senate Bill S3123A

Relates to increasing the tax on alcohol

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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

  • 30 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 10 / Feb / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 10 / Feb / 2014
    • PRINT NUMBER 3123A

Summary

Relates to increasing the tax on alcohol and provides that one hundred percent of the taxes, interest, penalties and fees collected or received by the commissioner shall be allocated to the general fund.

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Bill Details

Versions:
S3123
S3123A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง424, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S6393

Sponsor Memo

BILL NUMBER:S3123A

TITLE OF BILL: An act to amend the tax law, in relation to increasing
the tax on alcohol

PURPOSE SUMMARY OF PROVISIONS:

Section 1:

(a) amends the tax law to increase the tax on beer from 14 cents per
gallon to 24 cents per gallon;

(b) increases the tax on wine from 31 cents per gallon to 51 cents per
gallon, except certain cider shall be raised from four hundredths
cents per gallon;

(c) increases the tax on artificially carbonated sparkling wines from
30 cents per gallon to 51 cents per gallon, except for certain
sparkling cider shall be four hundredths cents per gallon;

(d) Increases the tax on natural sparkling wines from 30 cents to 51
cents per gallon, except natural sparkling cider increased to four
hundredths cents per gallon;

(e) increases the tax on liquors not more than 24% alcohol from 67
cents per liter to $1.23 per liter, except liquor with not more than
2% of alcohol shall increase 2 cents per liter;

(f) increases the tax on all other liquors from $1.00 to $2.25 per
liter.

(h) 100% of the taxes, interest, penalties and fees collected or
received by the commissioner shall be allocated to the general fund.

Section 2: amends the tax law by adding a new subdivision to
automatically adjust the tax, upward or downward, on July 1st of every
year using the consumer price index for all urban consumers (CPI-U) as
prepared by the U.S. Department of Labor. The commissioner shall
promulgate regulations to specify the methodology to be used to
determine the goods and inventory to which the increase shall apply.
These regulations shall only apply if such increase is greater than
10%.

Section 3: This act shall take place April 1, 2015 provided however
that any rules or regulations necessary to implement the provision
this act may be adopted and issued on or after the date this act
becomes law. The commissioner of taxation and finance may take any
steps necessary to implement this act prior to its effective date.

JUSTIFICATION:

Currently, New York's tax on wine is the second lowest in the nation.
Neighboring states have significantly higher rates, Connecticut taxes
at 72 cents per gallon and New Jersey at 88 cents. Raising the wine
tax in New York to 51 cents per gallon and the beer tax to 24 cents
per gallon could yield the state an estimated $65 million annually.


In the current economic climate where the legislature faces difficult
choices such as decreasing school aid funding and or eliminating vital
services to our communities, we should first consider ways we can
increase our revenue.

FISCAL IMPLICATIONS:

Revenue Enhancement. Raising the wine tax in New York to 51 cents per
gallon and the beer tax to 24 cents per gallon could yield the state
an estimated $65 million annually.

EFFECTIVE DATE:

This act shall tax effect April 1, 2015, provided, however, that any
rules ox regulations necessary to implement the provisions of this act
may be promulgated and any procedures, forms, or instructions
necessary for such implementation may be adopted and issued on ox
after the date this act shall have become a law. The, commissioner of
taxation and finance may take any steps necessary to implement this
act prior to its effective date.

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

                                 3123--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 30, 2013
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT to amend the tax law, in relation to increasing the tax on alco-
  hol

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

  Section 1. Paragraphs (a), (b), (c), (d), (e) and (f) of subdivision 1
of  section  424  of  the  tax  law, paragraphs (a), (b), (c) and (d) as
amended by section 1 of part X-1 of chapter 57  of  the  laws  of  2009,
paragraph  (e)  as  amended by chapter 190 of the laws of 1990 and para-
graph (f) as amended by chapter 508 of the laws of 1993, are amended and
a new paragraph (h) is added to read as follows:
  (a) [Fourteen cents] TWENTY-FOUR CENTS per gallon upon beers;
  (b) [Thirty cents] FIFTY-ONE CENTS per gallon upon still wines, except
cider containing more than three and two-tenths per centum of alcohol by
volume, upon which the  tax  shall  be  [three  and  seventy-nine]  FOUR
hundredths cents per gallon;
  (c) [Thirty cents] FIFTY-ONE CENTS per gallon upon artificially carbo-
nated  sparkling  wines,  except artificially carbonated sparkling cider
containing more than three and  two-tenths  per  centum  of  alcohol  by
volume,  upon  which  the  tax  shall  be  [three and seventy-nine] FOUR
hundredths cents per gallon;
  (d) [Thirty cents] FIFTY-ONE CENTS per gallon upon  natural  sparkling
wines,  except  natural  sparkling  cider containing more than three and
two-tenths per centum of alcohol by volume, upon which the tax shall  be
[three and seventy-nine] FOUR hundredths cents per gallon;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06986-02-4

S. 3123--A                          2

  (e)  [Sixty-seven]  ONE  DOLLAR  AND TWENTY-THREE cents per liter upon
liquors containing not more than twenty-four per centum  of  alcohol  by
volume except liquors containing not more than two per centum of alcohol
by  volume,  upon which the tax shall be [one cent] TWO CENTS per liter;
and
  (f)  [One dollar] TWO DOLLARS and [seventy] TWENTY-SIX cents per liter
upon all other liquors; when sold or used within this state, except when
sold or used under such circumstances that this state is  without  power
to  impose  such  tax or when sold to the United States and except beers
when sold to or by a voluntary unincorporated organization of the  armed
forces  of  the  United  States  operating a place for the sale of goods
pursuant to regulations promulgated by the appropriate executive  agency
of the United States, to the extent provided in such regulations, direc-
tives  and policy statements of such an agency applicable to such sales,
and except when sold to professional  foreign  consuls-general,  consuls
and  vice-consuls who are nationals of the state appointing them and who
are assigned to foreign consulates in this state, provided that American
consular officers of equal rank who are citizens of  the  United  States
and who exercise their official functions at American consulates in such
foreign  country  are  granted reciprocal exemptions; provided, however,
that the commissioner may permit the sale of alcohol without  tax  to  a
holder  of  any  industrial  alcohol  permit,  alcohol permit or alcohol
distributor's permit, issued by the state liquor authority, and  by  the
holder  of  an  alcohol  distributor's  permit,  class A, issued by such
authority to a holder of a distiller's license, class  B,  or  a  winery
license, issued by such authority and may also permit the use of alcohol
for any purpose other than the production of alcoholic beverages by such
holders  without tax; provided also that the commissioner may permit the
sale of cider without tax by a holder  of  a  cider  producer's  license
issued  by  the state liquor authority to a holder of a cider producer's
license or a cider wholesaler's license issued by such authority.
  (H) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE,  ONE  HUNDRED
PERCENT  OF TAXES, INTEREST, PENALTIES AND FEES COLLECTED OR RECEIVED BY
THE COMMISSIONER UNDER PARAGRAPHS (A) THROUGH (F)  OF  THIS  SUBDIVISION
SHALL BE ALLOCATED TO THE GENERAL FUND.
  S 2. Section 424 of the tax law is amended by adding a new subdivision
6 to read as follows:
  6.  THE  TAX  IMPOSED  BY  SUBDIVISION  ONE  OF  THIS SECTION SHALL BE
ADJUSTED EFFECTIVE JULY FIRST OF EACH YEAR BY APPLYING TO  SUCH  TAX  AN
UPWARD  OR  DOWNWARD ADJUSTMENT, AS THE CASE MAY BE, USING AS THE FACTOR
FOR SUCH ADJUSTMENT THE PERCENTAGE AMOUNT BY WHICH THE ALL ITEMS CONSUM-
ER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-U) AS PREPARED BY THE UNITED
STATES DEPARTMENT OF LABOR FOR THE FIRST CALENDAR QUARTER OF  SUCH  YEAR
EXCEEDS OR IS LESS THAN SUCH INDEX FOR THE FIRST CALENDAR QUARTER OF THE
PROCEEDING  YEAR. THE COMMISSIONER SHALL PROMULGATE REGULATIONS SPECIFY-
ING THE METHODOLOGY TO BE USED TO DETERMINE THE GOODS AND  INVENTORY  TO
WHICH  THE  INCREASE SHALL APPLY EFFECTIVE EACH JULY FIRST, EXCEPT THAT,
FOR AN INCREASE IN THE TAX PURSUANT  TO  THIS  SUBDIVISION,  SUCH  REGU-
LATIONS SHALL APPLY ONLY IF SUCH INCREASE IS GREATER THAN TEN PERCENT.
  S 3. This act shall take effect April 1, 2015, provided, however, that
any  rules  or regulations necessary to implement the provisions of this
act may be promulgated and any procedures, forms, or instructions neces-
sary for such implementation may be adopted and issued on or  after  the
date  this act shall have become a law. The commissioner of taxation and
finance may take any steps necessary to implement this act prior to  its
effective date.

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