N.Y. Tax Law § 474: Records to be kept; examination

§ 474. Records to be kept; examination. 1. Every person who shall

possess or transport any unstamped cigarettes upon the public highways,

roads or streets of the state, shall be required to have in his actual

possession invoices or delivery tickets for such cigarettes. Such

invoices or delivery tickets shall show the name and address of the

consignor or seller, the name and address of the consignee or purchaser,

the quantity and brands of the cigarettes transported, and the name and

address of the person who has or shall assume the payment of the tax.

The absence of such invoices or delivery tickets shall be prima facie

evidence that such person is a dealer in cigarettes in this state and

subject to the provisions of this article.

2. Every person who shall possess or transport more than two hundred

fifty cigars, or more than five pounds of tobacco other than

roll-your-own tobacco, or more than thirty-six ounces of roll-your-own

tobacco, or more than seventy-five units of alternative nicotine

products, upon the public highways, roads or streets of the state, shall

be required to have in their actual possession invoices or delivery

tickets for such tobacco products. Such invoices or delivery tickets

shall show the name and address of the consignor or seller, the name and

address of the consignee or purchaser, the quantity and brands of the

tobacco products transported, and the name and address of the person who

has or shall assume the payment of the tax and the wholesale price or

the tax paid or payable. The absence of such invoices or delivery

tickets shall be prima facie evidence that such person is a dealer in

tobacco products in this state and subject to the requirements of this

article.

3. Every dealer or distributor or employee thereof, or other person

acting on behalf of a dealer or distributor, who shall possess or

transport more than fifty cigars, more than one pound of tobacco, or

more than fifteen units of alternative nicotine products, upon the

public highways, roads or streets of the state, shall be required to

have in their actual possession invoices or delivery tickets for such

tobacco products. Such invoices or delivery tickets shall show the name

and address of the consignor or seller, the name and address of the

consignee or purchaser, the quantity and brands of the tobacco products

transported, and the name and address of the person who has or shall

assume the payment of the tax and the wholesale price or the tax paid or

payable. The absence of such invoices or delivery tickets shall be prima

facie evidence that the tax imposed by this article on tobacco products

has not been paid and is due and owing.

4. At the time of delivering cigarettes to any person each agent or

wholesale dealer, and at the time of delivering tobacco products to any

person each distributor or wholesale dealer of tobacco products, shall

make a true duplicate invoice showing the date of delivery, the number

of packages and number of cigarettes contained therein, in each shipment

of cigarettes delivered, and the items and quantity and wholesale price

of each item in each shipment of tobacco products delivered, and the

name of the purchaser to whom delivery is made, and shall retain the

same for a period of three years subject to the use and inspection of

the commissioner. Each dealer shall procure and retain invoices showing

the number of packages and number of cigarettes contained therein, in

each shipment of cigarettes received by him or her, and the items and

quantity and wholesale price of each item in each shipment of tobacco

products received by him or her, the date thereof, and the name of the

shipper, and shall retain the same for a period of three years subject

to the use and inspection of the commissioner. The commissioner by

regulation may provide that whenever cigarettes or tobacco products are

shipped into the state, the railroad company, express company, trucking

company or other public carrier transporting any shipment thereof shall

file with the commissioner a copy of the freight bill within ten days

after the delivery in the state of each shipment. All dealers shall

maintain and keep for a period of three years such other records of

cigarettes or tobacco products received, sold or delivered within the

state as may be required by the commissioner. The commissioner is hereby

authorized to examine the books, papers, invoices and other records of

any person in possession, control or occupancy of any premises where

cigarettes or tobacco products are placed, stored, sold or offered for

sale, and the equipment of any such person pertaining to the stamping of

cigarettes or the sale and delivery of cigarettes or tobacco products

taxable under this article, as well as the stock of cigarettes or

tobacco products in any such premises or vehicle. To verify the accuracy

of the tax imposed and assessed by this article, each such person is

hereby directed and required to give to the commissioner or his or her

duly authorized representatives, the means, facilities and opportunity

for such examinations as are herein provided for and required.

5. Every accredited college, university or hospital that receives

research tobacco products as defined in subdivision twenty of section

four hundred seventy of this article shall, in good faith, file an

annual information return on or before the last day of January reporting

all research tobacco products received by such college, university or

hospital or its affiliated researcher within the preceding calendar

year. Such return shall be in the form and shall include such

information as the commissioner prescribes by regulation. Any person

required to file an information return by this subdivision who willfully

fails to timely file such return or willfully fails to provide any

material information required to be reported on such return may be

subject to a penalty of up to one thousand dollars.