S T A T E O F N E W Y O R K
________________________________________________________________________
9318--A
2025-2026 Regular Sessions
I N A S S E M B L Y
December 10, 2025
___________
Introduced by M. of A. LEVENBERG, BURDICK -- Multi-Sponsored by -- M. of
A. SHIMSKY -- read once and referred to the Committee on Ways and
Means -- recommitted to the Committee on Ways and Means in accordance
with Assembly Rule 3, sec. 2 -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to increasing taxes imposed on
alcoholic beverages
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 424 of the tax law, as amended by
chapter 433 of the laws of 1978, paragraphs (a), (b), (c) and (d) as
amended by section 1 of part X-1 of chapter 57 of the laws of 2009,
paragraph (e) as amended by section 1 and paragraph (g) as amended by
section 2 of part J of chapter 59 of the laws of 2020, and paragraph (f)
as amended by chapter 508 of the laws of 1993, is amended to read as
follows:
1. There are hereby levied and imposed on a distributor and a noncom-
mercial importer excise taxes at the following rates:
(a) [Fourteen] SIXTEEN AND EIGHT-TENTHS cents per gallon upon beers;
(b) [Thirty] THIRTY-SIX cents per gallon upon still wines, except
cider containing more than three and two-tenths per centum of alcohol by
volume, upon which the tax shall be [three] FOUR and [seventy-nine]
FIFTY-FIVE hundredths cents per gallon;
(c) [Thirty] THIRTY-SIX cents per gallon upon artificially carbonated
sparkling wines, except artificially carbonated sparkling cider contain-
ing more than three and two-tenths per centum of alcohol by volume, upon
which the tax shall be [three] FOUR and [seventy-nine] FIFTY-FIVE
hundredths cents per gallon;
(d) [Thirty] THIRTY-SIX cents per gallon upon natural sparkling wines,
except natural sparkling cider containing more than three and two-tenths
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09240-03-6
A. 9318--A 2
per centum of alcohol by volume, upon which the tax shall be [three]
FOUR and [seventy-nine] FIFTY-FIVE hundredths cents per gallon;
(e) [Sixty-seven] EIGHTY AND FOUR-TENTHS cents per liter upon liquors
containing not more than twenty-four per centum of alcohol by volume
except liquors containing not more than two per centum of alcohol by
volume, upon which the tax shall be zero; and
(f) [One dollar] TWO DOLLARS and [seventy] FOUR cents per liter upon
all other liquors; when sold or used within this state, except when sold
or used under such circumstances that this state is without power to
impose such tax or when sold to the United States and except beers when
sold to or by a voluntary unincorporated organization of the armed forc-
es of the United States operating a place for the sale of goods pursuant
to regulations promulgated by the appropriate executive agency of the
United States, to the extent provided in such regulations, directives
and policy statements of such an agency applicable to such sales, and
except when sold to professional foreign consuls-general, consuls and
vice-consuls who are nationals of the state appointing them and who are
assigned to foreign consulates in this state, provided that American
consular officers of equal rank who are citizens of the United States
and who exercise their official functions at American consulates in such
foreign country are granted reciprocal exemptions; provided, however,
that the commissioner may permit the sale of alcohol without tax to a
holder of any industrial alcohol permit, alcohol permit or alcohol
distributor's permit, issued by the state liquor authority, and by the
holder of an alcohol distributor's permit, class A, issued by such
authority to a holder of a distiller's license, class B, or a winery
license, issued by such authority and may also permit the use of alcohol
for any purpose other than the production of alcoholic beverages by such
holders without tax; provided also that the commissioner may permit the
sale of cider without tax by a holder of a cider producer's license
issued by the state liquor authority to a holder of a cider producer's
license or a cider wholesaler's license issued by such authority.
(g) For purposes of this chapter, it is presumed that liquors are
possessed for the purpose of sale in this state if the quantity of
liquors possessed in this state, imported or caused to be imported into
this state or produced, distilled, manufactured, compounded, mixed or
fermented in this state exceeds ninety liters. Such presumption may be
rebutted by the introduction of substantial evidence to the contrary. In
any case where the quantity of alcoholic beverages taxable pursuant to
this article is a fractional part of one liter (or one gallon in the
case of beers) or an amount greater than a whole multiple of liters (or
gallons in the case of beers), the amount of tax levied and imposed on
such fractional part of one liter (or one gallon in the case of beers),
or fractional part of a liter (or gallon) in excess of a whole multiple
of liters or gallons shall be such fractional part of the rate imposed
by paragraphs (a) through (f) OF THIS SUBDIVISION.
Notwithstanding any other provision of this article, the commissioner
may permit the purchase of alcoholic beverages without tax by a person
registered as a distributor under section four hundred twenty-one of
this article from another person so registered, in which event the alco-
holic beverage so purchased shall be subject to the taxes imposed by
this article in the hands of the purchaser in the same manner and to the
same extent as if such purchaser had imported or caused the same to be
imported into this state or had produced, distilled, manufactured,
brewed, compounded, mixed or fermented the same within this state.
A. 9318--A 3
(H) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, TWENTY
PERCENT OF ALL TAXES, INTEREST, PENALTIES AND FEES COLLECTED OR RECEIVED
BY THE COMMISSIONER UNDER PARAGRAPHS (A) THROUGH (F) OF THIS SUBDIVISION
SHALL BE ALLOCATED TO THE NEW YORK STATE DRUG TREATMENT AND PUBLIC
EDUCATION FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-JJ OF THE
STATE FINANCE LAW.
§ 2. This act shall take effect immediately.