Authorizes certain counties and cities to impose up to a four percent rate of sales and compensating use taxes; preserves the authority of certain municipalities to impose such taxes at rates in excess of four percent.
STATE OF NEW YORK
________________________________________________________________________
2387--A
2015-2016 Regular Sessions
IN ASSEMBLY
January 16, 2015
___________
Introduced by M. of A. GALEF, DUPREY, SCHIMEL, JAFFEE, KOLB, LUPARDO,
KATZ, RAIA, GUNTHER, GOTTFRIED, BRABENEC, McLAUGHLIN, CORWIN, OAKS,
BARCLAY, McDONALD, McKEVITT -- Multi-Sponsored by -- M. of A. CROUCH,
GIGLIO, GRAF, HAWLEY, MAGEE, McDONOUGH, MONTESANO, PALMESANO, PAULIN,
RA, RIVERA, SALADINO, SIMON, SKARTADOS, THIELE -- read once and
referred to the Committee on Ways and Means -- recommitted to the
Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT to amend the tax law, in relation to the authority of counties to
impose sales and compensating use taxes pursuant to the authority of
article 29 of such law; and to repeal certain provisions of sections
1210 and 1224 and section 1210-E 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2 of the tax law is REPEALED and a new subparagraph (i) is added to read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 is
6 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 for such counties are hereby further authorized and
12 empowered to adopt and amend local laws, ordinances, or resolutions
13 imposing such taxes described in subdivision (a) of this section at the
14 following additional rates, in quarter percent increments, which rates
15 are additional to the three percent rate authorized above in this para-
16 graph, and, in the case of a county authorized to impose more than one
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00143-03-5
A. 2387--A 2
1 additional rate, also in addition to each other, for each such county,
2 provided that (A) the county of Rockland may impose additional rates of
3 five-eighths percent and three-eighths percent, in lieu of imposing such
4 additional rate in quarter percent increments; (B) the county of Ontario
5 may impose additional rates of one-eighth percent and three-eighths
6 percent, in lieu of imposing such additional rate in quarter percent
7 increments; (C) three-quarters percent of the additional rate authorized
8 to be imposed by the county of Nassau shall be subject to the limitation
9 set forth in section twelve hundred sixty-two-e of this article:
10 (I) One-quarter of one percent - None.
11 (II) One-half of one percent - Ontario, Schenectady.
12 (III) Three-quarters of one percent - Dutchess, Essex, Lewis, Orange.
13 (IV) One percent - Albany, Broome, Cattaraugus, Cayuga, Chautauqua,
14 Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Franklin,
15 Fulton, Genesee, Greene, Jefferson, Livingston, Madison, Monroe, Mont-
16 gomery, Niagara, Onondaga, Orleans, Oswego, Otsego, Putnam, Rensselaer,
17 Rockland, Schoharie, Schuyler, Seneca, Steuben, Suffolk, Sullivan,
18 Tioga, Tompkins, Ulster, Wayne, Wyoming, Yates.
19 (V) One and one-quarter percent - Herkimer, Nassau.
20 (VI) One and one-half percent - Allegany.
21 (VII) One and three-quarters percent - Erie, Oneida.
22 § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the
23 tax law is REPEALED and a new subparagraph (ii) is added to read as
24 follows:
25 (ii) the following cities that impose taxes described in subdivision
26 (a) of this section at the rate of one and one-half percent or higher as
27 authorized above in this paragraph for such cities are hereby further
28 authorized and empowered to adopt and amend local laws, ordinances, or
29 resolutions imposing such taxes described in subdivision (a) of this
30 section at the following additional rates, in quarter percent incre-
31 ments, which rates are additional to the one and one-half percent or
32 higher rates authorized above in this paragraph and, in the case of a
33 city authorized to impose more than one additional rate, also in addi-
34 tion to each other, for each such city:
35 (1) One-quarter of one percent - None.
36 (2) One-half of one percent - None.
37 (3) Three-quarters of one percent - None.
38 (4) One percent - Mount Vernon; Yonkers; Oswego, for the period begin-
39 ning December first, two thousand sixteen, and ending November thirti-
40 eth, two thousand eighteen; New Rochelle, for the period beginning Janu-
41 ary first, two thousand seventeen, and ending December thirty-first, two
42 thousand nineteen; White Plains, for the period beginning September
43 first, two thousand sixteen, and ending August thirty-first, two thou-
44 sand eighteen.
45 (5) One and one-quarter percent - None.
46 (6) One and one-half percent - None.
47 (7) One and three-quarters percent - None.
48 § 3. Subparagraph (iii) of the opening paragraph of section 1210 of
49 the tax law is REPEALED and a new subparagraph (iii) is added to read as
50 follows:
51 (iii) the maximum rate referred to in section twelve hundred twenty-
52 four of this article shall be calculated without reference to the addi-
53 tional rates authorized for counties, other than the counties of Cayuga,
54 Cortland, Fulton, Madison, and Otsego in subparagraph (i) and the cities
55 in subparagraph (ii) of this paragraph.
A. 2387--A 3
1 § 4. Section 1210 of the tax law is amended by adding a new subdivi-
2 sion (q) to read as follows:
3 (q) Notwithstanding any provision of this section or any other law, a
4 county may, by a majority vote of its governing body, pass a local law,
5 ordinance or resolution to impose the additional rate or rates of such
6 sales and compensating use taxes authorized by clause two of subpara-
7 graph (i) of the opening paragraph of this section for a period not to
8 exceed two years. Any such local law, ordinance, or resolution shall
9 also be subject to the provisions of subdivisions (d) and (e) of this
10 section.
11 § 5. Section 1210-E of the tax law is REPEALED.
12 § 6. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m),
13 (n), (o), (p), (q), (r), (t), (u), (v), (w), (x), (y), (z), (z-1), (aa),
14 (bb), (cc), (dd), (ee), (ff) and (gg) of section 1224 of the tax law are
15 REPEALED.
16 § 7. Section 1224 of the tax law is amended by adding four new subdi-
17 visions (d), (e), (f), and (g) to read as follows:
18 (d) For purposes of this section, the term "prior right" shall mean
19 the preferential right to impose any tax described in sections twelve
20 hundred two and twelve hundred three, or twelve hundred ten and twelve
21 hundred eleven, of this article and thereby to preempt such tax and to
22 preclude another municipal corporation from imposing or continuing the
23 imposition of such tax to the extent that such right is exercised.
24 However, the right of preemption shall only apply within the territorial
25 limits of the taxing jurisdiction having the right or preemption.
26 (e) Each of the following counties and cities shall have the sole
27 right to impose the following additional rate of sales and compensating
28 use taxes in excess of three percent that such county or city is author-
29 ized to impose pursuant to the authority of subdivision (a) of section
30 twelve hundred ten of this article. Such additional rates of tax shall
31 not be subject to preemption.
32 (1) Counties:
33 (A) One-quarter of one percent - None.
34 (B) One-half of one percent - Ontario, Schenectady.
35 (C) Three-quarters of one percent - Dutchess, Essex, Lewis, Orange.
36 (D) One percent - Albany, Broome, Cattaraugus, Chautauqua, Chemung,
37 Chenango, Clinton, Columbia, Delaware, Franklin, Genesee, Greene,
38 Jefferson, Livingston, Monroe, Montgomery, Niagara, Onondaga, Orleans,
39 Otsego, Putnam, Rensselaer, Rockland, Schoharie, Schuyler, Seneca, Steu-
40 ben, Suffolk, Sullivan, Tioga, Tompkins, Ulster, Wayne, Wyoming, Yates.
41 (E) One and one-quarter percent - Herkimer, Nassau.
42 (F) One and one-half percent - Allegany.
43 (G) One and three-quarters percent - Erie, Oneida.
44 (2) Cities:
45 (A) One-quarter of one percent - None.
46 (B) One-half of one percent - None.
47 (C) Three-quarters of one percent - None.
48 (D) One percent - Mount Vernon, New Rochelle, White Plains.
49 (E) One and one-half percent - Yonkers.
50 (f) Each of the following cities is authorized to preempt the taxes
51 imposed by the county in which it is located pursuant to the authority
52 of subdivision (a) of section twelve hundred ten of this article, to the
53 extent of one-half the maximum aggregate rate authorized under section
54 twelve hundred ten of this article, including the additional rate that
55 the county in which such city is located is authorized to impose:
56 Auburn, in Cayuga county; Cortland, in Cortland county; Gloversville and
A. 2387--A 4
1 Johnstown, in Fulton county; Oneida, in Madison county; Oneonta, in
2 Otsego county. As of the date this subdivision takes effect, any such
3 preemption by such a city in effect on such date shall continue in full
4 force and effect until the effective date of a local law, ordinance, or
5 resolution adopted or amended by the city to change such preemption,
6 provided such a city's rate of tax in excess of one and one-half percent
7 shall not continue in effect if the county in which it is located does
8 not extend its additional rate in excess of three percent. Any
9 preemption by such a city to take effect under this subdivision after
10 the date this subdivision takes effect shall be subject to the notice
11 requirements in section twelve hundred twenty-three of this subpart and
12 to the other requirements of this article.
13 (g) Notwithstanding the foregoing provisions of this section or other
14 law, if the county of Dutchess, the county of Orange or the county of
15 Rockland withdraws from the metropolitan commuter transportation
16 district and imposes the additional three-eighths percent rate of tax,
17 the net collections from which the county has set aside for mass trans-
18 portation purposes, as authorized by subparagraph (iv) of the opening
19 paragraph of section twelve hundred ten of this article, such additional
20 three-eighths percent rate of tax shall be in addition to any other
21 additional rate of tax such county is authorized to impose and shall not
22 be subject to preemption and such county shall not include such addi-
23 tional three-eighths percent rate of tax in determining its additional
24 rate of tax on the area of the county outside any city in the county
25 imposing tax for purposes of subdivision (d) of section twelve hundred
26 sixty-two of this article.
27 § 8. The tax law is amended by adding three new sections 1262-u,
28 1262-v and 1262-w to read as follows:
29 § 1262-u. Oneida county net collections from additional rate of tax.
30 Net collections from an additional three-quarters percent rate of Oneida
31 county's sales and compensating use taxes imposed pursuant to the
32 authority of clause two of subparagraph (i) of the opening paragraph of
33 section twelve hundred ten of this article shall not be subject to any
34 revenue distribution agreement entered into by the county and the cities
35 in the county under subdivision (c) of section twelve hundred sixty-two
36 of this part.
37 § 1262-v. Clinton county net collections from additional rate of tax.
38 Net collections from any additional rate of sales and compensating use
39 taxes Clinton county imposes pursuant to the authority of clause two of
40 subparagraph (i) of the opening paragraph of section twelve hundred ten
41 of this article shall be paid to the county and the county shall set
42 aside such net collections and use them solely for county purposes. Such
43 net collections shall not be subject to any revenue distribution agree-
44 ment entered into by the county and the city in the county under subdi-
45 vision (c) of section twelve hundred sixty-two of this part.
46 § 1262-w. Ontario county net collections from additional rate of tax.
47 Notwithstanding any law to the contrary, after Ontario county allocates
48 net collections from its additional one-eighth of one percent rate of
49 sales and compensating use taxes pursuant to the authority of section
50 twelve hundred sixty-two-r of this part, as added by chapter thirty-sev-
51 en of the laws of two thousand six, net collections from the county's
52 additional three-eighths of one percent rate of such taxes shall be set
53 aside for county purposes and shall not be subject to any agreement
54 entered into by the county and the cities in the county under subdivi-
55 sion (c) of section twelve hundred sixty-two or section twelve hundred
A. 2387--A 5
1 sixty-two-r of this part, as added by chapter thirty-seven of the laws
2 of two thousand six.
3 § 9. Section 1262-s of the tax law, as amended by chapter 286 of the
4 laws of 2015, is amended to read as follows:
5 § 1262-s. Disposition of net collections from the additional one-quar-
6 ter of one percent rate of sales and compensating use taxes in the coun-
7 ty of Herkimer. Notwithstanding any contrary provision of law, if the
8 county of Herkimer imposes the additional one-quarter of one percent
9 rate of sales and compensating use taxes in excess of four percent
10 authorized by section twelve hundred [ten-E] ten of this article [for
11 all or any portion of the period beginning December first, two thousand
12 seven and ending November thirtieth, two thousand seventeen], the county
13 shall use all net collections from such additional one-quarter of one
14 percent rate to pay the county's expenses for the construction of addi-
15 tional correctional facilities. The net collections from [the] such
16 additional rate [imposed pursuant to section twelve hundred ten-E] shall
17 be deposited in a special fund to be created by such county separate and
18 apart from any other funds and accounts of the county. Any and all
19 remaining net collections from such additional tax, after the expenses
20 of such construction are paid, shall be deposited by the county of
21 Herkimer in the general fund of such county for any county purpose.
22 § 10. The tax law is amended by adding a new section 1265 to read as
23 follows:
24 § 1265. References to certain provisions authorizing additional rates
25 or to expirations of a period. Notwithstanding any provision of law to
26 the contrary: Any reference in any section of this chapter or other law,
27 or in any local law, ordinance, or resolution adopted pursuant to the
28 authority of this article, or in any agreement entered into by a county
29 and all the cities in that county under subdivision (c) of section
30 twelve hundred sixty-two of this part, to net collections or revenues
31 from a tax imposed by a county or city pursuant to the authority of a
32 clause, or to a subclause of a clause, of subparagraph (i) or (ii) of
33 the opening paragraph of section twelve hundred ten of this article
34 repealed by section one or two of the chapter of the laws of two thou-
35 sand sixteen that added this section or to section twelve hundred ten-E
36 of this article repealed by section five of such chapter of the laws of
37 two thousand sixteen shall be deemed to be a reference to net
38 collections or revenues from a tax imposed by that county or city pursu-
39 ant to the authority of the equivalent provision of clause two of
40 subparagraph (i) or to subparagraph (ii) of the opening paragraph of
41 such section twelve hundred ten as added by such section one or two of
42 such chapter of the laws of two thousand sixteen.
43 § 11. Severability. If any provision of this act shall for any reason
44 be finally adjudged by any court of competent jurisdiction to be inval-
45 id, such judgment shall not affect, impair, or invalidate the remainder
46 of this act, but shall be confined in its operation to the provision
47 directly involved in the controversy in which such judgment shall have
48 been rendered. It it hereby declared to be the intent of the legislature
49 that this act would have been enacted even if such invalid provision had
50 not been included in this act.
51 § 12. This act shall take effect immediately.
