What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
History
- Substituted by A9523
- Ordered to third reading cal.1283
- Committee discharged and committed to rules
- Reported and committed to finance
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to farm winery and farm distillery sales tax information return filing requirements
Signed by Governor · Sponsor Herman D. Farrell
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7019
Title of bill
An act to amend the tax law, in relation to farm winery and farm distillery sales tax information return filing requirements
Purpose of the bill
The bill would exclude licensed farm wineries and farm distilleries from the sales tax information return filing requirements imposed by Tax Law § 1136 (i).
Summary of provisions
Section 1 of the bill would amend Tax Law § 1136 (i) to exclude persons operating pursuant to a farm winery license or a farm distillery license issued by the State Liquor Authority ("SLA"), or pursuant to both such licenses, from the obligation to file the annual information return required by that subdivision.
Section 2 of the bill provides for an immediate effective date and applies the law to annual returns due on and after March 20, 2012.
Existing law
Tax Law § 1136(i) requires "wholesalers," as defined in Alcoholic Beverage Control Law ("ABCL") § 3, that have made certain sales of an alcoholic beverage without collecting sales and use tax, to file annual information returns with the Department of Taxation and Finance ("DTF") that include the identity of any customers that qualify as sales tax vendors, and the volume of sales made to them. Both farm distilleries and farm wineries are covered by this requirement if they make sales to persons who may, in turn, make retail sales as permitted pursuant to retail licenses. See ABCL 61(2-c), 76-a(3).
Prior legislative history
This is a new bill.
Statement in support
The third-party sales tax reporting provisions require wholesalers to report all sales made to restaurants, bars and other retailers. DTF uses this information to verify sales as reported by those retailers. While farm wineries and farm distilleries that sell to retailers technically qualify as wholesalers, the burden imposed on them by the filing requirement outweighs any benefits received by the DTF. Farm
wineries and farm distilleries are by definition, small. A farm winery license limits the holder to producing no more than 150,000 gallons annually. A farm distillery license limits the holder to producing no more than 35,000 gallons annually.
Because of their restricted size, it is difficult for farm wineries and farm distilleries to absorb the cost of complying with the annual filing requirement. Exempting them will not undermine the effectiveness of the third-party reporting legislation, because purchases from farm wineries and farm distilleries account for a very small percentage of retailers' overall purchases. Moreover, farm wineries and farm distilleries are required to maintain sales records pursuant to requirements imposed by the SLA, which DTF may obtain upon request.
Budget implications
None
Effective date
The amendments would take effect immediately and would apply to annual returns due on and after March 20, 2012.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.