LBD07572-03-7
A. 7400--A 2
tration requirements any person who is a distributor of liquors solely
by reason of the importation into this state of no more than [ninety
liters] TWENTY-FOUR PROOF GALLONS of liquors during a one-year period
for such person's personal use and consumption to register as a distrib-
utor with respect to liquor. Provided, further, that an abbreviated
registration in the [from] FORM of a permit, without a bond, may be
instituted by the commissioner for the purpose of authorizing the impor-
tation of up to [three hundred sixty liters] NINETY-FIVE PROOF GALLONS
of liquors per year into this state by an individual for such individ-
ual's personal use and consumption in this state.
§ 3. Paragraphs (e), (f) and (g) of subdivision 1 of section 424 of
the tax law, paragraph (e) as amended by chapter 190 of the laws of
1990, paragraph (f) and the opening paragraph of paragraph (g) as
amended by chapter 508 of the laws of 1993 and paragraph (g) as amended
by chapter 433 of the laws of 1978, are amended to read as follows:
(e) [Sixty-seven] TWO DOLLARS AND FIFTY-THREE AND SIX-TENTHS cents per
[liter] GALLON 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]
THREE AND THREE-QUARTERS CENTS per [liter] GALLON; and
(f) [One dollar] SIX DOLLARS and [seventy] FORTY-THREE AND ONE-HALF
cents per [liter] PROOF GALLON 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 unincorpo-
rated 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, directives 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 func-
tions at American consulates in such foreign country are granted recip-
rocal 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.
(g) For purposes of this chapter, it is presumed that liquors are
possessed for the purpose of sale in this state if the quantity of
liquors possessed in this state, imported or caused to be imported into
this state or produced, distilled, manufactured, compounded, mixed or
fermented in this state exceeds [ninety liters] TWENTY-FOUR PROOF
GALLONS. Such presumption may be rebutted by the introduction of
substantial evidence to the contrary. In any case where the quantity of
alcoholic beverages taxable pursuant to this article is a fractional
part of one [liter] PROOF GALLON (or one gallon in the case of beers) or
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an amount greater than a whole multiple of [liters] PROOF GALLONS (or
gallons in the case of beers), the amount of tax levied and imposed on
such fractional part of one [liter] PROOF GALLON (or one gallon in the
case of beers), or A fractional part of a [liter] PROOF GALLON (or
gallon) in excess of a whole multiple of [liters] PROOF GALLONS or
gallons shall be such fractional part of the rate imposed by paragraphs
(a) through (f).
Notwithstanding any other provision of this article, the tax commis-
sion may permit the purchase of liquors and wines without tax by a hold-
er of a distiller's license or a winery license, issued by the state
liquor authority from another holder of a distiller's license or a
winery license, issued by such authority, in which event the liquors and
wines so purchased shall be subject to the taxes imposed by this article
in the hands of the purchaser in the same manner and to the same extent
as if such purchaser had imported or caused the same to be imported into
this state or had produced, distilled, manufactured, brewed, compounded,
mixed or fermented the same within this state.
§ 4. Subdivision 4 of section 424 of the tax law, as amended by chap-
ter 433 of the laws of 1978, is amended to read as follows:
4. [(a)] Notwithstanding any other provision of this article, there
shall be exempt from the taxes imposed under this article, per month,
one-quart of alcoholic beverages (or one gallon of such beverages in the
case of a person arriving directly or indirectly from American Samoa,
Guam or the Virgin Islands of the United States not more than one-quart
of which shall have been acquired elsewhere than in such insular
possessions):
[(i)] (A) purchased outside this state as an incident to a journey
from which the purchaser is returning and
[(ii)] (B) not to be offered for sale or used for any commercial
purpose, provided such alcoholic beverages accompany such person on his
return to this state and provided, further, that in the case of a person
arriving in this state from other than a state of the United States
(including the district of Columbia), the Virgin Islands of the United
States or a contiguous country maintaining a free zone or free port,
such person shall have remained beyond the territorial limits of the
United States for a period of not less than forty-eight hours.
[(b) Provided, however, where the amounts purchased outside this state
or brought in exceed the amounts specified in paragraph (a) of this
subdivision but are not in excess of one liter in the case of the refer-
ences to one-quart or four liters in the case of the reference to one
gallon, and where no duty is required by the laws of the United States
to be paid on such amounts, such metric standards of fill shall be
substituted for one-quart and one gallon, respectively, and such amounts
shall be exempt from tax under the conditions provided for in paragraph
(a) of this subdivision.]
§ 5. Section 425-a of the tax law, as added by chapter 508 of the laws
of 1993, is amended to read as follows:
§ 425-a. Presumption of taxability. For the purpose of the proper
administration of the taxes imposed by this article and to prevent
evasion thereof, it shall be presumed with respect to this chapter that
all alcoholic beverages possessed or found in this state are subject to
the taxes imposed by this article until the contrary is established by
substantial evidence. Except with respect to a purchase at retail of
beers or wines and a purchase at retail of [ninety liters] TWENTY-FOUR
PROOF GALLONS or less of liquors, no person shall purchase alcoholic
beverages in this state unless the taxes imposed by this article with
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respect to such beverages have been assumed by a distributor registered
under this article or paid by such distributor pursuant to and in
accordance with the manner provided herein and evidenced in accordance
with the manner provided herein. In the case of liquors, such taxes
shall be assumed by a distributor in accordance with the invoice
required, and the certification of tax payment included therein, under
section four hundred twenty-seven of this article; in the case of other
alcoholic beverages, the taxes shall be assumed by such distributor
pursuant to and in accordance with the rules or regulations of the
department.
§ 6. Subdivision 1 and paragraph (i) of subdivision 2 of section 427
of the tax law, as added by chapter 508 of the laws of 1993, are amended
to read as follows:
1. Every sale of liquors, except a sale at retail of [ninety liters]
TWENTY-FOUR PROOF GALLONS or less, shall be evidenced by and recorded on
an individual, serially numbered invoice, and, with respect to each such
sale, the seller therein shall make and complete such invoice which
shall contain the information required by this section and give the same
to the purchaser at the time of delivery. The seller shall sign and date
the invoice required by this section and certify the entire content of
such invoice.
(i) the [size (in liters)] VOLUME PER BOTTLE and number of bottles of
liquors sold, and its description, by brand name and price; and
§ 7. Subdivision 2 of section 428 of the tax law, as added by chapter
508 of the laws of 1993, is amended to read as follows:
2. The operator of a motor vehicle, as such term is defined in subdi-
vision three of section two hundred eighty-two of this chapter, or any
other means of transport of liquors in which more than [ninety liters]
TWENTY-FOUR PROOF GALLONS of liquors is being transported in this state
must have in his or her possession a manifest, invoice or other document
which shows the name and address of the person from whom such liquors
were received and the date and place of receipt of such liquor and the
name and address of every person to whom such operator is to make deliv-
ery of the same and the place of delivery, together with the number of
[liters] BOTTLES AND VOLUME PER BOTTLE to be delivered to each person,
and, if such liquor is being imported into the state in such motor vehi-
cle or such other means of transport, the name of the distributor
importing or causing such liquors to be imported into the state and such
other information as the commissioner may require pursuant to rule or
regulation. Every operator of such motor vehicle or such other means of
transport shall at the request of a peace officer, acting pursuant to
his special duties, a police officer, any representative of the depart-
ment or any other person authorized by law to inquire into or investi-
gate the transportation of such liquors, produce such manifest, invoice
or other document for inspection. The person causing the operation of
such motor vehicle or such other means of transport shall be responsible
to cause the operator to keep in such operator's possession in such
motor vehicle or such other means of transport the manifest, invoice or
other document required by this section. The absence of the manifest,
invoice or other document required by this section shall give rise to a
presumption that the liquors being transported are being imported or
caused to be imported into this state for sale or use therein by other
than a registered distributor. Moreover, the absence of (1) the place
of delivery of liquors on the manifest, invoice or other document with
respect to liquors being imported into the state shall give rise to a
presumption that such liquors are being imported into the state for sale
A. 7400--A 5
or use in the state and (2) the name of a registered distributor on the
manifest, invoice or other document with respect to liquors being
imported into the state shall give rise to a presumption that such
liquors are being so imported or caused to be imported into this state,
for sale or use therein, by other than a registered distributor. Such
presumptions may be rebutted by the introduction of substantial evidence
to the contrary.
§ 8. Subdivisions 1 and 2 of section 429 of the tax law, as amended by
chapter 433 of the laws of 1978, are amended to read as follows:
1. Every distributor, noncommercial importer or other person shall, on
or before the twentieth day of each month, file with the department of
taxation and finance a return, on forms to be prescribed by the tax
commission and furnished by such department, stating separately the
number of gallons OR PROOF GALLONS, or lesser quantity, of beers, [and
the number of liters, or lesser quantity, of] wines and liquors sold or
used by such distributor, noncommercial importer or other person in this
state during the preceding calendar month, except that the tax commis-
sion may, if it deems it necessary in order to insure the payment of the
tax imposed by this article, require returns to be made at such times
and covering such periods as it may deem necessary. Such return shall
contain such further information as the tax commission shall require.
The fact that the name of the distributor, noncommercial importer or
other person is signed to a filed return shall be prima facie evidence
for all purposes that the return was actually signed by such distribu-
tor, noncommercial importer or other person.
2. Each such distributor, noncommercial importer or other person shall
pay to such department with the filing of such return, the tax imposed
by this article, on each gallon OR PROOF GALLON, or lesser quantity[, of
beers and on each liter, or lesser quantity] of all [other] alcoholic
beverages sold or used by such distributor, noncommercial importer or
other person in this state, as so reported, during the period covered by
such return, except that, where a distributor has purchased alcoholic
beverages prior to the expiration of the period covered by the return,
upon which the taxes imposed by this article have been or are required
to be paid by another distributor, a credit shall be allowed for the
amount of such taxes.
§ 9. Paragraph (b) of subdivision 1 and subdivision 2 of section 445
of the tax law, as amended by chapter 433 of the laws of 1978, are
amended to read as follows:
(b) [Twenty-six] NINETY-NINE and [four-tenths] NINE-TENTHS cents per
[liter] PROOF GALLON on the liquors described in paragraph (f) of subdi-
vision one of section four hundred twenty-four, when sold or used in
such city.
2. Every local law imposing taxes pursuant to the authority of subdi-
vision one shall also impose upon each person, other than a distributor
within the meaning of such local law, who, on the date the taxes imposed
pursuant to the authority of such subdivision become effective, owns and
possesses for the purposes of sale beer, or other alcoholic beverages
described in subdivision one, a floor tax at the rates applicable under
subdivision one upon such beer in excess of one hundred gallons and upon
such other alcoholic beverages in excess of [four] ONE hundred [liters]
FIVE PROOF GALLONS. Such floor tax shall be due and payable on the
twentieth day of the month succeeding the month in which the taxes
become effective.
§ 10. Paragraphs 2 and 3 of subdivision (e), paragraphs 2 and 3 of
subdivision (f) and subdivision (g) of section 1813 of the tax law, as
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amended by section 27 of subpart I of part V-1 of chapter 57 of the laws
of 2009, are amended to read as follows:
(2) Any person who, while not registered as a distributor pursuant to
the provisions of article eighteen of this chapter, knowingly and inten-
tionally imports or causes to be imported into this state, for sale or
use therein, more than [three hundred sixty liters] NINETY-FIVE PROOF
GALLONS of liquors into this state in a one-year period or, except in
accordance with clause (i) or (ii) of paragraph (b) of subdivision four
of section four hundred twenty of this chapter, knowingly and inten-
tionally produces, distills, manufactures, compounds, mixes or ferments
for sale more than [three hundred sixty liters] NINETY-FIVE PROOF
GALLONS of such liquors within this state in a one-year period, or, as a
purchaser of a warehouse receipt, knowingly and intentionally causes
more than [three hundred sixty liters] NINETY-FIVE PROOF GALLONS of
liquors in a one-year period to be removed from a warehouse in this
state, shall be guilty of a class E felony.
(3) For purposes of this subdivision, it shall be presumed that the
importation or the causing to be imported into this state or the
production, distillation, manufacture, compounding, mixing or fermenting
in this state of more than [ninety liters] TWENTY-FOUR PROOF GALLONS of
such liquors by any person in a one-year period is for purposes of sale.
Such presumption may be rebutted by the introduction of substantial
evidence to the contrary.
(2) Any person who, while not registered as a distributor for city
purposes pursuant to the provisions of section four hundred forty-five
of article eighteen of this chapter, knowingly and intentionally imports
or causes to be imported into such city, for sale or use therein, more
than [three hundred sixty liters] NINETY-FIVE PROOF GALLONS of liquors
into such city in a one-year period or, except in accordance with clause
(i) or (ii) of paragraph (b) of subdivision four of section four hundred
twenty of this chapter as incorporated into such section four hundred
forty-five, knowingly and intentionally produces, distills, manufac-
tures, compounds, mixes or ferments for sale more than [three hundred
sixty liters] NINETY-FIVE PROOF GALLONS of such liquors within such city
in a one-year period, or, as a purchaser of a warehouse receipt, know-
ingly and intentionally causes more than [three hundred sixty liters]
NINETY-FIVE PROOF GALLONS of liquors in a one-year period to be removed
from a warehouse in this state, shall be guilty of a class E felony.
(3) For purposes of this subdivision, it shall be presumed that the
importation or the causing to be imported into such city or the
production, distillation, manufacture, compounding, mixing or fermenting
in such city of more than [ninety liters] TWENTY-FOUR PROOF GALLONS of
liquors by any person in a one-year period is for purposes of sale. Such
presumption may be rebutted by the introduction of substantial evidence
to the contrary.
(g) Any person, other than the distributor registered under article
eighteen of this chapter which imported or caused the liquors to be
imported into this state, who shall willfully and knowingly have in his
custody, possession or under his control liquors with respect to which
the taxes imposed by or pursuant to the authority of article eighteen of
this chapter have not been assumed or paid by a distributor registered
as such under such article, shall be guilty of a class B misdemeanor; if
such person shall willfully and knowingly have more than [ninety liters]
TWENTY-FOUR PROOF GALLONS of such liquors in his custody or possession
or under his control, such person shall be guilty of a class A misdemea-
nor; or if such person shall knowingly and intentionally have more than
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[three hundred sixty liters] NINETY-FIVE PROOF GALLONS of such liquors
in his custody or possession or under his control, such person shall be
guilty of a class E felony. For purposes of this subdivision, such
person shall willfully and knowingly have in his custody, possession or
under his control any liquors with respect to which such taxes have not
been assumed or paid by a distributor registered as such where such
person has knowledge of the requirement of such taxes and where, to his
knowledge, such taxes have not been assumed or paid by a registered
distributor with respect to such liquors.
§ 11. Subdivisions (a), (k) and (l) of section 1845 of the tax law, as
added by chapter 508 of the laws of 1993, are amended to read as
follows:
(a) Temporary seizure. Whenever a police officer designated in section
1.20 of the criminal procedure law or a peace officer designated in
subdivision four of section 2.10 of such law, acting pursuant to his
special duties, shall discover more than [ninety liters] TWENTY-FOUR
PROOF GALLONS of liquors which are being imported for sale or use in the
state, where the person importing or causing such liquors to be imported
is not registered as a distributor under section four hundred twenty-one
of this chapter, such police officer or peace officer is hereby author-
ized to seize and take possession of such liquors, and to seize and take
possession of the vehicle or other means of transportation used to
transport such liquors.
(k) An additional ground for seizure and forfeiture under this section
shall be where such police officer or peace officer shall discover more
than [ninety liters] TWENTY-FOUR PROOF GALLONS of liquors in this state,
with respect to which the taxes imposed by or pursuant to article eigh-
teen of this chapter have not been paid or assumed by a person regis-
tered as a distributor pursuant to such article, which are in the course
of distribution in this state or which are being sold in this state. All
the foregoing subdivisions of this section shall apply to the seizure
and forfeiture of liquors referred to in this subdivision and the vehi-
cle transporting the same as if such foregoing subdivisions specifically
referred to such grounds and as if such grounds set forth in this subdi-
vision were set forth as grounds for seizure in subdivision (a) hereof.
Provided that in the forfeiture action with respect to the liquors or
vehicle referred to in this subdivision, the department shall be
required to show that such liquors were found within the state and that
they were in the course of distribution in this state or were being sold
in this state.
(l) This section shall also apply to a forfeiture action with respect
to the importation of more than [ninety liters] TWENTY-FOUR PROOF
GALLONS of liquors into a city imposing a tax pursuant to the authority
of section four hundred forty-five of this chapter by a person not
registered as a distributor for purposes of such tax or, in addition,
with respect to the distribution or sale of untaxed liquors in such
city.
§ 12. This act shall take effect on the ninetieth day after it shall
have become a law; provided, however, that effective immediately, the
addition, amendment and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date are authorized
and directed to be made and completed on or before such date.