STATE OF NEW YORK ________________________________________________________________________ 7597 2017-2018 Regular Sessions IN ASSEMBLY May 3, 2017 ___________ Introduced by M. of A. McDONALD -- read once and referred to the Commit- tee on Ways and Means AN ACT to amend the tax law, in relation to authorizing the city of Troy to impose hotel and motel taxes; and providing for the repeal of such provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 1202-ff to 2 read as follows: 3 § 1202-ff. Hotel or motel taxes in the city of Troy. (1) Notwithstand- 4 ing any other provisions of law to the contrary, the city of Troy, Rens- 5 selaer county, is hereby authorized and empowered to adopt and amend 6 local laws imposing in such city a tax, in addition to any other tax 7 authorized and imposed pursuant to this article such as the legislature 8 has or would have the power and authority to impose upon persons occupy- 9 ing hotel or motel rooms in such city. For the purposes of this section, 10 the term "hotel" or "motel" shall mean and include any facility or 11 building or portion thereof providing lodging on an overnight basis and 12 shall include facilities designated and commonly known as "bed and 13 breakfast" and "tourist" facilities. The rates of such tax shall not 14 exceed four percent of the per diem rental rate for each room, provided 15 however, that such tax shall not be applicable to a permanent resident 16 of a hotel or motel. For the purposes of this section the term "perma- 17 nent resident" shall mean a person occupying any room or rooms in a 18 hotel or motel for at least thirty consecutive days. 19 (2) Such tax may be collected and administered by the chief fiscal 20 officer of the city of Troy by such means and in such manner as other 21 taxes which are now collected and administered by such officers or as 22 otherwise may be provided by such local law. 23 (3) Such local laws may provide that any tax imposed shall be paid by 24 the person liable therefor to the owner of the hotel or motel room occu- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11199-01-7A. 7597 2 1 pied or to the person entitled to be paid the rent or charge for the 2 hotel or motel room occupied for and on account of the city of Troy 3 imposing the tax and that such owner or person entitled to be paid the 4 rent or charge shall be liable for the collection and payment of the 5 tax; and that such owner or person entitled to be paid the rent or 6 charge shall have the same right in respect to collecting the tax from 7 the person occupying the hotel or motel room, or in respect to nonpay- 8 ment of the tax by the person occupying the hotel or motel room, as if 9 the tax were a part of the rent or charge and payable at the same time 10 as the rent or charge; provided, however, that the chief fiscal officer 11 of the city, specified in such local law, shall be joined as a party in 12 any action or proceeding brought to collect the tax by the owner or by 13 the person entitled to be paid the rent or charge. 14 (4) Such local laws may provide for the filing of returns and the 15 payment of the tax on a monthly basis or on the basis of any longer or 16 shorter period of time. 17 (5) This section shall not authorize the imposition of such tax upon 18 any transaction, by or with any of the following in accordance with 19 section twelve hundred thirty of this article: 20 a. The state of New York, or any public corporation (including a 21 public corporation created pursuant to agreement or compact with another 22 state or the Dominion of Canada), improvement district or other poli- 23 tical subdivision of the state; 24 b. The United States of America, insofar as it is immune from taxa- 25 tion; 26 c. Any corporation or association, or trust, or community chest, fund 27 or foundation organized and operated exclusively for religious, charita- 28 ble or educational purposes, or for the prevention of cruelty to chil- 29 dren or animals, and no part of the net earnings of which inures to the 30 benefit of any private shareholder or individual and no substantial part 31 of the activities of which is carrying on propaganda, or otherwise 32 attempting to influence legislation; provided, however, that nothing in 33 this paragraph shall include an organization operated for the primary 34 purpose of carrying on a trade or business for profit, whether or not 35 all of its profits are payable to one or more organizations described in 36 this paragraph. 37 (6) Any final determination of the amount of any tax pursuant to this 38 section shall be reviewable for error, illegality or unconstitutionality 39 or any other reason whatsoever by a proceeding under article seventy- 40 eight of the civil practice law and rules if application therefor is 41 made to the supreme court within thirty days after the giving of the 42 notice of such final determination, provided, however, that any such 43 proceeding under article seventy-eight of the civil practice law and 44 rules shall not be instituted unless: 45 a. The amount of any tax sought to be reviewed, with such interest and 46 penalties thereon as may be provided for by local law or regulation 47 shall be first deposited and there is filed an undertaking, issued by a 48 surety company authorized to transact business in this state and 49 approved by the superintendent of financial services of this state as to 50 solvency and responsibility, in such amount as a justice of the supreme 51 court shall approve to the effect that if such proceeding be dismissed 52 or the tax confirmed the petitioner will pay all costs and charges which 53 may accrue in the prosecution of such proceeding; or 54 b. At the option of the petitioner such undertaking may be in a sum 55 sufficient to cover the taxes, interest and penalties stated in such 56 determination plus the costs and charges which may accrue against it inA. 7597 3 1 the prosecution of the proceeding, in which event the petitioner shall 2 not be required to pay such taxes, interest or penalties as a condition 3 precedent to the application. 4 (7) Where any tax imposed pursuant to this section shall have been 5 erroneously, illegally or unconstitutionally collected and application 6 for the refund thereof duly made to the proper fiscal officer or offi- 7 cers, and such officer or officers shall have made a determination deny- 8 ing such refund, such determination shall be reviewable by a proceeding 9 under article seventy-eight of the civil practice law and rules, 10 provided, however, that such proceeding is instituted within thirty days 11 after the giving of the notice of such denial, that a final determi- 12 nation of tax due was not previously made, and that an undertaking is 13 filed with the proper fiscal officer or officers in such amount and with 14 such sureties as a justice of the supreme court shall approve to the 15 effect that if such proceeding be dismissed or the tax confirmed, the 16 petitioner will pay all costs and charges which may accrue in the prose- 17 cution of such proceeding. 18 (8) Except in the case of a wilfully false or fraudulent return with 19 intent to evade the tax, no assessment of additional tax shall be made 20 after the expiration of more than three years from the date of the 21 filing of a return, provided, however, that where no return has been 22 filed as provided by law the tax may be assessed at any time. 23 (9) All revenues resulting from the imposition of the tax under the 24 local laws shall be paid into the treasury of the city of Troy and shall 25 be credited to and deposited in the general fund of the city. The city 26 shall be authorized to retain the necessary revenue to defer the expense 27 of the city in administering such tax and the balance of such revenues 28 shall be allocated to the promotion of tourism in the city of Troy or 29 used for other lawful purpose as set out in such local law. 30 (10) If any provision of this section or the application thereof to 31 any person or circumstance shall be held invalid, the remainder of this 32 section and the application of such provision to other persons or 33 circumstances shall not be affected thereby. 34 (11) Each enactment of such local law may provide for the imposition 35 of a hotel or motel tax for a period of time no longer than three years 36 from the effective date of its enactment. Nothing in this section shall 37 prohibit the adoption and enactment of local laws, pursuant to the 38 provisions of this section, upon the expiration of any other local law 39 adopted pursuant to this section. 40 § 2. This act shall take effect immediately and shall expire and be 41 deemed repealed on September 1, 2020.