Tobacco

Battle Is Not Over'

Suit succeeds in winning temporary restraining order barring retail tobacco fees
ALBANY, N.Y. -- In a lawsuit filed by five retail trade associations, New York State Supreme Court Justice Thomas Feinman on Wednesday issued a temporary restraining order barring the state Tax Department from implementing, for now, the increase in retail tobacco registration fees, said Jim Calvin, president of the New York Association of Convenience Stores (NYACS).

This court victory permits retailers to file their 2010 registration renewal forms with the Tax Department with payment of the old fee of $100 per store; however, this is only a temporary ruling, and if the court [image-nocss] ultimately rules differently, they would then have to pay the higher fee.

Co-plaintiffs in the court action against Governor David Paterson were NYACS, the New York State Association of Service Stations & Repair Shops, Long Island Gasoline Retailers Association, Service Station Dealers of Greater New York and the United 7-Eleven Franchise Owners of Long Island & New York, with backing from Harold Levinson Associates and 7-Eleven Inc. Their attorneys are the Long Island firm of Forchelli, Curto, Deegan, Schwartz, Mineo, Cohn & Terrana.

"The restraining order is in effect pending a court decision on our motion for a preliminary injunction. We do not know how long it will take for the court to decide this, but our attorneys expect it will be sometime after December," said Calvin in a statement provided to CSP Daily News. "Therefore, the battle is not over, but for the moment, retailers can breathe a temporary sigh of relief. Wednesday's ruling also buys time for retailers to lobby the state legislature to pass a NYACS-backed bill that would roll back the fee hike to a more reasonable level."

Attorneys for the trade associations advise that retailers should now proceed with filing the State Department of Taxation & Finance Form DTF-719-MN, known as Renewal Application for the Registration of Retail Dealers & Vending Machines for Sales of Cigarettes & Tobacco Products, with payment of the $100-per-store flat fee by next Monday's September 21 deadline, said Calvin.

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