2010 New York Code
TAX - Tax
Article 13-A - (300 - 315) TAX ON PETROLEUM BUSINESSES
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 and tax
  surcharge imposed by sections three hundred one-a, three hundred  one-e,
  three  hundred one-g 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 enhanced 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, three hundred one-g 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.