2010 New York Code
TAX - Tax
Article 13-A - (300 - 315) TAX ON PETROLEUM BUSINESSES
302 - Registration of petroleum businesses.

§   302.   Registration  of  petroleum  businesses.  (a)  Registration
  required. Each petroleum business with respect to  motor  fuel  must  be
  registered  with the department of taxation and finance as a distributor
  of motor fuel under article twelve-A of this chapter.    Each  petroleum
  business  with  respect to diesel motor fuel must be registered with the
  department of taxation and finance as a distributor of diesel motor fuel
  under article twelve-A of  this  chapter  or,  where  applicable,  as  a
  "distributor  of  kero-jet fuel only" under such article. Each petroleum
  business with respect to residual petroleum product must  be  registered
  as  a  residual petroleum product business under subdivision (b) of this
  section.  No petroleum business unless so  registered,  shall  make  any
  sale,  transfer,  use  or  other disposition of motor fuel, diesel motor
  fuel or residual petroleum product within  the  state,  except  a  sale,
  transfer, use or other disposition, if any, as to which the state cannot
  impose such condition by reason of the United States constitution and of
  laws  of  the  United States enacted pursuant thereto. No person, unless
  registered as a residual petroleum product business under this  section,
  shall (i) import or cause residual petroleum product to be imported into
  this  state,  (ii)  produce,  refine,  manufacture  or compound residual
  petroleum product within the state, or (iii)  make  a  sale  or  use  of
  residual  petroleum  product  in  the  state  other  than  a self-use of
  residual petroleum product which has been the subject of a  retail  sale
  to such person.
    (b)  Residual  petroleum  product business. The department of taxation
  and finance, upon the application of  a  corporation  or  unincorporated
  business,  shall register such corporation or unincorporated business as
  a residual petroleum product business except that  the  commissioner  of
  taxation  and finance may refuse to register an applicant for any of the
  grounds specified in subdivision two or  five  of  section  two  hundred
  eighty-three  of this chapter or in subdivision (d) of this section. The
  application shall be in such form and contain such  information  as  the
  commissioner shall prescribe. All of the provisions of subdivisions two,
  four,  five,  six,  seven,  eight,  nine  and ten of section two hundred
  eighty-three of this chapter relating to  registration  of  distributors
  shall  be  applicable  to the registration of residual petroleum product
  businesses under this section with the same force and effect as  if  the
  language  of  those  subdivisions  had been incorporated in full in this
  section and had expressly  referred  to  the  registration  of  residual
  petroleum  product  businesses and the tax imposed by this article, with
  such modification as may be necessary in order to adapt the language  of
  such   provisions   to   the   provisions  of  this  article,  provided,
  specifically, that the term "distributor" shall  be  read  as  "residual
  petroleum  product  business" and the terms "motor fuel" and "automotive
  fuel" shall be read as "residual petroleum product". Provided,  however,
  that  if  the  commissioner  is  satisfied that the requirements of such
  provisions for registration are not necessary in order  to  protect  tax
  revenues,  the  commissioner  may limit or modify such requirements with
  respect to corporations or unincorporated businesses not required to  be
  registered as distributors of motor fuel or diesel motor fuel.
    (c)  Bond  or other security. The commissioner may require a petroleum
  business to file with it 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 commissioner, in such amount as the commissioner may
  fix in an amount determined in accordance  with  rules  and  regulations
  prescribed  by  the  commissioner, to secure the payment of any sums due
  from such petroleum business pursuant to this article. The  commissioner
  may  require  that  such  a  bond  or  other  security be filed before a

petroleum  business  is  registered,  and  the  amount  thereof  may  be
  increased  at  any  time when in the commissioner's judgment the same is
  necessary as a  protection  to  the  revenues  under  this  article.  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. Such securities may be sold by the
  commissioner if it becomes necessary so to do in order  to  recover  any
  sums  due  from such petroleum business pursuant to this article, but no
  such sale shall be had until after such petroleum  business  shall  have
  had  opportunity  to litigate the validity of any tax if it elects so to
  do. Upon any such sale the surplus, if any, above  the  sums  due  under
  this  article  shall  be returned to such petroleum business. All of the
  provisions of paragraph (b) of subdivision six of  section  two  hundred
  eighty-three  of  this  chapter relating to increasing the amount of the
  bond or other security required to be filed pursuant to article twelve-A
  of this chapter shall be applicable to bonds or other security  required
  to be filed pursuant to this subdivision.
    (d)  Refusal  to  register. For the purposes of determining whether to
  refuse an application for registration under article  twelve-A  of  this
  chapter  as  a  distributor of motor fuel, diesel motor fuel or kero-jet
  fuel only  or  under  this  section  as  a  residual  petroleum  product
  business,  the  references  in  subdivision  two  of section two hundred
  eighty-three of this chapter to employees or shareholders under  a  duty
  to  file a return under or pursuant to the authority of article twelve-A
  of this chapter or pay the taxes imposed by or pursuant to the authority
  of such article on behalf of the applicant or another  person  shall  be
  deemed  to also include an employee under a duty to file a return or pay
  taxes under or pursuant to the authority of this article  on  behalf  of
  such  applicant or other person. In addition to the grounds specified in
  section two hundred eighty-three of this chapter, the  commissioner  may
  refuse  to  register an applicant as a distributor of motor fuel, diesel
  motor fuel or kero-jet fuel only or  as  a  residual  petroleum  product
  business  where  the  commissioner  ascertains  that  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 file a  return
  under  or  pursuant to the authority of this article or article twelve-A
  of this chapter or to pay the  taxes  imposed  by  or  pursuant  to  the
  authority  of this article or article twelve-A of this chapter on behalf
  of the applicant, (1) has committed any of the acts or  omissions  which
  are,  or  was convicted as, specified in subdivision (e) of this section
  within the preceding five years, or (2)  was  an  officer,  director  or
  partner of another person, or who directly or indirectly owned more than
  ten  percent  of the 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 file a return under or pursuant to the
  authority of this article or article twelve-A of this chapter or pay the
  taxes imposed by or pursuant to the authority of this article or article
  twelve-A of this chapter on behalf 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 subdivision (e) of this  section  within  the
  preceding five years.
    (e)  Cancellation  or  suspension  of  registration. The grounds for a
  cancellation or suspension of a registration under article  twelve-A  of
  this  chapter  as  a  distributor  of  motor  fuel, diesel motor fuel or

kero-jet fuel only or under this section as a residual petroleum product
  business are those grounds specified in section two hundred eighty-three
  of this chapter and, in addition to such grounds, the following  grounds
  relating to this article shall apply:
    (1)  A  registration as a distributor of motor fuel, diesel motor fuel
  or kero-jet fuel only or as a residual petroleum product business may be
  cancelled or suspended if the commissioner determines that a  registrant
  or  an  officer,  director  or  partner of the registrant, a shareholder
  directly or indirectly owning more than ten percent  of  the  number  of
  shares  of  stock  of  such  registrant  (where  such  registrant  is  a
  corporation) entitling the holder thereof to vote for  the  election  of
  directors  or trustees, or an employee or shareholder of such registrant
  under a duty to file a return under or pursuant to the authority of this
  article or article twelve-A of this chapter or to pay the taxes  imposed
  by  or  pursuant to the authority of this article or article twelve-A of
  this chapter on behalf of the registrant (A) fails to file  or  maintain
  in full force and effect a bond or other security when required pursuant
  to  subdivision  (c)  of  this  section  or  when  the amount thereof is
  increased,
    (B) fails to comply with any of the provisions of this article or  any
  rule or regulation adopted pursuant to this article by the commissioner,
    (C)  knowingly  aids  and abets another person in violating any of the
  provisions of this article or any rule or regulation adopted pursuant to
  this article by the commissioner,
    (D) transfers its registration as a  petroleum  business  without  the
  prior written approval of the commissioner,
    (E)  with  respect to a petroleum business which is a corporation, has
  been dissolved pursuant to section two hundred three-a of  this  chapter
  and subdivision (d) of section three hundred ten of this article,
    (F)  commits  fraud  or deceit in his or its operations as a petroleum
  business or has committed fraud  or  deceit  in  procuring  his  or  its
  registration,
    (G) has impersonated any person represented to be a petroleum business
  under  this article but not in fact registered as a distributor of motor
  fuel, diesel motor fuel or kero-jet fuel only or  a  residual  petroleum
  product business, or
    (H)  has  knowingly  aided and abetted the distribution of motor fuel,
  diesel motor fuel  or  residual  petroleum  product  by  corporation  or
  unincorporated business which such registrant or such other person knows
  (i)  has  not  been  registered  by the commissioner as a distributor of
  motor fuel, diesel motor fuel or kero-jet fuel only  or  as  a  residual
  petroleum  product business and (ii) is a petroleum business pursuant to
  the terms of subdivision (b) of section three hundred of this article.
    (2) A registration as a distributor of motor fuel, diesel  motor  fuel
  or kero-jet fuel only or as a residual petroleum product business may be
  cancelled  or suspended if the commissioner determines that a registrant
  or an officer, director or partner  of  the  registrant,  a  shareholder
  directly  or  indirectly  owning  more than ten percent of the number of
  shares  of  stock  of  such  registrant  (where  such  registrant  is  a
  corporation)  entitling  the  holder thereof to vote for the election of
  directors or trustees, or an employee or shareholder of such  registrant
  under a duty to file a return under or pursuant to the authority of this
  article or article twelve-A of this chapter on behalf of the registrant,
  was  an  officer,  director  or  partner  of  another  person  or  was a
  shareholder directly or indirectly owning 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  was  an employee or shareholder of another

person under a duty to file a return under or pursuant to the  authority
  of  this article or article twelve-A of this chapter or to pay the taxes
  imposed by or pursuant to the  authority  of  this  article  or  article
  twelve-A of this chapter on behalf of such other person at the time such
  other  person  committed  any  of the acts specified in paragraph one of
  this subdivision within the preceding five years.
    (f) Cancellation or suspension of registration prior to a hearing. The
  grounds for  cancelling  or  suspending  a  registration  under  article
  twelve-A  of  this  chapter as a distributor of motor fuel, diesel motor
  fuel or kero-jet fuel only or under this section as a residual petroleum
  product business prior to a hearing are those specified  in  subdivision
  five  of  section  two  hundred  eighty-three  of  this  chapter and, in
  addition to such grounds, the following grounds relating to this article
  shall apply:
    (1) the failure  to  file  a  return  within  ten  days  of  the  date
  prescribed  for  filing a return under this article or nonpayment of any
  tax due pursuant to this article if the registrant shall have failed  to
  file  such  return  or pay such taxes within ten days after the date the
  demand therefor is sent by registered or certified mail to  the  address
  of   the  distributor  or  residual  petroleum  business  given  in  its
  application,  or  an  address  substituted  therefor  as   provided   in
  subdivision five of section two hundred eighty-three of this chapter,
    (2)  the  failure  to continue to maintain in full force and effect at
  all times the bond or other security required to be  filed  pursuant  to
  subdivision  (c)  of  this  section, provided, however, that if a surety
  bond is cancelled  prior  to  expiration,  the  commissioner  may  after
  considering all the relevant circumstances make such other arrangements,
  and  may  require  the filing of such other bond or other security as it
  deems appropriate,
    (3) the transfer of a registration as a  residual  petroleum  business
  without the prior written approval of the commissioner, or
    (4)  with  respect to a petroleum business which is a corporation, the
  dissolution or annulment of such corporation pursuant to  section  three
  hundred ten of this article.