Makes seed purchased to grow food for personal consumption exempt from sales and use taxes.
TITLE OF BILL: An act to amend the tax law, in relation to granting a sales and compensating use tax exemption for the purchase of seeds to be cultivated to grow food for the purchaser's own or family consumption
PURPOSE: This legislation exempts vegetable and fruit seeds for human consumption by individuals for home use from sales tax.
SUMMARY OF PROVISIONS:
Section 1115 of the Tax Law is amended to make seeds purchased to grow food for personal consumption exempt from sales and use taxes.
JUSTIFICATION: Fresh fruit and vegetables are not subject to sales tax because they are considered basic necessities of life. However, seeds which produce these same fruits or vegetables are not sales tax exempt. This legislation corrects this inconsistency by forgiving the sales tax on seeds that grow into food for human consumption. Although such an exemption is small for the individual consumer, when subsisting on a low and/or fixed income and growing one's own food from seed for sustenance, every penny makes a difference.
LEGISLATIVE HISTORY: 2011,2012: S.835 Referred to Investigations and Government Operations 2009,2010: S.2471 Referred to Investigations and Government 2008: S.7827/A.10978 Reported to Finance Operations
FISCAL IMPLICATIONS: Undetermined at this time.
EFFECTIVE DATE: Effective January 1 succeeding enactment into law.
STATE OF NEW YORK ________________________________________________________________________ 2247 2013-2014 Regular Sessions IN SENATE January 15, 2013 ___________Introduced by Sen. YOUNG -- 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 granting a sales and compen- sating use tax exemption for the purchase of seeds to be cultivated to grow food for the purchaser's own or family consumption THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 1-a to read as follows: (1-A) SEEDS WHICH WHEN CULTIVATED PRODUCE FOOD, WHEN THE PURCHASER THEREOF WILL USE THE FOOD PRODUCED THEREFROM FOR HIS OR HER OWN PERSONAL OR FAMILY'S HUMAN CONSUMPTION. THIS PARAGRAPH SHALL NOT APPLY TO ANY SEEDS RESOLD BY THE PURCHASER THEREOF. S 2. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06886-01-3