ÿWPCS 2v½pÍs¹…½¸Œ}m»`ð \§ßÞßó¼; ŸÍ jÖÂpH¯XêÏMdôZ9ý§—T-²n"Öç£ß¨2W O¹ê’eÈ[wjXü…oŸV¥Çò"iöIÕö”bРogò Á¨‚Æ*é;ˆ᧨Î%ïÆÛÀ8zÒ¬À ¡€ÞÓ®H<ÏJwò· Ù‹;&9B‰~²ˆèМԸ0œeà›áiغ7ŸAiàß*€út¼Ã˜ÙT¶¹œŠwØyCê™zõMæúZj&BíûiôÝ*$Q”Æv ƒP!`?yõ¸H~5A²À‚0GûgyÚÿc6ç/sR Å>ë…ÐËÌ`a+ÿlðGqu 5¦ïÌ)ŸØˆl‡E“r¸?”lÖG,áG@>’Ø×ËNC¸˜V‹!þÏn=Gd¾œí“᧠êB5£KJ˜galíȳ«%8äõ±Ú³Wlo½û þÂígU' „Ý\úörä¿2¦#À °CŠkµñmOëñãV;Ôs!õÕ-çÁJ÷UæP¬ÜÏ4hí궽–†u¬Aä!¦¦-(Qí\æL¦6ÝQÝŠÖâ¯a™ÕÐÈ2Ô 6ýN¾ ɱ+ȾÄw÷YÎä÷¯‘ #ɨUNq %¿ 0:Åbÿ^ w4+: m<˜HP LaserJet 4,û,,,,,û0(ÖÃ9 Z‹6Times New Roman RegularX(üœ$¡¡ÔUSUS.,Ô- ù-¶ˆÃ,— `£,ê:i¢×+003|xÿU‹ÿÀÀÀÝ ƒüœ!ÝÔUSUS.,ÔÝ  ÝÔ_ÔÒX°ÒÒX°ÒòòÓÓóóÑ€ÑÑ8€ãXXdìdÈ8ÑÑ  ÑÑ  ÑÓ  ÓÓ  ÓSTATE€OF€NEW€YORKÐ ° ÐÓÝÓà@â â ìàDEPARTMENT€OF€TAXATION€AND€FINANCEˆÐ ˆØ Ðà@‡ ‡ ìàCOMMISSIONER€OF€TAXATION€AND€FINANCEˆÐ `° Ðà@"ìàALBANY,€NEW€YORKˆÐ 8 ˆ Ðà ° àPursuant€to€the€authority€contained€in€subdivision€First€of€section€171,€and€section€475€(not€subdivided)€ofÐ  ` Ðthe€Tax€Law,€and€Chapter€85€of€the€Laws€of€2002,€the€Commissioner€of€Taxation€and€Finance,€at€an€open€meetingÐ è 8  Ðheld€on€even€date€with€the€signing€of€this€rule,€hereby€makes€and€adopts€as€an€emergency€measure€and€proposes€toÐ À  Ðmake€and€adopt€as€a€permanent€rule€the€following€amendments€to€the€Tobacco€Products€Tax€Regulations,€asÐ ˜è  Ðpublished€in€Article€3€of€Ô_ÔSubchapterÔ_Ô€I€of€Chapter€I€of€Title€20€of€the€Official€Compilation€of€Codes,€Rules€andÐ pÀ ÐRegulations€of€the€State€of€New€York.€Ð H˜ Ðà ° àSection€1.€€Section€89.1€of€such€regulations€is€amended€to€read€as€follows:Ð  p Ðà ° àSection€89.1€€General.€€(Tax€Law,€sections€471„b€and€471„c)€òòÐ øH Ðóóà0 ° àExcept€as€otherwise€provided€in€this€Ô_ÔSubchapterÔ_Ô€or€the€Tax€Law,€all€tobacco€products:ÐÐ °€%°€% Ðà ° à(a)€possessed€in€New€York€State€by€any€person€for€sale;€orÐ ¨ø Ðà ° à(b)€used€in€New€York€State€by€any€person;Ð €Ð Ðare€subject€to€the€tobacco€products€tax€imposed€pursuant€to€article€20€of€such€law.€€The€tobacco€products€tax€isÐ X ¨ Ðimposed€at€the€rate€of€[20]€òò37óó€percent€of€the€wholesale€price€of€the€tobacco€product.à x àÐ 0"€  Ðà ° àSection€2.€€A€new€section€89.3€is€added€to€read€as€follows:à0 p àà  àÐ$X"p€%p€% Ðà ° àSection€89.3€€Additional€tobacco€products€tax€on€inventory.€€(Tax€Law,€sections€471„b,€472,€473„a€and€475)Ð à%0!$ Ðà ° à(a)€Effective€July€2,€2002,€by€enactment€of€Chapter€85€of€the€Laws€of€2002,€section€471„b€of€article€20€ofÐ ¸'#& Ðthe€Tax€Law€increased€the€tax€on€tobacco€products€possessed€in€New€York€State€by€any€person€for€sale€from€20Ð )à$( Ðâ âpercent€to€37€percent€of€the€wholesale€price€of€such€products.€€It€is€presumed€that€all€tobacco€products€within€thisÐ h+¸&* ÐState€are€subject€to€tax€until€the€contrary€is€established,€and€the€burden€of€proving€that€any€tobacco€products€are€notÐ d Ðtaxable€shall€be€upon€the€person€in€possession€thereof.Ð <Ø Ðâ âà ° à(b)€Every€dealer€of€tobacco€products€(whether€a€wholesale€dealer€or€a€retail€dealer),€including€distributors,Ð  ° Ðshall€take€a€physical€inventory€of€all€tobacco€products€possessed€in€this€State€as€of€the€close€of€business€on€July€1,Ð ì ˆ Ð2002.€€Because€it€may€be€impossible€to€take€a€physical€inventory€of€tobacco€products€in€all€vending€machines€thatÐ Ä ` Ðare€on€location€throughout€the€State,€a€dealer€may€take€as€many€physical€inventories€of€the€contents€of€suchÐ œ8  Ðmachines€as€is€possible€with€available€personnel.€€For€those€machines€that€cannot€be€physically€inventoried€on€JulyÐ t  Ð1,€2002,€tobacco€products€may€be€accounted€for€at€one„half€of€the€normal€fill€capacities€of€such€machines,€asÐ Lè  Ðreflected€in€the€individual€inventory€records€maintained€for€such€machines.€€Ð $À Ѐ€€€€Ô_Ô(cÔ_Ô)€"Returns€and€payments."€(1)(Ô_ÔiÔ_Ô)€On€or€before€September€20,€2002,€every€such€dealer€shall€file€a€return€withÐ ü˜ Ðthe€Department€of€Taxation€and€Finance,€on€a€form€prescribed€by€the€department€for€such€purpose,€showing€theÐ Ôp Ðquantity€and€wholesale€price€of€all€such€tobacco€products€possessed€as€of€the€July€1,€2002,€inventory.€€Such€returnÐ ¬H Ðmust€reflect€the€entire€wholesale€and/or€retail€inventories€of€the€dealer€within€the€State,€as€required€by€theÐ „  Ðdepartment,€regardless€of€the€number€of€business€locations€of€the€dealer.€€Except€as€provided€in€subparagraph€(ii)Ð \ø Ðof€this€paragraph,€every€dealer€shall€pay€with€the€filing€of€such€return€an€additional€tobacco€products€tax€at€the€rateÐ 4 Ð Ðof€17€percent€of€the€wholesale€price€of€each€tobacco€product€in€such€inventory€upon€which€the€tobacco€products€taxÐ  "¨ Ðhas€been€paid€at€the€rate€of€20€percent.€€(See€paragraph€(2)€of€this€subdivision€for€information€regarding€the€retailÐ ä#€  Ðdealer€election€pertaining€to€wholesale€price.)Ð ¼%X" Ðà ° à(ii)€Notwithstanding€any€other€provision€of€€this€Title€to€the€contrary,€a€dealer€who€has€an€additional€tobaccoÐ ”'0!$ Ðproducts€tax€liability€on€inventory€may€elect€to€pay€such€tax€in€two€installments.€€The€first€installment€is€due€withÐ l)#& Ðthe€filing€of€the€return€on€or€before€September€20,€2002€and€shall€not€be€less€than€25€percent€of€the€entire€additionalÐ D+à$( Ðtobacco€products€tax€due.€€Provided,€however,€in€no€event€shall€such€installment€be€less€than€$200€or€the€entireÐ -¸&* Ðadditional€tobacco€products€tax€due,€if€less€than€$200.€€Thus,€a€dealer€having€an€additional€tobacco€products€taxÐ d Ðliability€on€inventory€of€$100€would€be€liable€for€the€full€payment€on€September€20,€2002;€a€dealer€having€such€aÐ <Ø Ðliability€of€$440€would€be€liable€for€a€first€installment€of€at€least€$200;€and€a€dealer€having€such€a€liability€of€$1,000Ð  ° Ðwould€be€liable€for€a€first€installment€of€at€least€$250€($1,000€x€25€percent).€€The€second€and€final€installment€mustÐ ì ˆ Ðbe€paid€to€the€department€on€or€before€January€20,€2003,€and€must€be€accompanied€by€a€final€payment€documentÐ Ä ` Ðprescribed€by€the€department€for€this€purpose.€€Where€the€department€has€cause€to€believe€that€the€final€installmentÐ œ8  Ðof€the€additional€tobacco€products€tax€on€inventory€may€be€jeopardized€by€delay,€the€department€may€require€suchÐ t  Ðpayment€at€any€time€prior€to€January€20,€2003.€€(See€subdivision€(e)€of€this€section€for€sanctions€concerningÐ Lè  Ðuntimely€installments.)Ð $À Ðà ° à(2)€Notwithstanding€any€other€provision€of€this€Title€and€exclusively€for€purposes€of€the€additional€tobaccoÐ ü˜ Ðproducts€tax€on€inventory€on€hand€at€the€close€of€business€on€July€1,€2002,€a€retail€dealer€may,€if€the€dealer€so€elects,Ð Ôp Ðcompute€such€tax€using€50€percent€of€the€price€at€which€the€dealer€sells€the€tobacco€products€at€retail€in€New€YorkÐ ¬H ÐState€(determined€without€regard€to€any€State€or€local€sales€taxes€imposed€by€article€28€of€the€Tax€Law€or€pursuantÐ „  Ðto€the€authority€of€article€29€of€such€law)€as€the€wholesale€price.Ð \ø Ðà ° à(3)€The€additional€tobacco€products€tax€on€inventory€and€any€applicable€installment€should€be€paid€by€checkÐ 4 Ð Ðor€money€order,€payable€to€the€Ô_ÔNYSÔ_Ô€Tobacco€Products€Tax.Ð  "¨ Ðà ° à(4)€Returns€for€payment€of€the€additional€tobacco€products€tax€on€inventory€and€final€payment€documentsÐ ä#€  Ðmay€be€obtained€from€the€Department€of€Taxation€and€Finance,€Taxpayer€Contact€Center,€W.A.€Harriman€Campus,Ð ¼%X" ÐAlbany,€New€York€12227.Ð ”'0!$ Ðà ° à(d)€On€and€after€July€2,€2002,€every€distributor€appointed€or€required€to€be€appointed€by€the€CommissionerÐ l)#& Ðof€Taxation€and€Finance€(see€section€471„b.2€of€the€Tax€Law)€shall€be€liable€for€the€payment€of€the€tax€at€the€rateÐ D+à$( Ðof€37€percent€of€the€wholesale€price€on€tobacco€products€imported€or€caused€to€be€imported€into€the€State,Ð -¸&* Ðmanufactured€in€the€State€or,€if€authorized€by€the€commissioner,€sold,€shipped,€or€delivered€to€any€person€in€theÐ d ÐState€by€such€distributor.€€However,€every€dealer€shall€be€liable€for€such€tax€on€all€tobacco€products€in€the€dealer'sÐ <Ø Ðpossession€upon€which€the€tax€has€not€been€paid€or€assumed€by€a€distributor€appointed€or€required€to€be€appointedÐ  ° Ðby€the€Commissioner€of€Taxation€and€Finance€as€evidenced€by€such€a€distributor's€invoice€or€other€proof€of€paymentÐ ì ˆ Ðor€assumption€of€tax.Ð Ä ` Ðà ° à(e)(1)€Failure€to€file€a€return€on€tobacco€product€inventory€or€to€pay€the€additional€tax€due€thereon,€or€failureÐ œ8  Ðto€comply€with€any€provision€of€this€section€or€article€20€of€the€Tax€Law€may€result€in€civil€or€criminal€sanctions,Ð t  Ðor€both.Ð Lè  Ðà ° à(2)€In€the€case€of€any€dealer€who€elects€to€pay€the€additional€tobacco€products€tax€liability€in€installments,Ð $À Ðas€described€in€subdivision€Ô_Ô(cÔ_Ô)€of€this€section,€if€the€required€first€installment€is€not€properly€paid€on€or€beforeÐ ü˜ ÐSeptember€20,€2002,€the€entire€amount€of€additional€tax€shall€be€due€and€owing,€and€any€civil€penalty€and€interestÐ Ôp Ðimposed€pursuant€to€section€481€of€the€Tax€Law€will€accrue€from€such€date€on€the€entire€tax€liability€that€remainsÐ ¬H Ðunpaid.€€Where€the€required€first€installment€is€timely€paid€but€any€portion€of€the€second€and€final€installment€is€paidÐ „  Ðafter€January€20,€2003€,€any€civil€penalty€and€interest€so€imposed€will€accrue€from€such€date€on€the€unpaid€balance.Ð \ø Ðà ° àSection€3.€€This€rule€shall€take€effect€on€July€2,€2002;€provided,€however,€section€2€of€the€rule€concerningÐ 4 Ð Ðthe€additional€tobacco€products€tax€on€inventories€shall€take€effect€on€the€date€the€Notice€of€Emergency€AdoptionÐ  "¨ Ðand€Proposal€is€filed€with€the€Department€of€State.Ð ä#€  ÐÓÓà ° àà  àà ` àà ¸ àà  àà h àà À àÌà ° àà  àà ` àà ¸ àà  àà h àà À àÌà ° àà  àà ` àà ¸ àà  àà h à____________________________________Ð ”'0!$ Ðà ° àà  àà ` àà ¸ àà  àà h àArthur€J.€€RothÐ €("% Ðà ° àà  àà ` àà ¸ àà  àà h àCommissioner€of€Taxation€and€FinanceÐ l)#& ÐÓÓÌÓ*XÈX°‚,` —X°œX*ÓÓÓDATED:à0 Ü àAlbany,€New€YorkÐ0,Ì%)Ü€%Ü€% ÐÓ5+Óà ° àà Ü àJune€17,€2002