What's happening
This bill exempts certain small beer tasting sales at breweries and farm breweries from retail sales and use taxes.
Why it matters
Directly reduces the tax burden on small breweries and farm breweries. by allowing them to sell limited beer tasting samples (up to four, each a different beer, not exceeding four ounces each) tax-free, potentially making beer tastings more affordable for consumers and more attractive for breweries to offer.
Limits the exemption to a customer’s first tasting purchase per day at each brewery. , preventing widespread tax avoidance while still encouraging sampling and responsible consumption.
Removes and clarifies prior, more generous definitions of beer tastings. (previously allowed up to five samples of five ounces each) from the law, thereby standardizing and slightly narrowing the scope of what qualifies for the tax exemption.
May stimulate local beer tourism and support small producers. by making tasting experiences at breweries more accessible, potentially boosting foot traffic and direct sales at these establishments.
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Who cares
Headline styles
No Sales Tax on Tastings
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by A8956
- Ordered to third reading cal.86
- 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.
Exempt Taxes 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
7162
IN SENATE
January 10, 2020
Introduced by Sen. MAY -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
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 (ii) of subdivision (d) of section 1105 of the tax law is amended by adding a new subparagraph (C) to read as follows:
(C) Sales by a brewery licensed under section fifty-one of the alcoholic beverage control law, or a farm brewery licensed under section fifty-one-a of such law, of no more than four samples of beer not exceeding four fluid ounces each, and each sample shall be a different beer than the others. Only a customer's first purchase during each calendar day at each licensed entity shall be exempt under this subparagraph.
§ 2. Paragraph 33 of subdivision (a) of section 1115 of the tax law, as amended by a chapter of the laws of 2019 amending the tax law and the alcoholic beverage control law relating to exempting certain beer tastings from retail sales and compensating use taxes, as proposed in legislative bills numbers S.6289-A and A.7947-A, 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.]
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11869-05-0
S. 7162 2
§ 3. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 45 to read as follows:
(45) Sales by a brewery licensed under section fifty-one of the alcoholic beverage control law, or a farm brewery licensed under section fifty-one-a of such law, of no more than four samples of beer not exceeding four fluid ounces each, and each sample shall be a different beer than the others. Only a customer's first purchase during each calendar day at each licensed entity shall be exempt under this paragraph.
§ 4. Subdivision 3-a of section 51 of the alcoholic beverage control law, as amended by a chapter of the laws of 2019 amending the tax law and the alcoholic beverage control law relating to exempting certain beer tastings from retail sales and compensating use taxes, as proposed in legislative bills numbers S.6289-A and A.7947-A, 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 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, precooked 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.
§ 5. Paragraph (f) of subdivision 2 of section 51-a of the alcoholic beverage control law, as amended by a chapter of the laws of 2019 amending the tax law and the alcoholic beverage control law relating to exempting certain beer tastings from retail sales and compensating use taxes, as proposed in legislative bills numbers S.6289-A and A.7947-A, 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];
§ 6. This act shall take effect on the same date and in the same manner as a chapter of the laws of 2019 amending the tax law and the alcoholic beverage control law relating to exempting certain beer tastings from retail sales and compensating use taxes, as proposed in legislative bills numbers S.6289-A and A.7947-A, takes effect.
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
This is a chapter amendment that makes changes to provisions of L.2019, c.722.
Summary of provisions
This legislation amends the underlying chapter by removing the changes made to the Alcohol Beverage Control Law and instead placing the sales tax exemption in the Tax Law. The first sale made for in premises consumption by a brewery or farm brewery to a customer of up to four four-ounce servings of beer in a flight, each serving constituting a different beer, would be exempted from the sales tax.
Justification
Pursuant to approval memo 69 of 2019, the Executive expressed concerns about the amount of beer being made available tax free, which in the underlying bill was up to five, five-ounce servings, which equaled 25 ounces of beer. This amount was cut down to four, four-ounce servings, or 16 ounces. In addition, since a definition of what constituted a tasting exists in the Alcohol Beverage Control Law already existed, this tax exemption was moved to the Tax Law. This legislation is a negotiated change to the underlying chapter that addresses those concerns.
Legislative history
Chapter amendment to Chapter 722 of the Laws of 2019.
Fiscal implications
None
Effective date
This act shall take effect on the same date and in the same manner as a chapter of the laws of 2019 amending the tax law and the alcoholic beverage control law relating to exempting certain beer tastings from retail sales and compensating use taxes, as proposed in legislative bills numbers S.6289-A and A.7947-A, takes effect.
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