|SAME AS||SAME AS S05989|
|Amd Tax L, generally|
|Relates to taxes imposed on alcoholic beverages with respect to liquors.|
Go to top
STATE OF NEW YORK ________________________________________________________________________ 7400 2017-2018 Regular Sessions IN ASSEMBLY April 25, 2017 ___________ Introduced by M. of A. GUNTHER -- read once and referred to the Commit- tee on Ways and Means AN ACT to amend the tax law, in relation to taxes on alcoholic beverages with respect to liquors The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 421 of the tax law, as amended by 2 chapter 508 of the laws of 1993, is amended to read as follows: 3 1. General. The commissioner, upon the application of a distributor, 4 shall register such distributor in suitable books to be kept by the 5 department for that purpose, conditioned upon the obtaining of appropri- 6 ate licenses pursuant to the alcoholic beverage control law, and the 7 continuance of such license shall be a continuing condition of registra- 8 tion as a distributor under this article. The application shall be in a 9 form and contain such data as the commissioner shall prescribe. No 10 distributor, unless so registered, shall make any sale of alcoholic 11 beverages within this state, except a sale, if any, as to which this 12 state is without power to impose such condition. No person, unless so 13 registered, shall (i) import or cause any liquors to be imported in this 14 state for sale or use within this state, (ii) purchase a warehouse 15 receipt and pursuant to such purchase then cause liquors covered by such 16 receipt to be removed from a warehouse in this state or (iii) except in 17 accordance with clause (i) or (ii) of paragraph (b) of subdivision four 18 of section four hundred twenty of this article, produce, distill, manu- 19 facture, compound, mix or ferment any such liquors within this state for 20 sale. Provided, however, that the commissioner may exclude from regis- 21 tration requirements any person who is a distributor of liquors solely 22 by reason of the importation into this state of no more than [ ninety23 liters] twenty-four gallons of liquors during a one-year period for such 24 person's personal use and consumption to register as a distributor with 25 respect to liquor. Provided, further, that an abbreviated registration EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07572-01-7A. 7400 2 1 in the [ from] form of a permit, without a bond, may be instituted by the 2 commissioner for the purpose of authorizing the importation of up to 3 [ three hundred sixty liters] ninety-five gallons of liquors per year 4 into this state by an individual for such individual's personal use and 5 consumption in this state. 6 § 2. Paragraphs (e), (f) and (g) of subdivision 1 of section 424 of 7 the tax law, paragraph (e) as amended by chapter 190 of the laws of 8 1990, paragraph (f) and the opening paragraph of paragraph (g) as 9 amended by chapter 508 of the laws of 1993 and paragraph (g) as amended 10 by chapter 433 of the laws of 1978, are amended to read as follows: 11 (e) [ Sixty-seven] Two dollars and fifty-four cents per [ liter] gallon 12 upon liquors containing not more than twenty-four per centum of alcohol 13 by volume except liquors containing not more than two per centum of 14 alcohol by volume, upon which the tax shall be [ one cent] four cents per 15 [ liter] gallon; and 16 (f) [ One dollar] Six dollars and [ seventy] forty-four cents per 17 [ liter] gallon upon all other liquors; when sold or used within this 18 state, except when sold or used under such circumstances that this state 19 is without power to impose such tax or when sold to the United States 20 and except beers when sold to or by a voluntary unincorporated organiza- 21 tion of the armed forces of the United States operating a place for the 22 sale of goods pursuant to regulations promulgated by the appropriate 23 executive agency of the United States, to the extent provided in such 24 regulations, directives and policy statements of such an agency applica- 25 ble to such sales, and except when sold to professional foreign 26 consuls-general, consuls and vice-consuls who are nationals of the state 27 appointing them and who are assigned to foreign consulates in this 28 state, provided that American consular officers of equal rank who are 29 citizens of the United States and who exercise their official functions 30 at American consulates in such foreign country are granted reciprocal 31 exemptions; provided, however, that the commissioner may permit the sale 32 of alcohol without tax to a holder of any industrial alcohol permit, 33 alcohol permit or alcohol distributor's permit, issued by the state 34 liquor authority, and by the holder of an alcohol distributor's permit, 35 class A, issued by such authority to a holder of a distiller's license, 36 class B, or a winery license, issued by such authority and may also 37 permit the use of alcohol for any purpose other than the production of 38 alcoholic beverages by such holders without tax; provided also that the 39 commissioner may permit the sale of cider without tax by a holder of a 40 cider producer's license issued by the state liquor authority to a hold- 41 er of a cider producer's license or a cider wholesaler's license issued 42 by such authority. 43 (g) For purposes of this chapter, it is presumed that liquors are 44 possessed for the purpose of sale in this state if the quantity of 45 liquors possessed in this state, imported or caused to be imported into 46 this state or produced, distilled, manufactured, compounded, mixed or 47 fermented in this state exceeds [ ninety liters] twenty-four gallons. 48 Such presumption may be rebutted by the introduction of substantial 49 evidence to the contrary. In any case where the quantity of alcoholic 50 beverages taxable pursuant to this article is a fractional part of one 51 [ liter (or one] gallon [ in the case of beers)] or an amount greater than 52 a whole multiple of [ liters (or] gallons [ in the case of beers)], the 53 amount of tax levied and imposed on such fractional part of one [ liter54 (or one] gallon [ in the case of beers)], or a fractional part of a 55 [ liter (or] gallon[ )] in excess of a whole multiple of [ liters or]A. 7400 3 1 gallons shall be such fractional part of the rate imposed by paragraphs 2 (a) through (f). 3 Notwithstanding any other provision of this article, the tax commis- 4 sion may permit the purchase of liquors and wines without tax by a hold- 5 er of a distiller's license or a winery license, issued by the state 6 liquor authority from another holder of a distiller's license or a 7 winery license, issued by such authority, in which event the liquors and 8 wines so purchased shall be subject to the taxes imposed by this article 9 in the hands of the purchaser in the same manner and to the same extent 10 as if such purchaser had imported or caused the same to be imported into 11 this state or had produced, distilled, manufactured, brewed, compounded, 12 mixed or fermented the same within this state. 13 § 3. Subdivision 4 of section 424 of the tax law, as amended by chap- 14 ter 433 of the laws of 1978, is amended to read as follows: 15 4. [ (a)] Notwithstanding any other provision of this article, there 16 shall be exempt from the taxes imposed under this article, per month, 17 one-quart of alcoholic beverages (or one gallon of such beverages in the 18 case of a person arriving directly or indirectly from American Samoa, 19 Guam or the Virgin Islands of the United States not more than one-quart 20 of which shall have been acquired elsewhere than in such insular 21 possessions): 22 [ (i)] (a) purchased outside this state as an incident to a journey 23 from which the purchaser is returning and 24 [ (ii)] (b) not to be offered for sale or used for any commercial 25 purpose, provided such alcoholic beverages accompany such person on his 26 return to this state and provided, further, that in the case of a person 27 arriving in this state from other than a state of the United States 28 (including the district of Columbia), the Virgin Islands of the United 29 States or a contiguous country maintaining a free zone or free port, 30 such person shall have remained beyond the territorial limits of the 31 United States for a period of not less than forty-eight hours. 32 [ (b) Provided, however, where the amounts purchased outside this state33 or brought in exceed the amounts specified in paragraph (a) of this34 subdivision but are not in excess of one liter in the case of the refer-35 ences to one-quart or four liters in the case of the reference to one36 gallon, and where no duty is required by the laws of the United States37 to be paid on such amounts, such metric standards of fill shall be38 substituted for one-quart and one gallon, respectively, and such amounts39 shall be exempt from tax under the conditions provided for in paragraph40 (a) of this subdivision.] 41 § 4. Section 425-a of the tax law, as added by chapter 508 of the laws 42 of 1993, is amended to read as follows: 43 § 425-a. Presumption of taxability. For the purpose of the proper 44 administration of the taxes imposed by this article and to prevent 45 evasion thereof, it shall be presumed with respect to this chapter that 46 all alcoholic beverages possessed or found in this state are subject to 47 the taxes imposed by this article until the contrary is established by 48 substantial evidence. Except with respect to a purchase at retail of 49 beers or wines and a purchase at retail of [ ninety liters] twenty-four 50 gallons or less of liquors, no person shall purchase alcoholic beverages 51 in this state unless the taxes imposed by this article with respect to 52 such beverages have been assumed by a distributor registered under this 53 article or paid by such distributor pursuant to and in accordance with 54 the manner provided herein and evidenced in accordance with the manner 55 provided herein. In the case of liquors, such taxes shall be assumed by 56 a distributor in accordance with the invoice required, and the certif-A. 7400 4 1 ication of tax payment included therein, under section four hundred 2 twenty-seven of this article; in the case of other alcoholic beverages, 3 the taxes shall be assumed by such distributor pursuant to and in 4 accordance with the rules or regulations of the department. 5 § 5. Subdivision 1 and paragraph (i) of subdivision 2 of section 427 6 of the tax law, as added by chapter 508 of the laws of 1993, are amended 7 to read as follows: 8 1. Every sale of liquors, except a sale at retail of [ ninety liters] 9 twenty-four gallons or less, shall be evidenced by and recorded on an 10 individual, serially numbered invoice, and, with respect to each such 11 sale, the seller therein shall make and complete such invoice which 12 shall contain the information required by this section and give the same 13 to the purchaser at the time of delivery. The seller shall sign and date 14 the invoice required by this section and certify the entire content of 15 such invoice. 16 (i) the size (in [ liters] gallons) and number of bottles of liquors 17 sold, and its description, by brand name and price; and 18 § 6. Subdivision 2 of section 428 of the tax law, as added by chapter 19 508 of the laws of 1993, is amended to read as follows: 20 2. The operator of a motor vehicle, as such term is defined in subdi- 21 vision three of section two hundred eighty-two of this chapter, or any 22 other means of transport of liquors in which more than [ ninety liters] 23 twenty-four gallons of liquors is being transported in this state must 24 have in his or her possession a manifest, invoice or other document 25 which shows the name and address of the person from whom such liquors 26 were received and the date and place of receipt of such liquor and the 27 name and address of every person to whom such operator is to make deliv- 28 ery of the same and the place of delivery, together with the number of 29 [ liters] gallons to be delivered to each person, and, if such liquor is 30 being imported into the state in such motor vehicle or such other means 31 of transport, the name of the distributor importing or causing such 32 liquors to be imported into the state and such other information as the 33 commissioner may require pursuant to rule or regulation. Every operator 34 of such motor vehicle or such other means of transport shall at the 35 request of a peace officer, acting pursuant to his special duties, a 36 police officer, any representative of the department or any other person 37 authorized by law to inquire into or investigate the transportation of 38 such liquors, produce such manifest, invoice or other document for 39 inspection. The person causing the operation of such motor vehicle or 40 such other means of transport shall be responsible to cause the operator 41 to keep in such operator's possession in such motor vehicle or such 42 other means of transport the manifest, invoice or other document 43 required by this section. The absence of the manifest, invoice or other 44 document required by this section shall give rise to a presumption that 45 the liquors being transported are being imported or caused to be 46 imported into this state for sale or use therein by other than a regis- 47 tered distributor. Moreover, the absence of (1) the place of delivery 48 of liquors on the manifest, invoice or other document with respect to 49 liquors being imported into the state shall give rise to a presumption 50 that such liquors are being imported into the state for sale or use in 51 the state and (2) the name of a registered distributor on the manifest, 52 invoice or other document with respect to liquors being imported into 53 the state shall give rise to a presumption that such liquors are being 54 so imported or caused to be imported into this state, for sale or use 55 therein, by other than a registered distributor. Such presumptions may 56 be rebutted by the introduction of substantial evidence to the contrary.A. 7400 5 1 § 7. Subdivisions 1 and 2 of section 429 of the tax law, as amended by 2 chapter 433 of the laws of 1978, are amended to read as follows: 3 1. Every distributor, noncommercial importer or other person shall, on 4 or before the twentieth day of each month, file with the department of 5 taxation and finance a return, on forms to be prescribed by the tax 6 commission and furnished by such department, stating separately the 7 number of gallons, or lesser quantity, of beers, [ and the number of8 liters, or lesser quantity, of] wines and liquors sold or used by such 9 distributor, noncommercial importer or other person in this state during 10 the preceding calendar month, except that the tax commission may, if it 11 deems it necessary in order to insure the payment of the tax imposed by 12 this article, require returns to be made at such times and covering such 13 periods as it may deem necessary. Such return shall contain such further 14 information as the tax commission shall require. The fact that the name 15 of the distributor, noncommercial importer or other person is signed to 16 a filed return shall be prima facie evidence for all purposes that the 17 return was actually signed by such distributor, noncommercial importer 18 or other person. 19 2. Each such distributor, noncommercial importer or other person shall 20 pay to such department with the filing of such return, the tax imposed 21 by this article, on each gallon, or lesser quantity[ , of beers and on22 each liter, or lesser quantity] of all [ other] alcoholic beverages sold 23 or used by such distributor, noncommercial importer or other person in 24 this state, as so reported, during the period covered by such return, 25 except that, where a distributor has purchased alcoholic beverages prior 26 to the expiration of the period covered by the return, upon which the 27 taxes imposed by this article have been or are required to be paid by 28 another distributor, a credit shall be allowed for the amount of such 29 taxes. 30 § 8. Paragraph (b) of subdivision 1 and subdivision 2 of section 445 31 of the tax law, as amended by chapter 433 of the laws of 1978, are 32 amended to read as follows: 33 (b) [ Twenty-six] Ninety-nine and [ four-tenths] nine-tenths cents per 34 [ liter] gallon on the liquors described in paragraph (f) of subdivision 35 one of section four hundred twenty-four, when sold or used in such city. 36 2. Every local law imposing taxes pursuant to the authority of subdi- 37 vision one shall also impose upon each person, other than a distributor 38 within the meaning of such local law, who, on the date the taxes imposed 39 pursuant to the authority of such subdivision become effective, owns and 40 possesses for the purposes of sale beer, or other alcoholic beverages 41 described in subdivision one, a floor tax at the rates applicable under 42 subdivision one upon such beer in excess of one hundred gallons and upon 43 such other alcoholic beverages in excess of [ four] one hundred [ liters] 44 and five gallons. Such floor tax shall be due and payable on the twen- 45 tieth day of the month succeeding the month in which the taxes become 46 effective. 47 § 9. Paragraphs 2 and 3 of subdivision (e), paragraphs 2 and 3 of 48 subdivision (f) and subdivision (g) of section 1813 of the tax law, as 49 amended by section 27 of subpart I of part V-1 of chapter 57 of the laws 50 of 2009, are amended to read as follows: 51 (2) Any person who, while not registered as a distributor pursuant to 52 the provisions of article eighteen of this chapter, knowingly and inten- 53 tionally imports or causes to be imported into this state, for sale or 54 use therein, more than [ three hundred sixty liters] ninety-five gallons 55 of liquors into this state in a one-year period or, except in accordance 56 with clause (i) or (ii) of paragraph (b) of subdivision four of sectionA. 7400 6 1 four hundred twenty of this chapter, knowingly and intentionally produc- 2 es, distills, manufactures, compounds, mixes or ferments for sale more 3 than [ three hundred sixty liters] ninety-five gallons of such liquors 4 within this state in a one-year period, or, as a purchaser of a ware- 5 house receipt, knowingly and intentionally causes more than [ three6 hundred sixty liters] ninety-five gallons of liquors in a one-year peri- 7 od to be removed from a warehouse in this state, shall be guilty of a 8 class E felony. 9 (3) For purposes of this subdivision, it shall be presumed that the 10 importation or the causing to be imported into this state or the 11 production, distillation, manufacture, compounding, mixing or fermenting 12 in this state of more than [ ninety liters] twenty-four gallons of such 13 liquors by any person in a one-year period is for purposes of sale. Such 14 presumption may be rebutted by the introduction of substantial evidence 15 to the contrary. 16 (2) Any person who, while not registered as a distributor for city 17 purposes pursuant to the provisions of section four hundred forty-five 18 of article eighteen of this chapter, knowingly and intentionally imports 19 or causes to be imported into such city, for sale or use therein, more 20 than [ three hundred sixty liters] ninety-five gallons of liquors into 21 such city in a one-year period or, except in accordance with clause (i) 22 or (ii) of paragraph (b) of subdivision four of section four hundred 23 twenty of this chapter as incorporated into such section four hundred 24 forty-five, knowingly and intentionally produces, distills, manufac- 25 tures, compounds, mixes or ferments for sale more than [ three hundred26 sixty liters] ninety-five gallons of such liquors within such city in a 27 one-year period, or, as a purchaser of a warehouse receipt, knowingly 28 and intentionally causes more than [ three hundred sixty liters] ninety- 29 five gallons of liquors in a one-year period to be removed from a ware- 30 house in this state, shall be guilty of a class E felony. 31 (3) For purposes of this subdivision, it shall be presumed that the 32 importation or the causing to be imported into such city or the 33 production, distillation, manufacture, compounding, mixing or fermenting 34 in such city of more than [ ninety liters] twenty-four gallons of liquors 35 by any person in a one-year period is for purposes of sale. Such 36 presumption may be rebutted by the introduction of substantial evidence 37 to the contrary. 38 (g) Any person, other than the distributor registered under article 39 eighteen of this chapter which imported or caused the liquors to be 40 imported into this state, who shall willfully and knowingly have in his 41 custody, possession or under his control liquors with respect to which 42 the taxes imposed by or pursuant to the authority of article eighteen of 43 this chapter have not been assumed or paid by a distributor registered 44 as such under such article, shall be guilty of a class B misdemeanor; if 45 such person shall willfully and knowingly have more than [ ninety liters] 46 twenty-four gallons of such liquors in his custody or possession or 47 under his control, such person shall be guilty of a class A misdemeanor; 48 or if such person shall knowingly and intentionally have more than 49 [ three hundred sixty liters] ninety-five gallons of such liquors in his 50 custody or possession or under his control, such person shall be guilty 51 of a class E felony. For purposes of this subdivision, such person shall 52 willfully and knowingly have in his custody, possession or under his 53 control any liquors with respect to which such taxes have not been 54 assumed or paid by a distributor registered as such where such person 55 has knowledge of the requirement of such taxes and where, to his know-A. 7400 7 1 ledge, such taxes have not been assumed or paid by a registered distrib- 2 utor with respect to such liquors. 3 § 10. Subdivisions (a), (k) and (l) of section 1845 of the tax law, as 4 added by chapter 508 of the laws of 1993, are amended to read as 5 follows: 6 (a) Temporary seizure. Whenever a police officer designated in section 7 1.20 of the criminal procedure law or a peace officer designated in 8 subdivision four of section 2.10 of such law, acting pursuant to his 9 special duties, shall discover more than [ ninety liters] twenty-four 10 gallons of liquors which are being imported for sale or use in the 11 state, where the person importing or causing such liquors to be imported 12 is not registered as a distributor under section four hundred twenty-one 13 of this chapter, such police officer or peace officer is hereby author- 14 ized to seize and take possession of such liquors, and to seize and take 15 possession of the vehicle or other means of transportation used to 16 transport such liquors. 17 (k) An additional ground for seizure and forfeiture under this section 18 shall be where such police officer or peace officer shall discover more 19 than [ ninety liters] twenty-four gallons of liquors in this state, with 20 respect to which the taxes imposed by or pursuant to article eighteen of 21 this chapter have not been paid or assumed by a person registered as a 22 distributor pursuant to such article, which are in the course of 23 distribution in this state or which are being sold in this state. All 24 the foregoing subdivisions of this section shall apply to the seizure 25 and forfeiture of liquors referred to in this subdivision and the vehi- 26 cle transporting the same as if such foregoing subdivisions specifically 27 referred to such grounds and as if such grounds set forth in this subdi- 28 vision were set forth as grounds for seizure in subdivision (a) hereof. 29 Provided that in the forfeiture action with respect to the liquors or 30 vehicle referred to in this subdivision, the department shall be 31 required to show that such liquors were found within the state and that 32 they were in the course of distribution in this state or were being sold 33 in this state. 34 (l) This section shall also apply to a forfeiture action with respect 35 to the importation of more than [ ninety liters] twenty-four gallons of 36 liquors into a city imposing a tax pursuant to the authority of section 37 four hundred forty-five of this chapter by a person not registered as a 38 distributor for purposes of such tax or, in addition, with respect to 39 the distribution or sale of untaxed liquors in such city. 40 § 11. This act shall take effect on the ninetieth day after it shall 41 have become a law; provided, however, that effective immediately, the 42 addition, amendment and/or repeal of any rule or regulation necessary 43 for the implementation of this act on its effective date are authorized 44 and directed to be made and completed on or before such date.