NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7981 REVISED 06/17/2015
SPONSOR: Pretlow TITLE OF BILL: An act to amend the tax law, in relation to authoriz-
ing the city of Yonkers to impose additional sales tax
PURPOSE OR GENERAL IDEA OF BILL:
To authorize the city of Yonkers to impose additional sales tax
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Clause 1 of subparagraph (ii) of the opening paragraph of
section 1210 of the tax law, is amended to include; and (b) .one-half of
one percent in addition to the other rates authorized in the paragraph
for such city;
Section 2: § 2. Subparagraph (iii) of the opening paragraph of section
1210 of the tax law, as separately amended by chapters 191, 217, and 325
of the laws of 2013, is amended to include one percent and one-half of
one percent for the city of Yonkers;
Section 3: § 3. Subdivision (d) of section 1224 of the tax law, as added
by chapter 871 of the laws of 1975, is amended to impose the additional
one-half of one percent rate;
Section 4: § 4. Paragraph 2 of subdivision (c) of section 1261 of the
tax law, as amended by section 9 of part SS-1 of chapter 57 of the laws
of 2008, is amended to read as follows: The city of Yonkers is author-
ized to impose pursuant to item (a) of clause (1) of subparagraph (ii)
of the opening paragraph of section twelve hundred ten of this article,
Section 5: § 5. The tax law is amended by adding a new section 1262-t,
to read as follows: § 1262-t. City of Yonkers - Disposition of net
collections from the additional one-half of one percent rate of sales
and compensating use taxes in the city of Yonkers. If the city of Yonk-
ers imposes the additional one-half percent rate of sales and compensat-
ing use taxes authorized by item (b) of clause (1) of subparagraph (ii)
of the opening paragraph of section twelve hundred ten of this article,
the city shall use the net collections from such additional one-half of
one percent rate solely for the support of education, unless the city
council votes, on an annual basis, to use such net collections for a
different purpose of the city.
JUSTIFICATION:
The City of Yonkers currently imposes a sales and compensating use tax
of 8.375% which is shared by New York State, Westchester County and the
Metropolitan Transportation Authority as authorized pursuant to Article
29 of the Tax Law of the State of New York; and
The portion of the sales and compensating use tax collected in the City
of Yonkers and dedicated to the City has been the same rate of 2.5% for
nearly thirty years. The City of Yonkers has a critical need for addi-
tional revenues to help ensure fiscal stability and the provision of all
necessary public services. The City of Yonkers has determined that a
one-half percent increase in the sales and use compensating tax for this
City would significantly alleviate the present fiscal stress on the
City, including its newly merged public school system, enabling efforts
toward financial stability.
PRIOR LEGISLATIVE HISTORY:
New legislation.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the State, positive fiscal implication to the City of Yonkers.
EFFECTIVE DATE:
This act shall take effect immediately.
