What's happening
This bill extends and increases the sales tax exemption for certain food and drink sold through vending machines to $2.50.
Why it matters
Increases the price threshold for tax-free food and drink from vending machines from $1.50 to $2.50. , meaning more items typically found in vending machines will now qualify for the sales tax exemption. This could make snacks and beverages more affordable for consumers, especially in schools, workplaces, and public spaces.
Extends the period of this exemption through December 31, 2023. , offering longer-term certainty for both vending machine operators and consumers. Businesses can plan around this policy, potentially encouraging investment in vending services or expanding product offerings.
Applies the exemption to both cash-only and electronic payment vending machines. , reflecting changes in how people pay and ensuring the policy keeps up with technology. This could especially benefit younger or urban consumers who rely more on cashless payments.
Could have a modest fiscal impact on state and local tax revenues. by broadening the exemption, which may be weighed against the potential economic benefit of making food and drink more accessible and affordable in public and private settings.
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Who cares
Headline styles
Raise Vending Machine Tax Exemption
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 7
21 Co-sponsors
- Joseph P. Addabbo Jr.
- Fredrick J. Akshar II
- Jamaal Bailey
- Phil Boyle
- Neil D. Breslin
- John E. Brooks
- David Carlucci
- Leroy Comrie
- Jim Gaughran
- Andrew Gounardes
- Pete Harckham
- Pamela Helming
- Todd Kaminsky
- Andrew J. Lanza
- Michael H. Ranzenhofer
- James Sanders Jr.
- Diane J. Savino
- Luis R. Sepúlveda
- James L. Seward
- James Skoufis
- Kevin Thomas
History
- Print number 4367a
- Amend (t) and recommit to budget and revenue
- Referred to budget and revenue
- Referred to budget and revenue
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.
Raise Vending Machine Tax Exemption
In Assembly Committee · Ways And Means · Sponsor Robin Schimminger
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4367--A
2019-2020 Regular Sessions
IN SENATE
March 11, 2019
Introduced by Sens. KAPLAN, ADDABBO, AKSHAR, BAILEY, BOYLE, BRESLIN, BROOKS, CARLUCCI, COMRIE, GAUGHRAN, GOUNARDES, HARCKHAM, HELMING, KAMINSKY, LANZA, RANZENHOFER, SANDERS, SAVINO, SEPULVEDA, SEWARD, SKOUFIS, THOMAS -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -- recommitted to the Committee on Budget and Revenue in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to increasing the exemption from sales and use taxes for food and drink sold through any vending machine
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 1 of subdivision (a) of section 1115 of the tax law, as amended by section 1 of part CCC of chapter 59 of the laws of 2019, is amended to read as follows:
(1) (A) Food, food products, beverages, dietary foods and health supplements, sold for human consumption but not including (i) candy and confectionery, (ii) fruit drinks which contain less than seventy percent of natural fruit juice, (iii) soft drinks, sodas and beverages such as are ordinarily dispensed at soda fountains or in connection therewith (other than coffee, tea and cocoa) and (iv) beer, wine or other alcoholic beverages, all of which shall be subject to the retail sales and compensating use taxes, whether or not the item is sold in liquid form. Nothing in this subparagraph shall be construed as exempting food or drink from the tax imposed under subdivision (d) of section eleven hundred five of this article.
(B) Until [May thirty first, two thousand twenty-one] December thirty-first, two thousand twenty-three, the food and drink excluded from the exemption provided by clauses (i), (ii) and (iii) of subparagraph (A) of this paragraph, and bottled water, shall be exempt under this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08908-04-0
S. 4367--A 2
subparagraph when sold for [one dollar and fifty cents] two dollars and fifty cents or less through any vending machine that accepts coin or currency only or when sold for two dollars and fifty cents or less through any vending machine that accepts any form of payment other than coin or currency, whether or not it also accepts coin or currency.
§ 2. This act shall take effect immediately, provided, however, section one of this act shall take effect on the first day of the sales tax quarterly period, as described in subdivision (b) of section 1136 of the tax law, beginning at least 90 days after the date this act shall have become a law and shall apply in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Purpose
This bill would increase the exemption from sales and use taxes for food and drink items sold through any vending machine from the current exemption amount of $2.00 to $2.50. This exemption from sales and use tax for food and drink items sold through any vending machine would sunset December 31, 2023.
Summary of specific provisions
§ 1- Amends paragraph 1 of subdivision (a) of § 1115 of the Tax Law to increase the exemption from sales and use taxes for food and drink items sold through any vending machine from the current exemption amount of $2.00 to $2.50 through December 31, 2023.
§ 2- Effective date.
Justification
In 1997, legislation was enacted that removed the state and local sales tax from vended hot drink sales and some snack items. In 2000, legis- lation was enacted that exempted all vended sales, including candy and carbonated drinks, costing 75 cents or less. In 2014, that exemption was increased from sales of 75 cents and under to sales of $1.50 and under. In 2019, that exemption was increased from sales of $1.50 and under to $2.00 and under. This continual increase of sales tax exemption has allowed for New York State's vending machine industry to reinvest in their businesses, thus permitting many to acquire newer machinery to make available more New York State based agricultural products, such as yogurt and cheese, to consumers. This also has allowed the industry to respond to customers' demand for more nutritious and health conscious foods and drinks. In addition, the "Taste NY" program is bolstered by the vending machine sales tax exemption.
This legislation would provide the vendors operating within the State of New York the necessary financial relief they need to be competitive with other outlets, and would preserve and promote the growth of jobs and availability of New York State locally produced products. It would enable some 200 vendors, mostly small businesses (about half of whom are sole proprietor or "mom and pop" businesses), to remain in business given the rising costs of doing business including a variety of increased taxes.
Prior legislative history
2017-2018: A.6491/S.4653.
Fiscal implications
A further increase from $1.50 to $2.50 is expected to cost an additional $4 million per year.
Effective date
This act shall take effect immediately, provided, however, section one of this act shall take effect on the first day of the sales tax quarter- ly period, as described in subdivision (b) of section 1136 of the Tax Law, beginning at least 90 days after the date this act shall have become a law and shall apply in accordance with the applicable transi- tional provisions of sections 1106 and 1217 of the Tax Law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.