The state of New York will double its sales tax exemption for certain foods and drinks from vending machines, bringing some relief to New York operators. Effective June 1, 2014, the sales tax exemption threshold for certain food and beverages sold from a vending machine will increase from 75 cents or less per item to $1.50 or less per item. There are certain requirements to meet that exemption. For a list of requirements or to compute sales tax on sales made from vending machines, click here.
Brian Gill, president of the New York State Automatic Vending Association (NYSAVA), told VendingMarketWatch, “We are not by any means in a position of "green grass and high tides" and much work still lies ahead as we compare our situation to Massachusetts as an example where the current tax exemption rate is $3.50. The relief here in New York will help many operators survive and have something leftover to reinvest in their business for the future and to help sustain jobs and organically grow new jobs that will be technology based.”
He continued, “The relief we have received after several years of hard work by many concerned individuals has created awareness in Albany and throughout the state that has simply served to restore a small portion of the margins our Industry has lost over the years due to the relentless cost of goods increases and inflation in general.”
In April, VendingMarketWatch reported that New York Governor Andrew Cuomo signed into law the budget bill that included an amendment to the state’s tax code regarding the sale of food and beverages through vending machines.
On May 21, the New York State Department of Taxation and Finance released information on the application of the sales tax to food and beverages sold from vending machines.