Exempts food and beverages sold from vending machines for one dollar and fifty cents or less from the sales and use tax

1 Co-sponsor

• David J. Valesky

BILL NUMBER:S5219

Title of bill

An act to amend the tax law, in relation to the sale of food and beverages through vending machines

Purpose of the bill

The purpose of this legislation is to amend the tax law to exempt food and beverages sold through vending machines from New York State sales tax up to $1.50.

Summary of provisions

Section one details the specific food and beverage items that would be exempt from New York State sales tax if sold through any vending machines activated by the use of coin, currency, credit card or debit card. The tax law is amended from an exemption for said food and beverage items sold for seventy five cents or less to an exemption of one dollar and fifty cents from New York State sales tax.

Section two makes the legislation take effect April 1, 2014.

Justification

In 2000, the Legislature exempted food and beverage items sold in vending machines for seventy five cents or less from New York State sales tax as a way to help the vending machines industry remain competitive with over the counter sales. Today, there are very few items sold in vending machines that cost 75 cents or less. These increases in product costs combined with the increased operating costs have made the value of the 75-cent exemption minimal and ineffective.

In order for vending machines to maintain competitiveness in both pricing and convenience, the value of items eligible for tax exemption must increase.

This tax relief proposal will ensure that consumers continue to have access to products through the convenience of vending machines as well as through over the counter sales.

Legislative history

S3445-B Vetoed by the Governor in 2012

Fiscal implications

To be determined.

Effective date

April 1, 2014.