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S07973 Summary:

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S07973 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7973--A
            Cal. No. 1592
 
                    IN SENATE
 
                                      June 1, 2016
                                       ___________
 
        Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions -- committee discharged and said bill committed to the
          Committee  on Rules -- ordered to a third reading, amended and ordered
          reprinted, retaining its place in the order of third reading

        AN ACT to amend the public authorities law and the tax law, in  relation
          to the Schenectady county Metroplex development authority
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 9 of section 2661  of  the  public  authorities
     2  law,  as  amended by chapter 468 of the laws of 2008, is amended to read
     3  as follows:
     4    9. The county of Schenectady shall dedicate net collections from sales
     5  and compensating use taxes imposed pursuant to the authority of  section
     6  twelve  hundred  ten-C  of  the  tax  law at the rate of one-half of one
     7  percent, during the period beginning September first,  nineteen  hundred
     8  ninety-eight,  and  ending  August  thirty-first,  two thousand [thirty-
     9  three] thirty-eight, or, if the county does not impose taxes pursuant to
    10  the authority of section twelve hundred ten-C of the tax law, the county
    11  shall dedicate net collections from sales  and  compensating  use  taxes
    12  imposed during such period at the rate of one-half of one percent pursu-
    13  ant  to  the authority of section twelve hundred ten of the tax law, and
    14  shall quarterly deposit such net collections in the  Schenectady  metro-
    15  plex  development  authority support fund established in accordance with
    16  subdivision (b) of section twelve hundred ten-C of the tax law. On Janu-
    17  ary first, nineteen hundred ninety-nine, and then quarterly  thereafter,
    18  the  director  of  finance  of Schenectady county shall transfer seventy
    19  percent of such net collections deposited in the  Schenectady  metroplex
    20  development  authority  support fund to the authority for deposit in the
    21  authority's general fund. The authority may use  such  portion  of  such
    22  dedicated  net  collections  received for any lawful purpose or power of
    23  the authority. On January first, nineteen hundred ninety-nine, and  then
    24  quarterly  thereafter,  the  director  of finance of Schenectady county,
    25  after transferring seventy  percent  of  such  net  collections  to  the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
        S                                                          LBD15610-03-6
        S. 7973--A                          2
 
     1  authority  for  deposit  in the authority's general fund, shall transfer
     2  all remaining monies in the Schenectady metroplex development  authority
     3  support  fund  to the Schenectady county real property tax abatement and
     4  economic development fund.
     5    §  2.  Subdivision 1 of section 2665 of the public authorities law, as
     6  amended by chapter 468 of the laws  of  2008,  is  amended  to  read  as
     7  follows:
     8    1.  The  authority  shall have the power and is hereby authorized from
     9  time to time to issue bonds, notes or other  obligations  in  conformity
    10  with  applicable  provisions  of  the uniform commercial code to pay the
    11  cost of any project, the establishment of reserves to secure the  bonds,
    12  the  payment of principal of, premium, if any, and interest on the bonds
    13  and the payment of incidental  expenses  in  connection  therewith.  The
    14  aggregate principal amount of such bonds or notes of the authority shall
    15  not  exceed  [seventy-five]  one hundred million dollars [($75,000,000)]
    16  ($100,000,000), excluding bonds or notes issued to refund or repay bonds
    17  or notes therefore issued for such  purposes;  provided,  however,  that
    18  upon  any  such  refunding  or  repayment  the total aggregate principal
    19  amount of outstanding bonds or notes may be greater than  [seventy-five]
    20  one  hundred million dollars [($75,000,000)] ($100,000,000), only if the
    21  present value of the aggregate debt service of the refunding  or  repay-
    22  ment  of  bonds or notes to be issued shall not exceed the present value
    23  of the aggregate debt service of the bonds or notes so to be refunded or
    24  repaid. For the purpose of this section, the present value of the aggre-
    25  gate debt service of the refunding or repayment bonds or notes  and  the
    26  aggregate debt service of the bonds or notes refunded or repaid shall be
    27  calculated  by utilizing the effective interest rate of the refunding or
    28  repayment of bonds or notes, which shall be  that  rate  arrived  at  by
    29  doubling the semi-annual interest rate (compounded semi-annually) neces-
    30  sary to discount the debt service payments on the refunding or repayment
    31  of  bonds or notes from payment of dates thereof to the date of issue of
    32  the refunding or repayment of bonds  or  notes  and  to  the  price  bid
    33  including estimated accrued interest from the sale thereof. The authori-
    34  ty  shall  have  the  power  and is hereby authorized to enter into such
    35  agreements and perform such acts as may be required under any applicable
    36  federal legislation to secure a federal guarantee to any bonds.
    37    § 3. Subdivisions (a), (b) and (c) of section 1210-C of the  tax  law,
    38  as  amended  by  chapter 468 of the laws of 2008, are amended to read as
    39  follows:
    40    (a) In addition to the taxes  authorized  to  be  imposed  by  section
    41  twelve  hundred ten of this article or any other provision of this arti-
    42  cle, the county of Schenectady is hereby  authorized  and  empowered  to
    43  adopt and amend a local law, ordinance or resolution imposing within the
    44  territorial  limits of said county sales and compensating use taxes at a
    45  rate which is one-half of one percent additional to  the  three  percent
    46  rate  authorized  in  section twelve hundred ten of this article for the
    47  period beginning on or after September first, nineteen  hundred  ninety-
    48  eight  and ending August thirty-first, two thousand [thirty-three] thir-
    49  ty-eight, which taxes shall be identical to the taxes  imposed  by  said
    50  county pursuant to section twelve hundred ten of this article. Except as
    51  hereinafter  provided,  all  provisions  of  this article, including the
    52  definition and exemption provisions and the provisions relating  to  the
    53  administration,  collection  and distribution by the commissioner, shall
    54  apply for purposes of the taxes authorized to be imposed by this section
    55  in the same manner and with the same force and effect as if the language
    56  of this article had been incorporated in full in this  section  and  had
        S. 7973--A                          3
 
     1  expressly  referred  to  the  taxes  authorized  to  be  imposed by this
     2  section; provided, however, that any provision of this article  relating
     3  to  a  maximum  rate  shall be calculated without reference to the addi-
     4  tional  rate authorized by this section. For purposes of part IV of this
     5  article, relating to the disposition of revenues  resulting  from  taxes
     6  collected and administered by the commissioner, the additional sales and
     7  compensating  use taxes authorized by this section shall be deemed to be
     8  imposed under the authority of section twelve hundred ten of this  arti-
     9  cle  and  all  provisions  relating  to  the deposit, administration and
    10  disposition of taxes, penalties and interest relating to  taxes  imposed
    11  by  a  county  under the authority of section twelve hundred ten of this
    12  article  shall,  except  as  otherwise  specifically  provided  in  this
    13  section,  apply to the additional sales and compensating use tax imposed
    14  pursuant to the authority of this section.
    15    (b) Notwithstanding any other provision of this article to the contra-
    16  ry, the net collections from the tax imposed pursuant to subdivision (a)
    17  of this section for the period beginning on or  after  September  first,
    18  nineteen  hundred ninety-eight and ending August thirty-first, two thou-
    19  sand [thirty-three] thirty-eight shall, upon payment to  the  county  of
    20  Schenectady,  be  deposited  in  the  Schenectady  metroplex development
    21  authority support fund, pursuant to subdivision nine of section  twenty-
    22  six  hundred  sixty-one of the public authorities law, with such fund to
    23  be designated as a special dedicated support fund, to be created by said
    24  county therefor separate and apart from any other funds and accounts  of
    25  the  county. Pending deposit from such Schenectady metroplex development
    26  authority support fund into the general fund of the  Schenectady  metro-
    27  plex  development  authority,  all moneys therein may be invested in the
    28  manner provided in section eleven of  the  general  municipal  law.  Any
    29  interest  earned  or capital gain realized on the moneys so deposited or
    30  invested shall accrue to and become part of such  Schenectady  metroplex
    31  development authority support fund.
    32    (c)  If  the county of Schenectady does not impose the one-half of one
    33  percent rate of taxes authorized by  subdivision  (a)  of  this  section
    34  during  the  period  beginning September first, nineteen hundred ninety-
    35  eight and ending August thirty-first, two thousand [thirty-three]  thir-
    36  ty-eight,  the  county  shall  dedicate  net  collections from sales and
    37  compensating use taxes  imposed  during  such  period  pursuant  to  the
    38  authority  of  section twelve hundred ten of this article at the rate of
    39  one-half of one percent and shall quarterly deposit such net collections
    40  in the Schenectady metroplex development authority support  fund  estab-
    41  lished in accordance with subdivision (b) of this section.
    42    § 4. Severability clause. If any clause, sentence, paragraph, subdivi-
    43  sion,  section  or  part  of  this act shall be adjudged by any court of
    44  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    45  impair,  or  invalidate  the remainder thereof, but shall be confined in
    46  its operation to the clause, sentence, paragraph,  subdivision,  section
    47  or part thereof directly involved in the controversy in which such judg-
    48  ment shall have been rendered. It is hereby declared to be the intent of
    49  the  legislature  that  this  act  would  have been enacted even if such
    50  invalid provisions had not been included herein.
    51    § 5. This act shall take effect immediately.