Establishes the gallon as the standard measurement for purposes of taxation of alcoholic beverages

Section 2: amends paragraphs (e), (f) and (g) of subdivision 1 of section 424 of the tax law, by removing all reference to liters when determining rates of the excise tax, and replacing such reference with units measured in gallons, and by removing the listed tax amount, replacing with a new amount equal to the conversion from liters to gallons.

Section 3: amends section 425a of the tax law, as added by chapter 508 of the laws of 1993, by changing from liters to gallons the measurement under which a the presumption of taxation by the state is established.

Section 4: amends section 426 of the tax law, as amended by chapter 891 of the laws of 1986, by changing from liters to gallons the measurements that establish a requirement of record keeping by brand owners or distributors.

Section 5: amends subdivision 1 and paragraph (i) of subdivision 2 of section 427 of the tax law, as added by chapter 508 of the laws of 1993, by changing from liters to gallons the measurements over which a seller of liquor must invoice each sale, and changing the unit of measurement that must be included on each invoice from liters to gallons.

Section 6: amends subdivision 2 of section 428 of the tax law, as added by section 508 of the laws of 1993, by changing from liters to gallons the unit of measurement over which transporters of alcohol must possess a manifest or invoice of the items being transported.

Section 7: amends subdivisions 1 and 2 of section 429 of the tax law, as amended by chapter 433 of the laws of 1978, by changing the unit of measurement from liters to gallons of wine and liquor that distributors of must use when reporting units sold or used for the purposes of taxation, creating uniformity with the measurements used when reporting sales of beer.

Section 8: amends paragraph (b) of subdivision 1 and subdivision 2 of section 445 of the tax law, as amended by chapter 433 of the laws of 1978, by changing the unit of measurement used when computing local taxes from liters to gallons, and changes the amount taxed to reflect the conversion to gallons.

Section 9: amends subdivisions (e), (f), and (g) of section 1813 of the tax law, as amended by section 27 of subpart I of part V1 of chapter 57 of the laws of 2008, by changing the unit of measurement,

from liters to gallons, used when determining whether an individual has committed a crime by not registering as a distributor.

Section 10: amends subdivisions (a), (k) and (1) of section 1845 of the tax law, as added by chapter 508 of the laws of 1993, by changing the unit of measurement, from liters to gallons, used when determining whether seizure and forfeiture of liquors by the police or government is appropriate.

Section 11: sets the effective date.

Justification

Under current tax law, the unit of measurement used in determining tax rates and other applicable regulations for reporting alcohol sales and other information are not consistent. State law requires liquor records in liter measurements, while federal law requires similar requirements in proof gallon measurements. These different requirements create an undue burden on these businesses to keep records in multiple formats. Then, they must rely this information to similar entities of state and federal tax agencies, but in very different calculations.

There is not a justifiable reason for the different measurements and streamlining this record and reporting system will ease a burden on many small businesses in New York. This legislation will ease production tracking, which will ease the tax response process to local, state, and federal governments.

Legislative history

New Bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect 180 days after it shall have become law.