A04624 Summary:

BILL NOA04624
 
SAME ASNo same as
 
SPONSORMiller J
 
COSPNSR
 
MLTSPNSR
 
Add S54-m, St Fin L
 
Provides for the state to hold counties, cities, and school districts harmless for the loss of sales and compensating use tax revenues attributable to the exemption of certain articles of clothing and footwear from such taxes; provides for budgetary planning for this expenditure; provides for an offset of this payment by certain increases in real property tax revenues.
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A04624 Actions:

BILL NOA04624
 
02/04/2011referred to ways and means
01/04/2012referred to ways and means
06/19/2012held for consideration in ways and means
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A04624 Floor Votes:

There are no votes for this bill in this legislative session.
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A04624 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4624
 
                               2011-2012 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 4, 2011
                                       ___________
 
        Introduced  by  M.  of  A.  J. MILLER  --  read once and referred to the
          Committee on Ways and Means
 
        AN ACT to amend the state finance law, in relation to state aid to coun-
          ties, cities, and school districts for  tax  receipts  foregone  as  a
          result  of  the  exemption  of  clothing  and  footwear from sales and
          compensating use taxes
 

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  state finance law is amended by adding a new section
     2  54-m to read as follows:
     3    § 54-m. State tax relief for counties, cities,  and  school  districts
     4  for  tax receipts foregone due to the exemption of clothing and footwear
     5  from sales and compensating  use  taxes.  1.  (a)  Except  as  otherwise
     6  provided by law, the provisions of this section shall be utilized by the
     7  state to calculate the annual amount due to be paid to counties, cities,
     8  and  school  districts  by  the  state  to  hold harmless such counties,
     9  cities, and school districts for tax receipts foregone as  a  result  of

    10  provisions  of  articles twenty-eight and twenty-nine of the tax law and
    11  any other general, special, or local  laws  exempting  the  purchase  of
    12  clothing  and  footwear  for which the receipt or consideration given or
    13  contracted to be given is less than one hundred ten dollars per  article
    14  of clothing, per pair of shoes or other articles of footwear or per item
    15  used  or  consumed  to  make or repair such clothing and which becomes a
    16  physical component part of such clothing from sales or compensating  use
    17  taxes.
    18    (b) The provisions of this section shall not apply to any jurisdiction
    19  to  which  the  provisions  of subdivision (g) of section eleven hundred
    20  nine of the tax law apply.

    21    2. The amount of such reimbursement shall be equal to the tax receipts
    22  foregone by counties, cities,  and  school  districts  pursuant  to  the
    23  provisions  of  the  tax reductions described in subdivision one of this
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08190-01-1

        A. 4624                             2
 
     1  section for the calendar year ending in each such state fiscal year  and
     2  shall  be determined annually beginning with the first state fiscal year
     3  after the effective date of this section and each year thereafter.  Such

     4  amount,  as finally determined pursuant to this section, shall represent
     5  a state charge and  shall  be  paid  to  counties,  cities,  and  school
     6  districts as provided in subdivision five of this section.
     7    3.  (a)  The  amount  of  such reimbursement shall be estimated by the
     8  commissioner of taxation and finance on or before December first of  the
     9  year  preceding  the state fiscal year during which such amount is to be
    10  paid begins. Such commissioner shall use the best available  information
    11  at  his  or  her  disposal  to estimate such amount. In addition to such
    12  methods and information such commissioner may use in making  such  esti-
    13  mate,  he  or  she  shall  consult  with  counties,  cities,  and school

    14  districts during the preparation of the determination of such amount.
    15    (b) The estimate shall be provided to the director of the  budget  for
    16  use in preparing the budget for the next subsequent state fiscal year on
    17  or  before  the  tenth  day of December in each such year, and copies of
    18  such estimate shall also be supplied  to  the  chairman  of  the  senate
    19  finance  committee  and  to  the chairman of the assembly ways and means
    20  committee.
    21    (c) In each year following the preparation  of  the  initial  determi-
    22  nation  of  such  amount  the commissioner of taxation and finance shall
    23  revise such estimate and shall provide such revision to the director  of
    24  the budget and shall also supply copies of such revision to the chairman

    25  of the senate finance committee and to the chairman of the assembly ways
    26  and means committee.
    27    4. The governor shall include the amounts determined in paragraphs (a)
    28  and  (c) of subdivision three of this section as an identifiable item of
    29  appropriation in each annual executive  budget  submission  required  by
    30  this chapter for first fiscal years following the effective date of this
    31  section and thereafter.
    32    5. Amounts determined to be due counties, cities, and school districts
    33  pursuant  to  this  section  shall be paid out pursuant to the following
    34  schedule: for the first state fiscal year following the  effective  date
    35  of  this  section,  one  hundred percent of any required amount shall be

    36  made by March fifteenth in such fiscal year; for the second state fiscal
    37  year following the effective date of this section, fifty  percent  shall
    38  be  paid  out on March fifteenth and fifty percent on December fifteenth
    39  of such year; and for the third state fiscal year following  the  effec-
    40  tive  date  of  this  section and thereafter, thirty-three and one-third
    41  percent shall be paid out on the fifteenth day  of  September,  December
    42  and March of such year.
    43    6. The calculation of the amount of tax receipts foregone by any coun-
    44  ty,  city,  or school district shall be based on the amount of sales and
    45  compensating use taxes accruing to each such  county,  city,  or  school
    46  district for the period December first, two thousand nine through Novem-

    47  ber  thirtieth,  two thousand ten on the basis of tax liability incurred
    48  during such period and a comparison of such amount with the same  amount
    49  accruing  during  the period of December first, two thousand ten through
    50  November thirtieth, two thousand eleven. Any excess of the  former  over
    51  the  latter  shall be termed the differential. The state shall hold each
    52  county, city, and school district harmless for the differential, if any.
    53  In the event that sales and compensating  use  taxes  receipts  for  any
    54  annual  period  exceed receipts for the latter period, the differential,
    55  for that year, shall be accordingly adjusted or eliminated.

        A. 4624                             3
 

     1    7. Payment of hold harmless reimbursement  pursuant  to  this  section
     2  shall  be  offset  by  property  tax receipts as follows: Any additional
     3  property tax receipts, resulting not from increases  in  tax  rates  but
     4  from  additional  assessed valuation attributable to business establish-
     5  ments  selling  exempted clothing and footwear, such additional assessed
     6  valuation being added to the assessment rolls after the  effective  date
     7  of this section shall, to the extent of fifty percent thereof, be offset
     8  against  any  payment otherwise due pursuant to this section. The office
     9  of real property services, in consultation with county, city, and school
    10  district real property tax officials, shall  assist  the  department  of

    11  taxation  and  finance  in  making  the  calculations and determinations
    12  necessitated by this subdivision.
    13    § 2. This act shall take effect on the first of December next succeed-
    14  ing the date on which it shall have become a law.   State  agencies  and
    15  municipal  corporations  are  authorized to promulgate any and all rules
    16  and regulations and take any other measures necessary to implement  this
    17  act on its effective date on or before such date.
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