Exempts food and beverages sold from vending machines for one dollar and fifty cents or less from the sales and use tax.
TITLE OF BILL: An act to amend the tax law, in relation to the sale of food and beverages through vending machines
PURPOSE OF THE BILL: The purpose of this legislation is to amend the tax law to exempt food and beverages sold through vending machines from New York State sales tax up to $1.50.
SUMMARY OF PROVISIONS:
Section one details the specific food and beverage items that would be exempt from New York State sales tax if sold through any vending machines activated by the use of coin, currency, credit card or debit card. The tax law is amended from an exemption for said food and beverage items sold for seventy five cents or less to an exemption of one dollar and fifty cents from New York State sales tax.
Section two makes the legislation take effect April 1, 2014.
JUSTIFICATION: In 2000, the Legislature exempted food and beverage items sold in vending machines for seventy five cents or less from New York State sales tax as a way to help the vending machines industry remain competitive with over the counter sales. Today, there are very few items sold in vending machines that cost 75 cents or less. These increases in product costs combined with the increased operating costs have made the value of the 75-cent exemption minimal and ineffective.
In order for vending machines to maintain competitiveness in both pricing and convenience, the value of items eligible for tax exemption must increase.
This tax relief proposal will ensure that consumers continue to have access to products through the convenience of vending machines as well as through over the counter sales.
LEGISLATIVE HISTORY: S3445-B Vetoed by the Governor in 2012
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: April 1, 2014.
STATE OF NEW YORK ________________________________________________________________________ 5219 2013-2014 Regular Sessions IN SENATE May 14, 2013 ___________Introduced by Sen. LIBOUS -- 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 the sale of food and bever- ages through vending machines THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subdivision (a) of section 1115 of the tax law, as amended by section 1 of part O of chapter 63 of the laws of 2000, is amended to read as follows: (1) Food, food products, beverages, dietary foods and health supple- ments, sold for human consumption but not including (i) candy and confectionery, (ii) fruit drinks which contain less than seventy percent of natural fruit juice, (iii) soft drinks, sodas and beverages such as are ordinarily dispensed at soda fountains or in connection therewith (other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol- ic beverages, all of which shall be subject to the retail sales and compensating use taxes, whether or not the item is sold in liquid form. The food and drink excluded from the exemption provided by this para- graph under subparagraphs (i), (ii) and (iii) of this paragraph shall be exempt under this paragraph when sold for
[seventy-five cents]ONE DOLLAR AND FIFTY CENTS or less through any vending machine activated by the use of coin, currency, credit card or debit card. With the exception of the provision in this paragraph providing for an exemption for certain food or drink sold for [seventy-five cents]ONE DOLLAR AND FIFTY CENTS or less through vending machines, nothing herein shall be construed as exempting food or drink from the tax imposed under subdivi- sion (d) of section eleven hundred five OF THIS ARTICLE. S 2. This act shall take effect April 1, 2014.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11013-01-3