2010 New York Code
TAX - Tax
Article 12-A - (282 - 289-F) TAX ON GASOLINE AND SIMILAR MOTOR FUEL
283-B - Licensing of terminal operators.

§  283-b.  Licensing  of  terminal  operators.  1.  The  department of
  taxation and finance, upon the application of a person  who  operates  a
  facility  where  motor fuel is deposited, shall license such person as a
  terminal operator under this article except  as  otherwise  provided  in
  this  section.  The  application  shall  be  in  a form and contain such
  information as the department of taxation and finance  shall  prescribe.
  No  person,  unless so licensed, shall operate a terminal, except that a
  person may operate a terminal without a license if all of the motor fuel
  stored in such  facility  is  solely  for  such  person's  own  use  and
  consumption.
    2.  Where  a  person  files  an  application  for a license under this
  section and in considering such application the commissioner  ascertains
  that  (a)  any  tax imposed under this chapter or any related statute as
  defined in section eighteen hundred of this  chapter  has  been  finally
  determined  to  be due from such applicant or from any officer, director
  or partner of such applicant, shareholder directly or indirectly  owning
  more than ten percent of the number of shares of stock of such applicant
  (where  such applicant is a corporation) entitling the holder thereof to
  vote for the election of directors or trustees, or  any  shareholder  or
  employee  of  such  applicant  under a duty to act for such applicant in
  complying with any requirement of this article, and has not been paid in
  full, (b) a liability for the penalty provided for under subdivision two
  of section two hundred eighty-nine-b of this article  has  been  finally
  determined  to be due from an officer, director, shareholder directly or
  indirectly owning more than ten percent of the number of shares of stock
  of such applicant (where such applicant is a corporation) entitling  the
  holder  thereof  to  vote  for  the  election  of directors or trustees,
  employee or partner of such applicant or a shareholder of such applicant
  under a duty to act for such applicant in complying with any requirement
  of this article, and has not been paid in full, (c) such  applicant  has
  been  convicted  of  a  crime  provided  for in this chapter or has been
  convicted under the tax laws or penal laws of  any  other  state,  or  a
  political  subdivision  of  this  state  or  such other state, or of the
  United States of a criminal offense which, if committed  and  prosecuted
  in  this  state,  would  constitute  a similar crime under this chapter,
  within the preceding five years, (d) an officer, director or partner  of
  such  applicant,  a  shareholder directly or indirectly owning more than
  ten percent of the number of shares of stock of  such  applicant  (where
  such  applicant  is  a corporation) entitling the holder thereof to vote
  for the election of directors or trustees, or an employee or shareholder
  of such applicant who, as such employee or shareholder, is under a  duty
  to  act  for  such  applicant  in complying with any requirement of this
  article, has been convicted of a crime provided for in this  chapter  or
  has  been convicted under the tax laws or penal laws of any other state,
  or a political subdivision of this state or such other state, or of  the
  United  States  of a criminal offense which, if committed and prosecuted
  in this state, would constitute a  similar  crime  under  this  chapter,
  within  the  preceding  five  years,  (e) such applicant, or an officer,
  director  or  partner  of  such  applicant,  shareholder   directly   or
  indirectly owning more than ten percent of the number of shares of stock
  of  such applicant (where such applicant is a corporation) entitling the
  holder thereof to vote for the election of  directors  or  trustees,  or
  employee  or  shareholder of such applicant under a duty to act for such
  applicant in complying with any requirement of this article, who was  an
  officer,  director  or  partner  of  another  person, or who directly or
  indirectly owned more than ten percent of the number of shares of  stock
  of  another  person (where such other person is a corporation) entitling
  the holder thereof to vote for the election of directors or trustees, or

who was an employee or shareholder of another person under a duty to act
  for such other person in complying with any requirement of this  article
  at the time any tax imposed under this chapter or any related statute as
  defined  in  section  eighteen  hundred  of  this  chapter  was  finally
  determined to be due with respect from such other person and where  such
  tax  has  not  been  paid  in full, or at the time such other person was
  convicted of a crime provided for in this chapter or has been  convicted
  under  the  tax  laws  or  penal laws of any other state, or a political
  subdivision of this state or such other state, or of the  United  States
  of  a criminal offense which, if committed and prosecuted in this state,
  would  constitute  a  similar  crime  under  this  chapter,  within  the
  preceding  five  years,  or  at  the time the registration of such other
  person was cancelled or suspended pursuant to subdivision four  of  this
  section  within  the  preceding  five  years,  or at the time such other
  person committed any  of  the  acts  or  omissions  which  are,  or  was
  convicted  as,  specified in subdivision four of this section within the
  preceding five years, provided, however,  where  an  applicant  or  such
  officer,  director,  partner,  shareholder or employee of such applicant
  was only an employee of another person, the  applicable  examination  of
  tax  payment  history of such other person shall be limited to the taxes
  imposed by this article or by or pursuant  to  article  twenty-eight  or
  twenty-nine  of  this  chapter  with  respect  to  motor  fuel  and  the
  applicable examination of prior criminal convictions shall be limited to
  those which relate to motor fuel, (f) the license of such  applicant  or
  of  an  officer,  director  or  partner  of  such applicant, shareholder
  directly or indirectly owning more than ten percent  of  the  number  of
  shares   of   stock  of  such  applicant  (where  such  applicant  is  a
  corporation) entitling the holder thereof to vote for  the  election  of
  directors  or  trustees,  or  employee  or shareholder of such applicant
  under a duty to act for such applicant in complying with any requirement
  of this article has been cancelled or suspended pursuant to  subdivision
  four  of  this  section  within  the  preceding  five  years, or (g) the
  applicant,  an  officer,  director  or  partner  of  the  applicant,   a
  shareholder  directly  or indirectly owning more than ten percent of the
  number of shares of stock of such applicant (where such applicant  is  a
  corporation)  entitling  the  holder thereof to vote for the election of
  directors or trustees, or an employee or shareholder of  such  applicant
  under a duty to act for such applicant in complying with any requirement
  of  this  article, has committed any of the acts or omissions which are,
  or was convicted as, specified  in  subdivision  four  of  this  section
  within  the  preceding  five years, the commissioner may refuse to grant
  such applicant a license.
    3. The tax commission may require a terminal operator to file with the
  department of taxation and finance a bond issued  by  a  surety  company
  approved   by  the  superintendent  of  insurance  as  to  solvency  and
  responsibility and authorized to transact  business  in  this  state  or
  other  security  acceptable to the tax commission, in such amount as the
  tax commission may fix, in an amount determined in accordance with rules
  and regulations prescribed by it, to  secure  the  performance  by  such
  terminal  operator  of  the  duties  and  responsibilities  required (i)
  pursuant to this article and (ii) pursuant to articles twenty-eight  and
  twenty-nine  of  this  chapter  with  respect  to  motor  fuel.  The tax
  commission may require that such a  bond  or  other  security  be  filed
  before  a  terminal  operator is licensed, and the amount thereof may be
  increased at any time when in its judgment the  same  is  necessary.  If
  securities  are  deposited  as  security  under  this  subdivision, such
  securities shall be kept in the joint custody of the comptroller and the
  commissioner of taxation  and  finance  and  may  be  sold  by  the  tax

commission  if it becomes necessary so to do in order to recover against
  such terminal operator but no such sale shall be had  until  after  such
  terminal operator shall have had opportunity to litigate the validity of
  the  liability if it elects so to do. Upon any such sale the surplus, if
  any, above the sums due shall be returned to such terminal operator. The
  department, when authorized by  the  terminal  operator,  shall  furnish
  information  regarding  the  terminal  operator's  license and any other
  information which the terminal operator authorizes it to disclose.
    4. The license of any terminal operator may be cancelled or  suspended
  by   the  commissioner  where  a  licensee,  or  an  officer,  director,
  shareholder, employee or partner of the registrant who as such  officer,
  director,  shareholder,  employee  or partner is under a duty to act for
  such licensee or any shareholder directly or indirectly owning more than
  ten percent of the number of shares of stock of the licensee (where such
  licensee is a corporation) entitling the holder thereof to vote for  the
  election of directors or trustees of such licensee, fails to file a bond
  or other security when required or when the amount thereof is increased,
  or fails to comply with any of the provisions of this article or article
  twenty-eight  of  this chapter with respect to motor fuel or any rule or
  regulation with respect to motor fuel adopted pursuant to such  articles
  by  the  department  of  taxation and finance or by the commissioner or,
  knowingly aids  and  abets  another  person  in  violating  any  of  the
  provisions  of  such  articles  or  of  any such rule or regulation with
  respect to motor fuel, or transfers its license as a terminal  operator.
  A  license  may  also  be  cancelled  or  suspended  if the commissioner
  determines  that  a  licensee  or  an  officer,  director,  shareholder,
  employee  or  partner  of  the  licensee  who as such officer, director,
  shareholder, employee or partner  is  under  a  duty  to  act  for  such
  licensee  or any shareholder directly or indirectly owning more than ten
  percent of the number of shares of stock of  the  licensee  (where  such
  licensee  is a corporation) entitling the holder thereof to vote for the
  election of directors or trustees of such licensee:
    (i) commits fraud or deceit in his operations as a  terminal  operator
  or has committed fraud or deceit in procuring his license;
    (ii)  has  been convicted in a court of competent jurisdiction, either
  within or without  the  state,  of  a  felony,  within  the  meaning  of
  subdivision  eight  of section two hundred eighty-three of this article,
  bearing on such terminal operator's duties and  obligations  under  this
  chapter;
    (iii)  has  knowingly aided and abetted a person who is not registered
  as a distributor in the importation, production,  refining,  manufacture
  or compounding of motor fuel; or
    (iv)  has  knowingly  aided and abetted the distribution of motor fuel
  which he has knowledge of as being  imported,  caused  to  be  imported,
  produced,  refined,  manufactured  or compounded by a distributor who is
  not registered by the department of taxation and finance.
    A license may also be  cancelled  or  suspended  if  the  commissioner
  determines  that  a  licensee  or  an  officer,  director,  shareholder,
  employee or partner of the  licensee  who  as  such  officer,  director,
  shareholder,  employee  or  partner  is  under  a  duty  to act for such
  licensee or any shareholder directly or indirectly owning more than  ten
  percent  of  the  number  of shares of stock of the licensee (where such
  licensee is a corporation) entitling the holder thereof to vote for  the
  election  of  directors  or  trustees  of such licensee, was an officer,
  director, shareholder, employee or partner of another person who as such
  officer, director, shareholder, employee or partner was under a duty  to
  act  for  such  other person or was a shareholder directly or indirectly
  owning more than ten percent of the number of shares of  stock  of  such

other  person  (where  such other person is a corporation) entitling the
  holder thereof to vote for the election of directors or trustees of such
  other person at the time such other person committed any of the acts  or
  omissions  which are, or was convicted as, specified in this subdivision
  within the preceding five years.
    5. A license  shall  not  be  cancelled  or  suspended  nor  shall  an
  application  for  a  license be refused unless the licensee or applicant
  for a license has had an opportunity for a hearing,  provided,  however,
  that an application for a license may be denied without a prior hearing.
  Provided,  further,  a  license  may be cancelled or suspended without a
  prior hearing, for failure to file a return or report within ten days of
  the date prescribed for filing under this article or nonpayment  of  any
  sums due pursuant to this article or article twenty-eight or twenty-nine
  of  this  chapter  with respect to motor fuel if the licensee shall have
  failed to file such return or report or pay taxes within ten days  after
  the  date the demand therefor is sent by registered or certified mail to
  the address of the terminal operator given  in  his  application  for  a
  license,  or  an  address substituted therefor as in this subdivision. A
  license may be cancelled or suspended prior to a hearing for the failure
  to continue to maintain in full  force  and  effect  at  all  times  the
  required bond or other security filed with the tax commission. Provided,
  however,  if  a  surety  bond  is cancelled prior to expiration, the tax
  commission, after considering all the relevant circumstances,  may  make
  such  other  arrangements  and  require the filing of such other bond or
  other security as it deems appropriate. Provided, further, a license may
  be cancelled or suspended prior to a hearing for the  transfer  of  such
  license. A terminal operator shall immediately inform the department, in
  writing, of any change in its address and, if the terminal operator is a
  corporation  or  partnership,  the  terminal  operator shall immediately
  inform the department, in  writing,  of  any  change  in  its  officers,
  directors  or  partners  or  their  residence  addresses as shown in its
  application for a license.
    6. The provisions of subdivisions six, eight, nine and ten of  section
  two  hundred  eighty-three of this article shall apply to the provisions
  of this section in the same manner and with the same force and effect as
  if the language of these subdivisions had been incorporated in full into
  this section and had  expressly  referred  to  the  terminal  operator's
  license under this section, except to the extent that any such provision
  is  either  inconsistent  with  a  provision  of  this section or is not
  relevant to this section.

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