New York: No Annual Sales Tax Filing for Farm Wineries

The New York State Department of Taxation and Finance recently released Technical Memorandum TSB-M-12(11)S: Farm Wineries and Farm Distilleries Excluded from Filing Annual Sales Tax Information Return. It discusses the New York State Assembly legislation that reduces filing requirements for farm wineries and farm distilleries.

Bill A09523 amends the Tax Law "to exclude businesses operating under a farm winery license and/or a farm distillery license" from filing the annual sales tax information returns required for other "alcoholic beverage wholesalers."

The Statement of Support for the bill points out that "it is difficult for farm wineries and farm distilleries to absorb the cost of complying with the annual filing requirement" because they are, by definition, small. The statement goes on to assure this exemption "will not undermine the effectiveness of the third-party reporting legislation," because farm wineries and distilleries account for such a small percentage of the retailer's purchases.

Bill Number A09523 took effect on July 18, 2012 and applies to annual information returns due on or after March 20, 2012. It will not impact the New York State budget.