Bill
A 11002
The bill standardizes alcoholic beverage taxes using gallons as the base unit, aligning rates, records, and enforcement to a gallon-based framework.
Topic: Establishes the gallon as the standard measurement for purposes of taxation of alcoholic beverages
Jurisdiction: New York
Introduction and Status
- Introduced in the Assembly on April 16, 2026 by Assembly members Stirpe and Burke (Co-sponsors: Pat Burke, Al Stirpe).
- Referred to the Committee on Ways and Means.
- The act would take effect 180 days after becoming law.
Purpose and intent
- The bill updates several provisions of the New York tax law to standardize measurement units around the gallon for taxation of alcoholic beverages (replacing or aligning with liter-based references in multiple sections).
- It aims to clarify, standardize, and potentially simplify tax administration, recordkeeping, and compliance by using gallons as the principal unit for taxes on liquors and other alcoholic beverages.
Key Provisions and Changes
1) Registration and distribution (Section 1)
- Revisions to registration requirements for liquor distributors.
- Maintains licensing prerequisites under the Alcoholic Beverage Control Law as a condition of registration.
- Provides exemptions for certain individuals:
- Individuals who import small quantities for personal use (up to 24 gallons/approximately 95 liters per year for personal use) may register with a streamlined process or be exempt from full registration.
- An abbreviated registration (permit form, no bond) may allow importation up to 95 gallons per year for personal use.
2) Tax rate structure and administration (Section 2)
- Converts references from liters to gallons for taxes on liquors.
- Sets a rate of $2.54 per gallon for liquors with at most 24% alcohol by volume, with a separate rate of $0.04 per gallon for liquors with alcohol content up to 2% (these provisions appear to restore a nominal tax on low-alcohol products).
- Applies a general rate of $6.44 per gallon for all other liquors (with exceptions noted for certain federal or state exemptions and military/consular arrangements).
- Establishes a presumption framework for possession for sale based on a 24-gallon threshold (replacing prior 90-liter threshold).
- Aligns fractional tax assessments to the gallon measurement when the quantity is not a whole gallon.
3) Taxability presumption and administration (Section 3)
- Maintains a presumption that all alcoholic beverages in the state are taxable unless proven otherwise, with specifics on liquor taxation via distributor invoices.
4) Recordkeeping and invoicing (Sections 4 and 5)
- Requires brand owners, distributors, and other entities to keep detailed records of purchases, sales, and production in gallons and liters where applicable.
- Incoming and outgoing invoices for liquor sales must be serially numbered and include brand name, description, price, quantity, and other required details.
5) Transportation and manifests (Section 6)
- Expands transport documentation requirements to vessels transporting more than 24 gallons of liquor.
- Requires manifests or invoices showing supplier, recipient, delivery details, and quantities.
- Establishes presumptions if documents are missing (importation or sale may be inferred).
6) Returns and payment (Section 7)
- Monthly reporting requirement for distributors, noncommercial importers, or others, detailing gallons of beers and liters/gallons of other beverages sold or used in the state.
- Tax payment due with the monthly return; credits possible for pre-paid taxes on inventory.
7) Local taxes and floor tax (Section 8)
- References a local floor tax framework, with tax rates aligned to the gallon standard for beer and other beverages, including thresholds for excess inventory.
8) Penalties and enforcement (Sections 9–10)
- Adjusts penalties and enforcement provisions for non-registered individuals, including misdemeanors and felonies for illicit importation, production, or distribution of untaxed liquor.
- Expands seizure and forfeiture authority for liquors transported or possessed without proper registration and tax payment (including city-specific authority).
9) Seizure and forfeiture references (Section 10)
- Temporary seizure and additional grounds for forfeiture linked to transportation and distribution of untaxed liquors.
Impact and who would be affected
Timing and effective date
Notes
Overall, Bill A. 11002 seeks to standardize the measurement unit for tax purposes around the gallon, with corresponding adjustments to registration, recordkeeping, invoicing, transportation documentation, tax rates, and enforcement to align with this unit.
Compiled from official sources — confirm details with the bill’s official record.
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