Bill Text: NY A06626 | 2019-2020 | General Assembly | Introduced
Bill Title: Prohibits the imposition of tax by a city or village on certain gas or electric transactions that pass through the boundaries of a taxing jurisdiction but do not serve residential or commercial customers within such boundaries.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to cities [A06626 Detail]
Download: New_York-2019-A06626-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6626 2019-2020 Regular Sessions IN ASSEMBLY March 14, 2019 ___________ Introduced by M. of A. McDONALD -- read once and referred to the Commit- tee on Cities AN ACT to amend the general city law and the village law, in relation to prohibiting the imposition of tax by a city or village on certain gas or electric transactions that pass through the boundaries of a taxing jurisdiction but do not serve residential or commercial customers within such boundaries The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 20-b of the general city law, as amended by chapter 2 310 of the laws of 1962 and the opening paragraph as amended by chapter 3 287 of the laws of 1979, is amended to read as follows: 4 § 20-b. Cities authorized to impose taxes on utilities. 1. Notwith- 5 standing any other provisions of law to the contrary, any city of this 6 state, acting through its local legislative body, is hereby authorized 7 and empowered to adopt and amend local laws imposing in any such city a 8 tax such as was imposed by section one hundred eighty-six-a of the tax 9 law, in effect on January first, nineteen hundred fifty-nine, except 10 that the rate thereof shall not exceed one per centum of gross income or 11 of gross operating income, as the case may be, and may make provision 12 for the collection thereof by the chief fiscal officer of such city; 13 provided, however, that the rate of such tax imposed by the cities of 14 Rochester, Buffalo and Yonkers shall not exceed three per centum of 15 gross income or gross operating income, as the case may be; and provided 16 further that nothing herein contained shall be construed so as to 17 prevent any city from adopting local laws exempting from such tax omni- 18 bus corporations subject to the supervision of the state department of 19 public service [under article three-a of the public service law]. A tax 20 imposed pursuant to this section shall have application only within the 21 territorial limits of any such city, and shall be in addition to any and 22 all other taxes. This section shall not authorize the imposition of a EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10233-01-9A. 6626 2 1 tax on any gas or electric transaction [originating or consummated2outside of the territorial limits of any such city, notwithstanding that3some act be necessarily performed with respect to such transaction with-4in such limits] that passes through the boundaries of a taxing jurisdic- 5 tion but does not serve a residential or commercial customer within such 6 boundaries, but such tax shall apply to any transaction that is 7 requested or received by a residential or commercial customer located 8 within the boundaries of such taxing jurisdiction. 9 2. Revenues resulting from the imposition of taxes authorized by this 10 section heretofore or hereafter imposed shall be paid into the treasury 11 of the city imposing the same, and shall be credited to and deposited in 12 the general fund of such city. 13 3. All of the provisions of section one hundred eighty-six-a of the 14 tax law, so far as the same are or can be made applicable, with such 15 limitations as are set forth in this section, and such modifications as 16 may be necessary in order to adapt such taxes to local conditions shall 17 apply to the taxes authorized by this section. 18 4. Any final determination of the amount of any tax payable hereunder 19 shall be reviewable for error, illegality or unconstitutionality or any 20 other reason whatsoever by a proceeding under article seventy-eight of 21 the civil practice law and rules if application therefor is made to the 22 supreme court within thirty days after the giving of the notice of such 23 final determination, provided, however, that any such proceeding under 24 article seventy-eight of the civil practice law and rules shall not be 25 instituted unless the amount of any tax sought to be reviewed, with such 26 interest and penalties thereon as may be provided for by local law or 27 regulation, shall be first deposited and an undertaking filed, in such 28 amount and with such sureties as a justice of the supreme court shall 29 approve to the effect that if such proceeding be dismissed or the tax 30 confirmed the petitioner will pay all costs and charges which may accrue 31 in the prosecution of such proceeding. 32 5. Where any tax imposed hereunder shall have been erroneously, ille- 33 gally or unconstitutionally collected and application for the refund 34 thereof duly made to the proper fiscal officer or officers, and such 35 officer or officers shall have made a determination denying such refund, 36 such determination shall be reviewable by a proceeding under article 37 seventy-eight of the civil practice law and rules, provided, however, 38 that such proceeding is instituted within thirty days after the giving 39 of the notice of such denial, that a final determination of tax due was 40 not previously made, and that an undertaking is filed with the proper 41 fiscal officer or officers in such amount and with such sureties as a 42 justice of the supreme court shall approve to the effect that if such 43 proceeding be dismissed or the tax confirmed, the petitioner will pay 44 all costs and charges which may accrue in the prosecution of such 45 proceeding. 46 § 2. Subdivision 1 of section 5-530 of the village law is amended to 47 read as follows: 48 1. Notwithstanding any other provisions of law to the contrary, any 49 village is hereby authorized and empowered to adopt and amend local laws 50 imposing in any such village a tax such as was imposed by section one 51 hundred eighty-six-a of the tax law, in effect on January first, nine- 52 teen hundred fifty-nine, except that the rate thereof shall not exceed 53 one per centum of gross income or of gross operating income, as the case 54 may be, and may make provision for the collection thereof by the chief 55 fiscal officer of such village; provided, however, that nothing herein 56 contained shall be construed so as to prevent any village from adoptingA. 6626 3 1 local laws exempting from such tax omnibus corporations subject to the 2 supervision of the state department of public service [under article3three-a of the public service law]. A tax imposed pursuant to this 4 section shall have application only within the territorial limits of any 5 such village, and shall be in addition to any and all other taxes. This 6 section shall not authorize the imposition of a tax on any gas or elec- 7 tric transaction [originating or consummated outside of the territorial8limits of any such village, notwithstanding that some act be necessarily9performed with respect to such transaction within such limits] that 10 passes through the boundaries of a taxing jurisdiction but does not 11 serve a residential or commercial customer within such boundaries, but 12 such tax shall apply to any transaction that is requested or received by 13 a residential or commercial customer located within the boundaries of 14 such taxing jurisdiction. 15 § 3. This act shall take effect on the one hundred eightieth day after 16 it shall have become a law, and shall apply to gross income or gross 17 operating income, as the case may be, earned on and after such date.