What's happening
This bill exempts certain beer tastings from retail sales and use taxes by clearly defining qualifying tastings and sample limits.
Why it matters
Provides clear legal standards for beer tastings to qualify for tax exemption. , specifying that only tastings offering up to five different beer samples (no more than five ounces each, per day, per person) are exempt—this reduces ambiguity and potential disputes over tax liability.
Levels the playing field for breweries and farm breweries. by codifying consistent tasting sample limits and definitions, making compliance easier for small businesses and reducing administrative burdens.
Encourages responsible alcohol sampling and consumer safety. by setting explicit limits on sample sizes and quantities, potentially minimizing overconsumption at tasting events.
Links tax benefits directly to adherence to these tasting limits. , providing a strong incentive for breweries to follow the rules and maintain thorough records, which may help prevent tax evasion and improve regulatory oversight.
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Who cares
Headline styles
No Sales Tax on Beer Tastings
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by A7947A
- Ordered to third reading cal.1708
- Print number 6289a
- Amend and recommit to rules
- Referred to rules
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.
No Sales Tax on Beer Tastings
Signed by Governor · Sponsor Donna Lupardo
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6289--A
2019-2020 Regular Sessions
IN SENATE
June 3, 2019
Introduced by Sen. MAY -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law and the alcoholic beverage control law, in relation to exempting certain beer tastings from retail sales and compensating use taxes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 33 of subdivision a of section 1115 of the tax law, as amended by chapter 418 of the laws of 2017, is amended to read as follows:
(33) Wine or wine product, beer or beer product, cider or cider product, liquor or liquor product, and the kegs, cans, bottles, growlers, corks, caps, and labels used to package such alcoholic product, furnished by the official agent of a farm winery, winery, brewery, farm brewery, cider producer, farm cidery, distillery, farm distillery, wholesaler, or importer at a wine, beer, cider or liquor tasting held in accordance with the alcoholic beverage control law to a customer or prospective customer who consumes such wine, beer, cider or liquor at such tasting. For purposes of this paragraph, a beer tasting shall meet the definition set forth in subdivision three-a of section fifty-one of the alcoholic beverage control law or paragraph (f) of subdivision two of section fifty-one-a of such law.
§ 2. Subdivision 3-a of section 51 of the alcoholic beverage control law, as added by chapter 431 of the laws of 2014, is amended to read as follows:
3-a. A licensed brewer may at the licensed premises conduct tastings of, and sell at retail for consumption on or off the licensed premises, any beer manufactured by the licensee or any New York state labeled beer. For purposes of the exemption on retail sales and compensating use
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11869-04-9
S. 6289--A 2
taxes provided for in paragraph thirty-three of subdivision a of section eleven hundred fifteen of the tax law, a beer tasting shall mean no more than five samples of beer not exceeding five fluid ounces each, which may be provided or sold to a person in any calendar day, and each such sample shall be a different beer than the others. Provided, however, that for tastings and sales for on-premises consumption, the licensee shall regularly keep food available for sale or service to its retail customers for consumption on the premises. A licensee providing the following shall be deemed in compliance with this provision: (i) sandwiches, soups or other such foods, whether fresh, processed, pre-cooked or frozen; and/or (ii) food items intended to complement the tasting of alcoholic beverages, which shall mean a diversified selection of food that is ordinarily consumed without the use of tableware and can be conveniently consumed while standing or walking, including but not limited to: cheeses, fruits, vegetables, chocolates, breads, mustards and crackers. All of the provisions of this chapter relative to licenses to sell beer at retail for consumption on and off the premises shall apply so far as applicable to such licensee.
§ 3. Paragraph (f) of subdivision 2 of section 51-a of the alcoholic beverage control law, as amended by chapter 522 of the laws of 2018, is amended to read as follows:
(f) conduct tastings at the licensed premises of beer, cider, and braggot manufactured by the licensee or any other licensed farm brewery. For purposes of the exemption on retail sales and compensating use taxes provided for in paragraph thirty-three of subdivision a of section eleven hundred fifteen of the tax law, beer tasting shall mean no more than five samples of beer not exceeding five fluid ounces each, which may be provided or sold to a person in any calendar day, and each such sample shall be a different beer than the others;
§ 4. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law and the alcoholic beverage control law, in relation to exempting certain beer tastings from retail sales and compensating use taxes
Purpose or general idea of bill
This legislation would specify the number and size of tasting samples of certain beer, cider, and braggot, provided by producers licensed under the Alcoholic Beverage Control Law, which would qualify for the current- ly authorized sales and compensating use tax exemption.
Summary of provisions
Paragraph 33 of subdivision 1115 of the tax law is amended to exempt beer tastings from sales tax.
Subdivision 3-a of section 51 of the alcoholic beverage control law is amended to define a beer tasting.
Paragraph (f) of subdivision 2 of section 51-a of the alcoholic beverage control law is amended to exempt beer, cider and braggot tasting at farm breweries from sales tax.
**The amendment to this bill clarifies that beer tastings which would be subject to the exemption from retail and compensating use taxes may be either provided at no charge or sold to a person in any calendar day.
Justification
New York's tourism industry is a prime economic driver in many communi- ties. Increasingly, destination craft breweries, wineries, cideries and distilleries have become an essential part of that industry. In recog- nition of this growing tourism sector, the Legislature two years ago amended New York's tax law to exempt tastings held by the craft alcohol- ic beverage makers, to encourage continued growth in such businesses, which contribute substantially to their local communities.
In 2017, certain beer, cider, and distilled liquor producers were grant- ed parity with wineries through sales and use tax exempt status for tastings held on the premises of a licensed producer, even if they charge for such tastings. However, this section of tax law currently has no statutory guidance on the number or size of tasting samples that a manufacturer of a specific type of alcoholic beverage may provide as sales tax exempt. This bill would provide the necessary clarification and uniformity for effectuating the provision of this section of Tax Law.
Legislative history
2017-18: Similar to S9040/A11203 Vetoed, Msg. No. 350.
Fiscal implications
Minimal
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.