NY State Senate Bill 2021-S2566B

Archive: Last Bill Status - In Senate Committee Budget And Revenue 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to budget and revenue
Jan 26, 2021	print number 2566b
Jan 26, 2021	amend (t) and recommit to budget and revenue
Jan 22, 2021	print number 2566a
Jan 22, 2021	amend (t) and recommit to budget and revenue
Jan 21, 2021	referred to budget and revenue

Bill Amendments

Original

B (Active)

co-Sponsors

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2021-S2566 - Details

See Assembly Version of this Bill:: A1704
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1115, 1107 & 1210, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S9050, A11173
2023-2024: A3428

2021-S2566 - Summary

Enacts the "Save our New York state restaurants act" authorizing a sales tax exemption for the sale of food and drink at restaurants and taverns during a specific one week period and grants certain municipalities the option to grant such limited exemption.

2021-S2566 - Sponsor Memo

                                
 
BILL NUMBER: S2566

SPONSOR: JORDAN
 
TITLE OF BILL:

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

 
PURPOSE:

This bill seeks to encourage New Yorkers to eat out at their favorite
restaurant by eliminating the sales tax on their bill for a one week
period. A statewide restaurant week will boost sales at our New York
restaurants who have had an especially difficult time during the pandem-
ic shutdown. Restaurants, which are mostly small businesses, are a part
of our neighborhoods and communities and are owned by neighbors and
friends.

SUMMARY OF PROVISIONS:

Section one creates the "Save our New York State Restaurants Act".

Section two of the bill creates a one-week sales tax exemption for food
and drink that are sold by restaurants and taverns in New York.  The
week will begin on the first Sunday following 30 days from enactment.

Sections three and six allow New York City the option to provide this
exemption for the same week.

Section four allows localities the option to join in the state's sales
tax free restaurant week.

Section five waives the 90 day wait period for the local sales tax
exemption to go into effect.

Section seven makes this bill effective immediately provided that the
exemption enacted within is only in effect for the one-week period which
begins on the first Sunday which is 30 days after enactment of this act.

 
JUSTIFICATION:

The extended closure of businesses by Executive Order and the slow drawn
out opening has had a devastating effect on New York's restaurants. Many
have struggled to make payroll, pay their bills and many have had to lay
off a large portion of their staffs. Business has dropped off signif-
icantly over the past few months. The state has a vested interest in
keeping these small businesses in business. This legislation will bring
attention and business to our restaurants for that week and bring in
customers that may not have otherwise planned to eat out.

 
LEGISLATIVE HISTORY:

S9050 of 2019-20

 
FISCAL IMPLICATIONS:

This bill will save New Yorkers $14 million while providing restaurants
with increased revenues.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S2566 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2566
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 21, 2021
                                ___________
 
 Introduced  by  Sens. JORDAN, BORRELLO, GALLIVAN, HELMING, ORTT, TEDISCO
   -- read twice and ordered printed, and when printed to be committed to
   the Committee on Budget and Revenue
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00870-01-1

 S. 2566                             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 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

 S. 2566                             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  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

 S. 2566                             4
 
 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.

co-Sponsors

View additional co-sponsors

2021-S2566A - Details

See Assembly Version of this Bill:: A1704
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1115, 1107 & 1210, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S9050, A11173
2023-2024: A3428

2021-S2566A - Summary

2021-S2566A - Sponsor Memo

                                
 
BILL NUMBER: S2566A

SPONSOR: JORDAN
 
TITLE OF BILL:

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

 
PURPOSE:

This bill seeks to encourage New Yorkers to eat out at their favorite
restaurant by eliminating the State sales tax on their bill for a one
month period. A statewide restaurant month will boost sales at our New
York restaurants who have had an especially difficult time during the
pandemic shutdown. Restaurants, which are mostly small businesses, are a
part of our neighborhoods and communities and are owned by neighbors and
friends.

 
SUMMARY OF PROVISIONS:

Section one creates the "Save our New York State Restaurants Act".

Section two of the bill creates a 30 day sales tax exemption for food
and drink that are sold by restaurants and taverns in New York. The 30
day period will begin on the first Sunday following 30 days from enact-
ment.

Sections three and six allow New York City the option to provide this
exemption for the same month.

Section four makes this bill effective immediately provided that the
exemption enacted within is only in effect for the 30 day period period
which begins on the first Sunday which is 30 days after enactment of
this act.

 
JUSTIFICATION:

The extended closure of businesses by Executive Order and the slow,
drawn out reopening has had a devastating effect on New York's restau-
rants. Many have struggled to make payroll, pay their bills and many
have had to lay off a large portion of their staffs. Business has
dropped off significantly over the past few months. The state has a
vested interest in keeping these small businesses in business. This
legislation will bring attention and business to our restaurants for
that month and bring in customers that may not have otherwise planned to
eat out.

 
LEGISLATIVE HISTORY:

S9050 of 2019-20

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S2566A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2566--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 21, 2021
                                ___________
 
 Introduced  by  Sens. JORDAN, BORRELLO, GALLIVAN, HELMING, ORTT, TEDISCO
   -- read twice and ordered printed, and when printed to be committed to
   the Committee on Budget and  Revenue  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee

 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
 
   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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00870-02-1

 S. 2566--A                          2
 
 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.
   § 4. 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 section 1106 of the tax
 law. 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.

co-Sponsors

View additional co-sponsors

2021-S2566B (ACTIVE) - Details

See Assembly Version of this Bill:: A1704
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1115, 1107 & 1210, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S9050, A11173
2023-2024: A3428

2021-S2566B (ACTIVE) - Summary

2021-S2566B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2566B

SPONSOR: JORDAN
 
TITLE OF BILL:

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

 
PURPOSE:

This bill seeks to encourage New Yorkers to eat out at their favorite
restaurant by eliminating the State sales tax on their bill for a one
month period and allowing municipalities to grant the same exemption.  A
statewide restaurant month will boost sales at our New York restaurants
who have had an especially difficult time during the pandemic shutdown.
Restaurants, which are mostly small businesses, are a part of our neigh-
borhoods and communities and are owned by neighbors and friends.

SUMMARY OF PROVISIONS:

Section one creates the "Save our New York State Restaurants Act".

Section two of the bill creates a 30 day sales tax exemption for food
and drink that are sold by restaurants and taverns in New York. The 30
day period will begin on the first Sunday following 30 days from enact-
ment.

Sections three and six allow New York City the option to provide this
exemption for the same month.

Section four allows localities the option to join in the state's sales
tax free restaurant month.

Section five waives the 90 day wait period for the local sales tax
exemption to go into effect.

Section seven makes this bill effective immediately provided that the
exemption enacted within is only in effect for the 30 day period period
which begins on the first Sunday which is 30 days after enactment of
this act.

 
JUSTIFICATION:

The extended closure of businesses by Executive Order and the slow,
drawn out reopening has had a devastating effect on New York's restau-
rants. Many have struggled to make payroll, pay their bills and many
have had to lay off a large portion of their staffs. Business has
dropped off significantly over the past few months. The state has a
vested interest in keeping these small businesses in business. This
legislation will bring attention and business to our restaurants for
that month and bring in customers that may not have otherwise planned to
eat out.

 
LEGISLATIVE HISTORY:

S9050 of 2019-20
 
FISCAL IMPLICATIONS:

Estimated $56 million in savings for New Yorkers.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S2566B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2566--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 21, 2021
                                ___________
 
 Introduced  by  Sens. JORDAN, BORRELLO, GALLIVAN, HELMING, ORTT, TEDISCO
   -- read twice and ordered printed, and when printed to be committed to
   the Committee on Budget and  Revenue  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee --  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00870-04-1

 S. 2566--B                          2
 
 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
 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

 S. 2566--B                          3
 
 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-
 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

 S. 2566--B                          4
 
 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.  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.

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Senate Bill S2566B

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Bill Amendments

co-Sponsors

2021-S2566 - Details

2021-S2566 - Summary

2021-S2566 - Sponsor Memo

2021-S2566 - Bill Text download pdf

co-Sponsors

2021-S2566A - Details

2021-S2566A - Summary

2021-S2566A - Sponsor Memo

2021-S2566A - Bill Text download pdf

co-Sponsors

2021-S2566B (ACTIVE) - Details

2021-S2566B (ACTIVE) - Summary

2021-S2566B (ACTIVE) - Sponsor Memo

2021-S2566B (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2566B

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Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Bill Amendments

co-Sponsors

2021-S2566 - Details

2021-S2566 - Summary

2021-S2566 - Sponsor Memo

2021-S2566 - Bill Text download pdf

co-Sponsors

2021-S2566A - Details

2021-S2566A - Summary

2021-S2566A - Sponsor Memo

2021-S2566A - Bill Text download pdf

co-Sponsors

2021-S2566B (ACTIVE) - Details

2021-S2566B (ACTIVE) - Summary

2021-S2566B (ACTIVE) - Sponsor Memo

2021-S2566B (ACTIVE) - Bill Text download pdf

Comments