|SAME AS||SAME AS S09040|
|COSPNSR||Brindisi, Woerner, Skoufis, Barrett, Fahy, McDonald, Kolb|
|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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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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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. LBD16288-03-8A. 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.