Tax Alert: Effective May 1, New York State Increases Excise Tax Rates on Beer / Wine
4/29/2009
An update to this alert has been issued. Click here for more information.
New York State has increased the excise tax rates on beer and wine effective May 1, 2009. As a part of this amended law, the State is imposing a one-time floor tax on beer and wine held in inventory in order to ensure current inventories are subject to the increased tax rate. Click here for an in-depth explanation by the State regarding the new rules, as well as the increased rates themselves.
All restaurants, bars, and other sellers of beer and wine not registered as distributors will need to take a physical inventory on May 1, 2009 prior to opening for business, file a floor tax return, and pay the increased tax on all beer and wine in their possession. The increased excise tax is based upon the liquid volume of the wine and beer inventories, not their value. Even businesses that do not have beer or wine in inventory on May 1st must still file a floor tax return and indicate that no tax is due. All floor tax returns must be filed by July 20, 2009.
You will be receiving the tax form from the State shortly, if you haven't already. The form is also available online at: http://www.tax.state.ny.us/pdf/2009/altab/mt70mn_509.pdf
For more information, contact your J.H. Cohn service professional at 877-704-3500.
Circular 230 Notice: In compliance with U.S. Treasury Regulations, the information included herein (or in any attachment) is not intended or written to be used, for the purpose of i) avoiding penalties the IRS and others may impose on the taxpayer or ii) promoting, marketing or recommending to another party any tax related matters.