S4736-2011 Actions

• Jun 12, 2012: referred to ways and means
• Jun 12, 2012: DELIVERED TO ASSEMBLY
• Jun 12, 2012: PASSED SENATE
• Jun 12, 2012: ORDERED TO THIRD READING CAL.1192
• Jun 12, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• May 22, 2012: REPORTED AND COMMITTED TO FINANCE
• Jan 9, 2012: PRINT NUMBER 4736A
• Jan 9, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 4, 2012: returned to senate
• Jan 4, 2012: died in assembly
• Jun 21, 2011: referred to ways and means
• Jun 21, 2011: DELIVERED TO ASSEMBLY
• Jun 21, 2011: PASSED SENATE
• Jun 21, 2011: ORDERED TO THIRD READING CAL.1469
• Jun 21, 2011: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Apr 18, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S4736-2011 Meetings

S4736-2011 Calendars

S4736-2011 Votes

S4736-2011 Memo

BILL NUMBER:S4736

TITLE OF BILL:
An act
to amend the tax law, in relation to increasing the presumed "cost of
the agent" relating to cigarette marketing standards

PURPOSE:
Increases the presumed "cost to the agent" for purposes
of cigarette marketing.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends subparagraph (B) of paragraph 1 of subdivision (b)
of section 483 of the tax law, as amended by chapter 1 of the laws of
1999, to provide that the presumed cost of doing business by the
agent selling to a wholesale dealer shall increase from seven-eighths
of one percent of the basic cost of cigarettes plus two cents to
seven-eighths of one percent of the basic cost of cigarettes plus
fourteen cents for a standard pack of 20 cigarettes. For sales to
chain stores, the presumed cost of doing business shall increase from
one and one-half percent of the basic cost of cigarettes plus two
cents to one and one-half percent of the basic cost of cigarettes
plus fourteen cents for a standard pack of 20 cigarettes. For sales
to retail dealers, the presumed cost of doing business shall increase
from three and seven-eighths percent of the basic cost of cigarettes
plus two cents to three and seven-eighths percent of the basic cost
of cigarettes plus fourteen cents for a standard pack of 20 cigarettes.

Section 2: Effective date.

JUSTIFICATION:
Increased cigarette and tobacco excise taxes and the burden of
pre-payment of cigarette sales taxes, which have increased eightfold
since the inception in addition to a variety of other factors, have
caused the "presumed cost of doing business" of the tax agents to
require an adjustment of 12 cents to the 15 year old handling fee of
2 cents per pack of 20 cigarettes. This will enable the remaining tax
agents to remain in business and help secure tax collection.

Note: In each instance where a pack contains 20 cigarettes, the
increase is from two cents to fourteen cents. Where a pack contains
25 cigarettes, the handling fee is increased from two cents to
seventeen cents. Where a pack contains 10 cigarettes, the handling
fee is increased from one cent to seven cents.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
The increase in handling fees will preserve the almost Two Billion
Dollars in revenue that the Cigarette Tax Agents collect for the

State of New York every year and will ensure viability of the excise
tax collection process which has been severely damaged by the
increased costs of doing business and the loss of volume due to sales
by illegal untaxed sources. By not increasing the
handling fees, the State of New York may risk losing even more of its
Cigarette Tax Agents and thereby further deteriorate the tax
collection methodology expressed in Article 483 of the Tax Code. A
further deterioration of the tax collection process will lead to less
revenue collected and more cartons sold through illegal untaxed
Sources. Furthermore, this slight increase of 12 cents per pack of 20
cigarettes will have no effect on the amount of taxed cartons sold
within the State of New York.

EFFECTIVE DATE:
This act shall take effect July 1, 2011; provided,
however, that if this act shall not have become a law on or before
July 1, 2011, then this act shall take effect immediately and shall
be deemed to have been in full force and effect on and after July 1,
2011.

S4736-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         4736
 2011-2012 Regular Sessions
 I N  SENATE
 April 18, 2011
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
 printed to be committed to the Committee on Investigations and Govern
 ment Operations
 

AN ACT to amend the tax law, in  relation  to  increasing  the  presumed
 "cost of the agent" relating to cigarette marketing standards
 

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

 

Section 1. Subparagraph (B) of  paragraph  1  of  subdivision  (b)  of
 section 483 of the tax law, as amended by chapter 1 of the laws of 1999,
 is amended to read as follows:

 (B) In the absence of the filing with the commissioner of satisfactory
 proof  of  a lesser cost of doing business of the agent making the sale,
 the cost of doing business by the agent shall be presumed to  be  seven
 eighths  of  one  percent  of  the basic cost of cigarettes for sales to
 wholesale dealers plus [one cent] SEVEN CENTS per package of  ten  ciga
 rettes, [two] FOURTEEN cents per package of twenty cigarettes and in the
 case  of  a package containing more than twenty cigarettes, [two] SEVEN
 TEEN cents and one-half of a cent for each five cigarettes in excess  of
 twenty  cigarettes,  one and one-half percent of the basic cost of ciga
 rettes for sales to chain stores plus [one cent] SIX CENTS  per  package
 of  ten  cigarettes, [two] TWELVE cents per package of twenty cigarettes
 and in the case of a package containing  more  than  twenty  cigarettes,
 [two] SEVENTEEN cents and one-half of a cent for each five cigarettes in
 excess  of  twenty cigarettes and three and seven-eighths percent of the
 basic cost of cigarettes with respect to sales to  retail  dealers  plus
 [one  cent]  SIX CENTS per package of ten cigarettes, [two] TWELVE cents
 per package of twenty cigarettes and in the case of a package containing
 more than twenty cigarettes, [two] SEVENTEEN cents  and  one-half  of  a
 cent  for  each  five  cigarettes in excess of twenty cigarettes and the
 foregoing cents per pack shall be included in the "cost of  doing  busi
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD09473-01-1
 
       S. 4736                             2
 ness  by  the  agent"  referred  to  in paragraphs two and three of this
 subdivision.
 

S  2. This act shall take effect July 1, 2011; provided, however, that
 if this act shall not have become a law on or before July 1, 2011,  then
 this  act shall take effect immediately and shall be deemed to have been
 in full force and effect on and after July 1, 2011.

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