Relates to increasing the taxes imposed on distributors of beers and to directing revenue generated from such taxes be deposited to the credit of SUNY and CUNY; increases such taxes to thirty cents per gallon.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8915
SPONSOR: Epstein TITLE OF BILL:
An act to amend the tax law, in relation to increasing the taxes imposed
on distributors of beers and to directing revenue generated from such
taxes to be deposited to the credit of the state university of New York
and the city university of New York
SUMMARY OF PROVISIONS:
This bill would increase the current $0.14 per gallon tax on beer to
$0.30, potentially generating $51 million in additional revenue that
would be split between the State University of New York and the City
University of New York.
JUSTIFICATION:
According to the Tax Foundation, New York has one of the lowest beer
taxes in the country. This bill raises the beer tax to the same level of
the state's modest wine tax of $0.30 per gallon, bringing it in line
with the majority of other states' beer taxes and providing a revenue
stream for the State University of New York and the City University of
New York.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
The current $0.14 per gallon beer tax generated approximately $45
million in revenue in 2018. Raising the tax to the $0.30 could increase
revenue to the state by $51 million, generating a total of $96 million.
EFFECTIVE DATE:
April 21st, 2021
STATE OF NEW YORK
________________________________________________________________________
8915
2019-2020 Regular Sessions
IN ASSEMBLY
December 30, 2019
___________
Introduced by M. of A. EPSTEIN -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to increasing the taxes imposed
on distributors of beers and to directing revenue generated from such
taxes to be deposited to the credit of the state university of New
York and the city university of New York
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 1 of section 424 of the tax
2 law, as amended by section 1 of part X-1 of chapter 57 of the laws of
3 2009, is amended to read as follows:
4 (a) [Fourteen] Thirty cents per gallon upon beers;
5 § 2. Section 171-a of the tax law, as separately amended by chapters
6 481 and 484 of the laws of 1981, is amended by adding a new subdivision
7 3 to read as follows:
8 3. Notwithstanding subdivision one of this section or any other
9 provision of law to the contrary, fifty percent of the taxes imposed
10 pursuant to paragraph (a) of subdivision one of section four hundred
11 twenty-four of this chapter, reduced by an amount for administrative
12 costs, shall be deposited, as such taxes are received, as follows: (a)
13 half of such revenue shall be deposited to the credit of the state
14 university of New York; and (b) half of such revenue shall be deposited
15 to the credit of the city university of New York. The amount for admin-
16 istrative costs shall be determined by the commissioner to represent
17 reasonable costs of the department of taxation and finance in adminis-
18 tering, collecting, determining and distributing such taxes. Of the
19 total revenue collected or received under such section of this chapter,
20 the comptroller shall retain in his hands such amount as the commission-
21 er may determine to be necessary for refunds or reimbursements under
22 such section of this chapter out of which amount the comptroller shall
23 pay any refunds or reimbursements to which taxpayers shall be entitled
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14218-02-9
A. 8915 2
1 under provisions of such section. The commissioner and the comptroller
2 shall maintain a system of accounts showing the amount of revenue
3 collected or received from each of the taxes imposed by such section.
4 § 3. This act shall take effect April 1, 2021. Effective immediately,
5 the addition, amendment and/or repeal of any rule or regulation neces-
6 sary for the implementation of this act on its effective date are
7 authorized to be made and completed on or before such effective date.
