Governor outlines new tax exemption
ALBANY--Gov. Andrew M. Cuomo outlined new tax exemptions proposed in the 2015-16 executive budget that will further aid the growth of the wine, beer, cider and spirits industries. These proposals include tax exemptions at tastings offered by the beer, cider and spirits industries, which are similar to exemptions already enjoyed by the wine industry, as well as the further expansion of tax exemptions for wineries at tasting events.
"New York's craft beverage industry is creating jobs and driving economic activity in communities across the state -- and this year's budget is designed to keep that momentum going well into the future," Cuomo said. "By expanding tax exemptions for wine, beer, spirits and cider industries, we're helping local producers thrive and creating an environment that encourages their success. This proposal is a smart investment in some of our most rapidly growing small businesses."
Current law provides an exemption on the "Use Tax" for wine tastings, which applies to products that are produced for sale but end up being used for promotional and marketing purposes. The proposal in the 2015-16 Executive Budget expands this exemption to include tastings provided by the beer, cider and spirits industries, which will allow hundreds more craft beverage producers to better market their products and reinvest in their businesses.
The governor's budget also proposes to expand the "Use Tax" exemption for all craft beverage producers by including an exemption for off-premises tastings. Current law only provides a "Use Tax" exemption for wine tastings on a producer's premises, and this applies to only wines furnished at such tastings. Bottles, corks, caps and labels do not have such exemptions. The proposal outlined in the governor's executive budget not only exempts bottles, corks, caps and labels from this tax, but also allows for a "Use Tax" exemption covering all New York craft beverage producers both on and off their premises.
Jim Trezise, president of the New York Wine and Grape Foundation, said, "In 2012, the New York grape and wine industry generated $4.8 billion for New York State's economy. We greatly appreciate Governor Cuomo's initiative to exempt from tax bottles, corks, caps and labels at tastings. In the past four years, Governor Cuomo has created the best business climate for wine in New York State's history, which allows our industry to grow faster and contribute even more to the state's economy."
For more about New York's growing farm-based beverage industry, visit www.taste.ny.gov.