N.Y. Tax Law § 434: Refunds

§ 434. Refunds. 1. Whenever the commissioner of taxation and finance

shall determine that any moneys received under the provisions of this

article were paid in error, he may cause the same to be refunded, with

interest, in accordance with such rules and regulations as he may

prescribe, except that no interest shall be allowed or paid if the

amount thereof would be less than one dollar. Such interest shall be at

the overpayment rate set by the commissioner pursuant to subdivision

twenty-sixth of section one hundred seventy-one of this chapter, or if

no rate is set, at the rate of six percent per annum, from the date when

the tax, penalty or interest to be refunded was paid to a date preceding

the date of the refund check by not more than thirty days. Provided,

however, that for the purposes of this subdivision, any tax paid before

the last day prescribed for its payment shall be deemed to have been

paid on such last day. Such moneys received under the provisions of this

article which the commissioner shall determine were paid in error, may

be refunded out of funds in the custody of the comptroller to the credit

of such taxes provided an application therefor is filed with the

commissioner within two years from the time the erroneous payment was

made.

2. (a) Whenever (A) any person, other than a distributor hereinafter

in this paragraph referred to, shall use for non-beverage purposes any

alcoholic beverages on which taxes are imposed by this article or (B) a

regularly organized church, synagogue or religious organization shall

use for sacramental purposes wine purchased by it in sealed containers

at retail, and such alcoholic beverages referred to in clause (A) or

wine referred to in clause (B) were not sold to such person or religious

organization pursuant to a retailer's license and have been, to the

satisfaction of the tax commission, included as taxable in a return made

by a distributor, such person or religious organization shall be

reimbursed the amount of the taxes thereon in the manner and subject to

the conditions hereinafter specified. Whenever any distributor shall use

for non-beverage purposes any alcoholic beverages on which he is

required to pay the taxes imposed by this article, the tax commission

may permit such distributor to report such alcoholic beverages as

nontaxable.

(b) Any person holding a license issued by the state liquor authority,

who, pursuant to such license, shall sell any alcoholic beverages, upon

which taxes imposed by this article have been paid, under such

circumstances that the state would be without power to impose the tax

under this article, or for resale under like circumstances, may secure

reimbursement for the amount of the taxes so paid in the manner and

subject to the conditions specified in this subdivision, but in a case

specified in this paragraph no refund shall be made under paragraph (a)

of this subdivision.

(c) All claims for reimbursement under this subdivision must be filed

within two years from the time of the nontaxable sale or use. Claims

shall be made, in such form and containing such information as the tax

commission shall prescribe. Claims for reimbursement under this

subdivision, approved by the tax commission, shall be paid out of the

funds deposited to the credit of the comptroller on account of the taxes

imposed by this article.

3. If an agreement under the provisions of section four hundred thirty

(extending the period for determination of tax imposed by this article)

is made within the two-year period for the filing of a claim for

reimbursement or an application for refund provided for in this section,

the period for filing a claim for reimbursement or an application for

refund shall not expire prior to six months after the expiration of the

period within which a determination may be made pursuant to the

agreement or any extension thereof.