Bill Text: NY A03428 | 2023-2024 | General Assembly | Introduced
Bill Title: Enacts the "Save our New York state restaurants act" authorizing a sales tax exemption for the sale of food and drink at restaurants and taverns during a specific one week period and grants certain municipalities the option to grant such limited exemption.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-03 - referred to ways and means [A03428 Detail]
Download: New_York-2023-A03428-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3428 2023-2024 Regular Sessions IN ASSEMBLY February 3, 2023 ___________ Introduced by M. of A. SANTABARBARA -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to enacting the "save our New York state restaurants act" and creating a limited sales tax exemption for the sale of food and drink at restaurants and taverns from state sales and compensating use taxes and granting municipalities the option to grant such limited exemption The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "save our New York state restaurants act". 3 § 2. Subdivision (a) of section 1115 of the tax law is amended by 4 adding a new paragraph 47 to read as follows: 5 (47) for the thirty day period beginning on the first Sunday which 6 occurs thirty days after the effective date of this paragraph, the 7 receipts from every sale of food and drink of any nature or of food 8 alone, when sold in or by restaurants, taverns or other establishments 9 in this state; provided however that such exemption shall not include 10 food or drinks sold by fast food chains. For the purposes of this para- 11 graph, the term "fast food chains" refers to limited service restau- 12 rants, where customers order at the counter and pay in advance, which 13 are large chains with multiple locations nationally. 14 § 3. Subdivision (b) of section 1107 of the tax law is amended by 15 adding a new clause 12 to read as follows: 16 (12) Except as otherwise provided by law, the exemption on sales of 17 food and drink during the thirty day period provided in paragraph 18 forty-seven of subdivision (a) of section eleven hundred fifteen of this 19 article, shall be applicable pursuant to a local law, ordinance or 20 resolution adopted by a city subject to the provisions of this section. 21 Such city is empowered to adopt or repeal such a local law, ordinance or 22 resolution. Such adoption or repeal shall also be deemed to amend any 23 local law, ordinance or resolution enacted by such a city imposing taxes 24 pursuant to the authority of subdivision (a) of section twelve hundred 25 ten of this chapter. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07280-01-3A. 3428 2 1 § 4. Paragraph 1 of subdivision (a) of section 1210 of the tax law is 2 amended by adding a new subparagraph (iii) to read as follows: 3 (iii) Any local law, ordinance or resolution enacted by any city, 4 county or school district, imposing the taxes authorized by this subdi- 5 vision, shall include the sales of food and drink at restaurants and 6 taverns exemption during the thirty day period as provided for in para- 7 graph forty-seven of subdivision (a) of section eleven hundred fifteen 8 of this chapter, unless such city, county or school district elects 9 otherwise; provided that if such a city having a population of one 10 million or more enacts the resolution described in subdivision (p) of 11 this section or repeals such resolution, such repeal or resolution shall 12 also be deemed to amend any local law, ordinance or resolution enacted 13 by such a city imposing such tax pursuant to the authority of this 14 subdivision, whether or not such taxes are suspended at the time such 15 city enacts its resolution pursuant to subdivision (p) of this section 16 or at the time of any such repeal; provided further that any such local 17 law, ordinance or resolution and section eleven hundred seven of this 18 chapter, as deemed to be amended in the event a city of one million or 19 more enacts a resolution pursuant to the authority of subdivision (p) of 20 this section, shall be further amended, as provided in section twelve 21 hundred eighteen of this subpart, so that sales of food and drink by 22 restaurants and taverns in any such local law, ordinance or resolution 23 or in section eleven hundred seven of this chapter is the same as the 24 state exemption on sales of food and drink by restaurants and taverns in 25 paragraph forty-seven of subdivision (a) of section eleven hundred 26 fifteen of this chapter. 27 § 5. Subdivision (d) of section 1210 of the tax law, as amended by 28 section 4 of part WW of chapter 60 of the laws of 2016, is amended to 29 read as follows: 30 (d) A local law, ordinance or resolution imposing any tax pursuant to 31 this section, increasing or decreasing the rate of such tax, repealing 32 or suspending such tax, exempting from such tax the energy sources and 33 services described in paragraph three of subdivision (a) or of subdivi- 34 sion (b) of this section or changing the rate of tax imposed on such 35 energy sources and services or providing for the credit or refund 36 described in clause six of subdivision (a) of section eleven hundred 37 nineteen of this chapter, or electing or repealing the exemption for 38 residential solar equipment and electricity in subdivision (ee) of 39 section eleven hundred fifteen of this article, or the exemption for 40 commercial solar equipment and electricity in subdivision (ii) of 41 section eleven hundred fifteen of this article, or electing or repealing 42 the exemption for commercial fuel cell electricity generating systems 43 equipment and electricity generated by such equipment in subdivision 44 (kk) of section eleven hundred fifteen of this article must go into 45 effect only on one of the following dates: March first, June first, 46 September first or December first; provided, that a local law, ordinance 47 or resolution providing for the exemption described in paragraph thirty 48 of subdivision (a) of section eleven hundred fifteen of this chapter or 49 repealing any such exemption or a local law, ordinance or resolution 50 providing for a refund or credit described in subdivision (d) of section 51 eleven hundred nineteen of this chapter or repealing such provision so 52 provided must go into effect only on March first; provided further that 53 a local law, ordinance or resolution providing for the exemption 54 described in paragraph forty-seven of subdivision (a) of section eleven 55 hundred fifteen of this chapter or repealing any such exemption so 56 provided and a resolution enacted pursuant to the authority of subdivi-A. 3428 3 1 sion (p) of this section provided such exemption or repealing such 2 exemption so provided may go into effect immediately. No such local law, 3 ordinance or resolution shall be effective unless a certified copy of 4 such law, ordinance or resolution is mailed by registered or certified 5 mail to the commissioner at the commissioner's office in Albany at least 6 ninety days prior to the date it is to become effective. However, the 7 commissioner may waive and reduce such ninety-day minimum notice 8 requirement to a mailing of such certified copy by registered or certi- 9 fied mail within a period of not less than thirty days prior to such 10 effective date if the commissioner deems such action to be consistent 11 with the commissioner's duties under section twelve hundred fifty of 12 this article and the commissioner acts by resolution. Where the 13 restriction provided for in section twelve hundred twenty-three of this 14 article as to the effective date of a tax and the notice requirement 15 provided for therein are applicable and have not been waived, the 16 restriction and notice requirement in section twelve hundred twenty- 17 three of this article shall also apply. 18 § 6. Section 1210 of the tax law is amended by adding a new subdivi- 19 sion (p) to read as follows: 20 (p) Notwithstanding any other provision of state or local law, ordi- 21 nance or resolution to the contrary: 22 (1) Any city having a population of one million or more in which the 23 taxes imposed by section eleven hundred seven of this chapter are in 24 effect, acting through its local legislative body, is hereby authorized 25 and empowered to elect to provide the same exemption from such taxes as 26 the sales of food and drink by restaurants and taverns exemption from 27 state sales and compensating use taxes described in paragraph forty-sev- 28 en of subdivision (a) of section eleven hundred fifteen of this chapter 29 by enacting a resolution in the form set forth in paragraph two of this 30 subdivision; whereupon, upon compliance with the provisions of subdivi- 31 sions (d) and (e) of this section, such enactment of such resolution 32 shall be deemed to be an amendment to such section eleven hundred seven 33 and such section eleven hundred seven shall be deemed to incorporate 34 such exemption as if it had been duly enacted by the state legislature 35 and approved by the governor. 36 (2) Form of Resolution: Be it enacted by the (insert proper title of 37 local legislative body) as follows: 38 Section 1. Receipts from sales of and consideration given or 39 contracted to be given for food and drink sold at restaurants and 40 taverns exempt from state sales and compensating use taxes during a 41 thirty day period pursuant to paragraph forty-seven of subdivision (a) 42 of section eleven hundred fifteen of this chapter shall also be exempt 43 from sales and compensating use taxes imposed in this jurisdiction. 44 2. This resolution shall take effect, (insert the date) and shall 45 apply to sales made and uses occurring on and after that date although 46 shall not include sales made or occurring under a prior contract. 47 § 7. This act shall take effect immediately and shall apply to the 48 thirty day period which begins on the first Sunday after 30 days after 49 the date this act shall have become a law and shall apply in accordance 50 with the applicable transitional provisions of sections 1106 and 1217 of 51 the tax law; provided that sections four and five of this act shall 52 apply to sales made on or after the date such sections shall have taken 53 effect. Effective immediately, the addition, amendment and/or repeal of 54 any rule or regulation necessary for the implementation of this act on 55 its effective date are authorized to be made and completed on or before 56 such effective date.