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A05422 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A5422
 
SPONSOR: Kolb (MS)

 
TITLE OF BILL:
 
An act to amend the tax law, in relation to providing for a credit
against the personal income tax and the franchise tax on corporations
for certain bottling, packaging and labelling expenses of wineries,
breweries and distilleries
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
To alleviate the financial burden upon the wine, liquor and beer indus-
tries by providing a tax credit for bottling, packaging, and labeling
expenses of wineries, breweries and distilleries.
 
 
SUMMARY OF SPECIFIC PROVISIONS:
 

Sections 1 and 2 amend sections 210 and 606 of the Tax Law to provide a
tax credit to wineries, breweries and distilleries for bottling, packag-
ing, and labeling expenses.
 
Section 3 contains the effective date.
 
 
JUSTIFICATION:
 
The major wine producing countries, Spain, France, Portugal, Italy, and
Germany all provide the cases, the labels, the corks and bottles as a
subsidy to their wine industry. For that reason, those nations can ship
to this country wines which are able to sell at an average of between
$2.60 and $3.00 a bottle less than New York State wines. A tax credit
would enable New York State vintners, distillers and brewers to compete
nationally and internationally in these competitive but controlled
marketplaces.  Encouraging wine, distillery and brewery industry expan-
sion in New York would also trigger economic development through agri-
cultural expansions.
 
 
PRIOR LEGISLATIVE HISTORY:
 

A.4574 (2013-14), Held in Ways and Means;
A.1209 (2011-12), Held in Ways and Means;
A.2806 (2009-10), Held in Ways and Means;
A.2368 (2007-08), Held in Ways and Means;
A.5995-A (2005-06), Referred to Ways and Means;
A.4112 (2003-04), Held in Ways and Means;
A.2302 (2001-02), Held in Ways and Means;
A.2248 (1997-98), Held in Ways and Means;
A.5847 (1995-96), Held in Ways and Means.
 
 
FISCAL IMPLICATIONS:
 
To be determined.
 
 
EFFECTIVE DATE:
This act shall take effect immediately.