Senate Bill S6096

                                 BILL NUMBER:  S6096

 TITLE OF BILL :
An act to repeal subdivisions (b), (c) and (e) of section 2 of part
X-1 of chapter 57 of the laws of 2009 amending the tax law relating to
taxes on beer and wine under article 18 of the tax law, relating to a
floor tax on beer and wine; and providing for the refund of certain
taxes paid under such article 18


 PURPOSE :
This bill repeals section 2 of part X-1 of chapter 57 of the laws of
2009 amending the tax law relating to taxes on beer and wine under
article 18 of the tax law, relating to a floor tax on beer and wine;
and providing for the refund of certain taxes paid under such article
18.

 SUMMARY OF PROVISIONS :
Section one: subdivisions (b), (c) and (e) of section 2 of part X-1 of
Chapter 57 of the Laws of 2009 amending the tax law relating to taxes
on beer and wine under article 18 of the tax law are repealed.

 JUSTIFICATION :
Given the recent increase in the excise tax already paid by small
businesses, the additional floor tax on wine and beer is an
unacceptable burden for them to bear given the economic conditions
              

facing New York State.

For the businesses who sell wine and beer, the floor tax creates a
condition where these businesses are essentially taxed twice on the
same inventory. In addition to the increase in the excise tax,
breweries, wineries, restaurants, liquor stores and wholesalers must
now pay an additional 11 cents per gallon of wine, and 3 cents per
gallon of beer on inventory in their store, warehouse or stockrooms on
top of the excise tax.

Those who have to pay the tax were given little notice and time to
prepare for an inventory that had to be conducted on April 30, and
there are no long term payment options available. The floor tax,
unlike the excise tax, would have to be paid in one lump sum and small
businesses that already operate on incredibly small budgets would be
forced to pay hundreds, if not thousands of dollars on the spot.

With small businesses generating 80 percent of the new jobs in the
state, it is imperative we do what we can to assist these businesses
during these hard times.

 LEGISLATIVE HISTORY :
New.

 FISCAL IMPLICATIONS :
Minimal.

 EFFECTIVE DATE :
This act shall take effect immediately and shall be deemed to have
been in full force and effect on and after May 1, 2009.