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2 of the tax law is REPEALED and a new subparagraph (i) is added to read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.
LBD13049-01-7
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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:
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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 city
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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 such
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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 of
53 sales 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 all
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1 or any portion of the period beginning December first, two thousand
2 seven 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.
