Assembly Bill A9319

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9319
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             December 10, 2025
                                ___________
 
 Introduced by M. of A. SLATER -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT  to amend the tax law and the real property tax law, in relation
   to exempting retail food stores from various state and local taxes
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  209  of  the  tax law is amended by adding a new
 subsection 13 to read as follows:
   13. ANY RETAIL FOOD STORE, AS  DEFINED  IN  SECTION  FIVE  HUNDRED  OR
 SECTION FIVE HUNDRED-A OF THE AGRICULTURE AND MARKETS LAW, PROVIDED SUCH
 STORE  DERIVES  AT  LEAST SEVENTY PERCENT OF ITS ANNUAL GROSS SALES FROM
 STAPLE FOODS AND FOOD PRODUCTS FOR OFF-PREMISES  CONSUMPTION,  SHALL  BE
 EXEMPT  FROM  TAXATION UNDER THE PROVISIONS OF THIS ARTICLE. THE COMMIS-
 SIONER OF TAXATION AND FINANCE, IN CONSULTATION WITH THE COMMISSIONER OF
 AGRICULTURE AND MARKETS, SHALL ESTABLISH AN APPLICATION,  DOCUMENTATION,
 AND  ANNUAL  RECERTIFICATION  PROCESS TO IDENTIFY AND CERTIFY QUALIFYING
 RETAIL FOOD STORES, INCLUDING CRITERIA FOR REVOCATION OF CERTIFICATION.
   § 2. Subsection (i) of section  601  of  the  tax  law  is  relettered
 subsection (j) and a new subsection (i) is added to read as follows:
   (I)  ANY  RETAIL  FOOD  STORE,  AS  DEFINED IN SECTION FIVE HUNDRED OR
 SECTION FIVE HUNDRED-A OF THE AGRICULTURE AND MARKETS LAW, PROVIDED SUCH
 STORE DERIVES AT LEAST SEVENTY PERCENT OF ITS ANNUAL  GROSS  SALES  FROM
 STAPLE  FOODS  AND  FOOD PRODUCTS FOR OFF-PREMISES CONSUMPTION, SHALL BE
 EXEMPT FROM TAXATION UNDER THE PROVISIONS OF THIS ARTICLE  WITH  RESPECT
 ONLY  TO  BUSINESS INCOME DERIVED FROM THE OPERATION OF SUCH RETAIL FOOD
 STORE.  NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO  EXEMPT  WAGES,
 INVESTMENT  INCOME,  OR OTHER NON-BUSINESS INCOME OF ANY OWNER OR SHARE-
 HOLDER. THE COMMISSIONER OF TAXATION AND FINANCE, IN  CONSULTATION  WITH
 THE COMMISSIONER OF AGRICULTURE AND MARKETS, SHALL ESTABLISH AN APPLICA-
 TION,  DOCUMENTATION, AND ANNUAL RECERTIFICATION PROCESS TO IDENTIFY AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14146-01-5
 A. 9319                             2
              

 
 CERTIFY QUALIFYING RETAIL FOOD STORES, INCLUDING CRITERIA FOR REVOCATION
 OF CERTIFICATION.
   §  3. Section 801 of the tax law is amended by adding a new subsection
 (d) to read as follows:
   (D) ANY RETAIL FOOD STORE, AS  DEFINED  IN  SECTION  FIVE  HUNDRED  OR
 SECTION FIVE HUNDRED-A OF THE AGRICULTURE AND MARKETS LAW, PROVIDED SUCH
 STORE  DERIVES  AT  LEAST SEVENTY PERCENT OF ITS ANNUAL GROSS SALES FROM
 STAPLE FOODS AND FOOD PRODUCTS FOR OFF-PREMISES  CONSUMPTION,  SHALL  BE
 EXEMPT  FROM  TAXATION UNDER THE PROVISIONS OF THIS ARTICLE. THE COMMIS-
 SIONER OF TAXATION AND FINANCE, IN CONSULTATION WITH THE COMMISSIONER OF
 AGRICULTURE AND MARKETS, SHALL ESTABLISH AN APPLICATION,  DOCUMENTATION,
 AND  ANNUAL  RECERTIFICATION  PROCESS TO IDENTIFY AND CERTIFY QUALIFYING
 RETAIL FOOD STORES, INCLUDING CRITERIA FOR REVOCATION OF CERTIFICATION.
   § 4. Subparagraph (A) of paragraph 1 of  subdivision  (a)  of  section
 1115  of  the tax law, as amended by section 1 of part CCC of chapter 59
 of the laws of 2019, is amended to read as follows:
   (A) Food, food products, FOOD WHICH IS SOLD HEATED OR  PREPARED  AT  A
 RETAIL  FOOD  STORE  AS  DEFINED IN SECTION FIVE HUNDRED OR SECTION FIVE
 HUNDRED-A OF THE AGRICULTURE AND MARKETS LAW, beverages,  dietary  foods
 and health supplements, sold for human consumption but not including (i)
 candy  and  confectionery,  (ii)  fruit  drinks  which contain less than
 seventy percent of natural fruit juice, (iii)  soft  drinks,  sodas  and
 beverages  such  as  are  ordinarily  dispensed  at soda fountains or in
 connection therewith (other than coffee, tea and cocoa) and  (iv)  beer,
 wine  or other alcoholic beverages, all of which shall be subject to the
 retail sales and compensating use taxes, whether or not the item is sold
 in liquid form. PROVIDED, HOWEVER, THAT ITEMS DESCRIBED IN  CLAUSES  (I)
 THROUGH  (IV) OF THIS SUBPARAGRAPH SHALL BE EXEMPT WHEN SOLD BY A RETAIL
 FOOD STORE AS DEFINED IN SECTION FIVE HUNDRED OR SECTION FIVE  HUNDRED-A
 OF  THE  AGRICULTURE AND MARKETS LAW. Nothing in this subparagraph shall
 be construed as exempting food or  drink  from  the  tax  imposed  under
 subdivision (d) of section eleven hundred five of this article.
   §  5.  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  ONE  OF  SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF
 THIS ARTICLE RELATING TO HEATED OR PREPARED FOODS AND THE  PRODUCTS  NOT
 INCLUDED UNLESS SOLD IN A RETAIL FOOD STORE SHALL BE APPLICABLE PURSUANT
 TO  A  LOCAL  LAW,  ORDINANCE  OR RESOLUTION ADOPTED BY A COUNTY OR CITY
 SUBJECT TO THE PROVISIONS OF  THIS  SECTION.  SUCH  COUNTY  OR  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 COUNTY OR CITY IMPOSING TAXES
 PURSUANT TO THE AUTHORITY OF SUBDIVISION (A) OF SECTION  TWELVE  HUNDRED
 TEN OF THIS CHAPTER.
   §  6. The real property tax law is amended by adding a new section 433
 to read as follows:
   § 433. EXEMPTION FOR RETAIL FOOD STORES. 1. NOTWITHSTANDING ANY  OTHER
 PROVISION  OF LAW, REAL PROPERTY OWNED BY A RETAIL FOOD STORE AS DEFINED
 IN SECTION FIVE HUNDRED OR SECTION FIVE HUNDRED-A OF THE AGRICULTURE AND
 MARKETS LAW, PROVIDED SUCH STORE DERIVES AT LEAST SEVENTY PERCENT OF ITS
 ANNUAL GROSS SALES FROM STAPLE FOODS AND FOOD PRODUCTS FOR  OFF-PREMISES
 CONSUMPTION  SHALL  BE EXEMPT FROM TAXATION TO THE EXTENT OF ONE HUNDRED
 PER CENTUM OF THE ASSESSED VALUATION THEREOF. PROVIDED HOWEVER, THAT  NO
 EXEMPTION  SHALL  BE  GIVEN  FOR  ANY PORTION OF THE SQUARE FOOTAGE OF A
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 RETAIL FOOD STORE NOT BEING PRIMARILY USED WHERE FOOD AND FOOD  PRODUCTS
 ARE OFFERED TO THE CONSUMER AND INTENDED FOR OFF-PREMISES CONSUMPTION.
   2. THE LOCAL LEGISLATIVE BODY OF A COUNTY, CITY, TOWN, VILLAGE, OR THE
 GOVERNING BODY IN THE CASE OF A SCHOOL DISTRICT, MAY:
   (A)  AFTER  A PUBLIC HEARING, ADOPT A LOCAL LAW TO GRANT THE EXEMPTION
 AUTHORIZED PURSUANT TO THIS SECTION; AND
   (B) ADOPT A LOCAL LAW TO REDUCE THE MAXIMUM EXEMPTION ALLOWABLE.
   3. IF, DURING THE TERM  OF  AN  EXEMPTION  GRANTED  PURSUANT  TO  THIS
 SECTION,  A  RETAIL  FOOD STORE CEASES TO BE USED FOR ELIGIBLE PURPOSES,
 SUCH EXEMPTION SHALL CEASE.
   § 7. This act shall take effect immediately and shall apply to taxable
 years commencing on and after January 1, 2026.