S T A T E O F N E W Y O R K
________________________________________________________________________
3428
2023-2024 Regular Sessions
I N A S S E M B L Y
February 3, 2023
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Introduced by M. of A. SANTABARBARA -- 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. Short title. 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 47 to read as follows:
(47) 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-SEVEN 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
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.
LBD07280-01-3
A. 3428 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 INCLUDE THE SALES OF FOOD AND DRINK AT RESTAURANTS AND
TAVERNS EXEMPTION DURING THE THIRTY DAY PERIOD AS PROVIDED FOR IN PARA-
GRAPH FORTY-SEVEN OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN
OF THIS CHAPTER, UNLESS SUCH CITY, COUNTY OR SCHOOL DISTRICT ELECTS
OTHERWISE; 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 RESOLUTION 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-SEVEN 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-SEVEN 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. 3428 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-SEV-
EN 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-SEVEN 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
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.