of manufacture to wholesale to retail is extremely difficult. Moreover, "counterfeits" enter NYS from a number of countries whole non-licensed traders smuggle cigarettes into New York from low excise tax states and apply bogus stamps. Huge sums of cigarette excise dollars are lost every year to the above mentioned illegal operations.
Legislative history
New bill
Fiscal implications
TBD
Effective date
This act shall take effect January 1, 2010
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.