NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9563
SPONSOR: Cunningham TITLE OF BILL:
An act to amend the tax law, in relation to excluding certain food
donations from sales tax
PURPOSE OR GENERAL IDEA OF BILL:
Amends the tax law to exempt meal swipe donations from sales tax
SUMMARY OF PROVISIONS:
Section 1 amends the tax law to exclude meal swipe donations from
Section 2 sets the effective date
JUSTIFICATION:
There are several programs that are designed to help students meet their
needs. One of these programs that is designed to help students meet
their nutritional needs is Swipe Out Hunger. They work with college
campuses to allow students to donate unused meal swipes so other
students can use them if they are eligible to receive the donations.
Currently in New York State there are several SUNY institutions that
already work with Swipe Out Hunger. This list includes but is not limit-
ed to SUNY Adirondack, Binghamton, Broome Community college, Clinton
community college,cobleskill, College at Old Westbury, Corning community
college, Cobleskill, Cortland, Delhi, Fulton-Montgomery Community
College, Herkimer County Community College, MorrisVille, Old Westbury,
Oneonta, Onondaga Community College, Orange, Oswego, Polytechnic Insti-
tute, Potsdam, Schenectady County Community College, Sullivan, Ulster,
University of Albany and Westchester community college.
Even with this program, many students choose not to donate their unused
meal swipes because NYS tax law only excluded meal swipes that are being
used on the student they were purchased for. In other words the majority
of a student's meal plan is not eligible for donation without first
paying additional sales tax. The only meal swipes that are eligible for
donation without getting an additional tax are guest swipes.
This law intends to fix this loop hole so that students who do not use
all of their meal swipes are able to donate them without needing to pay.
Swipe out Hunger has over 750 partnerships throughout the country rang-
ing from California and extending as far out as Puerto Rico, Hawaii as
well as Alaska.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
Immediately
STATE OF NEW YORK
________________________________________________________________________
9563
IN ASSEMBLY
March 20, 2024
___________
Introduced by M. of A. CUNNINGHAM -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to excluding certain food
donations from sales tax
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (B) of paragraph (ii) of subdivision (d) of
2 section 1105 of the tax law, as amended by chapter 135 of the laws of
3 1972, is amended to read as follows:
4 (B) food or drink sold to a student of a nursery school, kindergarten,
5 elementary or secondary school at a restaurant or cafeteria located on
6 the premises of such a school, or food or drink, other than beer, wine,
7 or other alcoholic beverages, sold at a restaurant, tavern or other
8 establishment located on the premises of a college, university or a
9 school (other than a nursery school, kindergarten, elementary or second-
10 ary school) to a student enrolled therein who purchases such food or
11 drink under a contractual arrangement whereby the student does not pay
12 cash at the time he is served, including donations of food points or
13 funds to other students at such college, university, or school through
14 an approved donation program, provided the school, college or university
15 described in this subparagraph is operated by an exempt organization
16 described in subdivision (a) of section eleven hundred sixteen, or is
17 created, incorporated, registered, or licensed by the state legislature
18 or pursuant to the education law or the regulations of the commissioner
19 of education, or is incorporated by the regents of the university of the
20 State of New York or with their consent or the consent of the commis-
21 sioner of education as provided in section two hundred sixteen of the
22 education law; and
23 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14329-01-4
