Bill Text: NY A07081 | 2019-2020 | General Assembly | Introduced
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 1-0)
Status: (Passed) 2019-06-30 - SIGNED CHAP.44 [A07081 Detail]
Download: New_York-2019-A07081-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7081 2019-2020 Regular Sessions IN ASSEMBLY April 5, 2019 ___________ Introduced by M. of A. PRETLOW -- read once and referred to the Commit- tee on Ways and Means 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 June first, two thousand nineteen and ending 8 November thirtieth, two thousand twenty-two; 9 § 2. Subdivision (a) of section 1223 of the tax law, as separately 10 amended by chapters 191 and 217 of the laws of 2013, is amended to read 11 as follows: 12 (a) No transaction taxable under sections twelve hundred two through 13 twelve hundred four of this article shall be taxed pursuant to this 14 article by any county or by any city located therein, or by both, at an 15 aggregate rate in excess of the highest rate set forth in the applicable 16 subdivision of section twelve hundred one of this article or, in the 17 case of any taxes imposed pursuant to the authority of section twelve 18 hundred ten or twelve hundred eleven of this article (other than taxes 19 imposed by the county of Nassau, Erie, Steuben, Cattaraugus, Suffolk, 20 Oneida, Genesee, Greene, Franklin, Hamilton, Herkimer, Tioga, Orleans, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09824-14-9A. 7081 2 1 Allegany, Ulster, Albany, Rensselaer, Tompkins, Wyoming, Columbia, 2 Schuyler, Rockland, Chenango, Monroe, Chemung, Seneca, Sullivan, Wayne, 3 Livingston, Schenectady, Montgomery, Delaware, Clinton, Niagara, Yates, 4 Lewis, Essex, Dutchess, Schoharie, Putnam, Chautauqua, Orange, Oswego, 5 Ontario, Jefferson, St. Lawrence, Westchester or Onondaga and by the 6 county of Cortland and the city of Cortland and by the county of Broome 7 and the city of Binghamton and by the county of Cayuga and the city of 8 Auburn and by the county of Otsego and the city of Oneonta and by the 9 county of Madison and the city of Oneida and by the county of Fulton and 10 the city of Gloversville or the city of Johnstown as provided in section 11 twelve hundred ten of this article) at a rate in excess of three 12 percent, except that, [in the city of Yonkers,] in the city of Mount 13 Vernon, in the city of New Rochelle, in the city of Fulton [and], in the 14 city of Oswego, [the rate may not be in excess of four percent] and in 15 the city of White Plains, the rate may not be in excess of four percent, 16 and in the city of Yonkers, the rate may not be in excess of four and 17 one-half percent, and except that in the city of Poughkeepsie in the 18 county of Dutchess, if such county withdraws from the metropolitan 19 commuter transportation district pursuant to section twelve hundred 20 seventy-nine-b of the public authorities law and if the revenues from a 21 three-eighths percent rate of such tax imposed by such county, pursuant 22 to the authority of section twelve hundred ten of this article, are 23 required by local laws, ordinances or resolutions to be set aside for 24 mass transportation purposes, the rate may not be in excess of three and 25 three-eighths percent. 26 § 3. Subdivision (a) of section 1223 of the tax law, as amended by 27 section two of this act, is amended to read as follows: 28 (a) No transaction taxable under sections twelve hundred two through 29 twelve hundred four of this article shall be taxed pursuant to this 30 article by any county or by any city located therein, or by both, at an 31 aggregate rate in excess of the highest rate set forth in the applicable 32 subdivision of section twelve hundred one of this article or, in the 33 case of any taxes imposed pursuant to the authority of section twelve 34 hundred ten or twelve hundred eleven of this article (other than taxes 35 imposed by the county of Nassau, Erie, Steuben, Cattaraugus, Suffolk, 36 Oneida, Genesee, Greene, Franklin, Hamilton, Herkimer, Tioga, Orleans, 37 Allegany, Ulster, Albany, Rensselaer, Tompkins, Wyoming, Columbia, 38 Schuyler, Rockland, Chenango, Monroe, Chemung, Seneca, Sullivan, Wayne, 39 Livingston, Schenectady, Montgomery, Delaware, Clinton, Niagara, Yates, 40 Lewis, Essex, Dutchess, Schoharie, Putnam, Chautauqua, Orange, Oswego, 41 Ontario, Jefferson, St. Lawrence, Westchester or Onondaga and by the 42 county of Cortland and the city of Cortland and by the county of Broome 43 and the city of Binghamton and by the county of Cayuga and the city of 44 Auburn and by the county of Otsego and the city of Oneonta and by the 45 county of Madison and the city of Oneida and by the county of Fulton and 46 the city of Gloversville or the city of Johnstown as provided in section 47 twelve hundred ten of this article) at a rate in excess of three 48 percent, except that, in the city of Yonkers, in the city of Mount 49 Vernon, in the city of New Rochelle, in the city of Fulton, in the city 50 of Oswego, and in the city of White Plains, the rate may not be in 51 excess of four percent[, and in the city of Yonkers, the rate may not be52in excess of four and one-half percent], and except that in the city of 53 Poughkeepsie in the county of Dutchess, if such county withdraws from 54 the metropolitan commuter transportation district pursuant to section 55 twelve hundred seventy-nine-b of the public authorities law and if the 56 revenues from a three-eighths percent rate of such tax imposed by suchA. 7081 3 1 county, pursuant to the authority of section twelve hundred ten of this 2 article, are required by local laws, ordinances or resolutions to be set 3 aside for mass transportation purposes, the rate may not be in excess of 4 three and three-eighths percent. 5 § 4. Section 1224 of the tax law is amended by adding a new subdivi- 6 sion (jj) to read as follows: 7 (jj) The county of Westchester shall have the sole right to impose the 8 additional one percent rate of tax which such county is authorized to 9 impose pursuant to the authority of section twelve hundred ten of this 10 article in the area of the county outside the cities of Mount Vernon, 11 New Rochelle, White Plains and Yonkers. Such additional rate of tax 12 shall be in addition to any other tax which such county may impose or 13 may be imposing pursuant to this article or any other law and such addi- 14 tional rate of tax shall not be subject to preemption. The maximum three 15 percent rate referred to in this section shall be calculated without 16 reference to the additional one percent rate of tax which the county of 17 Westchester is authorized and empowered to adopt pursuant to section 18 twelve hundred ten of this article. 19 § 5. Section 1262-b of the tax law, as amended by section 1 of part A 20 of chapter 8 of the laws of 2004, is amended to read as follows: 21 § 1262-b. The Westchester county property tax stabilization and relief 22 act. [(a)] Notwithstanding any other provision of law to the contrary[,23if]: (a) If the county of Westchester imposes sales and compensating use 24 taxes pursuant to subdivision (a) of section twelve hundred ten of this 25 article at the rate of three percent: 26 (1) The county shall allocate one-half of net collections from such 27 taxes imposed [at the rate of one and one-half percent] pursuant to 28 subdivision (a) of section twelve hundred ten of this article countywide 29 among the cities and towns of the county on the basis of the ratio which 30 the full valuation of real property in each city or town bears to the 31 aggregate full valuation of real property in all cities and towns of the 32 county. Amounts so allocated shall be credited to each of said cities 33 and towns against the county taxes levied upon real property in said 34 cities and towns. 35 (2) The county shall allocate and credit or pay one-third of net 36 collections [received by the county by reason of its additional one37percent rate of] from such taxes [on] imposed pursuant to subdivision 38 (a) of section twelve hundred ten of this article to the area of the 39 county outside any city imposing sales and compensating use taxes at a 40 rate of one and one-half percent or greater pursuant to the authority of 41 subdivision (a) or at any rate pursuant to the authority of subdivision 42 (b) of section twelve hundred ten of this article as follows: 43 (A) One-third of such net collections shall be allocated and credited 44 in the manner set forth in paragraph one of this subdivision. 45 (B) One-sixth of such net collections shall be allocated and paid 46 quarterly by the county commissioner of finance, in cash, to the several 47 school districts in such area of the county outside any such city impos- 48 ing sales and compensating use taxes. Such allocation and payment, to 49 such several school districts, shall be made on the basis of the ratio 50 which the population of each such school district bears to the aggregate 51 population of all of the school districts in such area. In the case of 52 school districts which are partially within and partially without the 53 county, or partially within or partially without the area of the county 54 outside a city imposing sales and compensating use taxes, the allocation 55 and payment to each such school district shall be made on the basis of 56 the population in such school district in the county, or in such area ofA. 7081 4 1 the county outside a city imposing sales and compensating use taxes, as 2 the case may be. Such populations shall be determined in accordance with 3 the latest federal census or special population census under section 4 twenty of the general municipal law completed and published prior to the 5 end of the quarter in which such allocation and payment are made, which 6 special population census shall include the entire area of the county; 7 provided that such special population census shall not be taken more 8 than once in every two years. A school district split between Westches- 9 ter county and another county shall apply such allocation and payment 10 solely to the benefit of the residents of the county in which the sales 11 and compensating use taxes are imposed. 12 (C) One-half of such net collections shall be allocated and paid quar- 13 terly by the county commissioner of finance, in cash, to the cities not 14 imposing sales and compensating use taxes and to the towns and villages 15 on which such [additional one percent] rate is imposed, on the basis of 16 the ratio which the population of each such city, town or village on 17 which such [additional one percent] rate is imposed bears to the entire 18 population of all such cities, towns and villages in the area on which 19 such [additional one percent] rate is imposed. Such populations shall be 20 determined in accordance with the latest federal census or special popu- 21 lation census under section twenty of the general municipal law 22 completed and published prior to the end of the quarter in which such 23 allocation is made, which special population census shall include the 24 entire area of the county; provided that such special population census 25 shall not be taken more than once in every two years. 26 (D) The quarterly allocation and payment of cash to cities, towns, 27 villages and school districts provided for under this paragraph and 28 under paragraph three of this subdivision and under subdivision (b) of 29 this section may be made after payment by the state comptroller to the 30 county of the net collections subject to such allocation and receipt by 31 the county commissioner of finance of the quarterly settlement report 32 issued by the department, and may include adjustments for corrections 33 applicable to such allocations. All ratios established by the county 34 commissioner of finance with respect to allocations to cities, towns, 35 villages and school districts under this subdivision and under subdivi- 36 sion (b) of this section shall be carried to four decimal places. The 37 allocation of net collections and payment of cash provided for under 38 this paragraph and under paragraph three of this subdivision and under 39 subdivision (b) of this section shall be made to a town based upon the 40 population of the town less the population of any village therein, 41 provided that a town/village or village/town shall be deemed a village 42 for the purpose of determining such allocation. The allocation of net 43 collections and payment of cash provided for under this paragraph and 44 under paragraph three of this subdivision and under subdivision (b) of 45 this section shall be applied by the cities, towns, villages and school 46 districts receiving such allocation and payment as a credit against the 47 taxes upon real property imposed by such municipalities and school 48 districts, respectively. The allocation and payment received by towns 49 shall be credited against real property taxes in either the general fund 50 town-wide or the town outside village fund or a combination thereof. 51 (3) The county shall allocate and credit or pay one-sixth of net 52 collections [received by the county by reason of its additional one-half53percent rate of] from such taxes imposed [on] pursuant to subdivision 54 (a) of section twelve hundred ten of this article to the area of the 55 county outside any city imposing sales and compensating use taxes at a 56 rate of one and one-half percent or greater pursuant to the authority ofA. 7081 5 1 subdivision (a) or at any rate pursuant to the authority of subdivision 2 (b) of section twelve hundred ten of this article as follows: 3 (A) Seventy percent of such net collections shall be retained by the 4 county to be used for any county purpose. 5 (B) Ten percent of such net collections shall be allocated and paid in 6 the manner set forth in subparagraph (B) of paragraph two of this subdi- 7 vision. 8 (C) Twenty percent of such net collections shall be allocated and paid 9 in the manner set forth in subparagraph (C) of paragraph two of this 10 subdivision. 11 (b) If the county of Westchester imposes the additional one percent 12 rate of sales and compensating use tax authorized by clause forty-two of 13 subparagraph (i) of the opening paragraph of section twelve hundred ten 14 of this article, the county shall allocate and credit or pay net 15 collections from such additional one percent rate in the manner set 16 forth in paragraph three of subdivision (a) of this section with respect 17 to the area of the county outside any city imposing sales and compensat- 18 ing use taxes at a rate of one and one-half percent or greater pursuant 19 to the authority of subdivision (a) of section twelve hundred ten of 20 this article or at any rate pursuant to the authority of subdivision (b) 21 of section twelve hundred ten of this article. 22 (c) Nothing in this section shall be construed to impair the powers of 23 a city currently imposing sales and compensating use taxes pursuant to 24 the authority of section twelve hundred ten of this article from contin- 25 uing to do so in accordance with law. No school district in any city 26 imposing such sales and compensating use taxes shall be entitled to 27 receive a cash allocation and payment under paragraph two or three of 28 subdivision (a) or under subdivision (b) of this section. No city, town 29 or village authorized or entitled to receive an allocation under subpar- 30 agraph (C) of paragraph two or subparagraph (C) of paragraph three of 31 subdivision (a) or under subdivision (b) of this section shall be 32 authorized or entitled to receive any cash allocation under section 33 twelve hundred sixty-two of this article. 34 § 6. Subdivision e of section 4 and sections 5, 7 and 16 of chapter 35 272 of the laws of 1991, amending the tax law relating to the method of 36 disposition of sales and compensating use tax revenue in Westchester 37 county and enacting the Westchester county spending limitation act, as 38 amended by chapter 81 of the laws of 2017, are amended to read as 39 follows: 40 e. "Spending limitation" means the maximum amount of county spending 41 established in county fiscal years 1992, 1993, 1994, 1995, 1996, 1997, 42 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 43 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [and], 2020, 44 2021 and 2022. 45 § 5. Establishment of annual spending limitation. a. For county fiscal 46 years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 47 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 48 2015, 2016, 2017, 2018, 2019 [and], 2020, 2021 and 2022 there shall be 49 in effect an annual spending limitation. The spending limitation shall 50 be derived from a fixed percentage reflecting the ratio of base year 51 spending to county personal income. County personal income for such 52 calculation shall be for the period January 1, 1986 through December 31, 53 1986. Such percentage shall be applied to county personal income for the 54 period January 1, 1989 through December 31, 1989, to determine the 55 spending limitation for county fiscal year 1992; to determine the spend- 56 ing limitation for county fiscal year 1993, such percentage shall beA. 7081 6 1 applied to county personal income for the period January 1, 1990 through 2 December 31, 1990; to determine the spending limitation for county 3 fiscal year 1994, such percentage shall be applied to county personal 4 income for the period January 1, 1991 through December 31, 1991; to 5 determine the spending limitation for county fiscal year 1995, such 6 percentage shall be applied to county personal income for the period 7 January 1, 1992 through December 31, 1992; to determine the spending 8 limitation for county fiscal year 1996, such percentage shall be applied 9 to county personal income for the period January 1, 1993 through Decem- 10 ber 31, 1993; to determine the spending limitation for county fiscal 11 year 1997, such percentage shall be applied to county personal income 12 for the period January 1, 1994 through December 31, 1994; to determine 13 the spending limitation for county fiscal year 1998, such percentage 14 shall be applied to county personal income for the period January 1, 15 1995 through December 31, 1995; to determine the spending limitation for 16 county fiscal year 1999, such percentage shall be applied to county 17 personal income for the period January 1, 1996 through December 31, 18 1996; to determine the spending limitation for county fiscal year 2000, 19 such percentage shall be applied to county personal income for the peri- 20 od January 1, 1997 through December 31, 1997; to determine the spending 21 limitation for county fiscal year 2001, such percentage shall be applied 22 to county personal income for the period January 1, 1998 through Decem- 23 ber 31, 1998; to determine the spending limitation for county fiscal 24 year 2002, such percentage shall be applied to county personal income 25 for the period January 1, 1999 through December 31, 1999; to determine 26 the spending limitation for county fiscal year 2003, such percentage 27 shall be applied to county personal income for the period January 1, 28 2000 through December 31, 2000; to determine the spending limitation for 29 county fiscal year 2004, such percentage shall be applied to county 30 personal income for the period January 1, 2001 through December 31, 31 2001; to determine the spending limitation for county fiscal year 2005, 32 such percentage shall be applied to county personal income for the peri- 33 od January 1, 2002 through December 31, 2002; to determine the spending 34 limitation for county fiscal year 2006, such percentage shall be applied 35 to county personal income for the period January 1, 2003 through Decem- 36 ber 31, 2003; to determine the spending limitation for the county fiscal 37 year 2007, such percentage shall be applied to county personal income 38 for the period January 1, 2004 through December 31, 2004; to determine 39 the spending limitation for the county fiscal year 2008, such percentage 40 shall be applied to county personal income for the period January 1, 41 2005 through December 31, 2005; to determine the spending limitation for 42 the county fiscal year 2009, such percentage shall be applied to county 43 personal income for the period January 1, 2006 through December 31, 44 2006; to determine the spending limitation for the county fiscal year 45 2010, such percentage shall be applied to county personal income for the 46 period January 1, 2007 through December 31, 2007; to determine the 47 spending limitation for the county fiscal year 2011, such percentage 48 shall be applied to county personal income for the period January 1, 49 2008 through December 31, 2008; to determine the spending limitation for 50 the county fiscal year 2012, such percentage shall be applied to county 51 personal income for the period January 1, 2009 through December 31, 52 2009; to determine the spending limitation for the county fiscal year 53 2013, such percentage shall be applied to county personal income for the 54 period January 1, 2010 through December 31, 2010; to determine the 55 spending limitation for the county fiscal year 2014, such percentage 56 shall be applied to county personal income for the period January 1,A. 7081 7 1 2011 through December 31, 2011; to determine the spending limitation for 2 the county fiscal year 2015, such percentage shall be applied to county 3 personal income for the period January 1, 2012 through December 31, 4 2012; to determine the spending limitation for county fiscal year 2016, 5 such percentage shall be applied to the county personal income for the 6 period January 1, 2013 through December 31, 2013; to determine the 7 spending limitation for the county fiscal year 2017, such percentage 8 shall be applied to county personal income for the period January 1, 9 2014 through December 31, 2014; and to determine the spending limitation 10 for county fiscal year 2018, such percentage shall be applied to the 11 county personal income for the period January 1, 2015 through December 12 31, 2015; to determine the spending limitation for the county fiscal 13 year 2019, such percentage shall be applied to county personal income 14 for the period January 1, 2016 through December 31, 2016; and to deter- 15 mine the spending limitation for county fiscal year 2020, such percent- 16 age shall be applied to the county personal income for the period Janu- 17 ary 1, 2017 through December 31, 2017; and to determine the spending 18 limitation for the county fiscal year 2021, such percentage shall be 19 applied to county personal income for the period January 1, 2018 through 20 December 31, 2018; and to determine the spending limitation for the 21 county fiscal year 2022, such percentage shall be applied to county 22 personal income for the period January 1, 2019 through December 31, 23 2019. 24 b. The spending limitation shall serve as a statutory cap on county 25 spending to be reflected in the tentative budget as well as the enacted 26 budget for county fiscal years beginning in 1992. 27 § 7. Mandatory tax reduction. In the event that the county spending 28 subject to the spending limitation exceeds such limitation in the adop- 29 tive county budget for county fiscal year 1992, 1993, 1994, 1995, 1996, 30 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 31 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [or], 32 2020, 2021 or 2022 then section 1262-b of the tax law shall be repealed. 33 § 16. This act shall take effect immediately, provided, however, that 34 sections one through seven of this act shall be in full force and effect 35 until [May 31, 2020, provided, however, that if the county of Westches-36ter imposes the tax authorized by section 1210 of the tax law in excess37of three percent, then sections one through seven of this act shall be38deemed repealed; provided that the commissioner of taxation and finance39shall notify the legislative bill drafting commission upon the repeal of40section 1262-b of the tax law pursuant to section seven of the Westches-41ter county spending limitation act in order that the commission may42maintain an accurate and timely effective data base of the official text43of laws of the state of New York in furtherance of effecting the44provisions of section 44 of the legislative law and section 70-b of the45public officers law] November 30, 2022. 46 § 7. This act shall take effect immediately; provided, however, that 47 section three of this act shall take effect December 1, 2020, provided, 48 further, that the amendments to section 1262-b of the tax law made by 49 section five of this act shall not affect the expiration of such section 50 and shall expire therewith; provided, further, that the amendments to 51 sections 4, 5, and 7 of chapter 272 of the laws of 1991 shall not affect 52 the expiration of such sections and shall expire therewith.
