NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4216
SPONSOR: Cunningham TITLE OF BILL:
An act to amend the tax law, in relation to excluding certain food
donations from sales tax
PURPOSE OR GENERAL IDEA OF BILL:
Amends the tax law to exempt meal swipe donations from sales tax
SUMMARY OF PROVISIONS:
Section 1 amends the tax law to exempt from sales tax any donations of
food points or funds from college or university food service plans by
the plan holders to other students.
Section 2 sets the effective date
JUSTIFICATION:
There are several programs that are designed to help students meet their
needs. One of these programs that is designed to help students meet
their nutritional needs is Swipe Out Hunger. They work with college
campuses to allow students to donate unused meal swipes so other
students can use them if they are eligible to receive the donations.
Currently in New York State there are several SUNY institutions that
already work with Swipe Out Hunger. This list includes but is not limit-
ed to SUNY Adirondack, Binghamton, Broome Community college, Clinton
community college,cobleskill, College at Old Westbury, Corning community
college, Cobleskill, Cortland, Delhi, Fulton-Montgomery Community
College, Herkimer County Community College, MorrisVille, Old Westbury,
Oneonta, Onondaga Community College, Orange, Oswego, Polytechnic Insti-
tute, Potsdam, Schenectady County Community College, Sullivan, Ulster,
University of Albany and Westchester community college.
Even with this program, many students choose not to donate their unused
meal swipes because NYS tax law only excluded meal swipes that are being
used on the student they were purchased for. In other words the majority
of a student's meal plan is not eligible for donation without first
paying additional sales tax. The only meal swipes that are eligible for
donation without getting an additional tax are guest swipes.
This law intends to fix this loop hole so that students who do not use
all of their meal swipes are able to donate them without needing to pay.
Swipe out Hunger has over 750 partnerships throughout the country rang-
ing from California and extending as far out as Puerto Rico, Hawaii as
well as Alaska.
PRIOR LEGISLATIVE HISTORY:
2023-24: A9563/S8873-A - Referred to Ways and Means / Passed Senate
FISCAL IMPLICATIONS FOR STATE ANT LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect on the first day of a sales tax quarterly
period, as described in subdivision (b) of section 1136 of the tax law,
beginning at least 90 days after the date this act shall have become a
law and shall apply to sales made on or after such date.
STATE OF NEW YORK
________________________________________________________________________
4216
2025-2026 Regular Sessions
IN ASSEMBLY
January 31, 2025
___________
Introduced by M. of A. CUNNINGHAM -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to excluding certain food
donations from sales tax
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (B) of paragraph (ii) of subdivision (d) of
2 section 1105 of the tax law, as amended by chapter 135 of the laws of
3 1972, is amended to read as follows:
4 (B) food or drink sold to a student of a nursery school, kindergarten,
5 elementary or secondary school at a restaurant or cafeteria located on
6 the premises of such a school, or food or drink, other than beer, wine,
7 or other alcoholic beverages, sold at a restaurant, tavern or other
8 establishment located on the premises of a college, university or a
9 school (other than a nursery school, kindergarten, elementary or second-
10 ary school) to a student enrolled therein who purchases such food or
11 drink under a contractual arrangement whereby the student does not pay
12 cash at the time [he] such student is served, including food sold to a
13 student enrolled therein purchasing a meal using an approved donation
14 program of funds or food points, provided the school, college or univer-
15 sity described in this subparagraph is operated by an exempt organiza-
16 tion described in subdivision (a) of section eleven hundred sixteen, or
17 is created, incorporated, registered, or licensed by the state legisla-
18 ture or pursuant to the education law or the regulations of the commis-
19 sioner of education, or is incorporated by the regents of the university
20 of the State of New York or with their consent or the consent of the
21 commissioner of education as provided in section two hundred sixteen of
22 the education law; and
23 § 2. This act shall take effect on the first day of a sales tax quar-
24 terly period, as described in subdivision (b) of section 1136 of the tax
25 law, beginning at least 90 days after the date this act shall have
26 become a law and shall apply to sales made on or after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03823-01-5
