N.Y. Tax Law § 301-l: Refund for tax with respect to in-bulk consumer bad debt

§ 301-l. Refund for tax with respect to in-bulk consumer bad debt.

There shall be allowed to a registered petroleum business or aviation

fuel business a refund under this section for the taxes imposed by

sections three hundred one-a, three hundred one-e, and three hundred

one-j of this article for the tax paid under such sections with respect

to gallonage which is represented by a worthless debt as follows:

(a) The refund shall be allowed to a registered petroleum business or

aviation fuel business for gallonage with respect to which tax liability

for the taxes under this article is imposed on such petroleum business

or aviation fuel business where (i) such gallonage has been included in

the reports filed by such petroleum business or aviation fuel business

and all the taxes under this article with respect to such gallonage have

been paid by such business, (ii) such gallonage was sold in-bulk by such

petroleum or aviation fuel business to a purchaser for such purchaser's

own use and consumption and (iii) such sale gave rise to a debt which

became worthless, as that term is used for federal income tax purposes,

and where such debt is deducted as a worthless debt for federal income

tax purposes for the taxable year covering the month in which such

refund claim relating to such debt is filed. Provided, however, for the

purposes of this section, a sale of motor fuel and highway diesel motor

fuel to a filling station shall be deemed to be a sale in-bulk for such

filling station's own use and consumption and, provided, further, in no

event shall a worthless debt qualify with respect to the refund

hereunder where such debt arises from a retail sale at a filling station

or sale wherein product is delivered directly into the fuel tank of a

motor vehicle, airplane or other conveyance.

(b) Partial payment. Where a debt became worthless only in part due to

partial payment, the amount of the refund under this section shall be

determined by apportioning the amount of any partial payment among the

components of the total purchase price, including tax under this

article, and the amount of tax remaining unpaid after application of the

partial payment shall be the amount of the refund.

(c) Upon receipt of a claim for refund in processible form, interest

shall be allowed and paid at the overpayment rate set by the

commissioner pursuant to subdivision twenty-sixth of section one hundred

seventy-one of this chapter from the date of the receipt of the refund

claim to the date immediately preceding the date of the refund check

except no such interest shall be allowed or paid if the refund check is

mailed within ninety days of such receipt and except no interest shall

be allowed or paid if the amount thereof would be less than one dollar.

Provided, further, the refund shall be granted pro rata against sections

three hundred one-a, three hundred one-e, and three hundred one-j of

this article, as the case may be, to the same extent as represented by

the remittance of the petroleum business or aviation fuel business with

respect to the gallonage represented by the worthless debt.

(d) In addition to the applicable report and evidence of tax payment,

the commissioner may require such other evidentiary proof as the

commissioner deems appropriate to demonstrate qualification for the

refund under this section. Provided, further, that the refund of tax

allowed under this section, for purposes of the income and franchise

taxes imposed by this chapter, shall be reported in such detail as the

commissioner may direct. Moreover, notwithstanding any provision to the

contrary, all state agencies shall cooperate with the commissioner in

administering the refund authorized by this section and shall share with

such commissioner such information as the commissioner may deem

appropriate in administering the refund under this section.

(e) If there is a disallowance of a bad debt with respect to which a

refund under this section has been paid, such disallowance shall have

the effect of and be treated as a report of federal change, correction

or disallowance (as such effect and treatment is described in section

six hundred fifty-nine and subdivision three of section two hundred

eleven of this chapter) and the time to assess under this article with

respect to such disallowance shall be determined as set forth in such

sections.