What's happening
This bill exempts retail sales of alcoholic beverages made directly by licensed producers from state alcoholic beverage taxes for one year.
Why it matters
Direct purchases from producers—such as at local breweries, wineries, or distilleries, or via direct delivery—will temporarily cost less for consumers, potentially increasing visits and sales at these locations.
The exemption could provide much-needed financial relief and a competitive boost to small and independent producers, particularly those recovering from economic disruptions or trying to expand their customer base.
By suspending the state tax on these sales for one year, this measure might shift consumer behavior away from traditional retail stores and towards buying directly from producers, impacting both producer and retailer revenues.
The temporary nature of the bill means its effects—and any resulting shifts in the alcohol market or tax revenue—will be short-term, but could generate data and momentum for future policy changes favoring local producers.
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Who cares
Headline styles
No Tax on Local Booze
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to budget and revenue
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8393
IN SENATE
May 21, 2020
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to exempting certain sales from the tax on alcoholic beverages; and providing for the repeal of such provisions upon the expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 424 of the tax law is amended by adding a new subdivision 7 to read as follows:
7. Notwithstanding any other provision of this article, there shall be exempt from the taxes imposed under this article, alcoholic beverages sold at retail by a licensed producer of alcoholic beverages to a customer where such sale occurs either at the brewery, winery or distillery where such alcoholic beverage was produced, or as a direct delivery from the licensed producer of alcoholic beverages to the customer.
§ 2. This act shall take effect immediately and shall expire and be deemed repealed one year after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16232-02-0
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, in relation to exempting certain sales from the tax on alcoholic beverages; and providing for the repeal of such provisions upon the expiration thereof
Purpose
This legislation will provide a one-year tax exemption on the retail sale of alcohol beverages sold by a licensed producer in New York State, provided the sale occurs at the location the beverage was produced.
Summary of specific provisions
Section one provides for an exemption to taxes on alcoholic beverages sold at retail by a licensed producer of alcoholic beverages to a customer where such sale occurs either at the brewery, winery, or distillery where the beverage was produced.
Section two establishes the effective date and repeal date.
Justification
Due to the impact of COVID-19, many small businesses are struggling to make ends meet, while millions of New Yorkers have found themselves furloughed or laid off, at no fault of their own. Prior to the onset of this crisis, New York State's craft beverage producers were experiencing a true renaissance. From 2012 to 2018, New York State added 538 craft beverage manufacturers, totaling 1005 - a 115% increase(1). These new businesses have contributed billions of dollars to the economy, generat- ing jobs, tax revenue, and adding new character and vitality to communi- ties across the state.
This legislation aims to help these craft beverage manufacturers that are now struggling due to the economic downturn caused by COVID-I 9. By providing a one-year tax exemption to retail sales that take place at the location of production, the state will incentivize New Yorkers to patronize their local craft beverage producers, providing a much-needed boost to hundreds of small businesses.
Legislative history
New legislation
Fiscal implications
To be determined.
Effective date
This act shall take immediately. (1) https://www.governor.ny.govisites/ gover- nor.ny.govifiles/atoms/files/Regional Hightlights1000Craft.pdf
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.