Current through Register Vol. 46, No. 12, March 20, 2024
(a)
Food and food products.
(1) Food and food products, except candy and
confectionery, when sold for human consumption, are exempt from sales and
compensating use tax. See section
528.27
of this Part for exempt purchases of candy and confectionery when purchased
with food stamps.
(2) The terms
food and
food products as used in this
section mean edible commodities whether prepared, processed, cooked, raw,
canned or in any other form, which are generally regarded as food. This
category includes, but is not limited to:
meat and meat products
milk products
cereals and grain products
baked goods
vegetables and vegetable products
fruits and fruit products
poultry
fish and seafood
frozen entrees and desserts
jellying agents
fats, oils and shortenings
condiments
spices
sweetening agents
food preservatives
food coloring
frozen dinners
snacks (except candy and confections)
A list of taxable and exempt food and food products is
available upon request at any district tax office or directly from the bureau's
main office in Albany.
(3)
The phrase sold for human consumption means that the items
sold are, in their normal use, regarded as being for human consumption. Pet
foods, which are packaged, labeled or advertised as such, are not deemed sold
for human consumption.
(4) Candy
and confectionery include, without limitation, candy of all types; chocolate
(plain or mixed with other products); glazed or sugar-coated fruits, nuts,
peanuts, popcorn or other products; chewing gum; mints; lollypops; fruit
flavored sticks; fruit drops; licorice; pastilles; cotton candy; marzipan;
halvah and any similar product regarded as candy or confectionery based on its
normal use or as indicated on the label or in the advertising
thereof.
(5) Items advertised and
sold for use in cooking and baking, such as chocolate morsels and glazed fruit,
are exempt from tax.
(b)
Beverages, other than water.
(1)
Beverages sold for human consumption are exempt from sales and compensating use
tax, except for:
(i) fruit drinks which
contain less than 70 percent of natural fruit juices;
(ii) soft drinks, sodas and beverages, such
as are ordinarily dispensed at soda fountains (other than coffee, tea or
cocoa);
(iii) beer, wine and other
alcoholic beverages.
(2)
A beverage is a drink, whether sold in liquid form or otherwise.
Cross-reference:
See section
528.27
of this Part for exempt purchases with food stamps of otherwise taxable fruit
drinks, soft drinks, sodas and beverages.
(3) Fruit juices are exempt beverages. Fruit
drinks, aides, nectars and cocktails which contain less than 70 percent natural
fruit juices, are taxable.
(4) Soft
drinks and sodas include carbonated and noncarbonated beverages, carbonated
water, dietetic beverages and cocktail and other alcoholic drink
mixes.
(5) Vegetable juices,
whether made of a single vegetable, or a combination of vegetables, or a
combination of a vegetable and other food product are exempt beverages.
Example:
A juice composed of tomato juice and clam extract is
exempt.
(c)
Dietary foods and health supplements.
(1) A dietary food is a food for a special
dietary use for humans and which bears on the label a statement of the dietary
properties upon which its use is based in whole or in part.
(2) Products which are intended to substitute
for the ordinary diet, or supplement the ordinary diet, or substitute for
natural foods are exempt, when sold for human consumption. Among these are
liquid diet products, artificial sweeteners and vitamins.
(d) Nothing contained within section
1115(a)(1) of the Tax Law
or this section shall be construed as exempting food or drink from the tax
imposed under subdivision (d) of section
1105 of the Tax Law. (See section
527.8 of
this Title.) However, see section
528.27
of this Part for exempt purchases of eligible food and drink when purchased
with food stamps.