Bill Text: NY A05840 | 2019-2020 | General Assembly | Amended
Bill Title: Authorizes the county of Westchester to impose an additional rate of sales and compensating use tax; extends the Westchester county spending limitation act.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A05840 Detail]
Download: New_York-2019-A05840-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5840--A 2019-2020 Regular Sessions IN ASSEMBLY February 20, 2019 ___________ Introduced by M. of A. PRETLOW -- read once and referred to the Commit- tee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to authorizing the county of Westchester to impose an additional rate of sales and compensating use tax; and to amend chapter 272 of the laws of 1991, amending the tax law relating to the method of disposition of sales and compensating use tax revenue in Westchester county and enacting the Westchester county spending limitation act, in relation to extending the expira- tion thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (i) of the opening paragraph of section 1210 2 of the tax law is amended by adding a new clause 42 to read as follows: 3 (42) the county of Westchester is hereby further authorized and 4 empowered to adopt and amend local laws, ordinances or resolutions 5 imposing such taxes at a rate that is one percent additional to the 6 three percent rate authorized above in this paragraph for such county 7 for the period beginning March first, two thousand nineteen and ending 8 November thirtieth, two thousand twenty-two; 9 § 2. Section 1224 of the tax law is amended by adding a new subdivi- 10 sion (jj) to read as follows: 11 (jj) The county of Westchester shall have the sole right to impose the 12 additional one percent rate of tax which such county is authorized to 13 impose pursuant to the authority of section twelve hundred ten of this 14 article. Such additional rate of tax shall be in addition to any other 15 tax which such county may impose or may be imposing pursuant to this 16 article or any other law and such additional rate of tax shall not be 17 subject to preemption. The maximum three percent rate referred to in 18 this section shall be calculated without reference to the additional one 19 percent rate of tax which the county of Westchester is authorized and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09824-04-9A. 5840--A 2 1 empowered to adopt pursuant to section twelve hundred ten of this arti- 2 cle. 3 § 3. Section 1262-b of the tax law, as amended by section 1 of part A 4 of chapter 8 of the laws of 2004, is amended to read as follows: 5 § 1262-b. The Westchester county property tax stabilization and relief 6 act. (a) Notwithstanding any other provision of law to the contrary, if 7 the county of Westchester imposes sales and compensating use taxes 8 pursuant to [subdivision (a)] clause forty-two of subparagraph (i) of 9 the opening paragraph of section twelve hundred ten of this article at 10 the rate of [three] four percent: 11 (1) The county shall allocate net collections from such taxes imposed 12 at the rate of one and one-half percent countywide among the cities and 13 towns of the county on the basis of the ratio which the full valuation 14 of real property in each city or town bears to the aggregate full valu- 15 ation of real property in all cities and towns of the county. Amounts 16 so allocated shall be credited to each of said cities and towns against 17 the county taxes levied upon real property in said cities and towns. 18 (2) The county shall allocate and credit or pay net collections 19 received by the county by reason of its additional one percent rate of 20 such taxes on the area of the county outside any city imposing sales and 21 compensating use taxes at a rate of one and one-half percent or greater 22 pursuant to the authority of subdivision (a) or at any rate pursuant to 23 the authority of [subdivision (b)] clause forty-two of subparagraph (i) 24 of the opening paragraph of section twelve hundred ten of this article 25 as follows: 26 (A) One-third of such net collections shall be allocated and credited 27 in the manner set forth in paragraph one of this subdivision. 28 (B) One-sixth of such net collections shall be allocated and paid 29 quarterly by the county commissioner of finance, in cash, to the several 30 school districts in such area of the county outside any such city impos- 31 ing sales and compensating use taxes. Such allocation and payment, to 32 such several school districts, shall be made on the basis of the ratio 33 which the population of each such school district bears to the aggregate 34 population of all of the school districts in such area. In the case of 35 school districts which are partially within and partially without the 36 county, or partially within or partially without the area of the county 37 outside a city imposing sales and compensating use taxes, the allocation 38 and payment to each such school district shall be made on the basis of 39 the population in such school district in the county, or in such area of 40 the county outside a city imposing sales and compensating use taxes, as 41 the case may be. Such populations shall be determined in accordance with 42 the latest federal census or special population census under section 43 twenty of the general municipal law completed and published prior to the 44 end of the quarter in which such allocation and payment are made, which 45 special population census shall include the entire area of the county; 46 provided that such special population census shall not be taken more 47 than once in every two years. A school district split between Westches- 48 ter county and another county shall apply such allocation and payment 49 solely to the benefit of the residents of the county in which the sales 50 and compensating use taxes are imposed. 51 (C) One-half of such net collections shall be allocated and paid quar- 52 terly by the county commissioner of finance, in cash, to the cities not 53 imposing sales and compensating use taxes and to the towns and villages 54 on which such additional one percent rate is imposed, on the basis of 55 the ratio which the population of each such city, town or village on 56 which such additional one percent rate is imposed bears to the entireA. 5840--A 3 1 population of all such cities, towns and villages in the area on which 2 such additional one percent rate is imposed. Such populations shall be 3 determined in accordance with the latest federal census or special popu- 4 lation census under section twenty of the general municipal law 5 completed and published prior to the end of the quarter in which such 6 allocation is made, which special population census shall include the 7 entire area of the county; provided that such special population census 8 shall not be taken more than once in every two years. 9 (D) The quarterly allocation and payment of cash to cities, towns, 10 villages and school districts provided for under this paragraph and 11 under paragraph three of this subdivision may be made after payment by 12 the state comptroller to the county of the net collections subject to 13 such allocation and receipt by the county commissioner of finance of the 14 quarterly settlement report issued by the department, and may include 15 adjustments for corrections applicable to such allocations. All ratios 16 established by the county commissioner of finance with respect to allo- 17 cations to cities, towns, villages and school districts under this 18 subdivision shall be carried to four decimal places. The allocation of 19 net collections and payment of cash provided for under this paragraph 20 and under paragraph three of this subdivision shall be made to a town 21 based upon the population of the town less the population of any village 22 therein, provided that a town/village or village/town shall be deemed a 23 village for the purpose of determining such allocation. The allocation 24 of net collections and payment of cash provided for under this paragraph 25 and under paragraph three of this subdivision shall be applied by the 26 cities, towns, villages and school districts receiving such allocation 27 and payment as a credit against the taxes upon real property imposed by 28 such municipalities and school districts, respectively. The allocation 29 and payment received by towns shall be credited against real property 30 taxes in either the general fund town-wide or the town outside village 31 fund or a combination thereof. 32 (3) The county shall allocate and credit or pay net collections 33 received by the county by reason of its additional one and one-half 34 percent rate of such taxes imposed on the area of the county outside any 35 city imposing sales and compensating use taxes at a rate of one and 36 one-half percent or greater pursuant to the authority of subdivision (a) 37 or at any rate pursuant to the authority of subdivision (b) of section 38 twelve hundred ten of this article as follows: 39 (A) Seventy percent of such net collections shall be retained by the 40 county to be used for any county purpose. 41 (B) Ten percent of such net collections shall be allocated and paid in 42 the manner set forth in subparagraph (B) of paragraph two of this subdi- 43 vision. 44 (C) Twenty percent of such net collections shall be allocated and paid 45 in the manner set forth in subparagraph (C) of paragraph two of this 46 subdivision. 47 (b) Nothing in this section shall be construed to impair the powers of 48 a city currently imposing sales and compensating use taxes pursuant to 49 the authority of section twelve hundred ten of this article from contin- 50 uing to do so in accordance with law. No school district in any city 51 imposing such sales and compensating use taxes shall be entitled to 52 receive a cash allocation and payment under paragraph two or three of 53 subdivision (a) of this section. No city, town or village authorized or 54 entitled to receive an allocation under subparagraph (C) of paragraph 55 two or subparagraph (C) of paragraph three of subdivision (a) of thisA. 5840--A 4 1 section shall be authorized or entitled to receive any cash allocation 2 under section twelve hundred sixty-two of this article. 3 § 4. Subdivision e of section 4 and sections 5, 7 and 16 of chapter 4 272 of the laws of 1991, amending the tax law relating to the method of 5 disposition of sales and compensating use tax revenue in Westchester 6 county and enacting the Westchester county spending limitation act, as 7 amended by chapter 81 of the laws of 2017, are amended to read as 8 follows: 9 e. "Spending limitation" means the maximum amount of county spending 10 established in county fiscal years 1992, 1993, 1994, 1995, 1996, 1997, 11 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 12 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [and], 2020, 13 2021 and 2022. 14 § 5. Establishment of annual spending limitation. a. For county fiscal 15 years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 16 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 17 2015, 2016, 2017, 2018, 2019 [and], 2020, 2021 and 2022 there shall be 18 in effect an annual spending limitation. The spending limitation shall 19 be derived from a fixed percentage reflecting the ratio of base year 20 spending to county personal income. County personal income for such 21 calculation shall be for the period January 1, 1986 through December 31, 22 1986. Such percentage shall be applied to county personal income for the 23 period January 1, 1989 through December 31, 1989, to determine the 24 spending limitation for county fiscal year 1992; to determine the spend- 25 ing limitation for county fiscal year 1993, such percentage shall be 26 applied to county personal income for the period January 1, 1990 through 27 December 31, 1990; to determine the spending limitation for county 28 fiscal year 1994, such percentage shall be applied to county personal 29 income for the period January 1, 1991 through December 31, 1991; to 30 determine the spending limitation for county fiscal year 1995, such 31 percentage shall be applied to county personal income for the period 32 January 1, 1992 through December 31, 1992; to determine the spending 33 limitation for county fiscal year 1996, such percentage shall be applied 34 to county personal income for the period January 1, 1993 through Decem- 35 ber 31, 1993; to determine the spending limitation for county fiscal 36 year 1997, such percentage shall be applied to county personal income 37 for the period January 1, 1994 through December 31, 1994; to determine 38 the spending limitation for county fiscal year 1998, such percentage 39 shall be applied to county personal income for the period January 1, 40 1995 through December 31, 1995; to determine the spending limitation for 41 county fiscal year 1999, such percentage shall be applied to county 42 personal income for the period January 1, 1996 through December 31, 43 1996; to determine the spending limitation for county fiscal year 2000, 44 such percentage shall be applied to county personal income for the peri- 45 od January 1, 1997 through December 31, 1997; to determine the spending 46 limitation for county fiscal year 2001, such percentage shall be applied 47 to county personal income for the period January 1, 1998 through Decem- 48 ber 31, 1998; to determine the spending limitation for county fiscal 49 year 2002, such percentage shall be applied to county personal income 50 for the period January 1, 1999 through December 31, 1999; to determine 51 the spending limitation for county fiscal year 2003, such percentage 52 shall be applied to county personal income for the period January 1, 53 2000 through December 31, 2000; to determine the spending limitation for 54 county fiscal year 2004, such percentage shall be applied to county 55 personal income for the period January 1, 2001 through December 31, 56 2001; to determine the spending limitation for county fiscal year 2005,A. 5840--A 5 1 such percentage shall be applied to county personal income for the peri- 2 od January 1, 2002 through December 31, 2002; to determine the spending 3 limitation for county fiscal year 2006, such percentage shall be applied 4 to county personal income for the period January 1, 2003 through Decem- 5 ber 31, 2003; to determine the spending limitation for the county fiscal 6 year 2007, such percentage shall be applied to county personal income 7 for the period January 1, 2004 through December 31, 2004; to determine 8 the spending limitation for the county fiscal year 2008, such percentage 9 shall be applied to county personal income for the period January 1, 10 2005 through December 31, 2005; to determine the spending limitation for 11 the county fiscal year 2009, such percentage shall be applied to county 12 personal income for the period January 1, 2006 through December 31, 13 2006; to determine the spending limitation for the county fiscal year 14 2010, such percentage shall be applied to county personal income for the 15 period January 1, 2007 through December 31, 2007; to determine the 16 spending limitation for the county fiscal year 2011, such percentage 17 shall be applied to county personal income for the period January 1, 18 2008 through December 31, 2008; to determine the spending limitation for 19 the county fiscal year 2012, such percentage shall be applied to county 20 personal income for the period January 1, 2009 through December 31, 21 2009; to determine the spending limitation for the county fiscal year 22 2013, such percentage shall be applied to county personal income for the 23 period January 1, 2010 through December 31, 2010; to determine the 24 spending limitation for the county fiscal year 2014, such percentage 25 shall be applied to county personal income for the period January 1, 26 2011 through December 31, 2011; to determine the spending limitation for 27 the county fiscal year 2015, such percentage shall be applied to county 28 personal income for the period January 1, 2012 through December 31, 29 2012; to determine the spending limitation for county fiscal year 2016, 30 such percentage shall be applied to the county personal income for the 31 period January 1, 2013 through December 31, 2013; to determine the 32 spending limitation for the county fiscal year 2017, such percentage 33 shall be applied to county personal income for the period January 1, 34 2014 through December 31, 2014; and to determine the spending limitation 35 for county fiscal year 2018, such percentage shall be applied to the 36 county personal income for the period January 1, 2015 through December 37 31, 2015; to determine the spending limitation for the county fiscal 38 year 2019, such percentage shall be applied to county personal income 39 for the period January 1, 2016 through December 31, 2016; and to deter- 40 mine the spending limitation for county fiscal year 2020, such percent- 41 age shall be applied to the county personal income for the period Janu- 42 ary 1, 2017 through December 31, 2017; and to determine the spending 43 limitation for the county fiscal year 2021, such percentage shall be 44 applied to county personal income for the period January 1, 2018 through 45 December 31, 2018; and to determine the spending limitation for the 46 county fiscal year 2022, such percentage shall be applied to county 47 personal income for the period January 1, 2019 through December 31, 48 2019. 49 b. The spending limitation shall serve as a statutory cap on county 50 spending to be reflected in the tentative budget as well as the enacted 51 budget for county fiscal years beginning in 1992. 52 § 7. Mandatory tax reduction. In the event that the county spending 53 subject to the spending limitation exceeds such limitation in the adop- 54 tive county budget for county fiscal year 1992, 1993, 1994, 1995, 1996, 55 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008,A. 5840--A 6 1 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [or], 2 2020, 2021 or 2022 then section 1262-b of the tax law shall be repealed. 3 § 16. This act shall take effect immediately, provided, however, that 4 sections one through seven of this act shall be in full force and effect 5 until [May 31, 2020, provided, however, that if the county of Westches-6ter imposes the tax authorized by section 1210 of the tax law in excess7of three percent, then sections one through seven of this act shall be8deemed repealed; provided that the commissioner of taxation and finance9shall notify the legislative bill drafting commission upon the repeal of10section 1262-b of the tax law pursuant to section seven of the Westches-11ter county spending limitation act in order that the commission may12maintain an accurate and timely effective data base of the official text13of laws of the state of New York in furtherance of effecting the14provisions of section 44 of the legislative law and section 70-b of the15public officers law] November 30, 2022. 16 § 5. This act shall take effect immediately; provided that the amend- 17 ments to section 1262-b of the tax law made by section three of this act 18 shall not affect the expiration of such section and shall expire there- 19 with.
