S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7628
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 1, 2025
                                ___________
 
 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  establishing  a  sales  tax
   holiday  for  food  and non-alcoholic beverages sold at certain estab-
   lishments during the second full week of February and the  third  full
   week of August

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
 by adding a new paragraph 47 to read as follows:
   (47)  FOOD AND NON-ALCOHOLIC BEVERAGES SOLD AT A RESTAURANT, DINER, OR
 CAFE LICENSED UNDER ARTICLE TWENTY-C OF THE AGRICULTURE AND MARKETS  LAW
 DURING  THE  SECOND  FULL  WEEK  OF  FEBRUARY AND THE THIRD FULL WEEK OF
 AUGUST.
   § 2. 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 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.
   § 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
 amended by section 5 of part J of chapter 59 of the  laws  of  2021,  is
 amended to read as follows:
   (1) Either, all of the taxes described in article twenty-eight of this
 chapter,  at  the same uniform rate, as to which taxes all provisions of
 the local laws, ordinances or resolutions imposing such taxes  shall  be
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11274-01-5
              

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 identical,  except as to rate and except as otherwise provided, with the
 corresponding provisions in such  article  twenty-eight,  including  the
 definition  and  exemption  provisions  of  such  article, so far as the
 provisions  of  such  article twenty-eight can be made applicable to the
 taxes imposed by such city or  county  and  with  such  limitations  and
 special  provisions  as are set forth in this article. The taxes author-
 ized under this subdivision may not be  imposed  by  a  city  or  county
 unless  the  local law, ordinance or resolution imposes such taxes so as
 to include all portions and all types of  receipts,  charges  or  rents,
 subject  to  state  tax  under  sections  eleven hundred five and eleven
 hundred ten of this chapter, except as  otherwise  provided.    Notwith-
 standing  the  foregoing,  a  tax imposed by a city or county authorized
 under this subdivision shall not include the tax imposed on charges  for
 admission  to race tracks and simulcast facilities under subdivision (f)
 of section eleven hundred five of this chapter. (i) Any local law, ordi-
 nance or resolution enacted by any city of less than one million  or  by
 any  county  or  school  district, imposing the taxes authorized by this
 subdivision, shall, notwithstanding any provision of law to the  contra-
 ry, exclude from the operation of such local taxes all sales of tangible
 personal  property  for use or consumption directly and predominantly in
 the production of tangible personal property, gas, electricity,  refrig-
 eration  or  steam,  for sale, by manufacturing, processing, generating,
 assembly, refining, mining or extracting;  and  all  sales  of  tangible
 personal  property  for  use  or consumption predominantly either in the
 production of tangible personal property, for sale, by farming or  in  a
 commercial  horse  boarding operation, or in both; and all sales of fuel
 sold for use in commercial aircraft and general aviation aircraft;  and,
 unless such city, county or school district elects otherwise, shall omit
 the  provision  for credit or refund contained in clause six of subdivi-
 sion (a) or subdivision (d) of section eleven hundred nineteen  of  this
 chapter.  (ii)  Any  local  law,  ordinance or resolution enacted by any
 city, county or school district, imposing the taxes authorized  by  this
 subdivision,  shall  omit the residential solar energy systems equipment
 and electricity exemption provided for in subdivision (ee), the  commer-
 cial  solar  energy systems equipment and electricity exemption provided
 for in subdivision (ii), the commercial fuel cell electricity generating
 systems equipment and electricity generated by such equipment  exemption
 provided for in subdivision (kk) and the clothing and footwear exemption
 provided  for  in  paragraph thirty of subdivision (a) of section eleven
 hundred fifteen of this chapter, unless  such  city,  county  or  school
 district  elects  otherwise  as to such residential solar energy systems
 equipment  and  electricity  exemption,  such  commercial  solar  energy
 systems  equipment and electricity exemption, commercial fuel cell elec-
 tricity generating systems equipment and electricity generated  by  such
 equipment  exemption or such clothing and footwear exemption.  (III) ANY
 LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED BY ANY CITY, COUNTY OR SCHOOL
 DISTRICT, IMPOSING THE TAXES AUTHORIZED BY THIS SUBDIVISION, SHALL  OMIT
 THE  EXEMPTION  PROVIDED FOR IN PARAGRAPH 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 RESOLUTION OR REPEAL SHALL ALSO BE DEEMED TO AMEND ANY  LOCAL  LAW,
 ORDINANCE  OR  RESOLUTION  ENACTED  BY  SUCH  A CITY IMPOSING SUCH TAXES
 PURSUANT TO THE AUTHORITY OF THIS SUBDIVISION, WHETHER OR NOT SUCH TAXES
 ARE SUSPENDED AT THE TIME SUCH CITY ENACTS ITS  RESOLUTION  PURSUANT  TO
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 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 THE EXEMPTION IN ANY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION OR
 IN SUCH SECTION ELEVEN HUNDRED SEVEN OF THIS CHAPTER IS THE SAME AS  THE
 EXEMPTION  IN PARAGRAPH FORTY-SEVEN OF SUBDIVISION (A) OF SECTION ELEVEN
 HUNDRED FIFTEEN OF THIS CHAPTER.
   § 4. 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]   CHAPTER, or the
 exemption for commercial solar equipment and electricity in  subdivision
 (ii)  of  section  eleven  hundred fifteen of this [article] CHAPTER, 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]
 CHAPTER  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, ordi-
 nance or resolution providing for a refund or credit described in subdi-
 vision (d) of section eleven hundred nineteen of this chapter or repeal-
 ing 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 SUBDIVISION (P) OF THIS SECTION PROVIDING 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 Alba-
 ny 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
 certified  mail  within  a  period of not less than thirty days prior to
 such effective date if the commissioner deems such action to be consist-
 ent 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
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 restriction and notice requirement in  section  twelve  hundred  twenty-
 three of this article shall also apply.
   §  5.  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 LEGISLA-
 TIVE BODY, IS HEREBY AUTHORIZED AND EMPOWERED TO ELECT  TO  PROVIDE  THE
 EXEMPTION  DESCRIBED  IN  PARAGRAPH  FORTY-SEVEN  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 SUBDIVISIONS (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 ONE.  RECEIPTS FROM SALES OF
 AND CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR PURCHASES OF  FOOD
 AND  NON-ALCOHOLIC  BEVERAGES  SOLD  AT  A  RESTAURANT,  DINER,  OR CAFE
 LICENSED UNDER ARTICLE TWENTY-C OF  THE  AGRICULTURE  AND  MARKETS  LAW,
 DURING  THE  SECOND  FULL  WEEK  OF  FEBRUARY AND THE THIRD FULL WEEK OF
 AUGUST EXEMPT FROM STATE SALES AND COMPENSATING USE  TAXES  PURSUANT  TO
 PARAGRAPH  FORTY-SEVEN  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. SECTION TWO. THIS RESOLUTION
 SHALL TAKE EFFECT, (INSERT THE DATE) AND SHALL APPLY TO SALES  MADE  AND
 USES OCCURRING ON AND AFTER THAT DATE ALTHOUGH MADE OR OCCURRING UNDER A
 PRIOR CONTRACT.
   §  6. The commissioner of taxation and finance is hereby authorized to
 implement the provisions of this act with respect to the elimination  of
 the imposition of sales tax, additional taxes, and supplemental taxes on
 food  and  non-alcoholic  beverages sold at a restaurant, diner, or cafe
 licensed under article twenty-C  of  the  agriculture  and  markets  law
 during  the  second  full  week  of  February and the third full week of
 August and all other taxes so addressed by this act.
   § 7. Two years after the effective date of this act, the department of
 taxation and finance shall conduct an economic impact analysis to evalu-
 ate the effectiveness of the tax holiday established by this act.   Such
 department shall report on the results of such analysis to the governor,
 the temporary president of the senate and the speaker of the assembly no
 later than three years after the effective date of this act.
   §  8.  This  act  shall  take effect on the first day of the sales tax
 quarterly period, as described in subdivision (b) of section 1136 of the
 tax law, next commencing at least ninety days after this act shall  have
 become  law  and  shall  apply in accordance with the applicable transi-
 tional provisions of sections 1106 and 1217 of the  tax  law.  Effective
 immediately,  the addition, amendment and/or repeal of any rule or regu-
 lation necessary for the implementation of this  act  on  its  effective
 date are authorized to be made and completed on or before such effective
 date.