NY State Senate Bill 2019-S4367

Senate Bill S4367

2019-2020 Legislative Session

Relates to increasing the exemption from sales and use taxes for food and drink sold through any vending machine

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Archive: Last Bill Status - In Senate Committee Budget And Revenue 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 25, 2020	print number 4367a
Feb 25, 2020	amend (t) and recommit to budget and revenue
Jan 08, 2020	referred to budget and revenue
Mar 11, 2019	referred to budget and revenue

Bill Amendments

Original

A (Active)

co-Sponsors

View additional co-sponsors

2019-S4367 - Details

See Assembly Version of this Bill:: A6137
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §1115, Tax L; amd Part O §2, Chap 63 of 2000
Versions Introduced in 2017-2018 Legislative Session:: S4653, A6491

2019-S4367 - Summary

Relates to increasing the exemption from sales and use taxes for food and drink sold through any vending machine; increases the exemption to two dollars fifty cents until December 31, 2023.

2019-S4367 - Sponsor Memo

                                
 
BILL NUMBER: S4367

SPONSOR: KAPLAN
 
TITLE OF BILL:  An act to amend the tax law, in relation to increasing
the exemption from sales and use taxes for food and drink sold through
any vending machine; and to amend chapter 63 of the laws of 2000, amend-
ing the tax law relating to providing a sales or compensating use tax
exemption for certain sales of food or drink made through vending
machines, in relation to the effectiveness thereof

 
PURPOSE: OF THE BILL:

This bill would increase the exemption from sales and use taxes for food
and drink items sold through any vending machine from the current
exemption amount of $1.50 to $2.50. This exemption from sales and use
tax for food and drink items sold through any vending machine would
sunset December 31, 2023.

 
SUMMARY OF SPECIFIC PROVISIONS:

§ 1- Amends paragraph 1 of subdivision (a) of § 115 of the Tax Law to

increase the exemption from sales and use taxes for food and drink items
sold through any vending machine from the current exemption amount of
$1.50 to $2.50.

§ 2- Establishes a sunset for the provision of December 31, 2023.

§ 3-Effective date.

 
JUSTIFICATION:

In 1997, legislation was enacted that removed the state and local sales
tax from vended hot drink sales and some snack items. In 2000, legis-
lation was enacted that exempted all vended sales, including candy and
carbonated drinks, costing 75 cents or less. In 2014, that exemption was
increased from sales of 75 cents and under to sales of $1.50 and under.
This continual increase of sales tax exemption has allowed for New York
State's vending machine industry to reinvest in their businesses, thus
permitting many to acquire newer machinery to make available more New
York State based agricultural products, such as yogurt and cheese, to
consumers. This also has allowed the industry to respond to customers'
demand for more nutritious and health conscious foods and drinks. In
addition, the "Taste NY" program is bolstered by the vending machine
sales tax exemption.

This legislation would provide the vendors operating within the State of
New York the necessary financial relief they need to be competitive with
other outlets, and would preserve and promote the growth of jobs and
availability of New York State locally produced products. It would
enable some 200 vendors, mostly small businesses (about half of whom are
sole proprietor or "mom and pop" businesses), to remain in business
given the rising costs of doing business including a variety of
increased taxes.

 
PRIOR LEGISLATIVE HISTORY:

2017-2018: A.6491/S.4653.

 
FISCAL IMPLICATIONS:
A further increase from $1.50 to $2.50 is expected to cost an additional
$4 million per year.

 
EFFECTIVE DATE:
This act shall take effect immediately, provided, however, section one
of this act shall take effect on the first day of the sales tax quarter-
ly period, as described in subdivision (b) of section 1136 of the Tax
Law, beginning at least 90 days after the date this act shall have
become a law and shall apply in accordance with the applicable transi-
tional provisions of sections 1106 and 1217 of the Tax Law.

2019-S4367 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4367
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 11, 2019
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation  to  increasing  the  exemption
   from  sales  and use taxes for food and drink sold through any vending
   machine; and to amend chapter 63 of the laws of 2000, amending the tax
   law relating to providing a sales or compensating  use  tax  exemption
   for  certain  sales of food or drink made through vending machines, in
   relation to the effectiveness thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph 1 of subdivision (a) of section 1115 of the tax
 law, as amended by section 1 of part II of chapter 59  of  the  laws  of
 2014, is amended to read as follows:
   (1)  Food,  food products, beverages, dietary foods and health supple-
 ments, sold for human  consumption  but  not  including  (i)  candy  and
 confectionery, (ii) fruit drinks which contain less than seventy percent
 of  natural  fruit juice, (iii) soft drinks, sodas and beverages such as
 are ordinarily dispensed at soda fountains or  in  connection  therewith
 (other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol-
 ic  beverages,  all  of  which  shall be subject to the retail sales and
 compensating use taxes, whether or not the item is sold in liquid  form.
 The  food  and  drink excluded from the exemption provided by this para-
 graph under subparagraphs (i), (ii) and (iii) of this paragraph shall be
 exempt under this paragraph when sold for [one dollar and  fifty  cents]
 TWO  DOLLARS  AND  FIFTY CENTS or less through any vending machine acti-
 vated by the use of coin, currency, credit card or debit card. With  the
 exception  of the provision in this paragraph providing for an exemption
 for certain food or drink sold for [one  dollar  and  fifty  cents]  TWO
 DOLLARS AND FIFTY CENTS or less through vending machines, nothing herein
 shall be construed as exempting food or drink from the tax imposed under
 subdivision (d) of section eleven hundred five of this article.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08908-02-9

 S. 4367                             2
 
   §  2.  Section 2 of part O of chapter 63 of the laws of 2000, amending
 the tax law relating to  providing  a  sales  or  compensating  use  tax
 exemption  for  certain  sales  of  food  or  drink made through vending
 machines, is amended to read as follows:
   §  2.  This act shall take effect September 1, 2000 and shall apply to
 sales made and uses occurring on and after such date, although  made  or
 occurring  under  a  prior  contract;  PROVIDED, HOWEVER, THIS ACT SHALL
 EXPIRE AND BE DEEMED REPEALED DECEMBER 31, 2023.
   § 3. This  act  shall  take  effect  immediately,  provided,  however,
 section  one of this act shall take effect on the first day of the sales
 tax quarterly period, as described in subdivision (b) of section 1136 of
 the tax law, beginning at least 90 days after the date  this  act  shall
 have  become  a  law  and  shall apply in accordance with the applicable
 transitional provisions of sections 1106 and 1217 of the tax law.

co-Sponsors

View additional co-sponsors

2019-S4367A (ACTIVE) - Details

See Assembly Version of this Bill:: A6137
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §1115, Tax L; amd Part O §2, Chap 63 of 2000
Versions Introduced in 2017-2018 Legislative Session:: S4653, A6491

2019-S4367A (ACTIVE) - Summary

Relates to increasing the exemption from sales and use taxes for food and drink sold through any vending machine; increases the exemption to two dollars fifty cents until December 31, 2023.

2019-S4367A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4367A

SPONSOR: KAPLAN
 
PURPOSE:

This bill would increase the exemption from sales and use taxes for food
and drink items sold through any vending machine from the current
exemption amount of $2.00 to $2.50. This exemption from sales and use
tax for food and drink items sold through any vending machine would
sunset December 31, 2023.

 
SUMMARY OF SPECIFIC PROVISIONS:

§ 1- Amends paragraph 1 of subdivision (a) of § 1115 of the Tax Law to
increase the exemption from sales and use taxes for food and drink items
sold through any vending machine from the current exemption amount of
$2.00 to $2.50 through December 31, 2023.

§ 2- Effective date.

 
JUSTIFICATION:

In 1997, legislation was enacted that removed the state and local sales
tax from vended hot drink sales and some snack items. In 2000, legis-
lation was enacted that exempted all vended sales, including candy and
carbonated drinks, costing 75 cents or less. In 2014, that exemption was
increased from sales of 75 cents and under to sales of $1.50 and under.
In 2019, that exemption was increased from sales of $1.50 and under to
$2.00 and under. This continual increase of sales tax exemption has
allowed for New York State's vending machine industry to reinvest in
their businesses, thus permitting many to acquire newer machinery to
make available more New York State based agricultural products, such as
yogurt and cheese, to consumers. This also has allowed the industry to
respond to customers' demand for more nutritious and health conscious
foods and drinks. In addition, the "Taste NY" program is bolstered by
the vending machine sales tax exemption.

This legislation would provide the vendors operating within the State of
New York the necessary financial relief they need to be competitive with
other outlets, and would preserve and promote the growth of jobs and
availability of New York State locally produced products. It would
enable some 200 vendors, mostly small businesses (about half of whom are
sole proprietor or "mom and pop" businesses), to remain in business
given the rising costs of doing business including a variety of
increased taxes.

 
PRIOR LEGISLATIVE HISTORY:

2017-2018: A.6491/S.4653.

 
FISCAL IMPLICATIONS:

A further increase from $1.50 to $2.50 is expected to cost an additional
$4 million per year.

 
EFFECTIVE DATE:
This act shall take effect immediately, provided, however, section one
of this act shall take effect on the first day of the sales tax quarter-
ly period, as described in subdivision (b) of section 1136 of the Tax
Law, beginning at least 90 days after the date this act shall have
become a law and shall apply in accordance with the applicable transi-
tional provisions of sections 1106 and 1217 of the Tax Law.

2019-S4367A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4367--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 11, 2019
                                ___________
 
 Introduced  by  Sens.  KAPLAN,  ADDABBO, AKSHAR, BAILEY, BOYLE, BRESLIN,
   BROOKS, CARLUCCI,  COMRIE,  GAUGHRAN,  GOUNARDES,  HARCKHAM,  HELMING,
   KAMINSKY,  LANZA,  RANZENHOFER,  SANDERS,  SAVINO,  SEPULVEDA, SEWARD,
   SKOUFIS, THOMAS -- read twice and ordered printed, and when printed to
   be committed to the Committee on Budget and Revenue -- recommitted  to
   the  Committee on Budget and Revenue in accordance with Senate Rule 6,
   sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
   amended and recommitted to said committee
 
 AN  ACT  to  amend  the tax law, in relation to increasing the exemption
   from sales and use taxes for food and drink sold through  any  vending
   machine
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subdivision (a) of section 1115 of  the  tax
 law,  as  amended  by section 1 of part CCC of chapter 59 of the laws of
 2019, is amended to read as follows:
   (1) (A) Food, food  products,  beverages,  dietary  foods  and  health
 supplements,  sold for human consumption but not including (i) candy and
 confectionery, (ii) fruit drinks which contain less than seventy percent
 of natural fruit juice, (iii) soft drinks, sodas and beverages  such  as
 are  ordinarily  dispensed  at soda fountains or in connection therewith
 (other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol-
 ic beverages, all of which shall be subject  to  the  retail  sales  and
 compensating  use taxes, whether or not the item is sold in liquid form.
 Nothing in this subparagraph shall be construed  as  exempting  food  or
 drink  from  the  tax  imposed  under  subdivision (d) of section eleven
 hundred five of this article.
   (B) Until [May thirty first, two thousand twenty-one]  DECEMBER  THIR-
 TY-FIRST,  TWO  THOUSAND  TWENTY-THREE, the food and drink excluded from
 the exemption provided by clauses (i), (ii) and  (iii)  of  subparagraph
 (A)  of  this  paragraph,  and bottled water, shall be exempt under this

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08908-04-0

 S. 4367--A                          2
 
 subparagraph when sold for [one dollar and fifty cents] TWO DOLLARS  AND
 FIFTY  CENTS  or  less  through any vending machine that accepts coin or
 currency only or when sold for two  dollars  AND  FIFTY  CENTS  or  less
 through  any vending machine that accepts any form of payment other than
 coin or currency, whether or not it also accepts coin or currency.
   § 2.   This act shall  take  effect  immediately,  provided,  however,
 section  one of this act shall take effect on the first day of the sales
 tax quarterly period, as described in subdivision (b) of section 1136 of
 the tax law, beginning at least 90 days after the date  this  act  shall
 have  become  a  law  and  shall apply in accordance with the applicable
 transitional provisions of sections 1106 and 1217 of the tax law.

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Senate Bill S4367

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Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Bill Amendments

co-Sponsors

2019-S4367 - Details

2019-S4367 - Summary

2019-S4367 - Sponsor Memo

2019-S4367 - Bill Text download pdf

co-Sponsors

2019-S4367A (ACTIVE) - Details

2019-S4367A (ACTIVE) - Summary

2019-S4367A (ACTIVE) - Sponsor Memo

2019-S4367A (ACTIVE) - Bill Text download pdf

Comments