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.