NY State Senate Bill 2019-S6289A

Senate Bill S6289A

Signed By Governor

2019-2020 Legislative Session

Exempts beer tastings from retail sales and compensating use taxes

download bill text pdf

Archive: Last Bill Status Via A7947 - Signed by Governor

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
Dec 20, 2019	approval memo.69 signed chap.722
Dec 17, 2019	delivered to governor
Jun 19, 2019	returned to assembly passed senate 3rd reading cal.1708 substituted for s6289a
Jun 19, 2019	substituted by a7947a ordered to third reading cal.1708
Jun 10, 2019	print number 6289a
Jun 10, 2019	amend and recommit to rules
Jun 03, 2019	referred to rules

Votes

- Jun 19, 2019 - Floor Vote
  A7947
  
  42
  
  Aye
  
  20
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 19, 2019
      
      aye (42)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Little
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Rivera
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      nay (20)
      
      Akshar
      
      Amedore
      
      Antonacci
      
      Boyle
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Helming
      
      Jacobs
      
      Jordan
      
      LaValle
      
      Lanza
      
      O'Mara
      
      Ortt
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Serino
      
      Seward
      
      Tedisco
  Jun 19, 2019 - Rules Committee Vote
  S6289A
  
  14
  
  Aye
  
  4
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 19, 2019
      
      aye (14)
      
      Benjamin
      
      Breslin
      
      Comrie
      
      Gianaris
      
      Hoylman-Sigal
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      Parker
      
      Savino
      
      Stewart-Cousins
      
      nay (4)
      
      Flanagan
      
      LaValle
      
      Robach
      
      Seward
      
      aye wr (1)
      
      Griffo

Bill Amendments

Original

A (Active)

2019-S6289 - Details

See Assembly Version of this Bill:: A7947
Law Section:: Tax Law
Laws Affected:: Amd §1115, Tax L; amd §§51 & 51-a, ABC L

2019-S6289 - Summary

Exempts beer tastings from retail sales and compensating use taxes when the beer tasting meets certain limitations on the amount of beer provided or sold to a person in a calendar day.

2019-S6289 - Sponsor Memo

                                
 
BILL NUMBER: S6289

SPONSOR: MAY
 
TITLE OF BILL:  An act to amend the tax law and the alcoholic beverage
control law, in relation to exempting certain beer tastings from retail
sales and compensating use taxes

 
PURPOSE:

This legislation would specify the number and size of tasting samples of
certain beer, cider, and braggot, provided by producers licensed under
the Alcoholic Beverage Control Law, which would qualify for the current-
ly authorized sales and compensating use tax exemption.

 
SUMMARY OF PROVISIONS:

Section 1: Paragraph 33 of subdivision 1115 of the tax law is amended to
exempt beer tastings from sales tax.

Section 2: Subdivision 3-a of section 51 of the alcoholic beverage
control law is amended to define a beer tasting.

Section 3: Paragraph (1) of subdivision 2 of section 51-a of the alco-
holic beverage control law is amended to exempt beer, cider and braggot
tasting at farm breweries from sales tax.

 
JUSTIFICATION:

New York's tourism industry is a prime economic driver in many communi-
ties. Increasingly, destination craft breweries, winderies, cideries and
distilleries have become an essential part of that industry. In recogni-
tion of this growing tourism sector, the Legislature two years ago
amended New York's tax law to exempt tastings held by the craft alcohol-
ic beverage makers, to encourage continued growth in such businesses,
which contribute substantially to their local communities.

Last year, certain beer, cider, and distilled liquor producers were
granted parity with wineries through sales and use tax exempt status for
tastings held on the premises of a licensed producer, even if they
charge for such tastings. However, this section of Tax Law currently has
no statutory guidance on the number or size of tasting samples that a
manufacturer of a specific type of alcoholic beverage may provide as
sales tax exempt. This bill would privde the necessary clarification and
uniformity for effectuating the provision of this section of Tax Law.

 
FISCAL IMPACT:

Minimal.

 
LEGISLATIVE HISTORY:

New bill.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S6289 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6289
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               June 3, 2019
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the tax law and the alcoholic beverage control  law,  in
   relation  to  exempting  certain  beer  tastings from retail sales and
   compensating use taxes

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  33 of subdivision a of section 1115 of the tax
 law, as amended by chapter 418 of the laws of 2017, is amended  to  read
 as follows:
   (33)  Wine or wine product, beer or beer product, cider or cider prod-
 uct, liquor or liquor product, and the kegs,  cans,  bottles,  growlers,
 corks,  caps,  and  labels  used  to  package  such  alcoholic  product,
 furnished by the official agent of a farm winery, winery, brewery,  farm
 brewery,  cider  producer,  farm  cidery,  distillery,  farm distillery,
 wholesaler, or importer at a wine, beer, cider or liquor tasting held in
 accordance with the alcoholic beverage control  law  to  a  customer  or
 prospective  customer  who  consumes such wine, beer, cider or liquor at
 such tasting.  FOR PURPOSES OF THIS PARAGRAPH, A BEER TASTING SHALL MEET
 THE DEFINITION SET FORTH IN SUBDIVISION THREE-A OF SECTION FIFTY-ONE  OF
 THE  ALCOHOLIC  BEVERAGE CONTROL LAW OR PARAGRAPH (F) OF SUBDIVISION TWO
 OF SECTION FIFTY-ONE-A OF SUCH LAW.
   § 2. Subdivision 3-a of section 51 of the alcoholic  beverage  control
 law,  as added by chapter 431 of the laws of 2014, is amended to read as
 follows:
   3-a. A licensed brewer may at the licensed premises  conduct  tastings
 of,  and sell at retail for consumption on or off the licensed premises,
 any beer manufactured by the licensee or  any  New  York  state  labeled
 beer. FOR PURPOSES OF THE EXEMPTION ON RETAIL SALES AND COMPENSATING USE
 TAXES PROVIDED FOR IN PARAGRAPH THIRTY-THREE OF SUBDIVISION A OF SECTION
 ELEVEN HUNDRED FIFTEEN OF THE TAX LAW, A BEER TASTING SHALL MEAN NO MORE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11869-02-9

 S. 6289                             2
 
 THAN  FIVE  SAMPLES  OF BEER NOT EXCEEDING FIVE FLUID OUNCES EACH, WHICH
 MAY BE PROVIDED TO A PERSON IN ANY CALENDAR DAY, AND  EACH  SUCH  SAMPLE
 SHALL  BE  A DIFFERENT BEER THAN THE OTHERS. Provided, however, that for
 tastings and sales for on-premises consumption, the licensee shall regu-
 larly  keep  food  available for sale or service to its retail customers
 for consumption on the premises.  A  licensee  providing  the  following
 shall be deemed in compliance with this provision: (i) sandwiches, soups
 or  other  such  foods,  whether fresh, processed, pre-cooked or frozen;
 and/or (ii) food items intended to complement the tasting  of  alcoholic
 beverages,  which  shall  mean  a  diversified selection of food that is
 ordinarily consumed without the use of tableware and can be conveniently
 consumed while standing or walking, including but not limited to: chees-
 es, fruits, vegetables, chocolates, breads, mustards and  crackers.  All
 of  the  provisions of this chapter relative to licenses to sell beer at
 retail for consumption on and off the premises shall  apply  so  far  as
 applicable to such licensee.
   §  3.  Paragraph (f) of subdivision 2 of section 51-a of the alcoholic
 beverage control law, as amended by chapter 522 of the laws of 2018,  is
 amended to read as follows:
   (f)  conduct  tastings  at  the  licensed premises of beer, cider, and
 braggot manufactured by the licensee or any other licensed farm brewery.
 FOR PURPOSES OF THE EXEMPTION ON RETAIL SALES AND COMPENSATING USE TAXES
 PROVIDED FOR IN PARAGRAPH THIRTY-THREE OF SUBDIVISION A OF SECTION ELEV-
 EN HUNDRED FIFTEEN OF THE TAX LAW, BEER TASTING SHALL MEAN NO MORE  THAN
 FIVE  SAMPLES OF BEER NOT EXCEEDING FIVE FLUID OUNCES EACH, WHICH MAY BE
 PROVIDED TO A PERSON IN ANY CALENDAR DAY, AND EACH SUCH SAMPLE SHALL  BE
 A DIFFERENT BEER THAN THE OTHERS;
   § 4. This act shall take effect immediately.

2019-S6289A (ACTIVE) - Details

See Assembly Version of this Bill:: A7947
Law Section:: Tax Law
Laws Affected:: Amd §1115, Tax L; amd §§51 & 51-a, ABC L

2019-S6289A (ACTIVE) - Summary

Exempts beer tastings from retail sales and compensating use taxes when the beer tasting meets certain limitations on the amount of beer provided or sold to a person in a calendar day.

2019-S6289A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6289A

SPONSOR: MAY
 
TITLE OF BILL:  An act to amend the tax law and the alcoholic beverage
control law, in relation to exempting certain beer tastings from retail
sales and compensating use taxes

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation would specify the number and size of tasting samples of
certain beer, cider, and braggot, provided by producers licensed under
the Alcoholic Beverage Control Law, which would qualify for the current-
ly authorized sales and compensating use tax exemption.

 
SUMMARY OF PROVISIONS:

Paragraph 33 of subdivision 1115 of the tax law is amended to exempt
beer tastings from sales tax.

Subdivision 3-a of section 51 of the alcoholic beverage control law is
amended to define a beer tasting.

Paragraph (f) of subdivision 2 of section 51-a of the alcoholic beverage
control law is amended to exempt beer, cider and braggot tasting at farm
breweries from sales tax.

**The amendment to this bill clarifies that beer tastings which would be
subject to the exemption from retail and compensating use taxes may be
either provided at no charge or sold to a person in any calendar day.

 
JUSTIFICATION:

New York's tourism industry is a prime economic driver in many communi-
ties. Increasingly, destination craft breweries, wineries, cideries and
distilleries have become an essential part of that industry.  In recog-
nition of this growing tourism sector, the Legislature two years ago
amended New York's tax law to exempt tastings held by the craft alcohol-
ic beverage makers, to encourage continued growth in such businesses,
which contribute substantially to their local communities.

In 2017, certain beer, cider, and distilled liquor producers were grant-
ed parity with wineries through sales and use tax exempt status for
tastings held on the premises of a licensed producer, even if they
charge for such tastings. However, this section of tax law currently has
no statutory guidance on the number or size of tasting samples that a
manufacturer of a specific type of alcoholic beverage may provide as
sales tax exempt. This bill would provide the necessary clarification
and uniformity for effectuating the provision of this section of Tax
Law.

 
LEGISLATIVE HISTORY:

2017-18: Similar to S9040/A11203 Vetoed, Msg. No. 350.

FISCAL IMPLICATIONS:

Minimal

 
EFFECTIVE DATE:
Immediately

2019-S6289A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6289--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               June 3, 2019
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Rules  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to amend the tax law and the alcoholic beverage control law, in
   relation to exempting certain beer  tastings  from  retail  sales  and
   compensating use taxes
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 33 of subdivision a of section 1115  of  the  tax
 law,  as  amended by chapter 418 of the laws of 2017, is amended to read
 as follows:
   (33) Wine or wine product, beer or beer product, cider or cider  prod-
 uct,  liquor  or  liquor product, and the kegs, cans, bottles, growlers,
 corks,  caps,  and  labels  used  to  package  such  alcoholic  product,
 furnished  by the official agent of a farm winery, winery, brewery, farm
 brewery, cider  producer,  farm  cidery,  distillery,  farm  distillery,
 wholesaler, or importer at a wine, beer, cider or liquor tasting held in
 accordance  with  the  alcoholic  beverage  control law to a customer or
 prospective customer who consumes such wine, beer, cider  or  liquor  at
 such tasting.  FOR PURPOSES OF THIS PARAGRAPH, A BEER TASTING SHALL MEET
 THE  DEFINITION SET FORTH IN SUBDIVISION THREE-A OF SECTION FIFTY-ONE OF
 THE ALCOHOLIC BEVERAGE CONTROL LAW OR PARAGRAPH (F) OF  SUBDIVISION  TWO
 OF SECTION FIFTY-ONE-A OF SUCH LAW.
   §  2.  Subdivision 3-a of section 51 of the alcoholic beverage control
 law, as added by chapter 431 of the laws of 2014, is amended to read  as
 follows:
   3-a.  A  licensed brewer may at the licensed premises conduct tastings
 of, and sell at retail for consumption on or off the licensed  premises,
 any  beer  manufactured  by  the  licensee or any New York state labeled
 beer. FOR PURPOSES OF THE EXEMPTION ON RETAIL SALES AND COMPENSATING USE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11869-04-9

 S. 6289--A                          2
 
 TAXES PROVIDED FOR IN PARAGRAPH THIRTY-THREE OF SUBDIVISION A OF SECTION
 ELEVEN HUNDRED FIFTEEN OF THE TAX LAW, A BEER TASTING SHALL MEAN NO MORE
 THAN FIVE SAMPLES OF BEER NOT EXCEEDING FIVE FLUID  OUNCES  EACH,  WHICH
 MAY  BE  PROVIDED OR SOLD TO A PERSON IN ANY CALENDAR DAY, AND EACH SUCH
 SAMPLE SHALL BE A DIFFERENT BEER THAN  THE  OTHERS.  Provided,  however,
 that  for  tastings  and sales for on-premises consumption, the licensee
 shall regularly keep food available for sale or service  to  its  retail
 customers  for  consumption  on  the  premises. A licensee providing the
 following shall be deemed in compliance with this provision:  (i)  sand-
 wiches,  soups or other such foods, whether fresh, processed, pre-cooked
 or frozen; and/or (ii) food items intended to complement the tasting  of
 alcoholic  beverages,  which  shall mean a diversified selection of food
 that is ordinarily consumed without the use  of  tableware  and  can  be
 conveniently  consumed  while  standing  or  walking,  including but not
 limited to: cheeses, fruits, vegetables,  chocolates,  breads,  mustards
 and crackers. All of the provisions of this chapter relative to licenses
 to  sell  beer  at  retail for consumption on and off the premises shall
 apply so far as applicable to such licensee.
   § 3. Paragraph (f) of subdivision 2 of section 51-a of  the  alcoholic
 beverage  control law, as amended by chapter 522 of the laws of 2018, is
 amended to read as follows:
   (f) conduct tastings at the licensed  premises  of  beer,  cider,  and
 braggot manufactured by the licensee or any other licensed farm brewery.
 FOR PURPOSES OF THE EXEMPTION ON RETAIL SALES AND COMPENSATING USE TAXES
 PROVIDED FOR IN PARAGRAPH THIRTY-THREE OF SUBDIVISION A OF SECTION ELEV-
 EN  HUNDRED FIFTEEN OF THE TAX LAW, BEER TASTING SHALL MEAN NO MORE THAN
 FIVE SAMPLES OF BEER NOT EXCEEDING FIVE FLUID OUNCES EACH, WHICH MAY  BE
 PROVIDED  OR  SOLD TO A PERSON IN ANY CALENDAR DAY, AND EACH SUCH SAMPLE
 SHALL BE A DIFFERENT BEER THAN THE OTHERS;
   § 4. This act shall take effect immediately.

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