S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3428
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 Introduced  by  M.  of  A. SANTABARBARA -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to enacting the "save  our  New
   York state restaurants act" and creating a limited sales tax exemption
   for  the  sale of food and drink at restaurants and taverns from state
   sales and compensating  use  taxes  and  granting  municipalities  the
   option to grant such limited exemption
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title.  This act shall be known and may be  cited  as
 the "save our New York state restaurants act".
   §  2.  Subdivision  (a)  of  section 1115 of the tax law is amended by
 adding a new paragraph 47 to read as follows:
   (47) FOR THE THIRTY DAY PERIOD BEGINNING ON  THE  FIRST  SUNDAY  WHICH
 OCCURS  THIRTY  DAYS  AFTER  THE  EFFECTIVE  DATE OF THIS PARAGRAPH, THE
 RECEIPTS FROM EVERY SALE OF FOOD AND DRINK OF  ANY  NATURE  OR  OF  FOOD
 ALONE,  WHEN  SOLD IN OR BY RESTAURANTS, TAVERNS OR OTHER ESTABLISHMENTS
 IN THIS STATE; PROVIDED HOWEVER THAT SUCH EXEMPTION  SHALL  NOT  INCLUDE
 FOOD OR DRINKS SOLD BY FAST FOOD CHAINS.  FOR THE PURPOSES OF THIS PARA-
 GRAPH,  THE  TERM  "FAST  FOOD CHAINS" REFERS TO LIMITED SERVICE RESTAU-
 RANTS, WHERE CUSTOMERS ORDER AT THE COUNTER AND PAY  IN  ADVANCE,  WHICH
 ARE LARGE CHAINS WITH MULTIPLE LOCATIONS NATIONALLY.
   §  3.  Subdivision  (b)  of  section 1107 of the tax law is amended by
 adding a new clause 12 to read as follows:
   (12) EXCEPT AS OTHERWISE PROVIDED BY LAW, THE EXEMPTION  ON  SALES  OF
 FOOD  AND  DRINK  DURING  THE  THIRTY  DAY  PERIOD PROVIDED IN PARAGRAPH
 FORTY-SEVEN OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS
 ARTICLE, SHALL BE APPLICABLE PURSUANT  TO  A  LOCAL  LAW,  ORDINANCE  OR
 RESOLUTION  ADOPTED BY A CITY SUBJECT TO THE PROVISIONS OF THIS SECTION.
 SUCH CITY IS EMPOWERED TO ADOPT OR REPEAL SUCH A LOCAL LAW, ORDINANCE OR
 RESOLUTION. SUCH ADOPTION OR REPEAL SHALL ALSO BE DEEMED  TO  AMEND  ANY
 LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED BY SUCH A CITY IMPOSING TAXES
 PURSUANT  TO  THE AUTHORITY OF SUBDIVISION (A) OF SECTION TWELVE HUNDRED
 TEN OF THIS CHAPTER.
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07280-01-3
 A. 3428                             2
 
   § 4. Paragraph 1 of subdivision (a) of section 1210 of the tax law  is
 amended by adding a new subparagraph (iii) to read as follows:
   (III)  ANY  LOCAL  LAW,  ORDINANCE  OR RESOLUTION ENACTED BY ANY CITY,
 COUNTY OR SCHOOL DISTRICT, IMPOSING THE TAXES AUTHORIZED BY THIS  SUBDI-
 VISION,  SHALL  INCLUDE  THE  SALES OF FOOD AND DRINK AT RESTAURANTS AND
 TAVERNS EXEMPTION DURING THE THIRTY DAY PERIOD AS PROVIDED FOR IN  PARA-
 GRAPH  FORTY-SEVEN  OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN
 OF THIS CHAPTER, UNLESS SUCH CITY,  COUNTY  OR  SCHOOL  DISTRICT  ELECTS
 OTHERWISE;  PROVIDED  THAT  IF  SUCH  A  CITY HAVING A POPULATION OF ONE
 MILLION OR MORE ENACTS THE RESOLUTION DESCRIBED IN  SUBDIVISION  (P)  OF
 THIS SECTION OR REPEALS SUCH RESOLUTION, SUCH REPEAL OR RESOLUTION SHALL
 ALSO  BE  DEEMED TO AMEND ANY LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED
 BY SUCH A CITY IMPOSING SUCH TAX  PURSUANT  TO  THE  AUTHORITY  OF  THIS
 SUBDIVISION,  WHETHER  OR  NOT SUCH TAXES ARE SUSPENDED AT THE TIME SUCH
 CITY ENACTS ITS RESOLUTION PURSUANT TO SUBDIVISION (P) OF  THIS  SECTION
 OR  AT THE TIME OF ANY SUCH REPEAL; PROVIDED FURTHER THAT ANY SUCH LOCAL
 LAW, ORDINANCE OR RESOLUTION AND SECTION ELEVEN HUNDRED  SEVEN  OF  THIS
 CHAPTER,  AS  DEEMED TO BE AMENDED IN THE EVENT A CITY OF ONE MILLION OR
 MORE ENACTS A RESOLUTION PURSUANT TO THE AUTHORITY OF SUBDIVISION (P) OF
 THIS SECTION, SHALL BE FURTHER AMENDED, AS PROVIDED  IN  SECTION  TWELVE
 HUNDRED  EIGHTEEN  OF  THIS  SUBPART, SO THAT SALES OF FOOD AND DRINK BY
 RESTAURANTS AND TAVERNS IN ANY SUCH LOCAL LAW, ORDINANCE  OR  RESOLUTION
 OR  IN  SECTION  ELEVEN HUNDRED SEVEN OF THIS CHAPTER IS THE SAME AS THE
 STATE EXEMPTION ON SALES OF FOOD AND DRINK BY RESTAURANTS AND TAVERNS IN
 PARAGRAPH FORTY-SEVEN OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN  HUNDRED
 FIFTEEN OF THIS CHAPTER.
   §  5.  Subdivision  (d)  of section 1210 of the tax law, as amended by
 section 4 of part WW of chapter 60 of the laws of 2016,  is  amended  to
 read as follows:
   (d)  A local law, ordinance or resolution imposing any tax pursuant to
 this section, increasing or decreasing the rate of such  tax,  repealing
 or  suspending  such tax, exempting from such tax the energy sources and
 services described in paragraph three of subdivision (a) or of  subdivi-
 sion  (b)  of  this  section or changing the rate of tax imposed on such
 energy sources and services  or  providing  for  the  credit  or  refund
 described  in  clause  six  of subdivision (a) of section eleven hundred
 nineteen of this chapter, or electing or  repealing  the  exemption  for
 residential  solar  equipment  and  electricity  in  subdivision (ee) of
 section eleven hundred fifteen of this article,  or  the  exemption  for
 commercial  solar  equipment  and  electricity  in  subdivision  (ii) of
 section eleven hundred fifteen of this article, or electing or repealing
 the exemption for commercial fuel cell  electricity  generating  systems
 equipment  and  electricity  generated  by such equipment in subdivision
 (kk) of section eleven hundred fifteen of  this  article  must  go  into
 effect  only  on  one  of  the following dates: March first, June first,
 September first or December first; provided, that a local law, ordinance
 or resolution providing for the exemption described in paragraph  thirty
 of  subdivision (a) of section eleven hundred fifteen of this chapter or
 repealing any such exemption or a local  law,  ordinance  or  resolution
 providing for a refund or credit described in subdivision (d) of section
 eleven  hundred  nineteen of this chapter or repealing such provision so
 provided must go into effect only on March first; PROVIDED FURTHER  THAT
 A  LOCAL  LAW,  ORDINANCE  OR  RESOLUTION  PROVIDING  FOR  THE EXEMPTION
 DESCRIBED IN PARAGRAPH FORTY-SEVEN OF SUBDIVISION (A) OF SECTION  ELEVEN
 HUNDRED  FIFTEEN  OF  THIS  CHAPTER  OR  REPEALING ANY SUCH EXEMPTION SO
 PROVIDED AND A RESOLUTION ENACTED PURSUANT TO THE AUTHORITY OF  SUBDIVI-
 A. 3428                             3
 
 SION  (P)  OF  THIS  SECTION  PROVIDED  SUCH EXEMPTION OR REPEALING SUCH
 EXEMPTION SO PROVIDED MAY GO INTO EFFECT IMMEDIATELY. No such local law,
 ordinance or resolution shall be effective unless a  certified  copy  of
 such  law,  ordinance or resolution is mailed by registered or certified
 mail to the commissioner at the commissioner's office in Albany at least
 ninety days prior to the date it is to become  effective.  However,  the
 commissioner  may  waive  and  reduce  such  ninety-day  minimum  notice
 requirement to a mailing of such certified copy by registered or  certi-
 fied  mail  within  a  period of not less than thirty days prior to such
 effective date if the commissioner deems such action  to  be  consistent
 with  the  commissioner's  duties  under section twelve hundred fifty of
 this  article  and  the  commissioner  acts  by  resolution.  Where  the
 restriction  provided for in section twelve hundred twenty-three of this
 article as to the effective date of a tax  and  the  notice  requirement
 provided  for  therein  are  applicable  and  have  not been waived, the
 restriction and notice requirement in  section  twelve  hundred  twenty-
 three of this article shall also apply.
   §  6.  Section 1210 of the tax law is amended by adding a new subdivi-
 sion (p) to read as follows:
   (P) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL  LAW,  ORDI-
 NANCE OR RESOLUTION TO THE CONTRARY:
   (1)  ANY  CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE
 TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF  THIS  CHAPTER  ARE  IN
 EFFECT,  ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED
 AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTION FROM SUCH TAXES  AS
 THE  SALES  OF  FOOD AND DRINK BY RESTAURANTS AND TAVERNS EXEMPTION FROM
 STATE SALES AND COMPENSATING USE TAXES DESCRIBED IN PARAGRAPH FORTY-SEV-
 EN OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS  CHAPTER
 BY  ENACTING A RESOLUTION IN THE FORM SET FORTH IN PARAGRAPH TWO OF THIS
 SUBDIVISION; WHEREUPON, UPON COMPLIANCE WITH THE PROVISIONS OF  SUBDIVI-
 SIONS  (D)  AND  (E)  OF THIS SECTION, SUCH ENACTMENT OF SUCH RESOLUTION
 SHALL BE DEEMED TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED  SEVEN
 AND  SUCH  SECTION  ELEVEN  HUNDRED SEVEN SHALL BE DEEMED TO INCORPORATE
 SUCH EXEMPTION AS IF IT HAD BEEN DULY ENACTED BY THE  STATE  LEGISLATURE
 AND APPROVED BY THE GOVERNOR.
   (2)  FORM  OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF
 LOCAL LEGISLATIVE BODY) AS FOLLOWS:
   SECTION  1.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN   OR
 CONTRACTED  TO  BE  GIVEN  FOR  FOOD  AND  DRINK SOLD AT RESTAURANTS AND
 TAVERNS EXEMPT FROM STATE SALES AND  COMPENSATING  USE  TAXES  DURING  A
 THIRTY  DAY  PERIOD PURSUANT TO PARAGRAPH FORTY-SEVEN OF SUBDIVISION (A)
 OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER SHALL ALSO  BE  EXEMPT
 FROM SALES AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION.
   2.  THIS  RESOLUTION  SHALL  TAKE  EFFECT, (INSERT THE DATE) AND SHALL
 APPLY TO SALES MADE AND USES OCCURRING ON AND AFTER THAT  DATE  ALTHOUGH
 SHALL NOT INCLUDE SALES MADE OR OCCURRING UNDER A PRIOR CONTRACT.
   §  7.  This  act  shall take effect immediately and shall apply to the
 thirty day period which begins on the first Sunday after 30  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; provided that sections four and  five  of  this  act  shall
 apply  to sales made on or after the date such sections shall have taken
 effect. Effective immediately, the addition, amendment and/or repeal  of
 any  rule  or regulation necessary for the implementation of this act on
 its effective date are authorized to be made and completed on or  before
 such effective date.