Enacts the "Save our New York state restaurants act" authorizing a sales tax exemption for the sale of food and drink at restaurants and taverns during a specific one week period and grants certain municipalities the option to grant such limited exemption.
STATE OF NEW YORK
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3428
2023-2024 Regular Sessions
IN ASSEMBLY
February 3, 2023
___________
Introduced by M. of A. SANTABARBARA -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to enacting the "save our New
York state restaurants act" and creating a limited sales tax exemption
for the sale of food and drink at restaurants and taverns from state
sales and compensating use taxes and granting municipalities the
option to grant such limited exemption
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "save our New York state restaurants act".
3 § 2. Subdivision (a) of section 1115 of the tax law is amended by
4 adding a new paragraph 47 to read as follows:
5 (47) for the thirty day period beginning on the first Sunday which
6 occurs thirty days after the effective date of this paragraph, the
7 receipts from every sale of food and drink of any nature or of food
8 alone, when sold in or by restaurants, taverns or other establishments
9 in this state; provided however that such exemption shall not include
10 food or drinks sold by fast food chains. For the purposes of this para-
11 graph, the term "fast food chains" refers to limited service restau-
12 rants, where customers order at the counter and pay in advance, which
13 are large chains with multiple locations nationally.
14 § 3. Subdivision (b) of section 1107 of the tax law is amended by
15 adding a new clause 12 to read as follows:
16 (12) Except as otherwise provided by law, the exemption on sales of
17 food and drink during the thirty day period provided in paragraph
18 forty-seven of subdivision (a) of section eleven hundred fifteen of this
19 article, shall be applicable pursuant to a local law, ordinance or
20 resolution adopted by a city subject to the provisions of this section.
21 Such city is empowered to adopt or repeal such a local law, ordinance or
22 resolution. Such adoption or repeal shall also be deemed to amend any
23 local law, ordinance or resolution enacted by such a city imposing taxes
24 pursuant to the authority of subdivision (a) of section twelve hundred
25 ten of this chapter.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07280-01-3
A. 3428 2
1 § 4. Paragraph 1 of subdivision (a) of section 1210 of the tax law is
2 amended by adding a new subparagraph (iii) to read as follows:
3 (iii) Any local law, ordinance or resolution enacted by any city,
4 county or school district, imposing the taxes authorized by this subdi-
5 vision, shall include the sales of food and drink at restaurants and
6 taverns exemption during the thirty day period as provided for in para-
7 graph forty-seven of subdivision (a) of section eleven hundred fifteen
8 of this chapter, unless such city, county or school district elects
9 otherwise; provided that if such a city having a population of one
10 million or more enacts the resolution described in subdivision (p) of
11 this section or repeals such resolution, such repeal or resolution shall
12 also be deemed to amend any local law, ordinance or resolution enacted
13 by such a city imposing such tax pursuant to the authority of this
14 subdivision, whether or not such taxes are suspended at the time such
15 city enacts its resolution pursuant to subdivision (p) of this section
16 or at the time of any such repeal; provided further that any such local
17 law, ordinance or resolution and section eleven hundred seven of this
18 chapter, as deemed to be amended in the event a city of one million or
19 more enacts a resolution pursuant to the authority of subdivision (p) of
20 this section, shall be further amended, as provided in section twelve
21 hundred eighteen of this subpart, so that sales of food and drink by
22 restaurants and taverns in any such local law, ordinance or resolution
23 or in section eleven hundred seven of this chapter is the same as the
24 state exemption on sales of food and drink by restaurants and taverns in
25 paragraph forty-seven of subdivision (a) of section eleven hundred
26 fifteen of this chapter.
27 § 5. Subdivision (d) of section 1210 of the tax law, as amended by
28 section 4 of part WW of chapter 60 of the laws of 2016, is amended to
29 read as follows:
30 (d) A local law, ordinance or resolution imposing any tax pursuant to
31 this section, increasing or decreasing the rate of such tax, repealing
32 or suspending such tax, exempting from such tax the energy sources and
33 services described in paragraph three of subdivision (a) or of subdivi-
34 sion (b) of this section or changing the rate of tax imposed on such
35 energy sources and services or providing for the credit or refund
36 described in clause six of subdivision (a) of section eleven hundred
37 nineteen of this chapter, or electing or repealing the exemption for
38 residential solar equipment and electricity in subdivision (ee) of
39 section eleven hundred fifteen of this article, or the exemption for
40 commercial solar equipment and electricity in subdivision (ii) of
41 section eleven hundred fifteen of this article, or electing or repealing
42 the exemption for commercial fuel cell electricity generating systems
43 equipment and electricity generated by such equipment in subdivision
44 (kk) of section eleven hundred fifteen of this article must go into
45 effect only on one of the following dates: March first, June first,
46 September first or December first; provided, that a local law, ordinance
47 or resolution providing for the exemption described in paragraph thirty
48 of subdivision (a) of section eleven hundred fifteen of this chapter or
49 repealing any such exemption or a local law, ordinance or resolution
50 providing for a refund or credit described in subdivision (d) of section
51 eleven hundred nineteen of this chapter or repealing such provision so
52 provided must go into effect only on March first; provided further that
53 a local law, ordinance or resolution providing for the exemption
54 described in paragraph forty-seven of subdivision (a) of section eleven
55 hundred fifteen of this chapter or repealing any such exemption so
56 provided and a resolution enacted pursuant to the authority of subdivi-
A. 3428 3
1 sion (p) of this section provided such exemption or repealing such
2 exemption so provided may go into effect immediately. No such local law,
3 ordinance or resolution shall be effective unless a certified copy of
4 such law, ordinance or resolution is mailed by registered or certified
5 mail to the commissioner at the commissioner's office in Albany at least
6 ninety days prior to the date it is to become effective. However, the
7 commissioner may waive and reduce such ninety-day minimum notice
8 requirement to a mailing of such certified copy by registered or certi-
9 fied mail within a period of not less than thirty days prior to such
10 effective date if the commissioner deems such action to be consistent
11 with the commissioner's duties under section twelve hundred fifty of
12 this article and the commissioner acts by resolution. Where the
13 restriction provided for in section twelve hundred twenty-three of this
14 article as to the effective date of a tax and the notice requirement
15 provided for therein are applicable and have not been waived, the
16 restriction and notice requirement in section twelve hundred twenty-
17 three of this article shall also apply.
18 § 6. Section 1210 of the tax law is amended by adding a new subdivi-
19 sion (p) to read as follows:
20 (p) Notwithstanding any other provision of state or local law, ordi-
21 nance or resolution to the contrary:
22 (1) Any city having a population of one million or more in which the
23 taxes imposed by section eleven hundred seven of this chapter are in
24 effect, acting through its local legislative body, is hereby authorized
25 and empowered to elect to provide the same exemption from such taxes as
26 the sales of food and drink by restaurants and taverns exemption from
27 state sales and compensating use taxes described in paragraph forty-sev-
28 en of subdivision (a) of section eleven hundred fifteen of this chapter
29 by enacting a resolution in the form set forth in paragraph two of this
30 subdivision; whereupon, upon compliance with the provisions of subdivi-
31 sions (d) and (e) of this section, such enactment of such resolution
32 shall be deemed to be an amendment to such section eleven hundred seven
33 and such section eleven hundred seven shall be deemed to incorporate
34 such exemption as if it had been duly enacted by the state legislature
35 and approved by the governor.
36 (2) Form of Resolution: Be it enacted by the (insert proper title of
37 local legislative body) as follows:
38 Section 1. Receipts from sales of and consideration given or
39 contracted to be given for food and drink sold at restaurants and
40 taverns exempt from state sales and compensating use taxes during a
41 thirty day period pursuant to paragraph forty-seven of subdivision (a)
42 of section eleven hundred fifteen of this chapter shall also be exempt
43 from sales and compensating use taxes imposed in this jurisdiction.
44 2. This resolution shall take effect, (insert the date) and shall
45 apply to sales made and uses occurring on and after that date although
46 shall not include sales made or occurring under a prior contract.
47 § 7. This act shall take effect immediately and shall apply to the
48 thirty day period which begins on the first Sunday after 30 days after
49 the date this act shall have become a law and shall apply in accordance
50 with the applicable transitional provisions of sections 1106 and 1217 of
51 the tax law; provided that sections four and five of this act shall
52 apply to sales made on or after the date such sections shall have taken
53 effect. Effective immediately, the addition, amendment and/or repeal of
54 any rule or regulation necessary for the implementation of this act on
55 its effective date are authorized to be made and completed on or before
56 such effective date.
