Exempts wholesalers from filing annual information returns with the commissioner of taxation and finance for sales made to and from farm wineries.
Ayes (61): Adams, Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Huntley, Johnson, Kennedy, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Valesky, Young, Zeldin
Nays (1): Duane
TITLE OF BILL: An act to amend the tax law, in relation to exempting wholesalers from filing annual information returns with the commissioner of taxation and finance for sales made to and from farm wineries
PURPOSE: This bill exempts farm wineries from filing annual information returns regarding their transactions with sales tax vendors.
SUMMARY OF PROVISIONS: Amends chapter 57 of the Laws of 2009 by adding language to exempt farm wineries from filing annual information returns regarding their transactions with sales tax vendors.
JUSTIFICATION: The 2009-10 Revenue budget Bill (Chapter 57 of the Laws of 2009), enacted various tax compliance initiatives. One of the initiatives mandates the filing of annual information returns by certain third parties that do business with sales tax vendors. Information that needs to be reported include general information (such as vendor's name, phone number, etc) and more labor-intensive information, such as total monthly sales amounts to each vendor exclusive of total amounts for deposit and returns. In order to complete these information returns, valuable time and resources will be needed to compile and submit it on time (the first due is September 20th).
Such third parties mandated to file the information returns are alcoholic beverage wholesalers, including farm wineries. Farm wineries are run by farms, most of whom are small businesses that are already burdened by the high costs of doing business. This mandate places further burdens on them. Farms are an industry that New York State needs to protect, rather than hinder with additional State requirements.
This legislation exempt farm wineries from filing annual information returns regarding their transactions with sales tax vendors. Thus, farm wineries would be freed from this State mandate.
LEGISLATIVE HISTORY: 2009: S.6472
FISCAL IMPLICATIONS: Decreased revenue for the State.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ S. 1759 A. 1788 2011-2012 Regular Sessions S E N A T E - A S S E M B L Y January 12, 2011 ___________IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print- ed, and when printed to be committed to the Committee on Investi- gations and Government Operations IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to exempting wholesalers from filing annual information returns with the commissioner of taxation and finance for sales made to and from farm wineries THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph (C) of paragraph 1 of subdivision (i) of section 1136 of the tax law, as added by section 1 of subpart G of part V-1 of chapter 57 of the laws of 2009, is amended to read as follows: (C) Every wholesaler, as defined by section three of the alcoholic beverage control law, if it has made a sale of an alcoholic beverage, as defined by section four hundred twenty of this chapter, without collect- ing sales or use tax during the period covered by the return, except (i) a sale to a person that has furnished an exempt organization certificate to the wholesaler for that sale; or (ii) a sale to another wholesaler whose license under the alcoholic beverage control law does not allow it to make retail sales of the alcoholic beverage. For each vendor, opera- tor, or recipient to whom the wholesaler has made a sale without collecting sales or compensating use tax, the return must include the total value of those sales made during the period covered by the return (excepting the sales described in clauses (i) and (ii) of this subpara- graph) and the vendor's, operator's or recipient's state liquor authori- ty license number, along with the information required by paragraph two of this subdivision. THE PROVISIONS OF THIS SUBPARAGRAPH SHALL NOT APPLY TO A FARM WINERY AS DEFINED IN SECTION THREE OF THE ALCOHOLIC BEVERAGE CONTROL LAW. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03841-01-1