NY’s Craft Beverage Industry To Get Boost From Latest State Budget

New York's wine, beer, cider and spirits industry is getting some more help from the State with a new proposal outlined in the latest state budget.

The proposed tax exemption will allow a 'Use Tax' to be waived for products that are produced for sale but are used for promotional events like tastings.

“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,” Governor 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, and I encourage New Yorkers to try one of the Empire State’s many world-class craft beverages today.”

The current law only gives this exemption to the wine industry but will now be expanded to include craft beer, cider and spirits.

“This proposal further demonstrates that Governor Cuomo’s administration is doing everything it can to foster and develop the growth of the craft beer industry in New York State," said Paul Leone, Executive Director of the New York State Brewers Association. "Removing the tasting tax would further allow brewers to put more money back into their businesses so they can continue to grow here and create more jobs.”

"New York spirits producers rely on tastings to introduce their products to consumers and build awareness of the high quality and diversity of our craft spirits," Nicole Austin, President of the New York State Distillers Guild. "Reducing the cost and paperwork associated with these tastings will allow distillers to focus on championing their product and growing their business. The New York State Distillers Guild supports this important step towards simplifying and streamlining distillery operations."

The updated 'Use Tax' exemption will also cover all craft beverage producers both on and off their property, as current law only covers tastings on the property where it was made.

The proposal also includes an exemption for bottles, corks, caps, and labels that are used for tastings.