Res 1071-2016

By Council Member Levin Whereas, New York City imposes a tax on commercial beer brewers and distributors within the City in the amount of 12 cents per gallon; and Whereas, New York State similarly imposes a tax of 14 cents per gallon on commercial beer brewers within the State; Whereas, However, in order to foster and cultivate New York State's brewing industry, the State offers brewers a beer production credit; and Whereas, Such credit is available to registered distributors that produce 60,000,000 gallons or fewer of beer within New York State; and Whereas, The available credit is 14 cents per gallon for the first 500,000 gallons of beer produced and 4.5 cents per gallon for each additional gallon over 500,000 up to 15,500,000 gallons; and Whereas, Since the credit was instituted in 2012, the number of breweries in the State has grown from 95 to 240 in 2015, making New York State the fifth highest beer-producing state in the country, according to the New York State Brewers Association; and Whereas, Since there is no corresponding credit against the City's tax, New York City's brewers are penalized when compared to brewers in other parts of the State simply by virtue of their location; and Whereas, S.6303, sponsored by Senator Golden, and A.1719, sponsored by Assembly Member Lentol, would erase that disparity and provide a beer production tax credit to registered distributors that produce 60,000,000 or fewer gallons of beer within New York City; Whereas, Such tax credit would be 12 cents per gallon for the first 500,000 gallons of beer produced and 3.86 cents per gallon for each additional gallon over 500,000 up to 15,500,000 gallons; and Whereas, There are more than 30 breweries in New York City, all of which contribute to the City and State's economic engines, and they deserve to be treated equitably as compared to other brewers in the State; and Whereas, The City is committed to promoting local industry, job creation, and products made in New York City; now, therefore, be it Resolved, That the Council of the City of New York calls upon the New York State Legislature to pass, and the Governor to sign, S.6303/A.1719, which would provide a beer production tax credit to registered distributors that produce beer within New York City. RC LS #8377 2 1