Sales of Cigarettes on Indian Reservations I.D. No. TAF-27-10-00013-E
This regulatory impact statement, regulatory flexibility analysis, rural area flexibility analysis and/or job impact statement pertain(s) to a notice
NYS Register/July 21, 2010 Rule Making Activities of emergency rule making, I.D. No. TAF-27-10-00013-E, printed in the State Register on July 7, 2010.
Regulatory Impact Statement
1. Statutory authority: Tax Law, sections 171, subdivision First; 471, subdivisions (1), (4), and (5); 471 e; and 475 (not subdivided). Section 171, subdivision First provides general authority for the Commissioner of Taxation and Finance to make reasonable rules and regulations that may be necessary for the exercise of the Commissioner's powers and the performance of his or her duties under the Tax Law. Section 471(1) imposes the tax on cigarettes, including all cigarettes sold on an Indian reservation to non-members of the Indian nation or tribe and to non-Indians, and provides for a dual system to ensure that adequate quantities of stamped but tax exempt cigarettes are available for purchase by the nation or tribe and its members for their use or consumption based on their probable demand. Section 471-e establishes the "Indian tax exemption coupon system" which Indian nations or tribes may elect to participate in to obtain such tax exempt cigarettes. Section 471(5) provides that for any year that this election is not made, the "prior approval" system will be used. Section 471(4) provides that cigarette stamping agents must provide their suppliers and the department with a certification, under penalty of perjury, that cigarettes will not be resold in violation of Article 20 of the Tax Law, which imposes the cigarette tax. Section 475 authorizes the Commissioner specifically to administer the tax on cigarettes imposed under Article 20 of the Tax Law.
9. Federal standards: This rule does not exceed any minimum standards of the federal government for the same or similar subject areas.
10. Compliance schedule: The rule took effect on June 22, 2010, the date that the Notice of Emergency Adoption was filed, and applies to all cigarettes sold on or after September 1, 2010.