What's happening
This bill requires cigarette manufacturers to repurchase untaxed or seized cigarettes and pay the state, replacing prior disposal methods.
Why it matters
Shifts financial responsibility for untaxed or seized cigarettes from the state to the manufacturers. , requiring them to buy back these products and cover their cost, which may act as a deterrent against improper distribution.
Eliminates the option for seized cigarettes to be distributed to correctional facilities. , closing a loophole where untaxed or potentially illicit tobacco could still end up in use rather than being removed from circulation.
Directs all funds from these manufacturer repurchases to the state’s general fund. , potentially providing a new, more predictable revenue stream for the state while incentivizing manufacturers to ensure compliance with tax laws.
Empowers the tax commissioner to set specific regulations for the repurchase process. , allowing flexibility in implementation and adaptation as enforcement needs or industry practices evolve.
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Who cares
Headline styles
Make Cigarette Makers Repurchase Seized Stock
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 59–1
- Ordered to third reading cal.2046
- Committee discharged and committed to rules
- Referred to investigations and government operations
- Referred to investigations and government operations
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.
Force Repurchase of Seized Cigarettes
In Assembly Committee · Ways And Means · Sponsor Steven Cymbrowitz
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6285
2017-2018 Regular Sessions
IN SENATE
May 11, 2017
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to the repurchase of untaxed or seized cigarettes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (c) of section 1846 of the tax law, as amended by chapter 556 of the laws of 2011, is amended to read as follows:
(c) [In the alternative, the tax commission may dispose of any cigarettes seized pursuant to this section, except those that violate, or are suspected of violating, federal trademark laws or import laws, by transferring them to the department of corrections and community supervision for sale to or use by inmates in such institutions.] Notwithstanding the provisions of section four hundred seventy-six of this chapter and in addition to any other penalty imposed by law, the commissioner shall require the manufacturer of untaxed or seized cigarettes to repurchase such cigarettes and pay to the commissioner an amount equal to the cost of such cigarettes as sold to a wholesaler or agent. The commissioner shall be authorized to promulgate such regulations to implement the repurchase of such untaxed cigarettes as may be necessary. All funds obtained by the commissioner as a result of such repurchase shall be paid to the general fund.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation by the commissioner of taxation and finance that are necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11722-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to the repurchase of untaxed or seized cigarettes
Purpose or general idea of bill
To increase the enforcement of New York State taxes on cigarettes shipped into the State.
Summary of provisions
Section 1 of the bill would amend Tax Law, § 1846 (c) to require manufacturers of untaxed or seized cigarettes to repurchase such cigarettes at the cost sold to wholesalers or agents. The Tax Commissioner would pay such funds to the General Fund and would be able to promulgate regulations implement the repurchase program as may be necessary. Existing language of subdivision (c) relating to transferring such cigarettes to the Department of Corrections and Community Supervision for use by inmates would be removed.
Section 2 of the bill provides for an effective date of 180th day after enactment, and provides for the promulgation of necessary regulations before such date.
Existing law
None.
Justification
Requiring cigarette manufacturers to buy-back untaxed or seized cigarettes would create a significant incentive for them to assure that all applicable State taxes are paid on cigarettes shipped into New York State. When untaxed cigarettes are forfeited, the manufacturers suffer no penalty because they have already been paid for their products. This had led to a proliferation of smuggling of cigarettes into New York to avoid the payment of the cigarette tax.
Prior legislative history
New bill.
Fiscal implications
Funds collected will be added to the State's General Fund.
Effective date
180th day after enactment, and provides for the promulgation of necessary implementing regulations before such date
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.