NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6258A
SPONSOR: Eachus TITLE OF BILL:
An act to amend the tax law, in relation to the imposition of a hotel
and motel tax in the village of Woodbury; and providing for the repeal
of such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:
This legislation authorizes the Village of Woodbury in Orange County to
impose by local law, a tax on hotel and motel occupancy of up to five
percent of the charge.
SUMMARY OF PROVISIONS:
Section 1: amends the Tax Law by adding a new section 1202-eee, in
relation to the imposition of a hotel and motel tax in the Village of
Woodbury.
Section 2: Sets effective date.
JUSTIFICATION:
This legislation would allow the Village of Woodbury to impose a hotel
and motel tax. The rate of such tax shall not exceed 5% of the per diem
rental rate for each room. Pursuant to the Municipal Home Rule Law, a
town may adopt local laws that relate to the levy and administration of
local taxes if authorized by the State legislature. The Village of
Woodbury has requested special legislation which will enable them to
collect a hotel and motel tax in an effort to raise additional revenue
for the town.
PRIOR LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the state.
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed 2 years after such date.
STATE OF NEW YORK
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6258--A
2023-2024 Regular Sessions
IN ASSEMBLY
April 3, 2023
___________
Introduced by M. of A. EACHUS -- read once and referred to the Committee
on Ways and Means -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to the imposition of a hotel
and motel tax in the village of Woodbury; 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-eee to
2 read as follows:
3 § 1202-eee. Hotel or motel taxes in the village of Woodbury. (1)
4 Notwithstanding any other provisions of law to the contrary, the village
5 of Woodbury, in the county of Orange, is hereby authorized and empowered
6 to adopt and amend local laws imposing in such village a tax, in addi-
7 tion to any other tax authorized and imposed pursuant to this article
8 such as the legislature has or would have the power and authority to
9 impose upon persons occupying hotel or motel rooms in such village. For
10 the purposes of this section, the term "hotel" or "motel" shall mean and
11 include any facility consisting of rentable units and providing lodging
12 on an overnight basis and shall include those facilities designated and
13 commonly known as "bed and breakfast" and "tourist" facilities. The
14 rates of such tax shall not exceed five percent of the per diem rental
15 rate for each room, provided however, that such tax shall not be appli-
16 cable to a permanent resident of a hotel or motel. For the purposes of
17 this section the term "permanent resident" shall mean a person occupying
18 any room or rooms in a hotel or motel for at least ninety consecutive
19 days.
20 (2) Such tax may be collected and administered by the chief fiscal
21 officer of the village of Woodbury by such means and in such manner as
22 other taxes which are now collected and administered by such officer or
23 as otherwise may be provided by such local law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10245-03-3
A. 6258--A 2
1 (3) Such local laws may provide that any tax imposed shall be paid by
2 the person liable therefor to the owner of the hotel or motel room occu-
3 pied or to the person entitled to be paid the rent or charge for the
4 hotel or motel room occupied for and on account of the village of Wood-
5 bury imposing the tax and that such owner or person entitled to be paid
6 the rent or charge shall be liable for the collection and payment of the
7 tax; and that such owner or person entitled to be paid the rent or
8 charge shall have the same right in respect to collecting the tax from
9 the person occupying the hotel or motel room, or in respect to nonpay-
10 ment of the tax by the person occupying the hotel or motel room, as if
11 the tax were a part of the rent or charge and payable at the same time
12 as the rent or charge; provided, however, that the chief fiscal officer
13 of the village, specified in such local law, shall be joined as a party
14 in any action or proceeding brought to collect the tax by the owner or
15 by the person entitled to be paid the rent or charge.
16 (4) Such local laws may provide for the filing of returns and the
17 payment of the tax on a monthly basis or on the basis of any longer or
18 shorter period of time.
19 (5) This section shall not authorize the imposition of such tax upon
20 any transaction, by or with any of the following in accordance with
21 section twelve hundred thirty of this article:
22 a. The state of New York, or any public corporation (including a
23 public corporation created pursuant to agreement or compact with another
24 state or the Dominion of Canada), improvement district or other poli-
25 tical subdivision of the state;
26 b. The United States of America, insofar as it is immune from taxa-
27 tion;
28 c. Any corporation or association, or trust, or community chest, fund
29 or foundation organized and operated exclusively for religious, charita-
30 ble or educational purposes, or for the prevention of cruelty to chil-
31 dren or animals, and no part of the net earnings of which inures to the
32 benefit of any private shareholder or individual and no substantial part
33 of the activities of which is carrying on propaganda, or otherwise
34 attempting to influence legislation; provided, however, that nothing in
35 this paragraph shall include an organization operated for the primary
36 purpose of carrying on a trade or business for profit, whether or not
37 all of its profits are payable to one or more organizations described in
38 this paragraph.
39 (6) Any final determination of the amount of any tax payable hereunder
40 shall be reviewable for error, illegality or unconstitutionality or any
41 other reason whatsoever by a proceeding under article seventy-eight of
42 the civil practice law and rules if application therefor is made to the
43 supreme court within thirty days after the giving of the notice of such
44 final determination, provided, however, that any such proceeding under
45 article seventy-eight of the civil practice law and rules shall not be
46 instituted unless:
47 a. The amount of any tax sought to be reviewed, with such interest and
48 penalties thereon as may be provided for by local law shall be first
49 deposited and there is filed an undertaking, issued by a surety company
50 authorized to transact business in this state and approved by the super-
51 intendent of insurance of this state as to solvency and responsibility,
52 in such amount as a justice of the supreme court shall approve to the
53 effect that if such proceeding be dismissed or the tax confirmed the
54 petitioner will pay all costs and charges which may accrue in the prose-
55 cution of such proceeding; or
A. 6258--A 3
1 b. At the option of the petitioner such undertaking may be in a sum
2 sufficient to cover the taxes, interests and penalties stated in such
3 determination plus the costs and charges which may accrue against it in
4 the prosecution of the proceeding, in which event the petitioner shall
5 not be required to pay such taxes, interest or penalties as a condition
6 precedent to the application.
7 (7) Where any tax imposed hereunder shall have been erroneously, ille-
8 gally or unconstitutionally collected and application for the refund
9 thereof duly made to the proper fiscal officer or officers, and such
10 officer or officers shall have made a determination denying such refund,
11 such determination shall be reviewable by a proceeding under article
12 seventy-eight of the civil practice law and rules, provided, however,
13 that such proceeding is instituted within thirty days after the giving
14 of the notice of such denial, that a final determination of tax due was
15 not previously made, and that an undertaking is filed with the proper
16 fiscal officer or officers in such amount and with such sureties as a
17 justice of the supreme court shall approve to the effect that if such
18 proceeding be dismissed or the tax confirmed, the petitioner will pay
19 all costs and charges which may accrue in the prosecution of such
20 proceeding.
21 (8) Except in the case of a wilfully false or fraudulent return with
22 intent to evade the tax, no assessment of additional tax shall be made
23 after the expiration of more than three years from the date of the
24 filing of a return, provided, however, that where no return has been
25 filed as provided by law the tax may be assessed at any time.
26 (9) All revenues resulting from the imposition of the tax under the
27 local laws shall be paid into the treasury of the village of Woodbury
28 and shall be credited to and deposited in the general fund of the
29 village. Such revenues may be used for any lawful purpose.
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 § 2. This act shall take effect immediately and shall expire and be
35 deemed repealed 2 years after such date.
