S1909-2011 Actions

• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 14, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S1909-2011 Memo

BILL NUMBER:S1909

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.

LEGISLATIVE HISTORY:


S.8144 of 2009.

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act takes effect immediately.

S1909-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         1909
 2011-2012 Regular Sessions
 I N  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

*By contributing or voting you agree to the Terms of Participation and Privacy Policy and verify you are over 13.

Discuss!