Relates to eliminating the wholesaler's reporting requirement for farm and commercial wineries.
TITLE OF BILL: An act to amend the tax law, in relation to eliminating the wholesaler's reporting requirement for farm and commercial wineries
SUMMARY OF PROVISIONS: The bill amends a reporting requirement for wholesalers, adopted as part of the 2009-10 state budget, that requires greater reporting of sales of alcoholic beverages to the Department of Taxation and Finance for the purposes of collecting data for tax compliance enforcement. This proposal seeks to amend the reporting requirement to exclude New York's farm, micro, and commercially licensed wineries.
SUMMARY OF PROVISIONS: Amends Tax law to specifically exclude New York's farm, commercial, and micro wineries from reporting on a quarterly basis each retailer whom the winery has made a sale to, including the retailers or operators state liquor authority license number and the total value of the sales.
EXISTING LAW: Under current law, every person licensed as a wholesaler must report to the Department of Taxation and Finance. Since many of New York's wineries are also licensed as wholesalers so that they can engage in sales of their products to restaurants and liquor stores, the reporting requirement has folded in New York's small businesses as well as the typically larger wholesaler licensees.
JUSTIFICATION: New York's farm and commercial wineries are primarily small businesses. One of New York's wineries estimated that he spent 100 hours alone trying to design, implement, and collect forms signed by all of his restaurant accounts for sales amounting to a small volume of cases of wine. Because this data must be collected quarterly, and he sells an average of 3 or 4 cases a wine a year to his accounts, collection of these forms has become such a nuisance both to the winery owner and the restaurants that even those small sales are being jeopardized. As f:lrm and commercial winery owners, New York's farmers would rather be devoting their time in the vineyards or in the winemaking process than in filing unnecessary paperwork with the State of New York. The reporting requirement adds an additional regulatory burden on New York's farm business community that is simply not appropriate if the goal of the state is to encourage economic development. Tax compliance will continue to be achieved as nothing in the legislation would remove the authority of the Department of Tax and Finance to continue to audit both farm, commercial and micro wineries for tax compliance. In addition, New York's larger wineries that are well represented in the wholesale chain would have their sales reported for them by their wholesaler, who has the compliance and paperwork staff to deal with the reporting requirement.
S.8144 of 2009.
FISCAL IMPLICATIONS: None.
LOCAL FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act takes effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 1909 2011-2012 Regular Sessions IN SENATE January 14, 2011 ___________Introduced by Sen. VALESKY -- 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 eliminating the wholesaler's reporting requirement for farm and commercial 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 OR WINERY LICENSED PURSUANT TO SECTION SEVENTY-SIX, SEVENTY-SIX-A, SEVENTY-SIX-D, AND/OR SEVENTY-SIX-F 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. LBD06461-01-1