NY State Senate Bill 2017-S7396

Senate Bill S7396

2017-2018 Legislative Session

Relates to the amount of credit for cider, wine, and liquor under the alcoholic beverage production credit

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 06, 2018	reported and committed to finance
Jan 12, 2018	referred to investigations and government operations

Votes

- Feb 6, 2018 - Investigations And Government Operations Committee Vote
  S7396
  
  9
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Investigations And Government Operations Committee Vote: Feb 6, 2018
      
      aye (9)
      
      Benjamin
      
      Carlucci
      
      Golden
      
      Hoylman-Sigal
      
      Kavanagh
      
      Lanza
      
      Murphy
      
      O'Mara
      
      Phillips

co-Sponsors

View additional co-sponsors

2017-S7396 (ACTIVE) - Details

See Assembly Version of this Bill:: A8996
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §37, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S246, A6485
2021-2022: S3972, A3487
2023-2024: S3496, A1947

2017-S7396 (ACTIVE) - Summary

Relates to the amount of credit for cider, wine, and liquor produced in NYS under the alcoholic beverage production credit; provides parity with beer credit based on the taxes for cider, wine, and liquor.

2017-S7396 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7396

SPONSOR: FUNKE
 
TITLE OF BILL:

An act to amend the tax law, in relation to the amount of credit for
cider, wine, and liquor under the alcoholic beverage production credit

 
PURPOSE:

An act to amend the tax law, in relation to the amount of credit for
cider, wine, and liquor under the alcoholic beverage production credit.

 
SUMMARY OF SPECIFIC PROVISIONS:

 
SECTION 1:

Maintains the credit amount for:

For the first 500,000 gallons of:

i. beer produced in this state in the taxable year, the credit shall
equal 14 cents per gallon.

Updates the credit amount for the following:

For the first 500,000 gallons of:

ii. Cider, artificially carbonated sparkling cider, and natural sparkl-
ing cider, containing more than three and two-tenths per centum of alco-
hol by volume produced in this state in the taxable year, the credit
shall equal 3.79 cents per gallon;

iii. Still wine, artificially carbonated sparkling wine, and natural
sparkling wine produced in this state in the taxable year, the credit
shall equal 0.30 cents per gallon;

iv. Liquors containing not more than 24% of alcohol by volume produced
in this state in the taxable year, the credit shall equal 2.54 cents per
gallon;

v. Liquors containing not more than 2% of alcohol by volume produced in
this state in the taxable year, the credit shall equal 0.04 cents per
gallon;

vi. All other liquors produced in this state in the taxable year, the
credit shall equal 6.44 cents per gallon.

 
JUSTIFICATION:

In 2016, the Alcoholic Beverage Production Tax Credit was extended to
include cider, wine, and spirits. By extending the current beer credit
(14 cents) to all industries, an inequity occurred resulting in differ-
ent tax credit amounts being given to the different distillers. When
extending the credit, the precise tax paid by spirit distillers Was not
considered nor was there any adjustment made to reflect an equal credit
distribution across industries.


Due to this, the 14 cents a gallon credit is 100% of the taxes for beer
but only accounts for about 2% of the tax for Spirits. This inequity
leaves small businesses at an unfair disadvantage. The bill would amend
the credit to create equity and parity among the different beverage
industries. New York state has experienced a surge in the distilling
industry - going from 11 distillers in 2011 to 148 in 2017. This
increase in the Spirits industry has not been accounted for in the
current credit they receive.

 
LEGISLATIVE HISTORY:

New Legislation

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2018.

2017-S7396 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7396
 
                             I N  S E N A T E
 
                             January 12, 2018
                                ___________
 
 Introduced  by  Sens.  FUNKE, AMEDORE, GALLIVAN, LARKIN, RITCHIE -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Investigations and Government Operations
 
 AN  ACT  to  amend  the tax law, in relation to the amount of credit for
   cider, wine, and liquor under the alcoholic beverage production credit

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  1  of subdivision (b) of section 37 of the tax
 law, as amended by section 1 of part V of chapter  60  of  the  laws  of
 2016, is amended to read as follows:
   (1) for the first five hundred thousand gallons of:
   I. beer[, cider, wine or liquor] produced in this state in the taxable
 year, the credit shall equal fourteen cents per gallon; [and]
   II.  CIDER, ARTIFICIALLY CARBONATED SPARKLING CIDER, AND NATURAL SPAR-
 KLING CIDER, CONTAINING MORE THAN THREE AND  TWO-TENTHS  PER  CENTUM  OF
 ALCOHOL BY VOLUME PRODUCED IN THIS STATE IN THE TAXABLE YEAR, THE CREDIT
 SHALL EQUAL THREE AND SEVENTY-NINE HUNDREDTHS CENTS PER GALLON;
   III.  STILL  WINE, ARTIFICIALLY CARBONATED SPARKLING WINE, AND NATURAL
 SPARKLING WINE PRODUCED IN THIS STATE IN THE TAXABLE  YEAR,  THE  CREDIT
 SHALL EQUAL THIRTY CENTS PER GALLON;
   IV. LIQUORS CONTAINING NOT MORE THAN TWENTY-FOUR PER CENTUM OF ALCOHOL
 BY  VOLUME  PRODUCED IN THIS STATE IN THE TAXABLE YEAR, THE CREDIT SHALL
 EQUAL TWO AND FIFTY-FOUR HUNDREDTHS CENTS PER GALLON;
   V. LIQUORS CONTAINING NOT MORE THAN  TWO  PER  CENTUM  OF  ALCOHOL  BY
 VOLUME  PRODUCED  IN  THIS  STATE  IN THE TAXABLE YEAR, THE CREDIT SHALL
 EQUAL FOUR CENTS PER GALLON;
   VI. ALL OTHER LIQUORS PRODUCED IN THIS STATE IN THE TAXABLE YEAR,  THE
 CREDIT SHALL EQUAL SIX AND FORTY-FOUR HUNDREDTHS CENTS PER GALLON; AND
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13780-02-7

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