Exempts retail food stores from various state and local taxes provided such store derives at least seventy percent of its annual gross sales from staple foods and food products for off-premises consumption.
STATE OF NEW YORK
________________________________________________________________________
9319
2025-2026 Regular Sessions
IN ASSEMBLY
December 10, 2025
___________
Introduced by M. of A. SLATER -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law and the real property tax law, in relation
to exempting retail food stores from various state and local taxes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 209 of the tax law is amended by adding a new
2 subsection 13 to read as follows:
3 13. Any retail food store, as defined in section five hundred or
4 section five hundred-a of the agriculture and markets law, provided such
5 store derives at least seventy percent of its annual gross sales from
6 staple foods and food products for off-premises consumption, shall be
7 exempt from taxation under the provisions of this article. The commis-
8 sioner of taxation and finance, in consultation with the commissioner of
9 agriculture and markets, shall establish an application, documentation,
10 and annual recertification process to identify and certify qualifying
11 retail food stores, including criteria for revocation of certification.
12 § 2. Subsection (i) of section 601 of the tax law is relettered
13 subsection (j) and a new subsection (i) is added to read as follows:
14 (i) Any retail food store, as defined in section five hundred or
15 section five hundred-a of the agriculture and markets law, provided such
16 store derives at least seventy percent of its annual gross sales from
17 staple foods and food products for off-premises consumption, shall be
18 exempt from taxation under the provisions of this article with respect
19 only to business income derived from the operation of such retail food
20 store. Nothing in this subsection shall be construed to exempt wages,
21 investment income, or other non-business income of any owner or share-
22 holder. The commissioner of taxation and finance, in consultation with
23 the commissioner of agriculture and markets, shall establish an applica-
24 tion, documentation, and annual recertification process to identify and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14146-01-5
A. 9319 2
1 certify qualifying retail food stores, including criteria for revocation
2 of certification.
3 § 3. Section 801 of the tax law is amended by adding a new subsection
4 (d) to read as follows:
5 (d) Any retail food store, as defined in section five hundred or
6 section five hundred-a of the agriculture and markets law, provided such
7 store derives at least seventy percent of its annual gross sales from
8 staple foods and food products for off-premises consumption, shall be
9 exempt from taxation under the provisions of this article. The commis-
10 sioner of taxation and finance, in consultation with the commissioner of
11 agriculture and markets, shall establish an application, documentation,
12 and annual recertification process to identify and certify qualifying
13 retail food stores, including criteria for revocation of certification.
14 § 4. Subparagraph (A) of paragraph 1 of subdivision (a) of section
15 1115 of the tax law, as amended by section 1 of part CCC of chapter 59
16 of the laws of 2019, is amended to read as follows:
17 (A) Food, food products, food which is sold heated or prepared at a
18 retail food store as defined in section five hundred or section five
19 hundred-a of the agriculture and markets law, beverages, dietary foods
20 and health supplements, sold for human consumption but not including (i)
21 candy and confectionery, (ii) fruit drinks which contain less than
22 seventy percent of natural fruit juice, (iii) soft drinks, sodas and
23 beverages such as are ordinarily dispensed at soda fountains or in
24 connection therewith (other than coffee, tea and cocoa) and (iv) beer,
25 wine or other alcoholic beverages, all of which shall be subject to the
26 retail sales and compensating use taxes, whether or not the item is sold
27 in liquid form. Provided, however, that items described in clauses (i)
28 through (iv) of this subparagraph shall be exempt when sold by a retail
29 food store as defined in section five hundred or section five hundred-a
30 of the agriculture and markets law. Nothing in this subparagraph shall
31 be construed as exempting food or drink from the tax imposed under
32 subdivision (d) of section eleven hundred five of this article.
33 § 5. Subdivision (b) of section 1107 of the tax law is amended by
34 adding a new clause 12 to read as follows:
35 (12) Except as otherwise provided by law, the exemption provided in
36 paragraph one of subdivision (a) of section eleven hundred fifteen of
37 this article relating to heated or prepared foods and the products not
38 included unless sold in a retail food store shall be applicable pursuant
39 to a local law, ordinance or resolution adopted by a county or city
40 subject to the provisions of this section. Such county or city is
41 empowered to adopt or repeal such a local law, ordinance or resolution.
42 Such adoption or repeal shall also be deemed to amend any local law,
43 ordinance or resolution enacted by such a county or city imposing taxes
44 pursuant to the authority of subdivision (a) of section twelve hundred
45 ten of this chapter.
46 § 6. The real property tax law is amended by adding a new section 433
47 to read as follows:
48 § 433. Exemption for retail food stores. 1. Notwithstanding any other
49 provision of law, real property owned by a retail food store as defined
50 in section five hundred or section five hundred-a of the agriculture and
51 markets law, provided such store derives at least seventy percent of its
52 annual gross sales from staple foods and food products for off-premises
53 consumption shall be exempt from taxation to the extent of one hundred
54 per centum of the assessed valuation thereof. Provided however, that no
55 exemption shall be given for any portion of the square footage of a
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1 retail food store not being primarily used where food and food products
2 are offered to the consumer and intended for off-premises consumption.
3 2. The local legislative body of a county, city, town, village, or the
4 governing body in the case of a school district, may:
5 (a) after a public hearing, adopt a local law to grant the exemption
6 authorized pursuant to this section; and
7 (b) adopt a local law to reduce the maximum exemption allowable.
8 3. If, during the term of an exemption granted pursuant to this
9 section, a retail food store ceases to be used for eligible purposes,
10 such exemption shall cease.
11 § 7. This act shall take effect immediately and shall apply to taxable
12 years commencing on and after January 1, 2026.
