STATE OF NEW YORK
________________________________________________________________________
11002
IN ASSEMBLY
April 16, 2026
___________
Introduced by M. of A. STIRPE, BURKE -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to the measurement of liquor
for tax purposes
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 [ninety
23 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
26 in the [from] form of a permit, without a bond, may be instituted by the
27 commissioner for the purpose of authorizing the importation of up to
28 [three hundred sixty liters] ninety-five gallons of liquors per year
29 into this state by an individual for such individual's personal use and
30 consumption in this state.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09366-01-5
A. 11002 2
1 § 2. Paragraphs (e), (f) and the opening paragraph of paragraph (g) of
2 subdivision 1 of section 424 of the tax law, paragraph (e) as amended by
3 section 1 and the opening paragraph of paragraph (g) as amended by
4 section 2 of part J of chapter 59 of the laws of 2020 and paragraph (f)
5 as amended by chapter 508 of the laws of 1993, are amended to read as
6 follows:
7 (e) [Sixty-seven] Two dollars and fifty-four cents per [liter] gallon
8 upon liquors containing not more than twenty-four per centum of alcohol
9 by volume except liquors containing not more than two per centum of
10 alcohol by volume, upon which the tax shall be [zero] four cents per
11 gallon; and
12 (f) [One dollar and seventy] Six dollars and forty-four cents per
13 [liter] gallon upon all other liquors; when sold or used within this
14 state, except when sold or used under such circumstances that this state
15 is without power to impose such tax or when sold to the United States
16 and except beers when sold to or by a voluntary unincorporated organiza-
17 tion of the armed forces of the United States operating a place for the
18 sale of goods pursuant to regulations promulgated by the appropriate
19 executive agency of the United States, to the extent provided in such
20 regulations, directives and policy statements of such an agency applica-
21 ble to such sales, and except when sold to professional foreign
22 consuls-general, consuls and vice-consuls who are nationals of the state
23 appointing them and who are assigned to foreign consulates in this
24 state, provided that American consular officers of equal rank who are
25 citizens of the United States and who exercise their official functions
26 at American consulates in such foreign country are granted reciprocal
27 exemptions; provided, however, that the commissioner may permit the sale
28 of alcohol without tax to a holder of any industrial alcohol permit,
29 alcohol permit or alcohol distributor's permit, issued by the state
30 liquor authority, and by the holder of an alcohol distributor's permit,
31 class A, issued by such authority to a holder of a distiller's license,
32 class B, or a winery license, issued by such authority and may also
33 permit the use of alcohol for any purpose other than the production of
34 alcoholic beverages by such holders without tax; provided also that the
35 commissioner may permit the sale of cider without tax by a holder of a
36 cider producer's license issued by the state liquor authority to a hold-
37 er of a cider producer's license or a cider wholesaler's license issued
38 by such authority.
39 For purposes of this chapter, it is presumed that liquors are
40 possessed for the purpose of sale in this state if the quantity of
41 liquors possessed in this state, imported or caused to be imported into
42 this state or produced, distilled, manufactured, compounded, mixed or
43 fermented in this state exceeds [ninety liters] twenty-four gallons.
44 Such presumption may be rebutted by the introduction of substantial
45 evidence to the contrary. In any case where the quantity of alcoholic
46 beverages taxable pursuant to this article is a fractional part of one
47 [liter (or one] gallon [in the case of beers)] or an amount greater than
48 a whole multiple of [liters (or] gallons [in the case of beers)], the
49 amount of tax levied and imposed on such fractional part of one [liter
50 (or one] gallon [in the case of beers)], or fractional part of a [liter
51 (or gallon)] gallon in excess of a whole multiple of [liters or] gallons
52 shall be such fractional part of the rate imposed by paragraphs (a)
53 through (f) of this subdivision.
54 § 3. Section 425-a of the tax law, as added by chapter 508 of the laws
55 of 1993, is amended to read as follows:
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1 § 425-a. Presumption of taxability. For the purpose of the proper
2 administration of the taxes imposed by this article and to prevent
3 evasion thereof, it shall be presumed with respect to this chapter that
4 all alcoholic beverages possessed or found in this state are subject to
5 the taxes imposed by this article until the contrary is established by
6 substantial evidence. Except with respect to a purchase at retail of
7 beers or wines and a purchase at retail of [ninety liters] twenty-four
8 gallons or less of liquors, no person shall purchase alcoholic beverages
9 in this state unless the taxes imposed by this article with respect to
10 such beverages have been assumed by a distributor registered under this
11 article or paid by such distributor pursuant to and in accordance with
12 the manner provided herein and evidenced in accordance with the manner
13 provided herein. In the case of liquors, such taxes shall be assumed by
14 a distributor in accordance with the invoice required, and the certif-
15 ication of tax payment included therein, under section four hundred
16 twenty-seven of this article; in the case of other alcoholic beverages,
17 the taxes shall be assumed by such distributor pursuant to and in
18 accordance with the rules or regulations of the department.
19 § 4. Section 426 of the tax law, as amended by chapter 891 of the laws
20 of 1986, is amended to read as follows:
21 § 426. Records to be kept by brand owners, distributors, owners and
22 others. Every brand owner, distributor, owner or other person shall
23 keep a complete and accurate record of all purchases and sales or other
24 dispositions of alcoholic beverages, and a complete and accurate record
25 of the number of gallons of beers produced, manufactured, brewed or
26 fermented and [liters] gallons of all other alcoholic beverages
27 produced, distilled, manufactured, brewed, compounded, mixed or ferment-
28 ed. Such records shall be in such form and contain such other informa-
29 tion as the tax commission shall prescribe. Said commission, by rule or
30 regulation, also may require the delivery of statements to purchasers of
31 alcoholic beverages, and prescribe the matters to be contained therein.
32 Such records and statements, unless required by the tax commission to be
33 preserved for a longer period, shall be preserved for a period of one
34 year and shall be offered for inspection at any time upon oral or writ-
35 ten demand by the commissioner [of taxation and finance] or [his] their
36 duly authorized agents, and every such distributor, brand owner, owner
37 or other person shall make such reports to the department [of taxation
38 and finance] as may be required by the tax commission. Nothing in this
39 section contained shall be construed to require the keeping of a record
40 of the purchase or disposition of alcoholic beverages by a consumer
41 thereof, except by a person who uses the same for commercial purposes,
42 or of the sale of alcoholic beverages at retail.
43 § 5. Subdivision 1 and paragraph (i) of subdivision 2 of section 427
44 of the tax law, as added by chapter 508 of the laws of 1993, are amended
45 to read as follows:
46 1. Every sale of liquors, except a sale at retail of [ninety liters]
47 twenty-four gallons or less, shall be evidenced by and recorded on an
48 individual, serially numbered invoice, and, with respect to each such
49 sale, the seller therein shall make and complete such invoice which
50 shall contain the information required by this section and give the same
51 to the purchaser at the time of delivery. The seller shall sign and date
52 the invoice required by this section and certify the entire content of
53 such invoice.
54 (i) the size (in [liters] gallons) and number of bottles of liquors
55 sold, and its description, by brand name and price; and
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1 § 6. Subdivision 2 of section 428 of the tax law, as added by chapter
2 508 of the laws of 1993, is amended to read as follows:
3 2. The operator of a motor vehicle, as such term is defined in subdi-
4 vision three of section two hundred eighty-two of this chapter, or any
5 other means of transport of liquors in which more than [ninety liters]
6 twenty-four gallons of liquors is being transported in this state must
7 have in [his or her] their possession a manifest, invoice or other docu-
8 ment which shows the name and address of the person from whom such
9 liquors were received and the date and place of receipt of such liquor
10 and the name and address of every person to whom such operator is to
11 make delivery of the same and the place of delivery, together with the
12 number of [liters] gallons to be delivered to each person, and, if such
13 liquor is being imported into the state in such motor vehicle or such
14 other means of transport, the name of the distributor importing or caus-
15 ing such liquors to be imported into the state and such other informa-
16 tion as the commissioner may require pursuant to rule or regulation.
17 Every operator of such motor vehicle or such other means of transport
18 shall at the request of a peace officer, acting pursuant to [his] their
19 special duties, a police officer, any representative of the department
20 or any other person authorized by law to inquire into or investigate the
21 transportation of such liquors, produce such manifest, invoice or other
22 document for inspection. The person causing the operation of such motor
23 vehicle or such other means of transport shall be responsible to cause
24 the operator to keep in such operator's possession in such motor vehicle
25 or such other means of transport the manifest, invoice or other document
26 required by this section. The absence of the manifest, invoice or other
27 document required by this section shall give rise to a presumption that
28 the liquors being transported are being imported or caused to be
29 imported into this state for sale or use therein by other than a regis-
30 tered distributor. Moreover, the absence of (1) the place of delivery
31 of liquors on the manifest, invoice or other document with respect to
32 liquors being imported into the state shall give rise to a presumption
33 that such liquors are being imported into the state for sale or use in
34 the state and (2) the name of a registered distributor on the manifest,
35 invoice or other document with respect to liquors being imported into
36 the state shall give rise to a presumption that such liquors are being
37 so imported or caused to be imported into this state, for sale or use
38 therein, by other than a registered distributor. Such presumptions may
39 be rebutted by the introduction of substantial evidence to the contrary.
40 § 7. Subdivisions 1 and 2 of section 429 of the tax law, subdivision 1
41 as amended by section 1 of part Q of chapter 59 of the laws of 2021 and
42 subdivision 2 as amended by chapter 433 of the laws of 1978, are amended
43 to read as follows:
44 1. Every distributor, noncommercial importer or other person shall, on
45 or before the twentieth day of each month, file with the department [of
46 taxation and finance] a return, on forms to be prescribed by the commis-
47 sioner and furnished by such department, stating separately the number
48 of gallons, or lesser quantity, of beers, [and the number of liters, or
49 lesser quantity, of] wines and liquors sold or used by such distributor,
50 noncommercial importer or other person in this state during the preced-
51 ing calendar month, except that the commissioner may, if [he or she
52 deems] they deem it necessary to facilitate the efficient reporting and
53 payment of the tax imposed by this article, require returns to be made
54 at such times and covering such periods as [he or she] they may deem
55 necessary. Such return shall contain such further information as the
56 commissioner shall require. The fact that the name of the distributor,
A. 11002 5
1 noncommercial importer or other person is signed to a filed return shall
2 be prima facie evidence for all purposes that the return was actually
3 signed by such distributor, noncommercial importer or other person.
4 2. Each such distributor, noncommercial importer or other person shall
5 pay to such department with the filing of such return, the tax imposed
6 by this article, on each gallon, or lesser quantity, of [beers and on
7 each liter, or lesser quantity of all other] all alcoholic beverages
8 sold or used by such distributor, noncommercial importer or other person
9 in this state, as so reported, during the period covered by such return,
10 except that, where a distributor has purchased alcoholic beverages prior
11 to the expiration of the period covered by the return, upon which the
12 taxes imposed by this article have been or are required to be paid by
13 another distributor, a credit shall be allowed for the amount of such
14 taxes.
15 § 8. Paragraph (b) of subdivision 1 and subdivision 2 of section 445
16 of the tax law, as amended by chapter 433 of the laws of 1978, are
17 amended to read as follows:
18 (b) [Twenty-six and four-tenths] Ninety-nine and nine-tenths cents per
19 [liter] gallon on the liquors described in paragraph (f) of subdivision
20 one of section four hundred twenty-four of this article, when sold or
21 used in such city.
22 2. Every local law imposing taxes pursuant to the authority of subdi-
23 vision one shall also impose upon each person, other than a distributor
24 within the meaning of such local law, who, on the date the taxes imposed
25 pursuant to the authority of such subdivision become effective, owns and
26 possesses for the purposes of sale beer, or other alcoholic beverages
27 described in subdivision one of this section, a floor tax at the rates
28 applicable under subdivision one upon such beer or other alcoholic
29 beverages in excess of one hundred gallons [and upon such other alcohol-
30 ic beverages in excess of four hundred liters]. Such floor tax shall be
31 due and payable on the twentieth day of the month succeeding the month
32 in which the taxes become effective.
33 § 9. Subdivisions (e), (f) and (g) of section 1813 of the tax law, as
34 amended by section 27 of subpart I of part V-1 of chapter 57 of the laws
35 of 2009, are amended to read as follows:
36 (e) Person not registered as a distributor. (1) Any person required to
37 be registered as a distributor pursuant to the provisions of article
38 eighteen of this chapter who, while not so registered, knowingly imports
39 or causes to be imported into the state, for sale or use therein, any
40 liquors or, who, except in accordance with clause (i) or (ii) of para-
41 graph (b) of subdivision four of section four hundred twenty of this
42 chapter, knowingly produces, distills, manufactures, compounds, mixes or
43 ferments in this state any such liquors for sale, or who, as a purchaser
44 of a warehouse receipt, knowingly causes liquors covered by such receipt
45 to be removed from a warehouse in this state, shall be guilty of a class
46 A misdemeanor. Provided, however, that any person who has twice been
47 convicted under this section within the preceding five years, shall be
48 guilty of a class E felony for any subsequent violation of this para-
49 graph.
50 (2) Any person who, while not registered as a distributor pursuant to
51 the provisions of article eighteen of this chapter, knowingly and inten-
52 tionally imports or causes to be imported into this state, for sale or
53 use therein, more than [three hundred sixty liters] ninety-five gallons
54 of liquors into this state in a one-year period or, except in accordance
55 with clause (i) or (ii) of paragraph (b) of subdivision four of section
56 four hundred twenty of this chapter, knowingly and intentionally produc-
A. 11002 6
1 es, distills, manufactures, compounds, mixes or ferments for sale more
2 than [three hundred sixty liters] ninety-five gallons of such liquors
3 within this state in a one-year period, or, as a purchaser of a ware-
4 house receipt, knowingly and intentionally causes more than [three
5 hundred sixty liters] ninety-five gallons of liquors in a one-year peri-
6 od to be removed from a warehouse in this state, shall be guilty of a
7 class E felony.
8 (3) For purposes of this subdivision, it shall be presumed that the
9 importation or the causing to be imported into this state or the
10 production, distillation, manufacture, compounding, mixing or fermenting
11 in this state of more than [ninety liters] twenty-four gallons of such
12 liquors by any person in a one-year period is for purposes of sale. Such
13 presumption may be rebutted by the introduction of substantial evidence
14 to the contrary.
15 (f) Person not registered as a distributor for city purposes. (1) Any
16 person required to be registered as a distributor for city purposes
17 pursuant to the provisions of section four hundred forty-five of article
18 eighteen of this chapter who, while not so registered, knowingly imports
19 or causes to be imported into such city, for sale or use therein, any
20 liquors or, who, except in accordance with clause (i) or (ii) of para-
21 graph (b) of subdivision four of section four hundred twenty of this
22 chapter as incorporated into such section four hundred forty-five, know-
23 ingly produces, distills, manufactures, compounds, mixes or ferments in
24 such city any such liquors for sale, or who, as a purchaser of a ware-
25 house receipt, causes liquors covered by such receipt to be removed from
26 a warehouse in this state, shall be guilty of a class A misdemeanor.
27 Provided, however, that any person who has twice been convicted under
28 this section within the preceding five years shall be guilty of a class
29 E felony for any subsequent violation of this paragraph.
30 (2) Any person who, while not registered as a distributor for city
31 purposes pursuant to the provisions of section four hundred forty-five
32 of article eighteen of this chapter, knowingly and intentionally imports
33 or causes to be imported into such city, for sale or use therein, more
34 than [three hundred sixty liters] ninety-five gallons of liquors into
35 such city in a one-year period or, except in accordance with clause (i)
36 or (ii) of paragraph (b) of subdivision four of section four hundred
37 twenty of this chapter as incorporated into such section four hundred
38 forty-five, knowingly and intentionally produces, distills, manufac-
39 tures, compounds, mixes or ferments for sale more than [three hundred
40 sixty liters] ninety-five gallons of such liquors within such city in a
41 one-year period, or, as a purchaser of a warehouse receipt, knowingly
42 and intentionally causes more than [three hundred sixty liters] ninety-
43 five gallons of liquors in a one-year period to be removed from a ware-
44 house in this state, shall be guilty of a class E felony.
45 (3) For purposes of this subdivision, it shall be presumed that the
46 importation or the causing to be imported into such city or the
47 production, distillation, manufacture, compounding, mixing or fermenting
48 in such city of more than [ninety liters] twenty-four gallons of liquors
49 by any person in a one-year period is for purposes of sale. Such
50 presumption may be rebutted by the introduction of substantial evidence
51 to the contrary.
52 (g) Any person, other than the distributor registered under article
53 eighteen of this chapter which imported or caused the liquors to be
54 imported into this state, who shall willfully and knowingly have in
55 [his] their custody, possession or under [his] their control liquors
56 with respect to which the taxes imposed by or pursuant to the authority
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1 of article eighteen of this chapter have not been assumed or paid by a
2 distributor registered as such under such article, shall be guilty of a
3 class B misdemeanor; if such person shall willfully and knowingly have
4 more than [ninety liters] twenty-four gallons of such liquors in [his]
5 their custody or possession or under [his] their control, such person
6 shall be guilty of a class A misdemeanor; or if such person shall know-
7 ingly and intentionally have more than [three hundred sixty liters]
8 ninety-five gallons of such liquors in [his] their custody or possession
9 or under [his] their control, such person shall be guilty of a class E
10 felony. For purposes of this subdivision, such person shall willfully
11 and knowingly have in [his] their custody, possession or under [his]
12 their control any liquors with respect to which such taxes have not been
13 assumed or paid by a distributor registered as such where such person
14 has knowledge of the requirement of such taxes and where, to [his] their
15 knowledge, such taxes have not been assumed or paid by a registered
16 distributor with respect to such liquors.
17 § 10. Subdivisions (a), (k) and (l) of section 1845 of the tax law, as
18 added by chapter 508 of the laws of 1993, are amended to read as
19 follows:
20 (a) Temporary seizure. Whenever a police officer designated in section
21 1.20 of the criminal procedure law or a peace officer designated in
22 subdivision four of section 2.10 of such law, acting pursuant to [his]
23 their special duties, shall discover more than [ninety liters] twenty-
24 four gallons of liquors which are being imported for sale or use in the
25 state, where the person importing or causing such liquors to be imported
26 is not registered as a distributor under section four hundred twenty-one
27 of this chapter, such police officer or peace officer is hereby author-
28 ized to seize and take possession of such liquors, and to seize and take
29 possession of the vehicle or other means of transportation used to
30 transport such liquors.
31 (k) An additional ground for seizure and forfeiture under this section
32 shall be where such police officer or peace officer shall discover more
33 than [ninety liters] twenty-four gallons of liquors in this state, with
34 respect to which the taxes imposed by or pursuant to article eighteen of
35 this chapter have not been paid or assumed by a person registered as a
36 distributor pursuant to such article, which are in the course of
37 distribution in this state or which are being sold in this state. All
38 the foregoing subdivisions of this section shall apply to the seizure
39 and forfeiture of liquors referred to in this subdivision and the vehi-
40 cle transporting the same as if such foregoing subdivisions specifically
41 referred to such grounds and as if such grounds set forth in this subdi-
42 vision were set forth as grounds for seizure in subdivision (a) hereof.
43 Provided that in the forfeiture action with respect to the liquors or
44 vehicle referred to in this subdivision, the department shall be
45 required to show that such liquors were found within the state and that
46 they were in the course of distribution in this state or were being sold
47 in this state.
48 (l) This section shall also apply to a forfeiture action with respect
49 to the importation of more than [ninety liters] twenty-four gallons of
50 liquors into a city imposing a tax pursuant to the authority of section
51 four hundred forty-five of this chapter by a person not registered as a
52 distributor for purposes of such tax or, in addition, with respect to
53 the distribution or sale of untaxed liquors in such city.
54 § 11. This act shall take effect on the one hundred eightieth day
55 after it shall have become a law.
