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A11203 Summary:

BILL NOA11203
 
SAME ASSAME AS S09040
 
SPONSORLupardo
 
COSPNSRBrindisi, Woerner, Skoufis, Barrett, Fahy, McDonald, Kolb
 
MLTSPNSR
 
Amd 1115, Tax L
 
Relates to clarifying alcoholic beverage tastings sales tax exemptions; establishes requirements for such tastings including number of samples offered.
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A11203 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A11203
 
SPONSOR: Rules (Lupardo)
  TITLE OF BILL: An act to amend the tax law, in relation to clarifying alcoholic beverage tastings sales tax exemptions   PURPOSE: This legislation would specify the number and size of tasting samples of certain wine, beer, cider, and liquor, provided by producers licensed under the Alcoholic Beverage Control Law, which would qualify for the currently authorized sales and compensating use tax exemption.   SUMMARY OF PROVISIONS: This bill would amend the Tax Law to clarify that a tasting fee maybe charged, and specify the number and size of tasting samples that certain beer, wine, cider and distilled liquor producers, as licensed under the Alcoholic Beverage Control law, can claim as exempt from sales taxes.   JUSTIFICATION: 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 provide the necessary clarification and uniformity for effectuating the provision of this section of Tax Law. Currently, any wine, beer, cider or liquor tasting that is provided free of charge is exempt from the imposition of state sales and use tax. Additionally, any bottles, corks, caps, labels and other packaging that are used to package alcohol at that tasting are also sales tax exempt.   LEGISLATIVE HISTORY: New 2018.   FISCAL IMPLICATIONS: Undetermined.   EFFECTIVE DATE: 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 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 this law.
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A11203 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          11203
 
                   IN ASSEMBLY
 
                                      June 14, 2018
                                       ___________
 
        Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Lupardo,
          Brindisi, Woerner, Skoufis, Barrett, Fahy, McDonald) -- read once  and
          referred to the Committee on Ways and Means
 
        AN  ACT to amend the tax law, in relation to clarifying alcoholic bever-
          age tastings sales tax exemptions
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Paragraph 33 of subdivision (a) of section 1115 of the tax
     2  law, as amended by chapter 418 of the laws of 2017, is amended  to  read
     3  as follows:
     4    (33)  (i)  Wine  [or wine product], wine products, beer [or beer prod-
     5  uct], cider [or cider product], liquor  [or  liquor  product],  and  the
     6  kegs,  cans,  bottles, growlers, corks, caps, and labels used to package
     7  such alcoholic beverage product, furnished by the holder or the official
     8  agent of a farm winery, winery, brewery,  micro-brewery,  farm  brewery,
     9  cider  producer, farm cidery, [distillery,] farm distillery, wholesaler,
    10  or importer licensee at a wine, beer, cider or liquor  tasting  held  at
    11  the  premises of such licensee in accordance with the alcoholic beverage
    12  control law and subparagraph (ii) of this paragraph  to  a  customer  or
    13  prospective  customer  who  consumes such wine, beer, cider or liquor at
    14  such tasting.
    15    (ii) (A) For a beer tasting, no more than five samples  of  beer,  not
    16  exceeding  five  fluid  ounces  each, may be provided to a person in any
    17  calendar day and each such sample shall be of a different beer than  any
    18  of the other samples;
    19    (B)  For  a  wine  tasting,  no  more than six samples of wine or wine
    20  products, not exceeding three fluid ounces each, may be  provided  to  a
    21  person  in any calendar day and each such sample shall be of a different
    22  wine or wine product than any of the other samples;
    23    (C) For a cider tasting, no more  than  five  samples  of  cider,  not
    24  exceeding  five  fluid  ounces  each, may be provided to a person in any
    25  calendar day and each such sample shall be of a different cider than any
    26  of the other samples;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16288-03-8

        A. 11203                            2
 
     1    (D) For a liquor tasting, no more than three samples  of  liquor,  not
     2  exceeding  one-quarter  fluid ounce each, may be provided to a person in
     3  any calendar day and each such sample shall be  of  a  different  liquor
     4  than any of the other samples;
     5    (E)  Such licensee may charge the consumer for a tasting authorized by
     6  this paragraph;
     7    (F) Any liability stemming from a right of  action  resulting  from  a
     8  tasting  authorized  by  this  paragraph  and  in  accordance  with  the
     9  provisions of sections 11-100 and 11-101 of the general obligations  law
    10  shall accrue to the licensee;
    11    (G)  No person under the age of twenty-one shall be permitted to serve
    12  a sample or handle an open container of beer, cider, distilled liquor or
    13  wine.
    14    § 2. This act shall take effect on the first  day  of  the  sales  tax
    15  quarterly period, as described in subdivision (b) of section 1136 of the
    16  tax  law,  beginning at least 30 days after the date this act shall have
    17  become a law, and shall apply in accordance with the applicable  transi-
    18  tional provisions of sections 1106 and 1217 of the tax law.
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