2005 Rule reviews

Pursuant to section 207 of the State Administrative Procedure Act (SAPA) the Department of Taxation and Finance must review all regulations adopted on or after January 1, 1997, after five years, and, thereafter, at five year intervals. In 2005, the Department must review regulations that were adopted during 2000 to determine whether these regulations should be retained as written or modified. Accordingly, the Department intends to review the following regulations during 2005, and invites written comments on the continuation or modification of these regulations in order to assist the Department in the required review. We will consider comments that are received by February 22, 2005. Any questions concerning the items listed in this rule review or comments regarding the continuation of the rules being reviewed should be referred to: Office of Counsel, Department of Taxation and Finance, W.A. Harriman Campus, Building 9, Room 200, Albany, New York 12227. Telephone: (518) 530-4153, Email address: tax.regulations@tax.ny.gov.

Agenda items

• 20 NYCRR Sections 75.1(f) (Agent's cigarette tax returns) and 75.5(a)(1) (Records to be kept by agents and others)
• 20 NYCRR Section 201.1 (Verification of income)
• 20 NYCRR Parts 70, 74, 79, 80 and 82 (New York Health Care Reform Act of 2000)
• 20 NYCRR Section 541.7 (Trash and debris removal)
• 20 NYCRR Section 4-4.2 (Allocation - Dock Sales)
• 20 NYCRR Section 60.1 (Returns and payments of tax on alcoholic beverages)
• 20 NYCRR Section 158.12 (Federal Preparer ID Numbers)

20 NYCRR Sections 75.1(f) (Agent's cigarette tax returns) and 75.5(a)(1) (Records to be kept by agents and others)

20 NYCRR Sections 75.1(f) (Agents cigarette tax returns) and 75.5(a)(1) (Records to be kept by agents and others) Filed November 12, 1999; published December 1, 1999; effective November 12, 1999 (emergency adoption).  Filed January 20, 2000; published/effective February 9, 2000 (permanent adoption).  Need: These regulations were amended to implement requirements imposed upon the Department of Taxation and Finance by provisions of the then newly enacted Tobacco Escrow Funds Act (Public Health Law, Article 13-G).  The enactment of this legislation was necessary so that New York State could meet certain obligations pursuant to the "Master Settlement Agreement" (entered into on November 23, 1998, by leading United States tobacco product manufacturers and forty‑six states, including New York), thereby ensuring that New York would receive its apportioned amount of certain payments made pursuant to the Agreement by the tobacco product manufacturers participating in the Agreement.  The Act required this department to promulgate regulations necessary to ascertain the amounts of State excise taxes paid on the cigarettes sold within the State of tobacco product manufacturers each year.  Legal Basis: Tax Law sections 171, subd. First; 475 (not subdivided); Public Health Law, section 1399-oo, subd. (10); and L. 1999, ch. 536. (TAF-48-99-00001-A)

20 NYCRR Section 201.1 (Verification of income)

20 NYCRR Section 201.1 (Verification of income) Filed January 20, 2000; published/effective February 9, 2000.  Need: These regulations were amended to change the provisions applicable to the information contained in responses by the Department to the Division of Housing and Community Renewal (DHCR) concerning requests for verification of income of certain tenants residing in rent regulated housing, as well as reflecting the statutory reduction in the related income threshold from $250,000 to $175,000.    Legal Basis: Tax Law, sections 171, subd. First; 171-b(3)(a) and (b). (TAF-48-99-00022-A)

20 NYCRR Parts 70, 74, 79, 80 and 82 (New York Health Care Reform Act of 2000)

20 NYCRR Parts 70, 74, 79, 80 and 82 (New York Health Care Reform Act of 2000) Filed February 29, 2000; published March 15, 2000; effective February 29, 2000 (emergency adoption).  Filed May 3, 2000; published/effective May 24, 2000 (permanent adoption).  Need: These regulations were amended to reflect the statutory increase in the rate of New York State cigarette excise tax that was effective on March 1, 2000; to provide for commissions allowable to cigarette tax agents based upon the face value of cigarette tax stamps as of March 1, 2000; to effectuate the floor tax on cigarettes and unaffixed stamps in inventory as of the close of business on February 29, 2000; to reflect statutory changes to an agent's presumed cost of doing business; to reflect such changes in the various regulatory illustrations outlining the minimum prices at which cigarettes may be sold; and to more realistically reflect the basic cost of cigarettes in the cigarette marketing standards illustrations.  (It is noted that portions of the subject regulations were subsequently amended based on Chapters 1 and 93 of the Laws of 2002, affecting both the New York State [TAF-13-02-00010-A] and the New York City [TAF-37-02-00005-A] rates of tax, respectively.)  Legal Basis: Tax Law sections 171, subd. First; 475 (not subdivided); and L. 1999, ch. 1. (TAF-11-00-00007-A)

20 NYCRR Section 541.7 (Trash and debris removal)

20 NYCRR Section 541.7 (Trash and debris removal) Filed June 12, 2000; published June 28, 2000; effective September 1, 2000.  Need: This regulation was amended to authorize a contractor to purchase a trash and debris removal service exempt from sales tax as a purchase for resale when such service is an integral part of maintaining, servicing, or repairing real property by the contractor and includes conditions under which such service qualifies for the exemption.  The amendments also clarified that neither the contractor nor the customer is liable for tax when such a service is purchased by the contractor in conjunction with the construction, demolition, or rehabilitation of real property in the performance of a capital improvement.  Legal Basis: Tax Law sections 171, subd. First; 1142(1) and (8); and 1250 (not subdivided). (TAF-16-00-00002-A)

20 NYCRR Section 4-4.2 (Allocation - Dock Sales)

20 NYCRR Section 4-4.2 (Allocation - Dock Sales) Filed July 12, 2000; published/effective August 2, 2000.  Need: This regulation responded to taxpayer concerns and changing business practices by providing a more reasonable approach to allocating receipts from the sale of tangible personal property.  The regulation sets forth a destination rule for the allocation of dock sale receipts. Legal Basis: Tax Law sections, 171, subd. First; 210(3)(a)(2); and 1096(a). (TAF-21-00-00001-A)

20 NYCRR Section 60.1 (Returns and payments of tax on alcoholic beverages)

20 NYCRR Section 60.1 (Returns and payments of tax on alcoholic beverages) Filed September 20, 2000; published October 11, 2000; effective for calendar years that began on and after January 1, 2001. Need: This regulation was amended to allow certain distributors that are micro-brewers or restaurant-brewers to file annual, rather than monthly, alcoholic beverage tax returns. Legal Basis: Tax Law sections 171, subd. First; 429(1); and 436 (not subdivided). (TAF-31-00-00002-A)

20 NYCRR Section 158.12 (Federal Preparer ID Numbers)

20 NYCRR Section 158.12 (Federal Preparer ID Numbers) Filed October 25, 2000; published/effective November 15, 2000.  Need: This regulation extended the federal option to individual paid preparers to use federally assigned Preparer Tax Identification Numbers instead of social security numbers when an individual identifying number of a paid preparer is required on New York State income tax returns that they prepare. Legal Basis: Tax Law, sections 171, subd. First; 658(g)(1) and (2); and 697(a). (TAF-36-00-00003-A)