Exemptions are available if you use flavoring syrups in drinks which have milk as the primary ingredient
The below is excerpted from the City’s Q & A:
Question 3: What documentation does the distributor need to obtain from the restaurant if it wishes to exclude the syrups from the SBT
Answer: The distributor will need to obtain documentation from the restaurant operator that the syrups purchased are not used to create sweetened beverages but are intended for other purposes. For example, the distributor may secure from the restaurant a written statement that clearly provides those specific syrups are not used for sweetened beverages but instead are used in the production of certain meal items. The document should be signed by an individual authorized to sign off on tax matters for the restaurant. The distributor will need to retain this signed statement as documentation for the syrups it excluded from the SBT in this instance. If the distributor does not obtain documentation from the restaurant operator, then they should remit the SBT on the distribution of the flavored syrups to the restaurant.
Please print the form, complete, sign, and return to firstname.lastname@example.org and we can stop charging the tax on these items.