S T A T E O F N E W Y O R K
________________________________________________________________________
10101
I N S E N A T E
April 28, 2026
___________
Introduced by Sen. PERSAUD -- 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 implementing a cost-prohibi-
tive food tax holiday that suspends state and local sales tax on
certain currently taxable food items
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The tax law is amended by adding a new section 1124 to read
as follows:
§ 1124. ANNUAL TAX HOLIDAY. BEGINNING ONE YEAR AFTER THE EFFECTIVE
DATE OF THIS SECTION, THERE SHALL BE AN ANNUAL TAX HOLIDAY EXEMPTING A
COVERED ITEM AS DESCRIBED IN SUBDIVISION (A) OF THIS SECTION FROM THE
TAXES IMPOSED UNDER PARAGRAPH (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF
THIS PART. SUCH TAX HOLIDAY SHALL COMMENCE ANNUALLY ON A DATE IN EITHER
NOVEMBER OR DECEMBER TO BE CHOSEN BY THE COMMISSIONER AND SHALL LAST FOR
A TOTAL OF TWO WEEKS.
(A) FOR THE PURPOSES OF THIS SECTION, "COVERED ITEM" SHALL INCLUDE:
HOT AND COLD PREPARED FOODS INTENDED FOR IMMEDIATE CONSUMPTION, AND ANY
OTHER READY-TO-EAT ITEM SOLD IN A GROCERY STORE, DELI OR FOOD COUNTER,
MEALS PURCHASED AT A RESTAURANT INCLUDING TAKEOUT AND DELIVERY ORDERS. A
COVERED ITEM SHALL NOT INCLUDE ALCOHOLIC BEVERAGES, TOBACCO OR CANNABIS
PRODUCTS, DIETARY SUPPLEMENTS, PET FOOD, CATERING CONTRACTS, SOFT
DRINKS, SWEETENED BEVERAGES, OR ENERGY DRINKS. THE COMMISSIONER, IN
CONSULTATION WITH LOCAL GOVERNMENTS, SHALL PROVIDE GUIDANCE FURTHER
DEFINING "COVERED ITEMS" AND UNIFORM PRODUCT CLASSIFICATION STANDARDS,
AS NECESSARY.
(B) SUCH TAX HOLIDAY SHALL ONLY APPLY TO PURCHASES FOR LESS THAN, OR
EQUAL TO, TWO HUNDRED FIFTY DOLLARS.
(C) THE DEPARTMENT MAY LIMIT RETAILER PARTICIPATION TO RETAILERS
PRIMARILY ENGAGED IN FOOD SALES, PROVIDED, HOWEVER, RETAILERS' PARTIC-
IPATION IN THE PROGRAM IS VOLUNTARY AND FAILURE TO PARTICIPATE WILL NOT
BE PENALIZED. NO APPLICATION IS NECESSARY FOR PARTICIPATING RETAILERS.
QUALIFIED RETAILERS OPTING INTO THE PROGRAM SHALL FACE PENALTIES FOR
NONCOMPLIANCE AS DETERMINED BY THE DEPARTMENT.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14855-01-6
S. 10101 2
(D) THE STATE SHALL REIMBURSE PARTICIPATING LOCAL GOVERNMENTS FOR TAX
HOLIDAY REVENUE LOSSES. REIMBURSEMENT SHALL BE BASED ON THE CORRESPOND-
ING PERIOD'S POSSIBLE TAXABLE SALES FROM THE PRECEDING FISCAL YEAR.
§ 2. Subdivision (a) of section 1115 of the tax law is amended by
adding a new paragraph 47 to read as follows:
(47) RECEIPTS FROM THE ANNUAL TAX HOLIDAY AS ESTABLISHED UNDER SECTION
ELEVEN HUNDRED TWENTY-FOUR OF THIS PART.
§ 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 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.
§ 4. 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
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
S. 10101 3
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
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.
§ 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] 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
S. 10101 4
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 certi-
fied 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 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 SECTION ELEVEN HUNDRED SEVEN OF THIS CHAPTER 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 PREPARED HOT AND COLD FOOD AT GROCERY STORE, DELI AND
FOOD COUNTERS, AND RESTAURANT AND TAKEOUT MEALS, INCLUDING DELIVERY
ORDERS, DURING TWO WEEKS IN NOVEMBER OR DECEMBER AS DETERMINED BY THE
COMMISSIONER 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.
§ 7. 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
S. 10101 5
hot and cold food at grocery store, deli and food counters, and restau-
rant and takeout meals, including delivery orders during two weeks in
November or December as determined by the commissioner and all other
taxes so addressed by this act.
§ 8. 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.
§ 9. This act shall take effect immediately.
