A02455 Summary:

BILL NO    A02455 

SAME AS    No same as

SPONSOR    Ortiz

COSPNSR    Boyland, Castro, Espaillat

MLTSPNSR   Crespo

Add S1105-d, amd S208, Tax L; add S97-j, St Fin L

Imposes additional tax on certain food and drink items, and imposes a tax on
video games, commercials, and movies.

A02455 Actions:

BILL NO    A02455 

01/16/2009 referred to ways and means
01/06/2010 referred to ways and means

A02455 Votes:

A02455 Memo:

 BILL NUMBER:  A2455

 TITLE OF BILL :  An act to amend the tax law, in relation to imposing
an additional tax on certain items; and to amend the state finance
law, in relation to creating the childhood obesity prevention program
fund

 PURPOSE OF BILL : To raise revenue for the NYS Childhood Obesity
Prevention Program.

 SUMMARY OF SPECIFIC PROVISIONS :  1. Would add a new section 1105-d
to the Tax Law to require an additional 1/4 of one per cent sales tax
on:

(a) food and drink currently taxed, except for bottled water;

(b) sale and rental of video and computer games, and video game
equipment; and

(c) sale and rental of video and DVD movies.

2. Would add a new section 1105-d to the Tax Law to require a one per
cent sales tax on:

(a) food and drink that are defined as sweets or snacks according to
the United States Department of Agriculture's National Nutrient
Database for Standard Reference; and

(b) admission to movie theaters.

3. Would add a new subparagraph 19 to paragraph (b) of subdivision 9
of section 208 of the Tax Law to prevent corporations from deducting
from income their New York share of expenditures for advertising food,
video games and equipment, and movies and videos or DVDs, on
television shows primarily watched by children under 18.

4. Would add a new section 97-j to the State Finance Law to create the
Childhood Obesity Prevention Program fund which would consist of
revenues raised by the above provisions to be used for the purposes of
the NYS Childhood Obesity Prevention Program.

 EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER :  Adds new sales
taxes to the Tax law, amends the Corporate Franchise Tax to eliminate
certain deductions from income for advertising and creates a new fund
in the finance law.

 JUSTIFICATION : The U.S. Centers for Disease Control (CDC), Surgeon
General and Department of Health and Human Services, and the New York
State Department of Health as well as virtually every medical,
nutrition and health organization concur that we face a crisis, if not
epidemic, of child obesity and related diseases. The rate of childhood
obesity has been on the rise both nationally and in New York State.
The percentage of American children who are obese has doubled in the
past 30 years and the problems may be worse than previously believed.
A recent CDC report estimates that a staggering 50% of Hispanic 2 to 3
year old children are likely to develop Type 2 diabetes due to poor
dietary and physical activity habits.

In addition to the pain and suffering, physical as well as emotional,
suffered by children who are obese, is the short- and long-term costs
to taxpayers, including businesses who are paying and will pay more to
treat the complications. Current estimates for obesity related health
costs are reported to be over $100 billion nationally and close to $5
billion in New York State alone. As much as 50% of Medicaid costs may
now be related to the consequences of obesity and the problem is
growing.
Numerous factors have contributed to the rise in childhood obesity,
but almost all experts agree that the primary reasons are increased
consumption of larger quantities of high calorie foods, snacks and
sugar sweetened beverages such as soda and other drinks, and lack of
physical activity as vigorous play is replaced by sedentary activities
such as watching more television, movies and videos and playing video
games.

This bill would raise revenues from modest surcharges on the very food
products and sedentary activities that are linked to the lifestyle
changes involved in the explosion of childhood obesity in the last
20-30 years. These revenues would be earmarked for statewide and
school and community-based childhood obesity prevention programs
designed to increase physical activity and improve nutrition,
including media health promotion campaigns to counter the billions of
dollars in advertising expenditures for snacks, sodas, fast foods,
games and videos.

It is in the best interest of individual and business taxpayers to
contribute to prevention efforts now before our future healthcare
expenses, including health insurance and Medicaid costs, explode. In
addition, the productivity of our future workforce may be severely
compromised because we failed to respond to a preventable health
problem.

 LEGISLATIVE HISTORY :

2003-04 - A9145 - held for consideration in ways and means
2005-06 - A5665 - Ref to Ways and Means 2007-08 - A6376 - held for
consideration in ways and means

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :  Approximately
$50 million in revenue raised by the provisions of the bill.

 EFFECTIVE DATE : Immediately