The New York State Vending Association (NYSVA) has asked members to send a letter in support of an amendment to the tax law would increase the exemption for food and beverages sold through vending machines from $0.75 to $1.50.
The association has prepared a letter for members to individually send to State Sen. John DeFrancisco, chairman of the state senate finance committee in Albany, N.Y.
Effective March, 1, 2012, certain items sold through a vending machine would be tax exempt when sold for $1.50 or less. Nearby states, including Connecticut and Maine have sales tax exemptions for products sold for $3.50 or less, NYSVA notes.
In 2000, the legislature exempted food and beverage items sold in vending machines from New York State sales tax when sold for $0.75 or less as a way to help the vending industry remain competitive with over the counter sales. Today, there are very few items sold in vending machines for $0.75 or less. Because of the increase in product and operating costs, the value of the current $0.75 exemption is minimal and ineffective, NYSVA notes.
The NYSVA notes the vending industry in New York State has been in decline over the past several years and this proposed amendment will help ensure the future of the many jobs involved with the vending industry.
NYSVA notes the proposed amendment will also benefit consumers in the form of tax relief and in the form of convenience of continuing to have access to products through vending machines. New changes to vending requires calorie displays that will cost the industry millions but will reduce future health care costs
NYSVA claims the projected annual revenue loss in New York State is approximated at $2.5 million. Compounding the issue for the vending industry in New York State is the bottle bill and its lack of enforcement. It is estimated that the vending industry in New York State has lost 25 percent of business to companies from surrounding states which do not have a similar Bottle Bill.
Approximately 35 million cases of beer, malt, carbonated soft drinks; water and wine coolers are being sold in New York State originating from non-deposit states costing New York State $42 million in unclaimed deposits and a net loss of over 5,000 jobs costing New York an additional $12.5 million in lost revenue, NYSVA claims.
With proper enforcement of the bottle bill, including significant fines for violations, New York State could easily realize millions of dollars in increased revenue.
For information, contact Mike Esposito, president of NYSVA, at 518-877-7426 ext. 31; Cell: 518 -265-0728.
