What's happening
This bill imposes an excise tax on sweetened beverages and uses the revenue to fund childhood obesity prevention and health promotion programs.
Why it matters
Targets sugary drinks as a public health concern. By defining and taxing “sweetened beverages” with more than 25 calories per 12 ounces, the bill aims directly at products linked to increased obesity and related health issues, rather than all sugary or caloric products broadly.
Industry-level accountability and regulatory structure. The excise tax is imposed at the distributor level, requiring detailed reporting, registration, and compliance measures. This not only ensures traceability of taxed products but also places administrative responsibility on beverage suppliers rather than consumers or retailers.
Revenue earmarked for specific health initiatives. The law mandates that all revenue collected be deposited into a dedicated Children’s Health Promotion Fund, with strict allocation: substantial funding directed to statewide and community-based childhood obesity prevention, medical interventions, and school-based nutrition and activity programs. This structure tries to guarantee that the tax’s health goals are directly supported with the proceeds.
Focuses on equity and impact. The bill prioritizes funding for communities and counties with the highest rates of childhood obesity, aiming to address health disparities and support evidence-based, sustainable interventions where they are most needed. This could help reduce long-term healthcare costs and improve public health outcomes.
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Tax Sugary Drinks for Kids
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- Referred to ways and means
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Full text
6 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3278
2019-2020 Regular Sessions
IN ASSEMBLY
January 29, 2019
Introduced by M. of A. ORTIZ -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to enacting the "sweetened beverage tax law"; and to amend the state finance law, in relation to establishing the children's health promotion fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as the "sweetened beverage tax law".
§ 2. The tax law is amended by adding a new article 15 to read as follows:
ARTICLE 15
SWEETENED BEVERAGE TAX LAW Section 330. Definitions.
331. Excise tax.
332. Distribution information.
333. Exemption.
334. Exemption certificate.
335. Credit.
336. Collection of tax.
337. Rules and regulations.
338. Taxes due.
339. Electronic filing.
340. Registration.
§ 330. Definitions. For purposes of this article:
(a) "Beverage container" means any closed or sealed container regardless of size or shape, including, without limitation, those made of glass, metal, paper, plastic, or any other material or combination of materials.
(b) "Bottled sweetened beverage" means a sweetened beverage contained in a beverage container.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07223-01-9
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(c) "Beverage dispensing machine" means a device that mixes concentrate with any one or more other ingredients and dispenses the resulting mixture into an open container as a ready-to-drink beverage.
(d) "Caloric sweetener" means any caloric substance suitable for human consumption that humans perceive as sweet and includes, without limitation, sucrose, fructose, including high fructose corn sweetener, glucose, other sugars, and fruit juice concentrates. "Caloric" means a substance that adds calories to the diet of a person who consumes that substance.
(e) "Concentrate" means a syrup, powder, or base product that is used for mixing, compounding, or making sweetened beverages in a beverage dispensing machine. For purposes of this part, "concentrate" does not include any of the following:
(1) Any product that is solely used in preparing coffee or tea.
(2) Any product for consumption by infants and which is commonly referred to as "infant formula."
(3) Any product for use for weight reduction.
(4) Milk or milk products.
(5) Any frozen concentrate or freeze-dried concentrate to which only water is added to produce a sweetened beverage containing more than fifty percent natural fruit juice or more than fifty percent natural vegetable juice or more than fifty percent combined natural fruit juice and natural vegetable juice.
(6) Any product that is sold and is intended to be used for the purpose of an individual consumer mixing a sweetened beverage.
(7) Medical food.
(8) Any product to which no caloric sweeteners have been added.
(f) "Consumer" means a person who purchases a bottled sweetened beverage or concentrate for a purpose other than resale in the ordinary course of business.
(g) "Distribution" includes:
(1) The sale of bottled sweetened beverages or concentrate to a retailer.
(2) The receipt of untaxed bottled sweetened beverages or concentrate in this state from an unregistered out-of-state distributor by a retailer.
(3) The retail sale of untaxed bottled sweetened beverages, sweetened beverages, or concentrate in this state.
(4) The use or consumption of untaxed bottled sweetened beverages or concentrate in this state by a distributor or retailer. For purposes of this paragraph, "use or consumption" includes the exercise of any right or power over bottled sweetened beverages or concentrate incident to the ownership thereof, except that it does not include the sale of that property or the keeping or retention thereof by a distributor or retailer for the purpose of sale.
(h) "Distributor" means any person who makes a distribution of bottled sweetened beverages, sweetened beverages, or concentrate in the state, whether or not that person also sells these products to consumers.
(i) "Medical food" means any product that meets the definition of medical food in the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 360ee(b)(3)).
(j) "Milk" means natural liquid milk, regardless of animal source or butterfat content, natural milk concentrate, whether or not reconstituted, regardless of animal source, plant source, or butterfat content, or dehydrated natural milk, whether or not reconstituted and regardless of animal source or butterfat content.
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(k) "Natural fruit juice" means the original liquid resulting from the pressing of fruit, the liquid resulting from the reconstitution of natural fruit juice concentrate, or the liquid resulting from the restoration of water to dehydrated natural fruit juice.
(l) "Natural vegetable juice" means the original liquid resulting from the pressing of vegetables, the liquid resulting from the reconstitution of natural vegetable juice concentrate, or the liquid resulting from the restoration of water to dehydrated natural vegetable juice.
(m) "Nonalcoholic beverage" means any beverage that does not contain alcohol.
(n) "Person" means an individual, trust, firm, joint stock company, business concern, business trust, receiver, trustee, syndicate, social club, fraternal organization, estate, corporation, including, but not limited to, a government corporation, partnership, limited liability company, and association or any other group or combination acting as a unit. "Person" also includes any city, county, city and county, district, commission, the state, or any department, agency, or political subdivision thereof, any interstate body, and the United States and its agencies and instrumentalities to the extent permitted by law.
(o) "Powder" or "base product" means a solid or liquid mixture of ingredients with added caloric sweetener used in making, mixing, or compounding sweetened beverages by mixing the powder or base product with any one or more other ingredients, including, without limitation, water, ice, syrup, simple syrup, fruits, vegetables, fruit juice, vegetable juice, or carbonation or other gas.
(p) "Retail sale" means the sale of sweetened beverages to a consumer.
(q) "Retailer" means any person who sells in this state sweetened beverages to a consumer, whether or not that person is also a distributor as defined in this section.
(r) "Sale" means the transfer of title or possession for consideration in any manner or by any means whatever.
(s) "Simple syrup" means a mixture of sugar and water.
(t) (1) "Sweetened beverage" means any sweetened nonalcoholic beverage sold for human consumption that has caloric sweeteners and contains more than twenty-five calories per twelve ounces, including, but not limited to, the following: soda water, ginger ale, root beer, all beverages commonly referred to as cola, lime, lemon, lemon-lime, and other flavored beverages, including any fruit or vegetable beverage containing less than fifty percent natural fruit juice or natural vegetable juice or combined natural fruit juice and natural vegetable juice, and all other drinks and beverages commonly referred to as "soda," "soda pop," "soft drinks," "sports drinks," "energy drinks," "juice drinks," "ice teas," and "vitamin fortified waters."
(2) "Sweetened beverage" does not include any of the following:
(A) Any product sold in liquid form for consumption by infants, which is commonly referred to as "infant formula" or any product whose purpose is infant rehydration.
(B) Any product sold in liquid form for use for weight reduction.
(C) Water, to which no caloric sweeteners have been added.
(D) Milk or milk products.
(E) Medical food.
(F) Any sweetened beverage containing fifty percent or more of natural fruit juice or natural vegetable juice or combined natural fruit juice and natural vegetable juice.
(u) "Syrup" means the liquid mixture of ingredients used in making, mixing, or compounding sweetened beverages using one or more other
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ingredients including, without limitation, water, ice, a powder, simple syrup, fruits, vegetables, fruit juice, vegetable juice, or carbonation or other gas.
§ 331. Excise tax. There is hereby imposed an excise tax on every distributor for the privilege of distributing bottled sweetened beverages and concentrate in the state, calculated as follows:
(a) The tax on bottled sweetened beverages distributed in this state shall be one cent ($0.01) per fluid ounce.
(b) The tax on concentrates distributed in this state either as concentrate or as a sweetened beverage derived from that concentrate, shall be equal to one cent ($0.01) per fluid ounce of sweetened beverage produced from that concentrate. For purposes of calculating the tax for concentrate, the volume of sweetened beverage to be produced from concentrate shall be the largest volume resulting from use of the concentrate according to any manufacturer's instructions.
§ 332. Distribution information. Each distributor shall include the following information on each receipt, invoice, or other form of accounting for the distribution of bottled sweetened beverages or concentrate:
(a) The name and address of the distributor.
(b) The name and address of the purchaser.
(c) The date of sale and invoice number.
(d) The kind, quantity, size, and capacity of packages of bottled sweetened beverages, sweetened beverages, or concentrate sold.
(e) The amount of excise taxes due to the commissioner from the distributor on the sale of the bottled sweetened beverages or concentrate.
(f) Any other information as required by the commissioner.
§ 333. Exemption. There is exempt from the taxes imposed by this article the distribution of bottled sweetened beverages or concentrate distributed by a distributor to:
(a) A distributor registered with the commissioner under this article when supported by a properly completed exemption certificate.
(b) To a person when, pursuant to the contract of sale, the bottled sweetened beverages or concentrates are required to be shipped and are shipped to a point outside of this state by the distributor by means of any of the following:
(1) Facilities operated by the distributor.
(2) Delivery by the distributor to a carrier, customs broker, or forwarding agent, whether hired by the purchaser or not, for shipment to the out-of-state point.
(c) To a person where the state is prohibited from taxing that sale, use, or consumption under the constitution or laws of the United States or under the constitution of this state.
§ 334. Exemption certificate. The exemption certificate to be provided by a distributor to another distributor as required by subdivision (a) of section three hundred thirty-three of this article shall consist of a statement that is signed under penalty of perjury by a person with authority to bind the distributor. The certificate shall be dated and include the distributor's name and account number. A new certificate shall be given if any information in the current certificate changes. The certificate may be included as part of any business records normally used to document a sale or distribution.
§ 335. Credit. A distributor who has paid a tax, either directly to the state or to another distributor registered under this article, and makes a subsequent distribution of bottled sweetened beverages or
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concentrate may claim a credit on its return for the period in which the subsequent sale or distribution occurs.
§ 336. Collection of tax. The commissioner shall administer and collect the tax imposed by this article.
§ 337. Rules and regulations. The commissioner is hereby authorized to promulgate rules and regulations relating to the administration and enforcement of this article, including, but not limited to, collections, reporting, refunds, and appeals.
§ 338. Taxes due. The taxes imposed by this article are due and payable to the commissioner on or before the last day of the month following each tax quarter.
§ 339. Electronic filing. (a) On or before the last day of the month following each tax quarter, a return for the preceding tax quarter shall be filed using electronic media with the commissioner.
(b) The commissioner may prescribe those forms and reporting requirements as are necessary to implement the tax, including, but not limited to, information regarding the total amount of bottled sweetened beverages and concentrate sold and the amount of tax due.
(c) Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the commissioner.
§ 340. Registration. Every person required to pay the tax imposed under this article shall register with the commissioner. Every application for registration shall be made upon a form prescribed by the commissioner and shall set forth the name under which the applicant transacts or intends to transact business, the location of his or her place or places of business, and such other information as the commissioner may require. An application for an account shall be authenticated in a form or pursuant to methods as may be prescribed by the commissioner.
§ 3. The state finance law is amended by adding a new section 99-ff to read as follows:
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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