The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1704--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 Introduced  by M. of A. SANTABARBARA, STERN -- read once and referred to
   the Committee on Ways and Means -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 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 THIRTY 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  THIRTY  DAY  PERIOD PROVIDED IN PARAGRAPH
 FORTY-SIX OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN  OF  THIS
 ARTICLE,  SHALL  BE  APPLICABLE  PURSUANT  TO  A LOCAL LAW, ORDINANCE OR
 RESOLUTION 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00870-05-1

 A. 1704--A                          2
 
 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.
   §  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 INCLUDE THE SALES OF FOOD AND  DRINK  AT  RESTAURANTS  AND
 TAVERNS  EXEMPTION DURING THE THIRTY DAY 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. 1704--A                          3
 
 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-
 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
 THIRTY  DAY PERIOD PURSUANT TO PARAGRAPH FORTY-SIX OF SUBDIVISION (A) OF
 SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER 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
 thirty  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

 A. 1704--A                          4
 
 effect.  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 to be made and completed on or before
 such effective date.