N.Y. Comp. Codes R. & Regs. Tit. 20 § 534.1 - General

(a) Basis for refunds and credits. The Tax Law, subject to the conditions and limitations provided for therein, authorizes refunds or credits for State and local sales and use taxes paid by a person:

(1) on the purchase of tangible personal property used in a specified manner (Tax Law, § 1119[a]), see section 534.3 of this Part;

(2) on the purchase of tangible personal property or services used by specified omnibus carriers to provide transit service (Tax Law, § 1119[b]), see section 534.4 of this Part;

(3) on the purchase of tangible personal property used in the performance of specified taxable services on a retail sale by a contractor (Tax Law, § 1119 [c]), see section 534.5 of this Part;

(4) on the purchase of tangible personal property by a contractor, subcontractor or repairman who was required to pay tax on the purchase by virtue of section 1101 (b)(4) of the Tax Law where the property is sold at retail by the contractor, subcontractor or repairman (Tax Law, § 1119[c]), see section 534.5 of this Part;

(5) by reason of cancelled sales and returned merchandise (Tax Law, § 1132 [e]), see section 534.6 of this Part;

(6) attributable to bad debts (Tax Law, § 1132[e]), see section 534.7 of this Part;

(7) when such taxes, and any penalty or interest thereon, have been erroneously, illegally, or unconstitutionally paid or collected (Tax Law, §1139), see section 534.8 of this Part; and

(8) on the purchase price, capitalized cost and fees and charges, or portion thereof, refunded to the consumer by a motor vehicle manufacturer pursuant to the provisions of section 198-a or 396-p (5) of the General Business Law (Tax Law, §1139 [f]), see section 534.9 of this Part.

(b) Refund or credit for taxes following action by the Department of Taxation and Finance.

(1) Allowable. A person electing to have his tax finally and irrevocably fixed under subdivision (c) of section 1138 of the Tax Law prior to the issuance of an assessment, and who has filed with the Department of Taxation and Finance a signed statement in writing consenting thereto, is entitled to apply for a refund or credit of the tax paid. (Tax Law, §§ 1138[c] and 1139[c].) See section 534.2(b)(1)(iii) of this Part for time limits on application and for the amount of the refund or credit.

(2) Not allowable.

(i) A person who has had a hearing, as provided for in section 1138 of the Tax Law, or has had an opportunity for a hearing, or has failed to avail himself of the remedies provided for in the Tax Law, is not entitled to a refund or credit of any tax, interest, or penalty paid, which had been determined to be due by the Department of Taxation and Finance. (Tax Law, §1139 [c].)

(ii) Where tax, interest, or penalty has been paid after a determination made pursuant to section 1138 of the Tax Law by the Department of Taxation and Finance, such tax, interest, or penalty may not be refunded or credited unless the Department of Taxation and Finance, after a hearing, or of its own motion, or in a proceeding under article 78 of the CPLR, finds that the determination was erroneous, illegal, or unconstitutional or otherwise improper. (Tax Law, §1139 [c].)

Notes

N.Y. Comp. Codes R. & Regs. Tit. 20 § 534.1