S 5829: Makes technical changes relating to the rescindment of certificates of authority clarifying that a failure to file a report or return relates only to the person's obligation to pay taxes.

  
  STATE OF NEW YORK ________________________________________________________________________ 5829 2025-2026 Regular Sessions  IN SENATE March 3, 2025 ___________ Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to making technical changes relating to the rescindment of certificates of authority The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (A) of paragraph 4 of subdivision (a) of 2 section 1134 of the tax law, as amended by section 2 of part P of chap- 3 ter 59 of the laws of 2021, is amended to read as follows: 4 (A) Where a person who holds a certificate of authority, and with 5 respect to only the person's obligation to pay taxes, (i) willfully 6 fails to file a report or return required by this article, (ii) willful- 7 ly files, causes to be filed, gives or causes to be given a report, 8 return, certificate or affidavit required under this article which is 9 false, (iii) willfully fails to comply with the provisions of paragraph 10 two or three of subdivision (e) of section eleven hundred thirty-seven 11 of this [article] part, (iv) willfully fails to prepay, collect, truth- 12 fully account for or pay over any tax imposed under this article or 13 pursuant to the authority of article twenty-nine of this chapter, (v) 14 fails to obtain a bond pursuant to paragraph two of subdivision (e) of 15 section eleven hundred thirty-seven of this part, or fails to comply 16 with a notice issued by the commissioner pursuant to paragraph three of 17 such subdivision, (vi) has been convicted of a crime provided for in 18 this chapter, (vii) where such person, or any person affiliated with 19 such person as such term is defined in subdivision twenty-one of section 20 four hundred seventy of this chapter, has had a retail dealer registra- 21 tion issued pursuant to section four hundred eighty-a of this chapter 22 revoked pursuant to subparagraph (iii) of paragraph (a) of subdivision 23 four of such section four hundred eighty-a, or (viii) has not obtained a 24 valid retail dealer registration under section four hundred eighty-a of 25 this chapter and such person possesses or sells unstamped or unlawfully 26 stamped packages of cigarettes three or more times within a period of 27 five years, the commissioner may revoke or suspend such certificate of 28 authority and all duplicates thereof. Provided, however, that the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08163-02-5 
 S. 5829 2 1 commissioner may revoke or suspend a certificate of authority based on 2 (a) the grounds set forth in clause (vi) of this subparagraph only where 3 the conviction referred to occurred not more than one year prior to the 4 date of revocation or suspension; and provided further that where the 5 commissioner revokes or suspends a certificate of authority based on the 6 grounds set forth in clause (vii) of this subparagraph, such suspension 7 or revocation shall continue for as long as the revocation of the retail 8 dealer registration pursuant to section four hundred eighty-a of this 9 chapter remains in effect, or (b) the grounds set forth in clause (viii) 10 of this subparagraph, such suspension or revocation shall be for a peri- 11 od of five years. 12 § 2. Subparagraph (A) of paragraph 4 of subdivision (a) of section 13 1134 of the tax law, as amended by section 2-a of part P of chapter 59 14 of the laws of 2021, is amended to read as follows: 15 (A) Where a person who holds a certificate of authority, and with 16 respect to only the person's obligation to pay taxes, (i) willfully 17 fails to file a report or return required by this article, (ii) willful- 18 ly files, causes to be filed, gives or causes to be given a report, 19 return, certificate or affidavit required under this article which is 20 false, (iii) willfully fails to comply with the provisions of paragraph 21 two or three of subdivision (e) of section eleven hundred thirty-seven 22 of this [article] part, (iv) willfully fails to prepay, collect, truth- 23 fully account for or pay over any tax imposed under this article or 24 pursuant to the authority of article twenty-nine of this chapter, (v) 25 has been convicted of a crime provided for in this chapter, (vi) where 26 such person, or any person affiliated with such person as such term is 27 defined in subdivision twenty-one of section four hundred seventy of 28 this chapter, has had a retail dealer registration issued pursuant to 29 section four hundred eighty-a of this chapter suspended or revoked 30 pursuant to subparagraph (iii) of paragraph (a) of subdivision four of 31 such section four hundred eighty-a, or (vii) has not obtained a valid 32 retail dealer registration under section four hundred eighty-a of this 33 chapter and such person possesses or sells unstamped or unlawfully 34 stamped packages of cigarettes three or more times within a period of 35 five years, the commissioner may revoke or suspend such certificate of 36 authority and all duplicates thereof. Provided, however, that the 37 commissioner may revoke or suspend a certificate of authority based on 38 (a) the grounds set forth in clause (v) of this subparagraph only where 39 the conviction referred to occurred not more than one year prior to the 40 date of revocation or suspension; and provided further that where the 41 commissioner revokes or suspends a certificate of authority based on the 42 grounds set forth in clause (vi) of this subparagraph, such suspension 43 or revocation shall continue for as long as the revocation of the retail 44 dealer registration pursuant to section four hundred eighty-a of this 45 chapter remains in effect, or (b) the grounds set forth in clause (vii) 46 of this subparagraph, such suspension or revocation shall be for a peri- 47 od of five years. 48 § 3. This act shall take effect immediately and shall apply to any and 49 all notices for rescindment issued on and after January 1, 2015; 50 provided that the amendments to subparagraph (A) of paragraph 4 of 51 subdivision (a) of section 1134 of the tax law made by section one of 52 this act shall be subject to the expiration and reversion of such 53 subparagraph pursuant to subdivision (e) of section 23 of part U of 54 chapter 61 of the laws of 2011, as amended, when upon such date the 55 provisions of section two of this act shall take effect.