Senate Bill S9225

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9225
 
                             I N  S E N A T E
 
                             February 18, 2026
                                ___________
 
 Introduced  by  Sen. MATTERA -- 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 enacting the New  York  Farm
   Distillery  RTD  Excise Tax Bill; and providing for the repeal of such
   provisions upon expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This act shall be known and may be cited as "the New York
 Farm Distillery RTD Excise Tax Bill".
   § 2. Subdivision 1 of section 424 of the tax law is amended by  adding
 a new paragraph (h) to read as follows:
   (H)(I) NOTWITHSTANDING PARAGRAPHS (A) THROUGH (F) OF THIS SUBDIVISION,
 THE  EXCISE  TAX  IMPOSED  UPON ELIGIBLE READY-TO-DRINK SPIRITS PRODUCTS
 SOLD OR USED WITHIN THIS STATE SHALL BE IMPOSED AT THE RATE OF  FOURTEEN
 CENTS  PER  GALLON,  PROVIDED  THAT SUCH PRODUCTS ARE MANUFACTURED BY AN
 ELIGIBLE PRODUCER, AS DEFINED IN THIS PARAGRAPH.
   (II) FOR PURPOSES OF THIS PARAGRAPH:
   (1) "ELIGIBLE PRODUCER" SHALL MEAN A HOLDER OF A CLASS D FARM  DISTIL-
 LERY  LICENSE,  OR  A  CLASS  A-1  DISTILLER  LICENSE ISSUED PURSUANT TO
 SECTION SIXTY-ONE OF THE ALCOHOLIC BEVERAGE CONTROL  LAW,  WHOSE  ANNUAL
 PRODUCTION CAPACITY DOES NOT EXCEED SEVENTY-FIVE THOUSAND GALLONS; AND
   (2)  "ELIGIBLE  READY-TO-DRINK  SPIRITS PRODUCT" SHALL MEAN A PACKAGED
 LIQUOR PRODUCT:
   (A) CONTAINING MORE THAN TWO PERCENT AND  NOT  MORE  THAN  TWENTY-FOUR
 PERCENT ALCOHOL BY VOLUME;
   (B) MANUFACTURED BY AN ELIGIBLE PRODUCER;
   (C) PACKAGED IN SEALED CONTAINERS FOR RETAIL SALE TO CONSUMERS; AND
   (D) INTENDED FOR DIRECT CONSUMPTION WITHOUT DILUTION.
   (III) NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO:
   (A)  APPLY  TO  DISTILLED  SPIRITS  CONTAINING  MORE  THAN TWENTY-FOUR
 PERCENT ALCOHOL BY VOLUME;
   (B) APPLY TO ANY PRODUCER NOT OTHERWISE LICENSED UNDER SECTION  SIXTY-
 ONE OF THE ALCOHOLIC BEVERAGE CONTROL LAW; OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14807-02-6
              

 S. 9225                             2
 
   (C)  ALTER  ANY  LICENSING,  DISTRIBUTION,  RETAIL SALE, OR TIED-HOUSE
 PROVISIONS OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
   §  3. Rules and regulations. The commissioner of taxation and finance,
 in consultation with  the  state  liquor  authority,  is  authorized  to
 promulgate such rules and regulations as are necessary to administer and
 enforce  the provisions of this act, including but not limited to stand-
 ards for product qualification, labeling, recordkeeping, reporting,  and
 audit  procedures to ensure compliance with the eligibility requirements
 set forth in section four hundred twenty-four of the tax law.
   § 4. Reporting Requirement. No later than three years after the effec-
 tive date of this act, the commissioner of taxation  and  finance  shall
 submit  a report to the governor, the temporary president of the senate,
 and the speaker of the assembly evaluating:
   1. The number of producers utilizing the reduced excise tax rate;
   2. The volume of eligible ready-to-drink spirits products  sold  under
 the reduced rate;
   3. Any measurable fiscal impacts to state revenues; and
   4.  Observed  economic effects on New York agriculture, small manufac-
 turing, and independent liquor retailers.
   § 5. This act shall take effect on the first day of the first calendar
 quarter commencing not less than ninety days after it shall have  become
 a  law  and  shall  expire  and be deemed repealed five years after such
 effective date; provided, however, that such expiration shall not affect
 any tax liability incurred prior to such date.