Bill S1198-2013

Creates a local produce tax credit

Creates a local produce tax credit; provides that restaurants may claim the local produce tax credit in the amount of $100 for every $1,000 of local produce purchased for the restaurant; defines local produce as produce grown by a producer with the pride of NY symbol of the business claiming the local produce tax credit within NYS; requires the business to submit a report with tax returns stating the nature of the business, the name and location of the producer and the amount paid for the produce.

Details

Actions

  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S1198

TITLE OF BILL: An act to amend the tax law, in relation to creating a local produce tax credit

PURPOSE OR GENERAL IDEA OF BILL: This bill is aimed to supporting and promoting restaurants to purchase locally grown produce. Any restaurant in New York State that purchases produce with the "pride of New York" sticker on it will receive a tax credit in the amount of $100 for every $1,000 made in purchases.

SUMMARY OF SPECIFIC PROVISIONS: Section 1: Restaurants, taverns, cafeterias, or other businesses engaged in the sale of foods prepared and ready to be eaten may claim the local produce tax credit against the tax imposed by this article at the close of the tax year provided, however, that the unused portion of any tax credit claimed shall not be carried forward and applied in another tax year. "Local Produce" is produce grown by a producer with the pride of New York symbol of the business claiming the local produce tax credit within the state of New York, from seed or conception through final product. Businesses claiming the local produce tax credit shall submit a computer generated report with tax returns that claim a tax credit.

JUSTIFICATION: New York State needs to help protect our farmers by promoting them. New York State has many farms that grow fresh produce and should be used and sold to restaurants, markets, taverns, and other establishments that serve fresh food. This bill will help promote New York agriculture and help keep our farmers in New York State.

PRIOR LEGISLATIVE HISTORY: 2011-12 - S.4889 - Referred to Investigations and Government Operations

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 1198 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
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: Section 1. Section 210 of the tax law is amended by adding a new subdivision 46 to read as follows: 46. LOCAL PRODUCE TAX CREDIT. (A) RESTAURANTS, TAVERNS, CAFETERIAS OR OTHER BUSINESSES ENGAGED IN THE SALE OF FOODS PREPARED AND READY TO BE EATEN MAY CLAIM THE LOCAL PRODUCE TAX CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AT THE CLOSE OF THE TAX YEAR PROVIDED, HOWEVER, THAT THE UNUSED PORTION OF ANY TAX CREDIT CLAIMED SHALL NOT BE CARRIED FORWARD AND APPLIED IN ANOTHER TAX YEAR. (B) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (1) "LOCAL PRODUCE" IS PRODUCE GROWN BY A PRODUCER WITH THE PRIDE OF NEW YORK SYMBOL OF THE BUSINESS CLAIMING THE LOCAL PRODUCE TAX CREDIT WITHIN THE STATE OF NEW YORK, FROM SEED OR CONCEPTION THROUGH FINAL PRODUCT. (2) "PRODUCER" IS AN INDIVIDUAL (WHETHER ACTING INDIVIDUALLY OR THROUGH A COOPERATIVE, CORPORATION, PARTNERSHIP, BUSINESS ASSOCIATION, OR EDUCATIONAL INSTITUTION) WHO IS A FARMER, STUDENT FARMER OR MANUFAC- TURER OF FOODS OR GOODS IN NEW YORK STATE. IT SHALL NOT, HOWEVER, INCLUDE A WHOLESALER OR DISTRIBUTOR. (C) THE AMOUNT OF THE CREDIT SHALL BE ONE HUNDRED DOLLARS FOR EVERY PURCHASE BY A BUSINESS CLAIMING THE LOCAL PRODUCE TAX CREDIT OF LOCAL PRODUCE FOR SALE AT THE BUSINESS IN THE AGGREGATE AMOUNT OF ONE THOUSAND DOLLARS OR MORE.
(D) BUSINESSES CLAIMING THE LOCAL PRODUCE TAX CREDIT SHALL SUBMIT A COMPUTER-GENERATED REPORT WITH TAX RETURNS THAT CLAIM A TAX CREDIT. SUCH REPORT SHALL INCLUDE THE NATURE OF THE BUSINESS, THE NAME OF THE PRODUC- ER AND THE PHYSICAL PLACE OF THE BUSINESS WHERE THE PRODUCTS ARE PRODUCED AND THE AMOUNT PAID BY THE BUSINESS TO THE PRODUCER AND THE AMOUNT OF UNITS PURCHASED. S 2. Section 606 of the tax law is amended by adding a new subsection (vv) to read as follows: (VV) LOCAL PRODUCE TAX CREDIT. (1) RESTAURANTS, TAVERNS, CAFETERIAS OR OTHER BUSINESSES ENGAGED IN THE SALE OF FOODS PREPARED AND READY TO BE EATEN MAY CLAIM THE LOCAL PRODUCE TAX CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AT THE CLOSE OF THE TAX YEAR PROVIDED, HOWEVER, THAT THE UNUSED PORTION OF ANY TAX CREDIT CLAIMED SHALL NOT BE CARRIED FORWARD AND APPLIED IN ANOTHER TAX YEAR. (2) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "LOCAL PRODUCE" IS PRODUCE GROWN BY A PRODUCER WITH THE PRIDE OF NEW YORK SYMBOL OF THE BUSINESS CLAIMING THE LOCAL PRODUCE TAX CREDIT WITHIN THE STATE OF NEW YORK, FROM SEED OR CONCEPTION THROUGH FINAL PRODUCT. (B) "PRODUCER" IS AN INDIVIDUAL (WHETHER ACTING INDIVIDUALLY OR THROUGH A COOPERATIVE, CORPORATION, PARTNERSHIP, BUSINESS ASSOCIATION, OR EDUCATIONAL INSTITUTION) WHO IS A FARMER, STUDENT FARMER OR MANUFAC- TURER OF FOODS OR GOODS IN NEW YORK STATE. IT SHALL NOT, HOWEVER, INCLUDE A WHOLESALER OR DISTRIBUTOR. (3) THE AMOUNT OF THE CREDIT SHALL BE ONE HUNDRED DOLLARS FOR EVERY PURCHASE BY A BUSINESS CLAIMING THE LOCAL PRODUCE TAX CREDIT OF LOCAL PRODUCE FOR SALE AT THE BUSINESS IN THE AGGREGATE AMOUNT OF ONE THOUSAND DOLLARS OR MORE. (4) BUSINESSES CLAIMING THE LOCAL PRODUCE TAX CREDIT SHALL SUBMIT A COMPUTER-GENERATED REPORT WITH TAX RETURNS THAT CLAIM A TAX CREDIT. SUCH REPORT SHALL INCLUDE THE NATURE OF THE BUSINESS, THE NAME OF THE PROCE- DURE AND THE PHYSICAL PLACE OF THE BUSINESS WHERE THE PRODUCTS ARE PRODUCED AND THE AMOUNT PAID BY THE BUSINESS TO THE PRODUCER AND THE AMOUNT OF UNITS PURCHASED. S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xxxv) to read as follows: (XXXV) LOCAL PRODUCE TAX CREDIT AMOUNT OF CREDIT UNDER UNDER SUBSECTION (VV) SUBDIVISION FORTY-SIX OF SECTION TWO HUNDRED TEN S 4. This act shall take effect immediately.

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