WASHINGTON – Senator Kirsten Gillibrand (D-New York) wants to make it easier for Canadians to bring home wine and craft beer produced in New York State. The Senator, who is a recently appointed member the President’s Export Council, is taking action to change a tax regulation, which she says would help increase exports of New York wine and craft beverages to Canada, and attract more tourism to New York’s vineyards, distilleries and breweries.
Gillibrand is calling for a provincial sales tax exemption for all wine and craft beverages grown and produced in New York State. Currently, a 39.6 percent provincial levy is issued in addition to a customs duty paid to the Canadian federal government for anyone bringing more than 1.5 liters of U.S. purchased wine into Ontario, Canada. A similar levy and duty is over 66 percent for the Province of Québec. At the same time, visitors to Canadian wineries can travel back into the U.S. and only pay a 3 percent duty on wine exceeding more than 1 liter.
In 2011, New York exported just $29.6 million worth of alcoholic beverages to Canada, less than half of the $60.4 million that Canada sold to New York State. Gillibrand says its time to level the playing field. She made her request earlier this week in a letter to the U.S. Trade Representative.
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