NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A37
SPONSOR: Cahill TITLE OF BILL:
An act to amend the tax law, in relation to granting a sales and compen-
sating use tax exemption for the sale of live bees
PURPOSE:
This legislation will permit beekeepers and hobbyists who purchase bees
in New York State to be exempt from sales and compensating use tax.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Adds a new paragraph 44 to subdivision (a) of section 1115 of
the tax law to exempt from compensating sales and use tax any species of
live bees that are sold in New York State and not already subject to an
exemption.
Section 2. This act shall take effect immediately and shall apply to
sales made and uses occurring on or after such effective date.
JUSTIFICATION:
Bees play an integral part in the success of New York State's agricul-
tural industry. They are also kept by hobbyists and small farmers to
pollinate local crops, flowers and personal gardens. Currently, live
bees sold in New York State are subject to sales and compensating use
tax with the exception of the sale of bees to farmers and beekeepers
that use them predominantly (more than 50 percent of the time) in the
production of a product for sale. While this tax is not overly burden-
some, it has deterred some beekeepers and hobbyists from purchasing
pollinators in New York State. This tax is also not equitable for the
small farmer and the local gardener who may not meet the production
requirements to be eligible for the existing sales tax exemption, but
still rely on human managed pollinators to grow and produce goods for
personal consumption and sale. This measure will promote beekeepers and
hobbyists to purchase their bee supplies from New York State retailers,
keeping revenue in-state, supporting local bee retailers and ensuring
the stability of local human managed bee populations.
New York State's ability to produce crops such as apples, cherries,
onions, pumpkins and cauliflowers indeed rely heavily on a healthy abun-
dance of wild and human managed pollinators. In fact, the New York State
Department of Agriculture and Markets finds that apples add $250 million
per year in state profit, squash and pumpkins add another $74 million
annually, strawberries bring in 7 million per year and cherries and
tomatoes add over $5.5 million to New York State's economy. Without the
health and abundance of both our wild and human managed bee colonies,
this type of production and success would simply not be possible. Addi-
tionally, by expanding the sales and use tax exemption farmers who
produce on a smaller scale will be better positioned to contribute to
our already thriving agricultural economy.
Furthermore, colony collapse due to the use of harmful pesticides and
the invasion of other predatory mites and insects is unfortunately
becoming more and more prevalent in New York State. To combat this
epidemic, Governor Cuomo recently established an interagency taskforce
to develop a Pollinator Protection Plan to promote the health and recov-
ery of pollinator populations. This legislation will compliment these
efforts by promoting the expansion of human managed bee colonies that
are vitally important to the continued success of all levels of our
agricultural economy and the health of our naturally occurring trees,
flowers and similar wildlife.
PRIOR LEGISLATIVE HISTORY:
2015-2016: A9869 - Referred to Ways and Means
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Minimal.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to sales made and
uses occurring on or after such effective date.
