senate Bill S7019

Relates to farm winery and farm distillery sales tax information return filing requirements

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 23 / Apr / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 22 / May / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 18 / Jun / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 18 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1283
  • 18 / Jun / 2012
    • SUBSTITUTED BY A9523

Summary

Relates to farm winery and farm distillery sales tax information return filing requirements.

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Bill Details

See Assembly Version of this Bill:
A9523
Versions:
S7019
Legislative Cycle:
2011-2012
Law Section:
Tax Law
Laws Affected:
Amd §1136, Tax L

Votes

6
1
6
Aye
1
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details
nay (1)
aye wr (1)

Sponsor Memo

BILL NUMBER:S7019

TITLE OF BILL:

An act
to amend the tax law, in relation to farm
winery and farm distillery sales tax
information return filing requirements

PURPOSE OF THE BILL:

The bill would exclude licensed farm wineries and farm distilleries
from the sales tax information return filing requirements imposed by
Tax Law § 1136 (i).

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend Tax Law § 1136 (i) to exclude
persons operating pursuant to a farm winery license or a farm
distillery license issued by the State Liquor Authority ("SLA"), or
pursuant to both such licenses, from the obligation to file the
annual information return required by that subdivision.

Section 2 of the bill provides for an immediate effective date and
applies the law to annual returns due on and after March 20, 2012.

EXISTING LAW:

Tax Law § 1136(i) requires "wholesalers," as defined in Alcoholic
Beverage Control Law ("ABCL") § 3, that have made certain sales of an
alcoholic beverage without collecting sales and use tax, to file
annual information returns with the Department of Taxation and
Finance ("DTF") that include the identity of any customers that
qualify as sales tax vendors, and the volume of sales made to them.
Both farm distilleries and farm wineries are covered by this
requirement if they make sales to persons who may, in turn, make
retail sales as permitted pursuant to retail licenses. See ABCL
61(2-c), 76-a(3).

PRIOR LEGISLATIVE HISTORY:

This is a new bill.

STATEMENT IN SUPPORT:

The third-party sales tax reporting provisions require wholesalers to
report all sales made to restaurants, bars and other retailers. DTF
uses this information to verify sales as reported by those retailers.
While farm wineries and farm distilleries that sell to retailers
technically qualify as wholesalers, the burden imposed on them by the
filing requirement outweighs any benefits received by the DTF. Farm

wineries and farm distilleries are by definition, small. A farm
winery license limits the holder to producing no more than 150,000
gallons annually. A farm distillery license limits the holder to
producing no more than 35,000 gallons annually.

Because of their restricted size, it is difficult for farm wineries
and farm distilleries to absorb the cost of complying with the annual
filing requirement. Exempting them will not undermine the
effectiveness of the third-party reporting legislation, because
purchases from farm wineries and farm distilleries account for a very
small percentage of retailers' overall purchases.
Moreover, farm wineries and farm distilleries are required to maintain
sales records pursuant to requirements imposed by the SLA, which DTF
may obtain upon request.

BUDGET IMPLICATIONS:

None

EFFECTIVE DATE:

The amendments would take effect immediately and would apply to annual
returns due on and after March 20, 2012.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7019

                            I N  S E N A T E

                             April 23, 2012
                               ___________

Introduced by Sens. RITCHIE, LAVALLE -- (at request of the Department of
  Agriculture  and  Markets) -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to farm winery and farm distil-
  lery sales tax information return filing requirements

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subparagraph  (C)  of  paragraph  1 of subdivision (i) of
section 1136 of the tax law, as added by section 1 of subpart G of  part
V-1 of chapter 57 of the laws of 2009, is amended to read as follows:
  (C)  Every  wholesaler,  as  defined by section three of the alcoholic
beverage control law, if it has made a sale of an alcoholic beverage, as
defined by section four hundred twenty of this chapter, without collect-
ing sales or use tax during the period covered by the return, except (i)
a sale to a person that has furnished an exempt organization certificate
to the wholesaler for that sale; or (ii) a sale  to  another  wholesaler
whose license under the alcoholic beverage control law does not allow it
to  make retail sales of the alcoholic beverage. For each vendor, opera-
tor, or recipient to  whom  the  wholesaler  has  made  a  sale  without
collecting  sales  or  compensating use tax, the return must include the
total value of those sales made during the period covered by the  return
(excepting  the sales described in clauses (i) and (ii) of this subpara-
graph) and the vendor's, operator's or recipient's state liquor authori-
ty license number, along with the information required by paragraph  two
of  this  subdivision.  A  PERSON  OPERATING  PURSUANT  TO A FARM WINERY
LICENSE AS PROVIDED IN SECTION SEVENTY-SIX-A OF THE  ALCOHOLIC  BEVERAGE
CONTROL LAW, OR A PERSON OPERATING PURSUANT TO A FARM DISTILLERY LICENSE
AS  PROVIDED IN SUBDIVISION TWO-C OF SECTION SIXTY-ONE OF SUCH LAW, OR A
PERSON OPERATING PURSUANT TO BOTH SUCH LICENSES, SHALL NOT BE SUBJECT TO
ANY OF THE REQUIREMENTS OF THIS SUBDIVISION.
  S 2. This act shall take effect immediately and shall apply to  annual
returns due on and after March 20, 2012.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14252-01-2

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