Bill Text: NY S06566 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to the authority of counties and cities to impose sales and compensating use taxes.
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2018-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S06566 Detail]
Download: New_York-2017-S06566-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6566 2017-2018 Regular Sessions IN SENATE June 4, 2017 ___________ Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the tax law, in relation to the authority of counties and cities to impose sales and compensating use taxes pursuant to the authority of article 29 of such law; and to repeal certain provisions of section 1210, section 1210-E and section 1224 of such law relating thereto 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 Subparagraph (i) of the opening paragraph of section 1210 2 of the tax law is REPEALED and a new subparagraph (i) is added to read 3 as follows: 4 (i) with respect to a city of one million or more and the following 5 counties: (1) any such city having a population of one million or more 6 is hereby authorized and empowered to adopt and amend local laws, ordi- 7 nances or resolutions imposing such taxes in any such city, at the rate 8 of four and one-half percent; 9 (2) the following counties that impose taxes described in subdivision 10 (a) of this section at the rate of three percent as authorized above in 11 this paragraph are hereby further authorized and empowered to adopt and 12 amend local laws, ordinances, or resolutions imposing such taxes at 13 additional rates, in quarter percent increments, not to exceed the 14 following rates, which rates are additional to the three percent rate 15 authorized above in this paragraph, and, in the case of a county author- 16 ized to impose more than one additional rate, also in addition to each 17 other: 18 (A) One-quarter of one percent - None; 19 (B) One-half of one percent - Ontario, Schenectady; 20 (C) Three-quarters of one percent - Dutchess, Orange; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13049-01-7S. 6566 2 1 (D) One percent - Albany, Broome, Cattaraugus, Cayuga, Chautauqua, 2 Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Essex, Frank- 3 lin, Fulton, Genesee, Greene, Hamilton, Jefferson, Lewis, Livingston, 4 Madison, Monroe, Montgomery, Niagara, Onondaga, Orleans, Oswego, Otsego, 5 Putnam, Rensselaer, Rockland, St. Lawrence, Schoharie, Schuyler, Seneca, 6 Steuben, Suffolk, Sullivan, Tioga, Tompkins, Ulster, Wayne, Wyoming, 7 Yates; 8 (E) One and one-quarter percent - Herkimer, Nassau; 9 (F) One and one-half percent - Allegany; 10 (G) One and three-quarters percent - Erie, Oneida. 11 Provided, however, that (I) the county of Rockland may impose addi- 12 tional rates of five-eighths percent and three-eighths percent, in lieu 13 of imposing such additional rate in quarter percent increments; (II) the 14 county of Ontario may impose additional rates of one-eighth percent and 15 three-eighths percent, in lieu of imposing such additional rate in quar- 16 ter percent increments; (III) three-quarters percent of the additional 17 rate authorized to be imposed by the county of Nassau shall be subject 18 to the limitation set forth in section twelve hundred sixty-two-e of 19 this article. 20 § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the 21 tax law is REPEALED and a new subparagraph (ii) is added to read as 22 follows: 23 (ii) the following cities that impose taxes described in subdivision 24 (a) of this section at the rate of one and one-half percent or higher as 25 authorized above in this paragraph for such cities are hereby further 26 authorized and empowered to adopt and amend local laws, ordinances, or 27 resolutions imposing such taxes at additional rates, in quarter percent 28 increments, not to exceed the following rates, which rates are addi- 29 tional to the one and one-half percent or higher rates authorized above 30 in this paragraph and, in the case of a city authorized to impose more 31 than one additional rate, also in addition to each other: 32 (1) One-quarter of one percent - None; 33 (2) One-half of one percent - None; 34 (3) Three-quarters of one percent - None; 35 (4) One percent - Mount Vernon; New Rochelle for the period beginning 36 January first, two thousand fifteen and ending December thirty-first, 37 two thousand seventeen; Oswego for the period beginning December first, 38 two thousand fifteen and ending November thirtieth, two thousand seven- 39 teen; White Plains for the period beginning September first, two thou- 40 sand seventeen and ending August thirty-first, two thousand nineteen; 41 (5) One and one-quarter percent - None; 42 (6) One and one-half percent - Yonkers for the period beginning Decem- 43 ber first, two thousand fifteen and ending November thirtieth, two thou- 44 sand seventeen; 45 (7) One and three-quarters percent - None; 46 § 3. Subparagraphs (iii) and (iv) of the opening paragraph of section 47 1210 of the tax law are REPEALED and a new subparagraph (iii) is added 48 to read as follows: 49 (iii) the maximum rate referred to in section twelve hundred twenty- 50 four of this article shall be calculated without reference to the addi- 51 tional rates authorized for counties, other than the counties of Cayuga, 52 Cortland, Fulton, Madison, and Otsego in subparagraph (i) and the cities 53 in subparagraph (ii) of this paragraph. 54 § 4. Section 1210 of the tax law is amended by adding a new subdivi- 55 sion (p) to read as follows:S. 6566 3 1 (p) Notwithstanding any provision of this section or other law to the 2 contrary, a county authorized to impose an additional rate or rates of 3 sales and compensating use taxes by clause two of subparagraph (i) of 4 the opening paragraph of this section may adopt a local law, ordinance 5 or resolution by a majority vote of its governing body imposing such 6 rate or rates for a period not to exceed two years. Any such local law, 7 ordinance, or resolution shall also be subject to the provisions of 8 subdivisions (d) and (e) of this section. 9 § 5. Section 1210-E of the tax law is REPEALED. 10 § 6. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), 11 (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (z-1), 12 (aa), (bb), (cc), (dd), (ee), (ff), (gg), and (ii) of section 1224 of 13 the tax law are REPEALED. 14 § 7. Section 1224 of the tax law is amended by adding three new subdi- 15 visions (d), (e), and (f) to read as follows: 16 (d) For purposes of this section, the term "prior right" shall mean 17 the preferential right to impose any tax described in sections twelve 18 hundred two and twelve hundred three, or twelve hundred ten and twelve 19 hundred eleven, of this article and thereby to preempt such tax and to 20 preclude another municipal corporation from imposing or continuing the 21 imposition of such tax to the extent that such right is exercised. 22 However, the right of preemption shall only apply within the territorial 23 limits of the taxing jurisdiction having the right of preemption. 24 (e) Each of the following counties and cities shall have the sole 25 right to impose the following additional rate of sales and compensating 26 use taxes in excess of three percent that such county or city is author- 27 ized to impose pursuant to subparagraph (i) or (ii) of the opening para- 28 graph of section twelve hundred ten of this article. Such additional 29 rates of tax shall not be subject to preemption. 30 (1) Counties: 31 (A) One-quarter of one percent - None; 32 (B) One-half of one percent - Ontario, Schenectady; 33 (C) Three-quarters of one percent - Dutchess, Lewis, Orange; 34 (D) One percent - Albany, Broome, Chautauqua, Cattaraugus, Chemung, 35 Chenango, Clinton, Columbia, Delaware, Essex, Franklin, Genesee, Greene, 36 Hamilton, Jefferson, Livingston, Monroe, Montgomery, Niagara, Onondaga, 37 Orleans, Oswego, Otsego, Putnam, Rensselaer, Rockland, St. Lawrence, 38 Schoharie, Schuyler, Seneca, Steuben, Suffolk, Sullivan, Tioga, Tomp- 39 kins, Ulster, Wayne, Wyoming, Yates; 40 (E) One and one-quarter percent - Herkimer, Nassau; 41 (F) One and one-half percent - Allegany; 42 (G) One and three-quarter percent - Erie, Oneida. 43 (2) Cities: 44 (A) One-quarter of one percent - Rome; 45 (B) One-half of one percent - None; 46 (C) Three-quarters of one percent - None; 47 (D) One percent - Mount Vernon, New Rochelle, White Plains, Yonkers. 48 (f) Each of the following cities is authorized to preempt the taxes 49 imposed by the county in which it is located pursuant to the authority 50 of section twelve hundred ten of this article, to the extent of one-half 51 the maximum aggregate rate authorized under section twelve hundred ten 52 of this article, including the additional rate that the county in which 53 such city is located is authorized to impose: Auburn, in Cayuga county; 54 Cortland, in Cortland county; Gloversville and Johnstown, in Fulton 55 county; Oneida, in Madison county; Oneonta, in Otsego county. As of the 56 date this subdivision takes effect, any such preemption by such a cityS. 6566 4 1 in effect on such date shall continue in full force and effect until the 2 effective date of a local law, ordinance, or resolution adopted or 3 amended by the city to change such preemption. Any preemption by such a 4 city pursuant to this subdivision that takes effect after the date this 5 subdivision takes effect shall be subject to the notice requirements in 6 section twelve hundred twenty-three of this subpart and to the other 7 requirements of this article. 8 § 8. Section 1262-g of the tax law, as amended by chapter 185 of the 9 laws of 2015, is amended to read as follows: 10 § 1262-g. Oneida county allocation and distribution of net collections 11 from the additional one percent rate of sales and compensating use 12 taxes. Notwithstanding any contrary provision of law, (a) if the county 13 of Oneida imposes sales and compensating use taxes at a rate which is 14 one percent additional to the three percent rate authorized by section 15 twelve hundred ten of this article, as authorized by such section, [(a)] 16 (i) where a city in such county imposes tax pursuant to the authority of 17 subdivision (a) of such section twelve hundred ten, such county shall 18 allocate, distribute and pay in cash quarterly to such city one-half of 19 the net collections attributable to such additional one percent rate of 20 the county's taxes collected in such city's boundaries; [(b)] (ii) where 21 a city in such county does not impose tax pursuant to the authority of 22 such subdivision (a) of such section twelve hundred ten, such county 23 shall allocate, distribute and pay in cash quarterly to such city not so 24 imposing tax a portion of the net collections attributable to one-half 25 of the county's additional one percent rate of tax calculated on the 26 basis of the ratio which such city's population bears to the county's 27 total population, such populations as determined in accordance with the 28 latest decennial federal census or special population census taken 29 pursuant to section twenty of the general municipal law completed and 30 published prior to the end of the quarter for which the allocation is 31 made, which special census must include the entire area of the county; 32 [and (c)] provided, however, that such county shall dedicate the first 33 one million five hundred thousand dollars of net collections attribut- 34 able to such additional one percent rate of tax received by such county 35 after the county receives in the aggregate eighteen million five hundred 36 thousand dollars of net collections from such additional one percent 37 rate of tax imposed for any of the periods: September first, two thou- 38 sand twelve through August thirty-first, two thousand thirteen; Septem- 39 ber first, two thousand thirteen through August thirty-first, two thou- 40 sand fourteen; and September first, two thousand fourteen through August 41 thirty-first, two thousand fifteen; September first, two thousand 42 fifteen through August thirty-first, two thousand sixteen; and September 43 first, two thousand sixteen through August thirty-first, two thousand 44 seventeen, to an allocation on a per capita basis, utilizing figures 45 from the latest decennial federal census or special population census 46 taken pursuant to section twenty of the general municipal law, completed 47 and published prior to the end of the year for which such allocation is 48 made, which special census must include the entire area of such county, 49 to be allocated and distributed among the towns of Oneida county by 50 appropriation of its board of legislators; provided, further, that noth- 51 ing herein shall require such board of legislators to make any such 52 appropriation until it has been notified by any town by appropriate 53 resolution and, in any case where there is a village wholly or partly 54 located within a town, a resolution of every such village, embodying the 55 agreement of such town and village or villages upon the amount of suchS. 6566 5 1 appropriation to be distributed to such village or villages out of the 2 allocation to the town or towns in which it is located. 3 (b) if the county of Oneida imposes sales and compensating use taxes 4 at a rate which is one and three-quarters percent additional to the 5 three percent rate authorized by section twelve hundred ten of this 6 article, as authorized pursuant to clause two of subparagraph (i) of the 7 opening paragraph of section twelve hundred ten of this article, net 8 collections attributable to the additional three-quarters percent of 9 such additional rate shall not be subject to any revenue distribution 10 agreement entered into by the county and the cities in the county pursu- 11 ant to the authority of subdivision (c) of section twelve hundred 12 sixty-two of this part. 13 § 9. The opening paragraph of section 1262-r of the tax law, as added 14 by chapter 37 of the laws of 2006, is amended to read as follows: 15 (1) Notwithstanding any contrary provision of law, if the county of 16 Ontario imposes the additional one-eighth of one percent and the addi- 17 tional three-eighths of one percent rates of tax authorized pursuant to 18 clause two of subparagraph (i) of the opening paragraph of section 19 twelve hundred ten of this article, net collections from such additional 20 three-eighths of one percent rate of such taxes shall be set aside for 21 county purposes and shall not be subject to any agreement entered into 22 by the county and the cities in the county pursuant to the authority of 23 subdivision (c) of section twelve hundred sixty-two of this part. 24 (2) Notwithstanding the provisions of subdivision (c) of section 25 twelve hundred sixty-two of this part to the contrary, if the cities of 26 Canandaigua and Geneva in the county of Ontario do not impose sales and 27 compensating use taxes pursuant to the authority of section twelve 28 hundred ten of this article and such cities and county enter into an 29 agreement pursuant to the authority of subdivision (c) of section twelve 30 hundred sixty-two of this part to be effective March first, two thousand 31 six, such agreement may provide that: 32 § 10. The tax law is amended by adding a new section 1262-u to read as 33 follows: 34 § 1262-u. Disposition of net collections from the additional rate of 35 sales and compensating use tax in Clinton county. Notwithstanding any 36 contrary provision of law, if the county of Clinton imposes the addi- 37 tional one percent rate of sales and compensating use taxes authorized 38 pursuant to clause two of subparagraph (i) of the opening paragraph of 39 section twelve hundred ten of this article, net collections from such 40 additional rate shall be paid to the county and the county shall set 41 aside such net collections and use them solely for county purposes. Such 42 net collections shall not be subject to any revenue distribution agree- 43 ment entered into by the county and the city in the county pursuant to 44 the authority of subdivision (c) of section twelve hundred sixty-two of 45 this part. 46 § 11. Section 1262-s of the tax law, as amended by chapter 286 of the 47 laws of 2015, is amended to read as follows: 48 § 1262-s. Disposition of net collections from the additional one-quar- 49 ter of one percent rate of sales and compensating use taxes in the coun- 50 ty of Herkimer. Notwithstanding any contrary provision of law, if the 51 county of Herkimer imposes [the additional] sales and compensating use 52 taxes at a rate which is one and one-quarter of one percent [rate of53sales and compensating use taxes] additional to the three percent rate 54 authorized by section twelve hundred ten of this article, as authorized 55 by [section twelve hundred ten-E] clause two of subparagraph (i) of the 56 opening paragraph of section twelve hundred ten of this article [for allS. 6566 6 1or any portion of the period beginning December first, two thousand2seven and ending November thirtieth, two thousand seventeen], the county 3 shall use all net collections [from such] attributable to the additional 4 one-quarter [of one] percent of such additional rate to pay the county's 5 expenses for the construction of additional correctional facilities. The 6 net collections from [the] such additional one-quarter percent of such 7 additional rate [imposed pursuant to section twelve hundred ten-E] shall 8 be deposited in a special fund to be created by such county separate and 9 apart from any other funds and accounts of the county. Any and all 10 remaining net collections from such additional tax, after the expenses 11 of such construction are paid, shall be deposited by the county of 12 Herkimer in the general fund of such county for any county purpose. 13 § 12. The tax law is amended by adding a new section 1265 to read as 14 follows: 15 § 1265. References to certain provisions authorizing additional rates 16 or to expirations of a period. Notwithstanding any provision of law to 17 the contrary, any reference in any section of this chapter or other law, 18 or in any local law, ordinance, or resolution adopted pursuant to the 19 authority of this article, to net collections or revenues from a tax 20 imposed by a county or city pursuant to the authority of a clause, or to 21 subclause of a clause, of subparagraph (i) or (ii) of the opening para- 22 graph of section twelve hundred ten of this article repealed by section 23 one or two of the chapter of the laws of two thousand seventeen that 24 added this section or pursuant to section twelve hundred ten-E of this 25 article repealed by section five of such chapter shall be deemed to be a 26 reference to net collections or revenues from a tax imposed by that 27 county or city pursuant to the authority of the equivalent provision of 28 clause two of subparagraph (i) or to subparagraph (ii) of the opening 29 paragraph of such section twelve hundred ten as added by such section 30 one or two of such chapter. 31 § 13. This act shall take effect immediately.
