2012 New York Consolidated Laws
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, 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 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 term "motor 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   financial   services   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.