S 6206: Establishes the gallon as the standard measurement for purposes of taxation of alcoholic beverages.

  
  STATE OF NEW YORK ________________________________________________________________________ 6206 2025-2026 Regular Sessions  IN SENATE March 6, 2025 ___________ Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09366-01-5 
 S. 6206 2 1 respect to liquor. Provided, further, that an abbreviated registration 2 in the [from] form of a permit, without a bond, may be instituted by the 3 commissioner for the purpose of authorizing the importation of up to 4 [three hundred sixty liters] ninety-five gallons of liquors per year 5 into this state by an individual for such individual's personal use and 6 consumption in this state. 7 § 2. Paragraphs (e), (f) and the opening paragraph of paragraph (g) of 8 subdivision 1 of section 424 of the tax law, paragraph (e) as amended by 9 section 1 and the opening paragraph of paragraph (g) as amended by 10 section 2 of part J of chapter 59 of the laws of 2020 and paragraph (f) 11 as amended by chapter 508 of the laws of 1993, are amended to read as 12 follows: 13 (e) [Sixty-seven] Two dollars and fifty-four cents per [liter] gallon 14 upon liquors containing not more than twenty-four per centum of alcohol 15 by volume except liquors containing not more than two per centum of 16 alcohol by volume, upon which the tax shall be [zero] four cents per 17 gallon; and 18 (f) [One dollar and seventy] Six dollars and forty-four cents per 19 [liter] gallon upon all other liquors; when sold or used within this 20 state, except when sold or used under such circumstances that this state 21 is without power to impose such tax or when sold to the United States 22 and except beers when sold to or by a voluntary unincorporated organiza- 23 tion of the armed forces of the United States operating a place for the 24 sale of goods pursuant to regulations promulgated by the appropriate 25 executive agency of the United States, to the extent provided in such 26 regulations, directives and policy statements of such an agency applica- 27 ble to such sales, and except when sold to professional foreign 28 consuls-general, consuls and vice-consuls who are nationals of the state 29 appointing them and who are assigned to foreign consulates in this 30 state, provided that American consular officers of equal rank who are 31 citizens of the United States and who exercise their official functions 32 at American consulates in such foreign country are granted reciprocal 33 exemptions; provided, however, that the commissioner may permit the sale 34 of alcohol without tax to a holder of any industrial alcohol permit, 35 alcohol permit or alcohol distributor's permit, issued by the state 36 liquor authority, and by the holder of an alcohol distributor's permit, 37 class A, issued by such authority to a holder of a distiller's license, 38 class B, or a winery license, issued by such authority and may also 39 permit the use of alcohol for any purpose other than the production of 40 alcoholic beverages by such holders without tax; provided also that the 41 commissioner may permit the sale of cider without tax by a holder of a 42 cider producer's license issued by the state liquor authority to a hold- 43 er of a cider producer's license or a cider wholesaler's license issued 44 by such authority. 45 For purposes of this chapter, it is presumed that liquors are 46 possessed for the purpose of sale in this state if the quantity of 47 liquors possessed in this state, imported or caused to be imported into 48 this state or produced, distilled, manufactured, compounded, mixed or 49 fermented in this state exceeds [ninety liters] twenty-four gallons. 50 Such presumption may be rebutted by the introduction of substantial 51 evidence to the contrary. In any case where the quantity of alcoholic 52 beverages taxable pursuant to this article is a fractional part of one 53 [liter (or one] gallon [in the case of beers)] or an amount greater than 54 a whole multiple of [liters (or] gallons [in the case of beers)], the 55 amount of tax levied and imposed on such fractional part of one [liter 56 (or one] gallon [in the case of beers)], or fractional part of a [liter 
 S. 6206 3 1 (or gallon)] gallon in excess of a whole multiple of [liters or] gallons 2 shall be such fractional part of the rate imposed by paragraphs (a) 3 through (f) of this subdivision. 4 § 3. Section 425-a of the tax law, as added by chapter 508 of the laws 5 of 1993, is amended to read as follows: 6 § 425-a. Presumption of taxability. For the purpose of the proper 7 administration of the taxes imposed by this article and to prevent 8 evasion thereof, it shall be presumed with respect to this chapter that 9 all alcoholic beverages possessed or found in this state are subject to 10 the taxes imposed by this article until the contrary is established by 11 substantial evidence. Except with respect to a purchase at retail of 12 beers or wines and a purchase at retail of [ninety liters] twenty-four 13 gallons or less of liquors, no person shall purchase alcoholic beverages 14 in this state unless the taxes imposed by this article with respect to 15 such beverages have been assumed by a distributor registered under this 16 article or paid by such distributor pursuant to and in accordance with 17 the manner provided herein and evidenced in accordance with the manner 18 provided herein. In the case of liquors, such taxes shall be assumed by 19 a distributor in accordance with the invoice required, and the certif- 20 ication of tax payment included therein, under section four hundred 21 twenty-seven of this article; in the case of other alcoholic beverages, 22 the taxes shall be assumed by such distributor pursuant to and in 23 accordance with the rules or regulations of the department. 24 § 4. Section 426 of the tax law, as amended by chapter 891 of the laws 25 of 1986, is amended to read as follows: 26 § 426. Records to be kept by brand owners, distributors, owners and 27 others. Every brand owner, distributor, owner or other person shall 28 keep a complete and accurate record of all purchases and sales or other 29 dispositions of alcoholic beverages, and a complete and accurate record 30 of the number of gallons of beers produced, manufactured, brewed or 31 fermented and [liters] gallons of all other alcoholic beverages 32 produced, distilled, manufactured, brewed, compounded, mixed or ferment- 33 ed. Such records shall be in such form and contain such other informa- 34 tion as the tax commission shall prescribe. Said commission, by rule or 35 regulation, also may require the delivery of statements to purchasers of 36 alcoholic beverages, and prescribe the matters to be contained therein. 37 Such records and statements, unless required by the tax commission to be 38 preserved for a longer period, shall be preserved for a period of one 39 year and shall be offered for inspection at any time upon oral or writ- 40 ten demand by the commissioner [of taxation and finance] or [his] their 41 duly authorized agents, and every such distributor, brand owner, owner 42 or other person shall make such reports to the department [of taxation 43 and finance] as may be required by the tax commission. Nothing in this 44 section contained shall be construed to require the keeping of a record 45 of the purchase or disposition of alcoholic beverages by a consumer 46 thereof, except by a person who uses the same for commercial purposes, 47 or of the sale of alcoholic beverages at retail. 48 § 5. Subdivision 1 and paragraph (i) of subdivision 2 of section 427 49 of the tax law, as added by chapter 508 of the laws of 1993, are amended 50 to read as follows: 51 1. Every sale of liquors, except a sale at retail of [ninety liters] 52 twenty-four gallons or less, shall be evidenced by and recorded on an 53 individual, serially numbered invoice, and, with respect to each such 54 sale, the seller therein shall make and complete such invoice which 55 shall contain the information required by this section and give the same 56 to the purchaser at the time of delivery. The seller shall sign and date 
 S. 6206 4 1 the invoice required by this section and certify the entire content of 2 such invoice. 3 (i) the size (in [liters] gallons) and number of bottles of liquors 4 sold, and its description, by brand name and price; and 5 § 6. Subdivision 2 of section 428 of the tax law, as added by chapter 6 508 of the laws of 1993, is amended to read as follows: 7 2. The operator of a motor vehicle, as such term is defined in subdi- 8 vision three of section two hundred eighty-two of this chapter, or any 9 other means of transport of liquors in which more than [ninety liters] 10 twenty-four gallons of liquors is being transported in this state must 11 have in [his or her] their possession a manifest, invoice or other docu- 12 ment which shows the name and address of the person from whom such 13 liquors were received and the date and place of receipt of such liquor 14 and the name and address of every person to whom such operator is to 15 make delivery of the same and the place of delivery, together with the 16 number of [liters] gallons to be delivered to each person, and, if such 17 liquor is being imported into the state in such motor vehicle or such 18 other means of transport, the name of the distributor importing or caus- 19 ing such liquors to be imported into the state and such other informa- 20 tion as the commissioner may require pursuant to rule or regulation. 21 Every operator of such motor vehicle or such other means of transport 22 shall at the request of a peace officer, acting pursuant to [his] their 23 special duties, a police officer, any representative of the department 24 or any other person authorized by law to inquire into or investigate the 25 transportation of such liquors, produce such manifest, invoice or other 26 document for inspection. The person causing the operation of such motor 27 vehicle or such other means of transport shall be responsible to cause 28 the operator to keep in such operator's possession in such motor vehicle 29 or such other means of transport the manifest, invoice or other document 30 required by this section. The absence of the manifest, invoice or other 31 document required by this section shall give rise to a presumption that 32 the liquors being transported are being imported or caused to be 33 imported into this state for sale or use therein by other than a regis- 34 tered distributor. Moreover, the absence of (1) the place of delivery 35 of liquors on the manifest, invoice or other document with respect to 36 liquors being imported into the state shall give rise to a presumption 37 that such liquors are being imported into the state for sale or use in 38 the state and (2) the name of a registered distributor on the manifest, 39 invoice or other document with respect to liquors being imported into 40 the state shall give rise to a presumption that such liquors are being 41 so imported or caused to be imported into this state, for sale or use 42 therein, by other than a registered distributor. Such presumptions may 43 be rebutted by the introduction of substantial evidence to the contrary. 44 § 7. Subdivisions 1 and 2 of section 429 of the tax law, subdivision 1 45 as amended by section 1 of part Q of chapter 59 of the laws of 2021 and 46 subdivision 2 as amended by chapter 433 of the laws of 1978, are amended 47 to read as follows: 48 1. Every distributor, noncommercial importer or other person shall, on 49 or before the twentieth day of each month, file with the department [of 50 taxation and finance] a return, on forms to be prescribed by the commis- 51 sioner and furnished by such department, stating separately the number 52 of gallons, or lesser quantity, of beers, [and the number of liters, or 53 lesser quantity, of] wines and liquors sold or used by such distributor, 54 noncommercial importer or other person in this state during the preced- 55 ing calendar month, except that the commissioner may, if [he or she 56 deems] they deem it necessary to facilitate the efficient reporting and 
 S. 6206 5 1 payment of the tax imposed by this article, require returns to be made 2 at such times and covering such periods as [he or she] they may deem 3 necessary. Such return shall contain such further information as the 4 commissioner shall require. The fact that the name of the distributor, 5 noncommercial importer or other person is signed to a filed return shall 6 be prima facie evidence for all purposes that the return was actually 7 signed by such distributor, noncommercial importer or other person. 8 2. Each such distributor, noncommercial importer or other person shall 9 pay to such department with the filing of such return, the tax imposed 10 by this article, on each gallon, or lesser quantity, of [beers and on 11 each liter, or lesser quantity of all other] all alcoholic beverages 12 sold or used by such distributor, noncommercial importer or other person 13 in this state, as so reported, during the period covered by such return, 14 except that, where a distributor has purchased alcoholic beverages prior 15 to the expiration of the period covered by the return, upon which the 16 taxes imposed by this article have been or are required to be paid by 17 another distributor, a credit shall be allowed for the amount of such 18 taxes. 19 § 8. Paragraph (b) of subdivision 1 and subdivision 2 of section 445 20 of the tax law, as amended by chapter 433 of the laws of 1978, are 21 amended to read as follows: 22 (b) [Twenty-six and four-tenths] Ninety-nine and nine-tenths cents per 23 [liter] gallon on the liquors described in paragraph (f) of subdivision 24 one of section four hundred twenty-four of this article, when sold or 25 used in such city. 26 2. Every local law imposing taxes pursuant to the authority of subdi- 27 vision one shall also impose upon each person, other than a distributor 28 within the meaning of such local law, who, on the date the taxes imposed 29 pursuant to the authority of such subdivision become effective, owns and 30 possesses for the purposes of sale beer, or other alcoholic beverages 31 described in subdivision one of this section, a floor tax at the rates 32 applicable under subdivision one upon such beer or other alcoholic 33 beverages in excess of one hundred gallons [and upon such other alcohol- 34 ic beverages in excess of four hundred liters]. Such floor tax shall be 35 due and payable on the twentieth day of the month succeeding the month 36 in which the taxes become effective. 37 § 9. Subdivisions (e), (f) and (g) of section 1813 of the tax law, as 38 amended by section 27 of subpart I of part V-1 of chapter 57 of the laws 39 of 2009, are amended to read as follows: 40 (e) Person not registered as a distributor. (1) Any person required to 41 be registered as a distributor pursuant to the provisions of article 42 eighteen of this chapter who, while not so registered, knowingly imports 43 or causes to be imported into the state, for sale or use therein, any 44 liquors or, who, except in accordance with clause (i) or (ii) of para- 45 graph (b) of subdivision four of section four hundred twenty of this 46 chapter, knowingly produces, distills, manufactures, compounds, mixes or 47 ferments in this state any such liquors for sale, or who, as a purchaser 48 of a warehouse receipt, knowingly causes liquors covered by such receipt 49 to be removed from a warehouse in this state, shall be guilty of a class 50 A misdemeanor. Provided, however, that any person who has twice been 51 convicted under this section within the preceding five years, shall be 52 guilty of a class E felony for any subsequent violation of this para- 53 graph. 54 (2) Any person who, while not registered as a distributor pursuant to 55 the provisions of article eighteen of this chapter, knowingly and inten- 56 tionally imports or causes to be imported into this state, for sale or 
 S. 6206 6 1 use therein, more than [three hundred sixty liters] ninety-five gallons 2 of liquors into this state in a one-year period or, except in accordance 3 with clause (i) or (ii) of paragraph (b) of subdivision four of section 4 four hundred twenty of this chapter, knowingly and intentionally produc- 5 es, distills, manufactures, compounds, mixes or ferments for sale more 6 than [three hundred sixty liters] ninety-five gallons of such liquors 7 within this state in a one-year period, or, as a purchaser of a ware- 8 house receipt, knowingly and intentionally causes more than [three 9 hundred sixty liters] ninety-five gallons of liquors in a one-year peri- 10 od to be removed from a warehouse in this state, shall be guilty of a 11 class E felony. 12 (3) For purposes of this subdivision, it shall be presumed that the 13 importation or the causing to be imported into this state or the 14 production, distillation, manufacture, compounding, mixing or fermenting 15 in this state of more than [ninety liters] twenty-four gallons of such 16 liquors by any person in a one-year period is for purposes of sale. Such 17 presumption may be rebutted by the introduction of substantial evidence 18 to the contrary. 19 (f) Person not registered as a distributor for city purposes. (1) Any 20 person required to be registered as a distributor for city purposes 21 pursuant to the provisions of section four hundred forty-five of article 22 eighteen of this chapter who, while not so registered, knowingly imports 23 or causes to be imported into such city, for sale or use therein, any 24 liquors or, who, except in accordance with clause (i) or (ii) of para- 25 graph (b) of subdivision four of section four hundred twenty of this 26 chapter as incorporated into such section four hundred forty-five, know- 27 ingly produces, distills, manufactures, compounds, mixes or ferments in 28 such city any such liquors for sale, or who, as a purchaser of a ware- 29 house receipt, causes liquors covered by such receipt to be removed from 30 a warehouse in this state, shall be guilty of a class A misdemeanor. 31 Provided, however, that any person who has twice been convicted under 32 this section within the preceding five years shall be guilty of a class 33 E felony for any subsequent violation of this paragraph. 34 (2) Any person who, while not registered as a distributor for city 35 purposes pursuant to the provisions of section four hundred forty-five 36 of article eighteen of this chapter, knowingly and intentionally imports 37 or causes to be imported into such city, for sale or use therein, more 38 than [three hundred sixty liters] ninety-five gallons of liquors into 39 such city in a one-year period or, except in accordance with clause (i) 40 or (ii) of paragraph (b) of subdivision four of section four hundred 41 twenty of this chapter as incorporated into such section four hundred 42 forty-five, knowingly and intentionally produces, distills, manufac- 43 tures, compounds, mixes or ferments for sale more than [three hundred 44 sixty liters] ninety-five gallons of such liquors within such city in a 45 one-year period, or, as a purchaser of a warehouse receipt, knowingly 46 and intentionally causes more than [three hundred sixty liters] ninety- 47 five gallons of liquors in a one-year period to be removed from a ware- 48 house in this state, shall be guilty of a class E felony. 49 (3) For purposes of this subdivision, it shall be presumed that the 50 importation or the causing to be imported into such city or the 51 production, distillation, manufacture, compounding, mixing or fermenting 52 in such city of more than [ninety liters] twenty-four gallons of liquors 53 by any person in a one-year period is for purposes of sale. Such 54 presumption may be rebutted by the introduction of substantial evidence 55 to the contrary. 
 S. 6206 7 1 (g) Any person, other than the distributor registered under article 2 eighteen of this chapter which imported or caused the liquors to be 3 imported into this state, who shall willfully and knowingly have in 4 [his] their custody, possession or under [his] their control liquors 5 with respect to which the taxes imposed by or pursuant to the authority 6 of article eighteen of this chapter have not been assumed or paid by a 7 distributor registered as such under such article, shall be guilty of a 8 class B misdemeanor; if such person shall willfully and knowingly have 9 more than [ninety liters] twenty-four gallons of such liquors in [his] 10 their custody or possession or under [his] their control, such person 11 shall be guilty of a class A misdemeanor; or if such person shall know- 12 ingly and intentionally have more than [three hundred sixty liters] 13 ninety-five gallons of such liquors in [his] their custody or possession 14 or under [his] their control, such person shall be guilty of a class E 15 felony. For purposes of this subdivision, such person shall willfully 16 and knowingly have in [his] their custody, possession or under [his] 17 their control any liquors with respect to which such taxes have not been 18 assumed or paid by a distributor registered as such where such person 19 has knowledge of the requirement of such taxes and where, to [his] their 20 knowledge, such taxes have not been assumed or paid by a registered 21 distributor with respect to such liquors. 22 § 10. Subdivisions (a), (k) and (l) of section 1845 of the tax law, as 23 added by chapter 508 of the laws of 1993, are amended to read as 24 follows: 25 (a) Temporary seizure. Whenever a police officer designated in section 26 1.20 of the criminal procedure law or a peace officer designated in 27 subdivision four of section 2.10 of such law, acting pursuant to [his] 28 their special duties, shall discover more than [ninety liters] twenty- 29 four gallons of liquors which are being imported for sale or use in the 30 state, where the person importing or causing such liquors to be imported 31 is not registered as a distributor under section four hundred twenty-one 32 of this chapter, such police officer or peace officer is hereby author- 33 ized to seize and take possession of such liquors, and to seize and take 34 possession of the vehicle or other means of transportation used to 35 transport such liquors. 36 (k) An additional ground for seizure and forfeiture under this section 37 shall be where such police officer or peace officer shall discover more 38 than [ninety liters] twenty-four gallons of liquors in this state, with 39 respect to which the taxes imposed by or pursuant to article eighteen of 40 this chapter have not been paid or assumed by a person registered as a 41 distributor pursuant to such article, which are in the course of 42 distribution in this state or which are being sold in this state. All 43 the foregoing subdivisions of this section shall apply to the seizure 44 and forfeiture of liquors referred to in this subdivision and the vehi- 45 cle transporting the same as if such foregoing subdivisions specifically 46 referred to such grounds and as if such grounds set forth in this subdi- 47 vision were set forth as grounds for seizure in subdivision (a) hereof. 48 Provided that in the forfeiture action with respect to the liquors or 49 vehicle referred to in this subdivision, the department shall be 50 required to show that such liquors were found within the state and that 51 they were in the course of distribution in this state or were being sold 52 in this state. 53 (l) This section shall also apply to a forfeiture action with respect 54 to the importation of more than [ninety liters] twenty-four gallons of 55 liquors into a city imposing a tax pursuant to the authority of section 56 four hundred forty-five of this chapter by a person not registered as a 
 S. 6206 8 1 distributor for purposes of such tax or, in addition, with respect to 2 the distribution or sale of untaxed liquors in such city. 3 § 11. This act shall take effect on the one hundred eightieth day 4 after it shall have become a law.