Makes seed purchased to grow food for personal consumption exempt from sales and use taxes

BILL NUMBER:S2247

Title of bill

An act to amend the tax law, in relation to granting a sales and compensating use tax exemption for the purchase of seeds to be cultivated to grow food for the purchaser's own or family consumption

Purpose

This legislation exempts vegetable and fruit seeds for human consumption by individuals for home use from sales tax.

Summary of provisions

Section 1115 of the Tax Law is amended to make seeds purchased to grow food for personal consumption exempt from sales and use taxes.

Justification

Fresh fruit and vegetables are not subject to sales tax because they are considered basic necessities of life. However, seeds which produce these same fruits or vegetables are not sales tax exempt. This legislation corrects this inconsistency by forgiving the sales tax on seeds that grow into food for human consumption. Although such an exemption is small for the individual consumer, when subsisting on a low and/or fixed income and growing one's own food from seed for sustenance, every penny makes a difference.

Legislative history

2011,2012: S.835 Referred to Investigations and Government Operations 2009,2010: S.2471 Referred to Investigations and Government 2008: S.7827/A.10978 Reported to Finance Operations

Fiscal implications

Undetermined at this time.

Effective date

Effective January 1 succeeding enactment into law.