S T A T E O F N E W Y O R K
________________________________________________________________________
4889
2011-2012 Regular Sessions
I N S E N A T E
April 28, 2011
___________
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to creating a local produce tax
credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 210 of the tax law is amended by adding a new
2 subdivision 44 to read as follows:
3 44. LOCAL PRODUCE TAX CREDIT. (A) RESTAURANTS, TAVERNS, CAFETERIAS OR
4 OTHER BUSINESSES ENGAGED IN THE SALE OF FOODS PREPARED AND READY TO BE
5 EATEN MAY CLAIM THE LOCAL PRODUCE TAX CREDIT AGAINST THE TAX IMPOSED BY
6 THIS ARTICLE AT THE CLOSE OF THE TAX YEAR PROVIDED, HOWEVER, THAT THE
7 UNUSED PORTION OF ANY TAX CREDIT CLAIMED SHALL NOT BE CARRIED FORWARD
8 AND APPLIED IN ANOTHER TAX YEAR.
9 (B) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE
10 THE FOLLOWING MEANINGS:
11 (1) "LOCAL PRODUCE" IS PRODUCE GROWN BY A PRODUCER WITH THE PRIDE OF
12 NEW YORK SYMBOL FROM SEED OR CONCEPTION THROUGH FINAL PRODUCT.
13 (2) "PRODUCER" IS AN INDIVIDUAL (WHETHER ACTING INDIVIDUALLY OR
14 THROUGH A COOPERATIVE, CORPORATION, PARTNERSHIP, BUSINESS ASSOCIATION,
15 OR EDUCATIONAL INSTITUTION) WHO IS A FARMER, STUDENT FARMER OR MANUFAC-
16 TURER OF FOODS OR GOODS IN NEW YORK STATE. IT SHALL NOT, HOWEVER,
17 INCLUDE A WHOLESALER OR DISTRIBUTOR.
18 (C) THE AMOUNT OF THE CREDIT SHALL BE ONE HUNDRED DOLLARS FOR EVERY
19 PURCHASE BY A BUSINESS CLAIMING THE LOCAL PRODUCE TAX CREDIT OF LOCAL
20 PRODUCE FOR SALE AT THE BUSINESS IN THE AGGREGATE AMOUNT OF ONE THOUSAND
21 DOLLARS OR MORE.
22 (D) BUSINESSES CLAIMING THE LOCAL PRODUCE TAX CREDIT SHALL SUBMIT A
23 COMPUTER-GENERATED REPORT WITH TAX RETURNS THAT CLAIM A TAX CREDIT. SUCH
24 REPORT SHALL INCLUDE THE NATURE OF THE BUSINESS, THE NAME OF THE PRODUC-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10920-03-1
S. 4889 2
1 ER AND THE PHYSICAL PLACE OF THE BUSINESS WHERE THE PRODUCTS ARE
2 PRODUCED AND THE AMOUNT PAID BY THE BUSINESS TO THE PRODUCER AND THE
3 AMOUNT OF UNITS PURCHASED.
4 S 2. Section 606 of the tax law is amended by adding a new subsection
5 (tt) to read as follows:
6 (TT) LOCAL PRODUCE TAX CREDIT. (1) RESTAURANTS, TAVERNS, CAFETERIAS OR
7 OTHER BUSINESSES ENGAGED IN THE SALE OF FOODS PREPARED AND READY TO BE
8 EATEN MAY CLAIM THE LOCAL PRODUCE TAX CREDIT AGAINST THE TAX IMPOSED BY
9 THIS ARTICLE AT THE CLOSE OF THE TAX YEAR PROVIDED, HOWEVER, THAT THE
10 UNUSED PORTION OF ANY TAX CREDIT CLAIMED SHALL NOT BE CARRIED FORWARD
11 AND APPLIED IN ANOTHER TAX YEAR.
12 (2) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE
13 THE FOLLOWING MEANINGS:
14 (A) "LOCAL PRODUCE" IS PRODUCE GROWN BY A PRODUCER WITH THE PRIDE OF
15 NEW YORK SYMBOL FROM SEED OR CONCEPTION THROUGH FINAL PRODUCT.
16 (B) "PRODUCER" IS AN INDIVIDUAL (WHETHER ACTING INDIVIDUALLY OR
17 THROUGH A COOPERATIVE, CORPORATION, PARTNERSHIP, BUSINESS ASSOCIATION,
18 OR EDUCATIONAL INSTITUTION) WHO IS A FARMER, STUDENT FARMER OR MANUFAC-
19 TURER OF FOODS OR GOODS IN NEW YORK STATE. IT SHALL NOT, HOWEVER,
20 INCLUDE A WHOLESALER OR DISTRIBUTOR.
21 (3) THE AMOUNT OF THE CREDIT SHALL BE ONE HUNDRED DOLLARS FOR EVERY
22 PURCHASE BY A BUSINESS CLAIMING THE LOCAL PRODUCE TAX CREDIT OF LOCAL
23 PRODUCE FOR SALE AT THE BUSINESS IN THE AGGREGATE AMOUNT OF ONE THOUSAND
24 DOLLARS OR MORE.
25 (4) BUSINESSES CLAIMING THE LOCAL PRODUCE TAX CREDIT SHALL SUBMIT A
26 COMPUTER-GENERATED REPORT WITH TAX RETURNS THAT CLAIM A TAX CREDIT. SUCH
27 REPORT SHALL INCLUDE THE NATURE OF THE BUSINESS, THE NAME OF THE PROCE-
28 DURE AND THE PHYSICAL PLACE OF THE BUSINESS WHERE THE PRODUCTS ARE
29 PRODUCED AND THE AMOUNT PAID BY THE BUSINESS TO THE PRODUCER AND THE
30 AMOUNT OF UNITS PURCHASED.
31 S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
32 of the tax law is amended by adding a new clause (xxxiii) to read as
33 follows:
34 (XXXIII) LOCAL PRODUCE TAX CREDIT AMOUNT OF CREDIT UNDER
35 UNDER SUBSECTION (TT) SUBDIVISION FORTY-FOUR OF
36 SECTION TWO HUNDRED TEN
37 S 4. This act shall take effect immediately.