Tax Firearms and Ammunition Sales

Section 1. The tax law is amended by adding a new article 19-A to read as follows:

ARTICLE 19-A

EXCISE TAX ON FIREARMS AND AMMUNITION Section 460. Definitions.

461. Imposition of tax.

462. Registration and renewal.

463. Returns and payment of tax.

464. Records to be kept; penalties.

465. Returns to be secret.

466. Administrative provisions.

467. Enforcement.

468. Deposit and disposition of revenue.

§ 460. Definitions. For purposes of this article, the following definitions shall apply:

(a) The following terms shall have the same meaning as those terms are defined in articles two hundred sixty-five and four hundred of the penal law: "seller of ammunition", "firearm", "dealer in firearms" and "major component of a firearm".

(b) "Firearms manufacturer" means any entity licensed to manufacture firearms pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code that engages in any retail sale of a firearm or major component of a firearm to a consumer in New York.

(c) "Law enforcement agency" shall have the same meaning as set forth in section 705.00 of the criminal procedure law and shall also include any department or agency of the state or of any county, city, or other

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD10402-02-6

political subdivision thereof that employs any peace officer who is authorized to carry a firearm while on duty, or any department or agency of the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in New York that employs any police officer or criminal investigator authorized to carry a firearm while on duty.

(d) "Peace officer" shall have the same meaning as in section 2.10 of the criminal procedure law and who is authorized to carry a firearm on duty, or any police officer or criminal investigator employed by the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in New York, who is authorized to carry a firearm while on duty.

§ 461. Imposition of tax. (a) Commencing July first, two thousand twenty-six, an excise tax is hereby imposed upon licensed dealers in firearms, firearms manufacturers, and sellers of ammunition, at the rate of eleven percent of the gross receipts from the retail sale in this state of any firearm, major component of a firearm, or ammunition.

(b) (1) The provisions of this section shall not apply to retail sales of firearms, major components of firearms or ammunition to any active or retired peace officer or any law enforcement agency employing that peace officer.

(2) There are exempted from the tax imposed by this article, the gross receipts from the retail sale of any firearm, major component of a firearm, or ammunition by any licensed dealer in firearms, firearms manufacturer, or seller of ammunition in any quarterly period in which the total gross receipts from the retail sales of firearms, major components of firearms, or ammunition is less than five thousand dollars.

§ 462. Registration and renewal. (a) Every licensed dealer in firearms, firearms manufacturer, or seller of ammunition on whom tax is imposed under this article must file with the commissioner a properly completed application for a certificate of registration and obtain such certificate before engaging in business. An application for a certificate of registration must be submitted electronically, on a form prescribed by the commissioner, and must be accompanied by a non-refundable application fee as set by the commissioner. A certificate of registration shall not be assignable or transferable and shall be destroyed immediately upon such person ceasing to do business as specified in such certificate, or in the event that such business never commenced.

(b) (1) The commissioner shall refuse to issue a certificate of registration to any applicant and shall revoke the certificate of registration of any such person who does not possess a valid license under article four hundred of the penal law.

(2) The commissioner may refuse to issue a certificate of registration to any applicant where such applicant:

(i) has a past-due liability as that term is defined in section one hundred seventy-one-v of this chapter;

(ii) has had a certificate of registration under this article revoked or suspended where such revocation or suspension was in effect on the date the application was filed or ended within one year from the date on which such application was filed;

(iii) has been convicted of a crime provided for in this chapter within one year from the date on which such application was filed or the certificate was issued, as applicable;

(iv) willfully fails to file a report or return required by this article;

(v) willfully files, causes to be filed, gives or causes to be given a report, return, certificate or affidavit required by this article which is false; or

(vi) willfully fails to collect or truthfully account for or pay over any tax imposed by this article.

(3) The commissioner may revoke the certificate of registration issued to any person who:

(i) has had any license or registration provided for in this chapter revoked or suspended;

(ii) has been convicted of a crime provided for in this chapter where such conviction occurred not more than one year prior to the date of revocation;

(iii) willfully fails to file a report or return required by this article;

(iv) willfully files, causes to be filed, gives or causes to be given a report, return, certificate or affidavit required by this article which is false; or

(v) willfully fails to collect or truthfully account for or pay over any tax imposed by this article.

A person who is notified of a revocation of their certificate of registration pursuant to this paragraph shall have the right to have the revocation reviewed by the commissioner or their designee by contacting the department at a telephone number or an address to be disclosed in the notice of revocation within ten days of such person's receipt of such notification. Such person may present written evidence or argument in support of their defense to the revocation or may appear at a scheduled conference with the commissioner or their designee to present oral arguments and written and oral evidence in support of such defense. The commissioner or their designee is authorized to delay the effective date of the revocation to enable such person to present further evidence or arguments in connection with the revocation. The commissioner or their designee shall cancel the revocation of the certificate of registration if the commissioner or their designee is not satisfied by a preponderance of the evidence that a basis for revocation pursuant to this paragraph exists. An order of revocation of a certificate of registration under this paragraph shall not be reviewable by the division of tax appeals but may be reviewed pursuant to article seventy-eight of the civil practice law and rules by a proceeding commenced in the supreme court within four months of the revocation petitioning that the order of revocation be enjoined or set aside. Such proceeding shall be instituted in the county where the commissioner has their principal office. Upon the filing of such petition the court shall have jurisdiction to set aside such order of revocation, in whole or in part, or to dismiss the petition. The jurisdiction of the supreme court shall be exclusive and its order dismissing the petition or enjoining or setting aside such order, in whole or in part, shall be final, subject to review by the appellate division of the supreme court and the court of appeals in the same manner and form and with the same effect as provided by law for appeals from a judgment in a special proceeding. All such proceedings shall be heard and determined by the court and by any appellate court as expeditiously as possible and with lawful precedence over other civil matters. All such proceedings for review shall be heard on the petition, transcript and other papers, and on appeal shall be heard on the record, without requirement of printing.

(c) Where a person that does not possess a certificate of registration under this section has been determined to have possessed or sold any firearm, major component of a firearm or ammunition:

(1) The commissioner may revoke a certificate of authority issued to such person pursuant to section eleven hundred thirty-four of this chapter for a place of business where such person has been determined to have possessed for sale or to have sold firearms, major components of firearms or ammunition three or more times within a period of five years without a certificate of registration.

(2) The commissioner may refuse to issue a certificate of authority under section eleven hundred thirty-four of this chapter to a person upon whom tax is imposed under this article unless the applicant provides the commissioner with adequate documentation demonstrating that such applicant acquired the premises or business through an arm's length transaction as defined in paragraph (e) of subdivision one of section four hundred eighty-a of this chapter and that the sale or lease was not conducted, in whole or in part, for the purpose of permitting the original registrant to avoid the effect of the previous revocation for the same premises.

(d) A certificate of registration shall be valid for the period specified thereon, unless earlier suspended or revoked. Upon the expiration of the term stated on a certificate of registration, such certificate shall be null and void.

(e) Every holder of a certificate of registration must notify the commissioner of changes to any of the information stated on the certificate, or of changes to any information contained in the application for the certificate of registration. Such notification must be made on or before the last day of the month in which a change occurs and must be made electronically on a form prescribed by the commissioner.

(f) Every holder of a certificate of registration under this article shall be required to reapply prior to such certificate's expiration, during a reapplication period established by the commissioner. Such reapplication period shall not occur more frequently than every two years. Such reapplication shall be subject to the same requirements and conditions as an initial application, including grounds for refusal and the payment of the application fee.

(g) (1) The department shall notify the division of state police if, after providing notice and the opportunity for a hearing, the department has revoked the certificate of registration of a licensed firearms dealer, seller of ammunition, or firearms manufacturer for violating any provision of this article.

(2) The holder of a certificate of registration that has had their certificate revoked pursuant to this article may petition the department for reinstatement of the certificate by paying the amount of unpaid excise tax determined, together with any interest and penalties, demonstrating full compliance with the provisions of this article, and paying a fee of fifty dollars to the department for reinstatement. The department shall reinstate the certificate of registration of any revoked certificate holder that has satisfactorily complied with this subsection.

§ 463. Returns and payment of tax. (a) Every person on whom tax is imposed under this article shall, on or before the twentieth day of the month following each quarterly period ending on the last day of February, May, August, and November, respectively, file electronically with the commissioner a return on forms to be prescribed by the commissioner, showing the total amount of tax due in such quarterly period, and including such other information as the commissioner may require.

(b) Every person required to file a return under this section shall, at the time of filing such return, pay electronically to the commissioner the total amount of tax due for the period covered by such return. If a return is not filed when due, the tax shall be due on the day on which the return is required to be filed.

§ 464. Records to be kept; penalties. (a) Records to be kept. Every licensed dealer in firearms, firearms manufacturer, and seller of ammunition, on whom tax is imposed under this article shall maintain complete and accurate records in such form as the commissioner may require. Such records must be preserved for a period of three years after the filing of the return to which such records relate and must be provided to the commissioner upon request.

(b) Penalties. In addition to any other penalty provided in this article or otherwise imposed by law, every person on whom tax is imposed under this article who fails to maintain or make available to the commissioner the records required by this section is subject to a penalty not to exceed five hundred dollars for each month or part thereof for which the failure occurs. This penalty may not be imposed more than once for failures for the same monthly period or part thereof. If the commissioner determines that a failure to maintain or make available records in any month was entirely due to reasonable cause and not to willful neglect, the commissioner must remit the penalty for that month.