§ 25-02 Imposition of the Tax.
RCNY § 25-02
(a)The law imposes a tax for the privilege of selling liquor, wine or beer at retail, for on or off premises consumption, within the City of New York, to be paid annually for each tax year, commencing with the tax year beginning on June 1, 1980, by each retail licensee in an amount equal to 25% of the annual license fees payable under the New York State Alcoholic Beverage Control Law by such retail licensee for the license year in effect at the commencement of the tax year under the law. A retail licensee who obtains a license subsequent to the commencement of a tax year is required to pay the tax based upon the fees payable under the New York State Alcoholic Beverage Control Law by such licensee for the license year in effect at the time such license is issued. The tax imposed is in addition to any and all other taxes paid by such retail licensee.
(b)The tax is required to be paid for each tax year, commencing with the tax year beginning on June 1, 1980, even though the retail licensee may not be engaged in the sale of liquor, wine or beer for the entire tax year. Thus, a retail licensee at the beginning of the tax year who ceases to do business before the expiration of such tax year, or who becomes a retail licensee after the commencement of a tax year, whether or not he ceases to do business at expiration of such tax year, is liable for the tax. Provision for refund of any tax paid is made herein in cases where a retail licensee ceases to do business during the course of a tax year under circumstances which result in, or would entitle him to, a refund of the license fee by the New York State Liquor Authority (See: 19 RCNY § 25-08).
(c)The amount of the tax required to be paid is determined by applying the tax rate, viz: 25% of the annual license fees, or summer or winter license fees, as the case may be, payable under the New York State Alcoholic Beverage Control Law by such retail licensee for the license year in effect at the commencement of the tax year under the law. Where a retail licensee obtains a license subsequent to the commencement of a tax year, the amount of tax required to be paid to the City by such licensee shall be determined by taking that portion of 25% of the annual license fee payable under such law which the remaining number of days in the tax year bears to the total number of days in said tax year, but in no event shall the tax be less than the amount determined by applying such percentage to 25% of the annual license fee payable under the New York State Alcoholic Beverage Control Law, as the minimum license fee payable thereunder bears to the annual license fee payable thereunder for such license; and, in the case of summer or winter licenses issued under the New York State Alcoholic Beverage Control Law, by taking that portion of 25% of the summer or winter license fee payable under said law which the number of days in the remaining calendar months of the tax year for which summer or winter license is issued bears to the number of days in the total calendar months of the tax year for which summer or winter licenses may be issued, but in no event shall the tax be less than the amount determined by applying such percentage to 25% of the summer or winter license fee payable under said law as the minimum license fee payable thereunder bears to the maximum license fee payable thereunder for such license. In the case of licenses issued under the New York State Alcoholic Beverage Control Law for periods of more than one year, the tax required to be paid shall be determined by the license fee payable on a yearly basis. The following will illustrate the above: Illustration 1: A retail licensee obtains a license on March 1, 1980, for the license year commencing March 1, 1980, and expiring February 28, 1981, and pays the annual license fee of $1,200, the amount payable under the New York State Alcoholic Beverage Control Law. He continues in business as a retail licensee to or beyond June 1, 1980. Since the license fee payable for the license year in effect on June 1, 1980 (the date of the commencement of the tax year) is $1,200, the tax payable to the City is 25% thereof, or $300. Illustration 2: Assume that the amount of the annual license fee payable under the New York State Alcoholic Beverage Control Law by the retail licensee for the license year in effect at the time such license is issued is $1,200, and the retail licensee obtains the license on April 1, 1981.
(i)$1,200 × 25% = $300. Where: $1,200 = annual license fee payable under the New York State Alcoholic Beverage Control Law.
(ii)61 × $300 = $50.14 365 Where: 61 = remaining number of days in tax year-April 1st to May 31st, 1981. 365 = total number of days in tax year.
(iii)1/2* of $300 = $150. Since the tax of $50.14 in item (ii) is less than one-half of $300, the tax required to be paid to the City is $150. Illustration 3: Assume the same facts as in illustration (2) above except that the retail license was obtained August 1, 1981.
