NY S00582

Requires the New York Department of Taxation and Finance to implement an enhanced encrypted tax stamp system for cigarettes and tobacco products to improve tax collection and prevent evasion.

Stamps or markers must be encrypted to identify the licensed stamping agent's name and address, the date of affixing, and the denominated value of the stamp.

Stamps must incorporate a minimum of four layers of overt, semi-covert, and covert data; be produced in a secure certified facility; and be readable and traceable by scanning devices used by state enforcement agents.

Licensed wholesale dealers must bear the initial cost and ongoing maintenance expenses for implementing the enhanced tax collection system.

The Department of Taxation and Finance must issue a request for proposals within 60 days, award a contract within 90 days of receiving bids, and complete system installation within 180 days of contract issuance.