What's happening
This bill allows New York City and state officials to reward individuals who provide information leading to enforcement actions related to cigarette tax violations.
Why it matters
Creates financial incentives for whistleblowers. By allowing rewards of up to 15% of recovered amounts (excluding interest), the bill aims to encourage individuals to report cigarette tax fraud, underpayments, and related violations, potentially increasing detection rates.
Targets a range of enforcement outcomes. Rewards can be granted not just for tax recovery, but also for leading to penalties, criminal convictions, seizures and forfeitures of cigarettes, and even the suspension or revocation of business licenses, expanding the scope of actionable information.
Links rewards directly to successful enforcement. Payments to informants will come from proceeds collected as a result of the provided information, including both new funds recovered and funds not refunded due to denied fraudulent claims, ensuring the program is financially self-sustaining.
Empowers city and state officials with discretion. The bill gives city and state tax authorities sole authority to determine whether to grant a reward and the amount (up to the 15% cap), allowing flexibility to assess the value and reliability of tips on a case-by-case basis.
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Who cares
Headline styles
Reward Whistleblowers for Cigarette Tax
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
1 Multi-sponsor
History
- Referred to ways and means
- Print number 701a
- Amend (t) and recommit to ways and means
- Reported referred to ways and means
- Referred to cities
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Pay Rewards for Cigarette Tips
In Assembly Committee · Ways And Means · Sponsor Martin J. Golden
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
701--A
2017-2018 Regular Sessions
IN ASSEMBLY
January 9, 2017
Introduced by M. of A. DINOWITZ, GALEF -- Multi-Sponsored by -- M. of A. McDONOUGH, McKEVITT -- read once and referred to the Committee on Cities -- reported and referred to the Committee on Ways and Means -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the administrative code of the city of New York and the tax law, in relation to authorizing the payment of rewards in connection with the enforcement of the cigarette tax
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 11-1308 of the administrative code of the city of New York is amended by adding a new subdivision 12 to read as follows:
12. In his or her sole discretion, to approve a reward, in a suitable amount, for information that leads to (i) the detection of underpayments of tax or fees required to be paid under this chapter, (ii) the detection of and assessment of penalties on persons violating or conspiring to violate any provision of this chapter, (iii) the detection and conviction under chapter forty of this title of persons guilty of violating or conspiring to violate any provisions of this chapter, (iv) a seizure and forfeiture of cigarettes under section 11-4021 of this title, or (v) a suspension or revocation of a license issued under this chapter. The rewards provided for by this subdivision will be paid from the proceeds of amounts (other than interest) collected in connection with the administration of this chapter and sections 11-4007, 11-4008, 11-4009, 11-4012 and 11-4021 of this title by reason of the information provided. For purposes of this subdivision, proceeds of amounts (other than interest) collected in connection with the administration of this chapter and sections 11-4007, 11-4008, 11-4009, 11-4012 and 11-4021 of this title because of the information provided include both additional amounts collected and amounts collected prior to receipt of the information if the information leads to the denial of a claim for refund that
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03781-02-7
A. 701--A 2
otherwise would have been paid. A "suitable amount" for purposes of this subdivision will depend on the facts and circumstances, but generally will not exceed fifteen percent of the amount (other than interest) collected by reason of the information provided.
§ 2. The tax law is amended by adding a new section 479-a to read as follows:
§ 479-a. Reward for detection of cigarette tax fraud. The commissioner may, in his or her sole discretion, approve a reward, in a suitable amount, for information that leads to (1) the detection of underpayments of tax or fees required to be paid on cigarettes under this article, (2) the detection of and assessment of penalties on persons violating or conspiring to violate any provision of this article pertaining to the cigarette tax, (3) the detection and conviction of persons guilty of violating or conspiring to violate any provisions of this article pertaining to the cigarette tax, (4) a seizure and forfeiture of cigarettes under this article, or (5) a suspension or revocation of a license issued under this article. The rewards provided for by this section will be paid from the proceeds of amounts (other than interest) collected in connection with the administration of this article and forfeitures by reason of the information provided. For purposes of this section, proceeds of amounts (other than interest) collected in connection with the administration of this article and forfeitures because of the information provided include both additional amounts collected and amounts collected prior to receipt of the information if the information leads to the denial of a claim for refund that otherwise would have been paid. A "suitable amount" for purposes of this section will depend on the facts and circumstances, but generally will not exceed fifteen percent of the amount (other than interest) collected by reason of the information provided.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.