BILL NUMBER: S833
SPONSOR: TEDISCO
 
TITLE OF BILL:
An act to amend the tax law, in relation to providing an exemption for
drugs and medicines for companion and farm animals
 
PURPOSE:
This bill eliminates sales tax collected on medicine for companion and
farm animals at the state level while still providing local governments
the option to forsake their portion of the tax, or to continue collect-
ing it.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends subdivision (a) of section 1115 of the tax law by
adding a new paragraph 3-c.
Section two amends subdivision (b) of section 1107 of the tax law by
adding a new clause 12.
Sections three, four, and five amends Subparagraph (ii) of Subdivision
(a)&(d) of section 1210 of the tax law, as amended by part J of chapter
59 of the laws of 2021, and a new subparagraph (iii) is added with a
provision for a local law to adopt or repeal as it relates to a city
with a population of one million or more.
Section six authorizes the Commissioner of Taxation and Finance to
implement the provisions of this act.
Section seven sets forth the effective date.
 
JUSTIFICATION:
Less than one-half of the states in the nation tax prescription drugs
and medications the same as any other retail sale. In some states, the
consumer ultimately pays the tax. Other states consider the veterinarian
to be the consumer who pays the taxes on prescriptions and medications.
While it would still be at the discretion of local governments to
continue to collect this tax or similarly repeal it, this initiative
will provide a 50% sales tax savings to pet owners even with no action
taken at the local level and will ultimately benefit the health and
well-being of companion and farm animals that Lave no voice. Lifesaving
equipment and medications for our pets should not be taxable or deemed
as miscellaneous retail items. Furthermore, humans and service dogs
currently carry this exemption.
This bill would provide both clarity and uniformity to the law and send
a clear message that our State values humans, service dogs, companion
and farm animals alike, and will not apply sales taxes on prescription
medications unequally.
 
LEGISLATIVE HISTORY:
02/02/16: S.6633 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
05/11/17: S.6258 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
01/03/18: S.6258 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
01/18/19: S.2005 REFERRED TO BUDGET AND REVENUE
01/08/20: S.2005 REFERRED TO BUDGET AND REVENUE
01/06/21: S.522 REFERRED TO BUDGET AND REVENUE
01/05/22: S.522 REFERRED TO BUDGET AND REVENUE
01/04/23: S.401 REFERRED TO BUDGET AND REVENUE
01/03/24: S.401 REFERRED TO BUDGET AND REVENUE
 
FISCAL IMPLICATIONS:
Undetermined.
 
EFFECTIVE DATE:
This bill shall take effect on the first day of the sales tax quarterly
period, as described in subdivision (b) of section 1136 of the tax law,
next commencing at least 90 days after this act shall have become a law
and shall apply in accordance with the applicable transitional
provisions of sections 1106 and 1217 of the tax law.

Statutes affected:
S833: 1115 tax law, 1107 tax law, 1210 tax law