Alcoholic beverages tax
The New York State Supreme Court, in Shelton v. NYS Liquor Authority & NYS Department of Taxation and Finance, has ordered and declared the brewer's exemption contained in section 424(6) of the Tax Law to be unconstitutional and of no force and effect. As a result, the first 6,200,000 gallons of beer brewed in New York by a brewer whose principal executive office is located in New York are no longer exempt.

Accordingly, effective March 28, 2012, distributors are subject to the alcoholic beverages tax on all beer sold in New York State (not otherwise exempt).

For details, see TSB-M-12(1)M, Brewer's Exemption Declared Unconstitutional.

 The tax applies to you if you're:

  • A registered distributor, someone who:
    • Imports alcoholic beverages into New York State and offers them for sale or uses them for commercial purposes;
    • Produces, distills, manufactures, brews, compounds, mixes, or ferments alcoholic beverages within New York State and offers them for sale;
    • Purchases warehouse receipts for alcoholic beverages stored in a warehouse located in New York then removes the beverages from the warehouse;or,
    • Imports more than 360 liters of liquor in a one-year period for his or her own use.
  • An individual who brings beer, wine, or liquor into New York and is not a registered distributor.

 

Last Modified: April 20, 2012