S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11173
 
                           I N  A S S E M B L Y
 
                             December 4, 2020
                                ___________
 
 Introduced  by  COMMITTEE  ON RULES -- (at request of M. of A. Santabar-
   bara) -- read once and referred to the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to enacting the "Save  our  New
   York state restaurants Act" and creating a limited sales tax exemption
   for  the  sale of food and drink at restaurants and taverns from state
   sales and compensating  use  taxes  and  granting  municipalities  the
   option to grant such limited exemption
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the  "Save  our
 New York state restaurants Act".
   §  2.  Subdivision  (a)  of  section 1115 of the tax law is amended by
 adding a new paragraph 46 to read as follows:
   (46) FOR THE SEVEN DAY PERIOD BEGINNING  ON  THE  FIRST  SUNDAY  WHICH
 OCCURS  THIRTY  DAYS  AFTER  THE  EFFECTIVE  DATE OF THIS PARAGRAPH, THE
 RECEIPTS FROM EVERY SALE OF FOOD AND DRINK OF  ANY  NATURE  OR  OF  FOOD
 ALONE,  WHEN  SOLD IN OR BY RESTAURANTS, TAVERNS OR OTHER ESTABLISHMENTS
 IN THIS STATE; PROVIDED HOWEVER THAT SUCH EXEMPTION  SHALL  NOT  INCLUDE
 FOOD OR DRINKS SOLD BY FAST FOOD CHAINS.  FOR THE PURPOSES OF THIS PARA-
 GRAPH,  THE  TERM  "FAST  FOOD CHAINS" REFERS TO LIMITED SERVICE RESTAU-
 RANTS, WHERE CUSTOMERS ORDER AT THE COUNTER AND PAY  IN  ADVANCE,  WHICH
 ARE LARGE CHAINS WITH MULTIPLE LOCATIONS NATIONALLY.
   §  3.  Subdivision  (b)  of  section 1107 of the tax law is amended by
 adding a new clause 12 to read as follows:
   (12) EXCEPT AS OTHERWISE PROVIDED BY LAW, THE EXEMPTION  ON  SALES  OF
 FOOD  AND  DRINK DURING THE ONE WEEK PERIOD PROVIDED IN PARAGRAPH FORTY-
 SIX OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF  THIS  ARTI-
 CLE,  SHALL  BE  APPLICABLE PURSUANT TO A LOCAL LAW, ORDINANCE OR RESOL-
 UTION ADOPTED BY A CITY SUBJECT TO THE PROVISIONS OF THIS SECTION.  SUCH
 CITY  IS  EMPOWERED  TO  ADOPT  OR REPEAL SUCH A LOCAL LAW, ORDINANCE OR
 RESOLUTION. SUCH ADOPTION OR REPEAL SHALL ALSO BE DEEMED  TO  AMEND  ANY
 LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED BY SUCH A CITY IMPOSING TAXES
 PURSUANT  TO  THE AUTHORITY OF SUBDIVISION (A) OF SECTION TWELVE HUNDRED
 TEN OF THIS CHAPTER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD17451-01-0

 A. 11173                            2
 
   § 4. Paragraph 1 of subdivision (a) of section 1210 of the tax law  is
 amended by adding a new subparagraph (iii) to read as follows:
   (III)  ANY  LOCAL  LAW,  ORDINANCE  OR RESOLUTION ENACTED BY ANY CITY,
 COUNTY OR SCHOOL DISTRICT, IMPOSING THE TAXES AUTHORIZED BY THIS  SUBDI-
 VISION,  SHALL  OMIT  THE  SALES  OF  FOOD  AND DRINK AT RESTAURANTS AND
 TAVERNS EXEMPTION DURING THE ONE WEEK PERIOD AS PROVIDED  FOR  IN  PARA-
 GRAPH  FORTY-SIX OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF
 THIS CHAPTER, UNLESS SUCH CITY, COUNTY OR SCHOOL DISTRICT ELECTS  OTHER-
 WISE; PROVIDED THAT IF SUCH A CITY HAVING A POPULATION OF ONE MILLION OR
 MORE  ENACTS THE RESOLUTION DESCRIBED IN SUBDIVISION (P) OF THIS SECTION
 OR REPEALS SUCH RESOLUTION, SUCH REPEAL  OR  RESOLUTION  SHALL  ALSO  BE
 DEEMED TO AMEND ANY LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED BY SUCH A
 CITY  IMPOSING  SUCH  TAX PURSUANT TO THE AUTHORITY OF THIS SUBDIVISION,
 WHETHER OR NOT SUCH TAXES ARE SUSPENDED AT THE TIME SUCH CITY ENACTS ITS
 RESOLUTION PURSUANT TO SUBDIVISION (P) OF THIS SECTION OR AT THE TIME OF
 ANY SUCH REPEAL; PROVIDED FURTHER THAT ANY SUCH LOCAL LAW, ORDINANCE  OR
 RESOLUTION  AND  SECTION ELEVEN HUNDRED SEVEN OF THIS CHAPTER, AS DEEMED
 TO BE AMENDED IN THE EVENT A CITY OF ONE MILLION OR MORE ENACTS A RESOL-
 UTION PURSUANT TO THE AUTHORITY OF  SUBDIVISION  (P)  OF  THIS  SECTION,
 SHALL BE FURTHER AMENDED, AS PROVIDED IN SECTION TWELVE HUNDRED EIGHTEEN
 OF  THIS  SUBPART,  SO  THAT  SALES OF FOOD AND DRINK BY RESTAURANTS AND
 TAVERNS IN ANY SUCH LOCAL LAW, ORDINANCE OR  RESOLUTION  OR  IN  SECTION
 ELEVEN  HUNDRED SEVEN OF THIS CHAPTER IS THE SAME AS THE STATE EXEMPTION
 ON SALES OF FOOD AND DRINK  BY  RESTAURANTS  AND  TAVERNS  IN  PARAGRAPH
 FORTY-SIX  OF  SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS
 CHAPTER.
   § 5. Subdivision (d) of section 1210 of the tax  law,  as  amended  by
 section  4  of  part WW of chapter 60 of the laws of 2016, is amended to
 read as follows:
   (d) A local law, ordinance or resolution imposing any tax pursuant  to
 this  section,  increasing or decreasing the rate of such tax, repealing
 or suspending such tax, exempting from such tax the energy  sources  and
 services  described in paragraph three of subdivision (a) or of subdivi-
 sion (b) of this section or changing the rate of  tax  imposed  on  such
 energy  sources  and  services  or  providing  for  the credit or refund
 described in clause six of subdivision (a)  of  section  eleven  hundred
 nineteen  of  this  chapter,  or electing or repealing the exemption for
 residential solar equipment  and  electricity  in  subdivision  (ee)  of
 section  eleven  hundred  fifteen  of this article, or the exemption for
 commercial solar  equipment  and  electricity  in  subdivision  (ii)  of
 section eleven hundred fifteen of this article, or electing or repealing
 the  exemption  for  commercial fuel cell electricity generating systems
 equipment and electricity generated by  such  equipment  in  subdivision
 (kk)  of  section  eleven  hundred  fifteen of this article must go into
 effect only on one of the following  dates:  March  first,  June  first,
 September first or December first; provided, that a local law, ordinance
 or  resolution providing for the exemption described in paragraph thirty
 of subdivision (a) of section eleven hundred fifteen of this chapter  or
 repealing  any  such  exemption  or a local law, ordinance or resolution
 providing for a refund or credit described in subdivision (d) of section
 eleven hundred nineteen of this chapter or repealing such  provision  so
 provided  must go into effect only on March first; PROVIDED FURTHER THAT
 A LOCAL  LAW,  ORDINANCE  OR  RESOLUTION  PROVIDING  FOR  THE  EXEMPTION
 DESCRIBED  IN  PARAGRAPH  FORTY-SIX OF SUBDIVISION (A) OF SECTION ELEVEN
 HUNDRED FIFTEEN OF THIS CHAPTER  OR  REPEALING  ANY  SUCH  EXEMPTION  SO
 PROVIDED  AND A RESOLUTION ENACTED PURSUANT TO THE AUTHORITY OF SUBDIVI-

 A. 11173                            3
 
 SION (P) OF THIS SECTION  PROVIDED  SUCH  EXEMPTION  OR  REPEALING  SUCH
 EXEMPTION SO PROVIDED MAY GO INTO EFFECT IMMEDIATELY. No such local law,
 ordinance  or  resolution  shall be effective unless a certified copy of
 such  law,  ordinance or resolution is mailed by registered or certified
 mail to the commissioner at the commissioner's office in Albany at least
 ninety days prior to the date it is to become  effective.  However,  the
 commissioner  may  waive  and  reduce  such  ninety-day  minimum  notice
 requirement to a mailing of such certified copy by registered or  certi-
 fied  mail  within  a  period of not less than thirty days prior to such
 effective date if the commissioner deems such action  to  be  consistent
 with  the  commissioner's  duties  under section twelve hundred fifty of
 this  article  and  the  commissioner  acts  by  resolution.  Where  the
 restriction  provided for in section twelve hundred twenty-three of this
 article as to the effective date of a tax  and  the  notice  requirement
 provided  for  therein  are  applicable  and  have  not been waived, the
 restriction and notice requirement in  section  twelve  hundred  twenty-
 three of this article shall also apply.
   §  6.  Section 1210 of the tax law is amended by adding a new subdivi-
 sion (p) to read as follows:
   (P) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL  LAW,  ORDI-
 NANCE OR RESOLUTION TO THE CONTRARY:
   (1)  ANY  CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE
 TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF  THIS  CHAPTER  ARE  IN
 EFFECT,  ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED
 AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTION FROM SUCH TAXES  AS
 THE  SALES  OF  FOOD AND DRINK BY RESTAURANTS AND TAVERNS EXEMPTION FROM
 STATE SALES AND COMPENSATING USE TAXES DESCRIBED IN PARAGRAPH  FORTY-SIX
 OF  SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY
 ENACTING A RESOLUTION IN THE FORM SET FORTH IN  PARAGRAPH  TWO  OF  THIS
 SUBDIVISION;  WHEREUPON, UPON COMPLIANCE WITH THE PROVISIONS OF SUBDIVI-
 SIONS (D) AND (E) OF THIS SECTION, SUCH  ENACTMENT  OF  SUCH  RESOLUTION
 SHALL  BE DEEMED TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN
 AND SUCH SECTION ELEVEN HUNDRED SEVEN SHALL  BE  DEEMED  TO  INCORPORATE
 SUCH  EXEMPTION  AS IF IT HAD BEEN DULY ENACTED BY THE STATE LEGISLATURE
 AND APPROVED BY THE GOVERNOR.
   (2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER  TITLE  OF
 LOCAL LEGISLATIVE BODY) AS FOLLOWS:
   SECTION   1.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN  OR
 CONTRACTED TO BE GIVEN FOR  FOOD  AND  DRINK  SOLD  AT  RESTAURANTS  AND
 TAVERNS  EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES DURING A ONE
 WEEK PERIOD PURSUANT  TO  PARAGRAPH  FORTY-SIX  OF  SUBDIVISION  (A)  OF
 SECTION  ELEVEN HUNDRED FIFTEEN OF THE TAX LAW SHALL ALSO BE EXEMPT FROM
 SALES AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION.
   2. THIS RESOLUTION SHALL TAKE EFFECT,  (INSERT  THE  DATE)  AND  SHALL
 APPLY  TO  SALES MADE AND USES OCCURRING ON AND AFTER THAT DATE ALTHOUGH
 SHALL NOT INCLUDE SALES MADE OR OCCURRING UNDER A PRIOR CONTRACT.
   § 7. This act shall take effect immediately and  shall  apply  to  the
 seven  day  period  which begins on the first Sunday after 30 days after
 the date this act shall have become a law and shall apply in  accordance
 with the applicable transitional provisions of sections 1106 and 1217 of
 the  tax  law;  provided  that  sections four and five of this act shall
 apply to sales made on or after the date such sections shall have  taken
 effect;  and  provided  further  that  the  commissioner of taxation and
 finance shall be authorized on and after the date this  act  shall  have
 become  a  law  to adopt and amend any rules or regulations necessary to
 implement this act on its effective date.