NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2217
SPONSOR: Santabarbara TITLE OF BILL:
An act to amend the tax law, in relation to exempting sales of bottled
water from sales and use taxes
PURPOSE OR GENERAL IDEA OF BILL:
To repeal the sales tax on bottled water, bringing New York's policy in
line with most states in the nation which do not tax bottled water.
SUMMARY OF PROVISIONS:
Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) if section
1115 of the tax law is amended to add bottled water sold in vending
machines to the list of exempted items from sales tax. Paragraph 2 of
subdivision (a) of section 1115 of the tax law is amended to add bottled
water to the list of exempted items from New York State sales tax.
JUSTIFICATION:
New York is one of only four states that taxes bottled water at a higher
rate than other essential food and drinks, like bread and milk. Water is
the most essential grocery item and should not be taxed. This bill would
eliminate the sales tax on bottled water, reclassifying it among other
essential grocery items that are exempt from sales tax under the follow-
ing criteria:
1. Sold for human consumption 2. Sold unheated 3. Sold in the same form
and condition, quantities, and packaging as is commonly used by retail
food stores
A listing taxable and tax exempt food and beverages in New York can be
found here: Tax Bulletin ST-525. On the list, an essential item like
bottled water is taxed in New York State, however, items like donuts,
cookies, popcorn, potato chips, and even "fruit rollups" are tax exempt.
With the summer months approaching, this bill will save New Yorkers
money when they need to buy bottled water. Whether it's preparing for an
emergency when it may be the only option or even during routine water
main breaks, bottled water is a necessity, not a luxury.
This bill will bring New York on par with 33 other states in the coun-
try, which do not tax bottled water. This bill will not affect the five-
cent bottle deposit paid by consumers to encourage recycling.
STATE OF NEW YORK
________________________________________________________________________
2217
2025-2026 Regular Sessions
IN ASSEMBLY
January 15, 2025
___________
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 exempting sales of bottled
water from sales and use taxes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of
2 section 1115 of the tax law, as amended by section 1 of part J of chap-
3 ter 59 of the laws of 2024, is amended to read as follows:
4 (B) Until May thirty-first, two thousand twenty-five, the food and
5 drink excluded from the exemption provided by clauses (i), (ii) and
6 (iii) of subparagraph (A) of this paragraph[, and bottled water,] shall
7 be exempt under this subparagraph: (i) when sold for one dollar and
8 fifty cents or less through any vending machine that accepts coin or
9 currency only; or (ii) when sold for two dollars or less through any
10 vending machine that accepts any form of payment other than coin or
11 currency, whether or not it also accepts coin or currency.
12 § 2. Paragraph 2 of subdivision (a) of section 1115 of the tax law, as
13 added by chapter 93 of the laws of 1965, is amended to read as follows:
14 (2) (i) Water, when delivered to the consumer through mains or pipes,
15 and (ii) bottled water.
16 § 3. This act shall take effect on the first day of a sales tax quar-
17 terly period, as described in subdivision (b) of section 1136 of the tax
18 law, after the date this act shall have become a law and shall apply to
19 sales made on or after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05088-01-5
