NY State Senate Bill 2019-S246

Senate Bill S246

2019-2020 Legislative Session

Relates to the amount of credit for cider, wine, and liquor under the alcoholic beverage production credit

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to investigations and government operations
Jan 09, 2019	referred to investigations and government operations

co-Sponsors

2019-S246 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §37, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S7396
2021-2022: S3972
2023-2024: S3496

2019-S246 (ACTIVE) - Summary

Relates to the amount of credit for cider, wine, and liquor produced in NYS under the alcoholic beverage production credit; provides parity with beer credit based on the taxes for cider, wine, and liquor.

2019-S246 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S246

SPONSOR: KENNEDY
 
TITLE OF BILL:  An act to amend the tax law, in relation to the amount
of credit for cider, wine, and liquor under the alcoholic beverage
production credit

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Maintains the credit amount for:

For the first 500,000 gallons of:

i. beer produced in this state in the taxable year, the credit shall
equal 14 cents per gallon. Updates the credit amount for the following:
For the first 500,000 gallons of:

ii. Cider, artificially carbonated sparkling cider, and natural sparkl-
ing cider, containing more than three and two-tenths per centum of alco-
hol by volume produced in this state in the taxable year, the credit
shall equal 3.79 cents per gallon;

iii. Still wine, artificially carbonated sparkling wine, and natural
sparkling wine produced in this state in the taxable year, the credit
shall equal 0.30 cents per gallon;

iv. Liquors containing not more than 24% of alcohol by volume produced
in this state in the taxable year, the credit shall equal 2.54 cents per
gallon;

v. Liquors containing not more than 2% of alcohol by volume produced in
this state in the taxable year, the credit shall equal 0.04 cents per
gallon;

vi. All other liquors produced in this state in the taxable year, the
credit shall equal 6.44 cents per gallon.

 
JUSTIFICATION:

In 2016, the Alcoholic Beverage Production Tax Credit was extended to
include cider, wine, and spirits. By extending the current beer credit
(14 cents) to all industries, an inequity occurred resulting in differ-
ent tax credit amounts being given to the different distillers. When
extending the credit, the precise tax paid by spirit distillers was not
considered nor was there any adjustment made to reflect an equal credit
distribution across industries.

Due to this, the 14 cents a gallon credit is 100% of the taxes for beer
but only accounts for about 2% of the tax for Spirits. This inequity
leaves small businesses at an unfair disadvantage. The bill would amend
the credit to create equity and parity among the different beverage
industries. New York state has experienced a surge in the distilling
industry - going from 11 distillers in 2011 to 148 in 2017. This
increase in the Spirits industry has not been accounted for in the
current credit they receive.

 
LEGISLATIVE HISTORY:

2017-18: S.7396/A.8996
 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2020.

2019-S246 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    246
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sen. KENNEDY -- 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 the  amount  of  credit  for
   cider, wine, and liquor under the alcoholic beverage production credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subdivision (b) of section  37  of  the  tax
 law,  as  amended  by  section  1 of part V of chapter 60 of the laws of
 2016, is amended to read as follows:
   (1) for the first five hundred thousand gallons of:
   I. beer[, cider, wine or liquor] produced in this state in the taxable
 year, the credit shall equal fourteen cents per gallon; [and]
   II. CIDER, ARTIFICIALLY CARBONATED SPARKLING CIDER, AND NATURAL  SPAR-
 KLING  CIDER,  CONTAINING  MORE  THAN THREE AND TWO-TENTHS PER CENTUM OF
 ALCOHOL BY VOLUME PRODUCED IN THIS STATE IN THE TAXABLE YEAR, THE CREDIT
 SHALL EQUAL THREE AND SEVENTY-NINE HUNDREDTHS CENTS PER GALLON;
   III. STILL WINE, ARTIFICIALLY CARBONATED SPARKLING WINE,  AND  NATURAL
 SPARKLING  WINE  PRODUCED  IN THIS STATE IN THE TAXABLE YEAR, THE CREDIT
 SHALL EQUAL THIRTY CENTS PER GALLON;
   IV. LIQUORS CONTAINING NOT MORE THAN TWENTY-FOUR PER CENTUM OF ALCOHOL
 BY VOLUME PRODUCED IN THIS STATE IN THE TAXABLE YEAR, THE  CREDIT  SHALL
 EQUAL TWO AND FIFTY-FOUR HUNDREDTHS CENTS PER GALLON;
   V.  LIQUORS  CONTAINING  NOT  MORE  THAN  TWO PER CENTUM OF ALCOHOL BY
 VOLUME PRODUCED IN THIS STATE IN THE  TAXABLE  YEAR,  THE  CREDIT  SHALL
 EQUAL FOUR CENTS PER GALLON;
   VI.  ALL OTHER LIQUORS PRODUCED IN THIS STATE IN THE TAXABLE YEAR, THE
 CREDIT SHALL EQUAL SIX AND FORTY-FOUR HUNDREDTHS CENTS PER GALLON; AND
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2020.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD05760-01-9

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S246

Share this bill

Sponsored By

Timothy M. Kennedy