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STATE OF NEW YORK
________________________________________________________________________

9085--A

IN ASSEMBLY

January 20, 2012
___________

Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
  tee  on  Ways  and  Means -- reported and referred to the Committee on
  Codes -- committee discharged,  bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

AN  ACT to amend the tax law and the executive law, in relation to roll-
  your-own cigarette machines

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Subdivision 1 of section 470 of the tax law, as amended by
section  14  of part D of chapter 134 of the laws of 2010, is amended to
read as follows:
  1. "Cigarette." Any roll for smoking made wholly or in part of tobacco
or of any other substance, irrespective of size or shape and whether  or
not such tobacco or substance is flavored, adulterated or mixed with any
other  ingredient, the wrapper or cover of which is made of paper or any
other substance or material but is not made  in  whole  or  in  part  of
tobacco,  INCLUDING  ANY  SUCH  ROLL MADE BY OR WITH THE ASSISTANCE OF A
MACHINE LOCATED AT A RETAIL ESTABLISHMENT  IN  WHICH  CASE  SUCH  RETAIL
ESTABLISHMENT SHALL BE DEEMED THE SELLER OF SUCH CIGARETTES.
  S  2.  The tax law is amended by adding a new section 473-c to read as
follows:
  S 473-C. FACILITATION OF THE PRODUCTION OF CIGARETTES. A RETAIL ESTAB-
LISHMENT THAT MAKES AVAILABLE A MACHINE TO ENABLE ANY PERSON TO  PROCESS
AT  THAT  ESTABLISHMENT INDEPENDENT COMPONENTS INTO A CIGARETTE PURSUANT
TO SECTION FOUR HUNDRED SEVENTY OF THIS ARTICLE,  OR  PARAGRAPH  (A)  OF
SUBDIVISION  ONE OF SECTION ONE HUNDRED FIFTY-SIX-C OF THE EXECUTIVE LAW
IS HEREBY DETERMINED TO BE FACILITATING THE  PRODUCTION  OF  CIGARETTES,
AND  AS  SUCH  SHALL  PAY  BY  RETURN THE TAX IMPOSED UNDER SECTION FOUR
HUNDRED SEVENTY-ONE OF THIS ARTICLE ON THE CIGARETTES PROCESSED AT  SUCH
ESTABLISHMENT,  SHALL MAKE ESCROW PAYMENTS PURSUANT TO THE PROVISIONS OF
SECTION THIRTEEN HUNDRED NINETY-NINE-PP OF THE PUBLIC  HEALTH  LAW.  THE
DEPARTMENT  SHALL  PROMULGATE  REGULATIONS  THAT  PROVIDE  FOR  A CREDIT
AGAINST THE TAXES OWED UNDER SECTION FOUR HUNDRED  SEVENTY-ONE  OF  THIS
ARTICLE,  IF  A  RETAIL ESTABLISHMENT DESCRIBED IN THIS SECTION PROVIDES

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14076-02-2
A. 9085--A                          2

EVIDENCE THAT THE TOBACCO USED TO MAKE THE CIGARETTES HAS  ALREADY  BEEN
SUBJECT TO TAX UNDER SECTION FOUR HUNDRED SEVENTY-ONE-B OF THIS ARTICLE.
  S  3.  Paragraph  a of subdivision 1 of section 156-c of the executive
law, as added by chapter 284 of the laws of 2000, is amended to read  as
follows:
  a. When used in this section, the word "cigarette" shall mean any roll
for smoking made wholly or in part of tobacco or of any other substance,
irrespective  of  size  or  shape  and  whether  or  not such tobacco or
substance is flavored, adulterated or mixed with any  other  ingredient,
the wrapper or cover of which is made of paper or any other substance or
material  except  tobacco,  INCLUDING  ANY SUCH ROLL MADE BY OR WITH THE
ASSISTANCE OF A MACHINE LOCATED AT A RETAIL ESTABLISHMENT IN WHICH  CASE
SUCH RETAIL ESTABLISHMENT SHALL BE DEEMED THE SELLER OF SUCH CIGARETTES.
  S 4. This act shall take effect on July 1, 2012.