§ 422. Bonds of distributors. The tax commission may require any distributor to file with the department of taxation and finance 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 the state or other security acceptable to the tax commission, in such amount as the tax commission may fix, to secure the payment of any sums due from such distributor pursuant to this article. The tax commission may require that such a bond or other security be filed before a distributor is registered, or at any time when in its 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 and may be sold by the tax commission if it becomes necessary so to do in order to recover any sums due from such distributor pursuant to this article; but no such sale shall be had until after such distributor 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 distributor.

Terms Used In N.Y. Tax Law 422

  • Distributor: when used with respect to alcoholic beverages other than liquors means any person who imports or causes to be imported into this state any such alcoholic beverages which are or will be offered for sale or used for any commercial purpose; any purchaser of warehouse receipts for such alcoholic beverages stored in a warehouse in this state who causes such beverages to be removed from such warehouse; and also any person who produces, distills, manufactures, brews, compounds, mixes or ferments any such alcoholic beverages within this state for sale, except (i) a person who manufactures, mixes or compounds such alcoholic beverages the ingredients of which consist only of alcoholic beverages on which the taxes imposed by this article have been paid, and (ii) a person who mixes or compounds such alcoholic beverages with non-alcoholic ingredients for sale and immediate consumption on the premises, who shall be a distributor only with respect to the ingredients which consist of alcoholic beverages upon which the taxes imposed by this article have not been paid. See N.Y. Tax Law 420
  • Sale: means any transfer, exchange or barter in any manner or by any means whatsoever. See N.Y. Tax Law 420