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S09175 Summary:

S09175 Actions:

S09175 Committee Votes:

S09175 Floor Votes:

S09175 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9175
 
                    IN SENATE
 
                                       May 2, 2024
                                       ___________
 
        Introduced  by  Sen.  WEBB  --  read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
 
        AN ACT to amend the tax law, in relation  to  authorizing  the  city  of
          Cortland to establish hotel and motel taxes
 
          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-jj  to
     2  read as follows:
     3    §  1202-jj. Hotel or motel taxes in the city of Cortland. (1) Notwith-
     4  standing any other provision of law to the contrary, the city  of  Cort-
     5  land,  Cortland  county, is hereby authorized and empowered to adopt and
     6  amend local laws imposing in such city a tax, in addition to  any  other
     7  tax  authorized and imposed pursuant to this article, such as the legis-
     8  lature has or would have the power and authority to impose upon  persons
     9  occupying  hotel  or  motel rooms in such city. For the purposes of this
    10  section, the term "hotel" or "motel" shall mean and include any facility
    11  providing lodging on an overnight basis and shall include those  facili-
    12  ties  designated and commonly known as "bed and breakfast" and "tourist"
    13  facilities. The rates of such tax shall not exceed three percent of  the
    14  per  diem  rental  rate  for  each room, provided however, that such tax
    15  shall not be applicable to a permanent resident of a hotel or motel. For
    16  the purposes of this section, the term "permanent resident" shall mean a
    17  person occupying any room or rooms in a hotel  or  motel  for  at  least
    18  thirty consecutive days.
    19    (2)  Such  tax  may  be collected and administered by the chief fiscal
    20  officer of the city of Cortland by such means  and  in  such  manner  as
    21  other  taxes,  which are now collected and administered by such officer,
    22  or as otherwise may be provided by such local law.
    23    (3) Such local laws may provide that any tax imposed shall be paid  by
    24  the person liable therefor to the owner of the hotel or motel room occu-
    25  pied  or  to  the  person entitled to be paid the rent or charge for the
    26  hotel or motel room occupied for and on account of the city of  Cortland
    27  imposing  the  tax and that such owner or person entitled to be paid the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14998-01-4
        S. 9175                             2
 
     1  rent or charge shall be liable for the collection  and  payment  of  the
     2  tax;  and  that  such  owner  or  person entitled to be paid the rent or
     3  charge shall have the same right in respect to collecting the  tax  from
     4  the  person  occupying the hotel or motel room, or in respect to nonpay-
     5  ment of the tax by the person occupying the hotel or motel room,  as  if
     6  the  tax  were a part of the rent or charge and payable at the same time
     7  as the rent or charge; provided, however, that the chief fiscal  officer
     8  of  the city, specified in such local law, shall be joined as a party in
     9  any action or proceeding brought to collect the tax by the owner  or  by
    10  the person entitled to be paid the rent or charge.
    11    (4)  Such  local  laws  may  provide for the filing of returns and the
    12  payment of the tax on a monthly basis or on the basis of any  longer  or
    13  shorter period of time.
    14    (5)  This  section shall not authorize the imposition of such tax upon
    15  any transaction, by or with any of  the  following  in  accordance  with
    16  section twelve hundred thirty of this article:
    17    a.  The  state  of  New  York,  or any public corporation (including a
    18  public corporation created pursuant to agreement or compact with another
    19  state or the Dominion of Canada), improvement district  or  other  poli-
    20  tical subdivision of the state;
    21    b.  The  United  States of America, insofar as it is immune from taxa-
    22  tion;
    23    c. Any corporation or association, or trust, or community chest,  fund
    24  or foundation organized and operated exclusively for religious, charita-
    25  ble,  or educational purposes, or for the prevention of cruelty to chil-
    26  dren or animals, and no part of the net earnings of which inures to  the
    27  benefit  of  any  private  shareholders or individual and no substantial
    28  part of the activities of which is carrying on propaganda, or  otherwise
    29  attempting to influence the legislation; provided, however, that nothing
    30  in this paragraph shall include an organization operated for the primary
    31  purpose  of  carrying  on a trade or business for profit, whether or not
    32  all of its profits are payable to one or more organizations described in
    33  this paragraph.
    34    (6) Any final determination of the amount of any tax payable  pursuant
    35  to this section shall be reviewable for error, illegality or unconstitu-
    36  tionality  or  any other reason whatsoever by a proceeding under article
    37  seventy-eight of the civil practice law and rules if application  there-
    38  for  is made to the supreme court within thirty days after the giving of
    39  the notice of such final determination, provided, however, that any such
    40  proceeding under article seventy-eight of the  civil  practice  law  and
    41  rules shall not be instituted unless:
    42    a. The amount of any tax sought to be reviewed, with such interest and
    43  penalties  thereon  as  may  be  provided for by local law or regulation
    44  shall be first deposited and there is filed an undertaking, issued by  a
    45  surety  company  authorized  to  transact  business  in  this  state and
    46  approved by the superintendent of financial services of this state as to
    47  solvency and responsibility, in such amount as a justice of the  supreme
    48  court  shall  approve to the effect that if such proceeding be dismissed
    49  or the tax confirmed the petitioner will pay all costs and charges which
    50  may accrue in the prosecution of such proceeding; or
    51    b. At the option of the petitioner such undertaking may be  in  a  sum
    52  sufficient  to  cover  the taxes, interests and penalties stated in such
    53  determination plus the costs and charges which may accrue against it  in
    54  the  prosecution  of the proceeding, in which event the petitioner shall
    55  not be required to pay such taxes, interest or penalties as a  condition
    56  precedent to the application.
        S. 9175                             3
 
     1    (7)  Where  any  tax  imposed pursuant to this section shall have been
     2  erroneously, illegally or unconstitutionally collected  and  application
     3  for  the  refund thereof duly made to the proper fiscal officer or offi-
     4  cers, and such officer or officers shall have made a determination deny-
     5  ing  such refund, such determination shall be reviewable by a proceeding
     6  under article  seventy-eight  of  the  civil  practice  law  and  rules,
     7  provided, however, that such proceeding is instituted within thirty days
     8  after  the  giving  of  the notice of such denial, that a final determi-
     9  nation of tax due was not previously made, and that  an  undertaking  is
    10  filed with the proper fiscal officer or officers in such amount and with
    11  such  sureties  as  a  justice of the supreme court shall approve to the
    12  effect that if such proceeding be dismissed or the  tax  confirmed,  the
    13  petitioner will pay all costs and charges which may accrue in the prose-
    14  cution of such proceeding.
    15    (8)  Except in the case of a willfully false or fraudulent return with
    16  intent to evade the tax, no assessment of additional tax shall  be  made
    17  after  the  expiration  of  more  than  three years from the date of the
    18  filing of a return, provided, however, that where  no  return  has  been
    19  filed as provided by law the tax may be assessed at any time.
    20    (9)  All  revenues  resulting from the imposition of the tax under the
    21  local laws shall be paid into the treasury of the city of  Cortland  and
    22  shall  be credited to and deposited in the general fund of the city. The
    23  city shall be authorized to retain the necessary revenue, in  an  amount
    24  not to exceed four percent of the total revenue, to defer the expense of
    25  the  city  in  administering  such  tax and the balance of such revenues
    26  shall be allocated to the promotion of tourism, cultural programs, parks
    27  and recreation, and the critical infrastructure and capital improvements
    28  necessary to support those activities, including all financial costs and
    29  obligations incurred by the city related to the creation of such  events
    30  and activities as so determined by the city of Cortland Common Council.
    31    (10)  If  any  provision of this section or the application thereof to
    32  any person or circumstance shall be held invalid, the remainder of  this
    33  section  and  the  application  of  such  provision  to other persons or
    34  circumstances shall not be affected thereby.
    35    (11) Each enactment of such local law may provide for  the  imposition
    36  of  a hotel or motel tax for a period of time no longer than three years
    37  from the effective date of its enactment. Nothing in this section  shall
    38  prohibit  the  adoption  and  enactment  of  local laws, pursuant to the
    39  provisions of this section, upon the expiration of any other  local  law
    40  adopted pursuant to this section.
    41    § 2. This act shall take effect immediately.