Bill Text: NY A05881 | 2019-2020 | General Assembly | Introduced
Bill Title: 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.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A05881 Detail]
Download: New_York-2019-A05881-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5881 2019-2020 Regular Sessions IN ASSEMBLY February 20, 2019 ___________ Introduced by M. of A. GALEF, GOTTFRIED, JAFFEE, LUPARDO, GUNTHER, KOLB, RAIA, BARCLAY, BRABENEC -- Multi-Sponsored by -- M. of A. CROUCH, GIGLIO, HAWLEY, McDONOUGH, MONTESANO, PALMESANO, PAULIN, RA, RIVERA, SIMON, THIELE -- read once and referred to the Committee on Ways and Means 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 Subparagraph (i) of the opening paragraph of section 1210 2 of the tax law is REPEALED and a new subparagraph (i) is added to read 3 as follows: 4 (i) with respect to a city of one million or more and the following 5 counties (1) any such city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 17 additional rate, also in addition to each other, for each such county, 18 provided that (A) the county of Rockland may impose additional rates of 19 five-eighths percent and three-eighths percent, in lieu of imposing such 20 additional rate in quarter percent increments; (B) the county of Ontario EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09981-01-9A. 5881 2 1 may impose additional rates of one-eighth percent and three-eighths 2 percent, in lieu of imposing such additional rate in quarter percent 3 increments; (C) three-quarters percent of the additional rate authorized 4 to be imposed by the county of Nassau shall be subject to the limitation 5 set forth in section twelve hundred sixty-two-e of this article: 6 (I) One-quarter of one percent - None. 7 (II) One-half of one percent - Ontario, Schenectady. 8 (III) Three-quarters of one percent - Dutchess, Essex, Lewis, Orange. 9 (IV) One percent - Albany, Broome, Cattaraugus, Cayuga, Chautauqua, 10 Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Franklin, 11 Fulton, Genesee, Greene, Jefferson, Livingston, Madison, Monroe, Mont- 12 gomery, Niagara, Onondaga, Orleans, Oswego, Otsego, Putnam, Rensselaer, 13 Rockland, Schoharie, Schuyler, Seneca, Steuben, Suffolk, Sullivan, 14 Tioga, Tompkins, Ulster, Wayne, Wyoming, Yates. 15 (V) One and one-quarter percent - Herkimer, Nassau. 16 (VI) One and one-half percent - Allegany. 17 (VII) One and three-quarters percent - Erie, Oneida. 18 § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the 19 tax law is REPEALED and a new subparagraph (ii) is added to read as 20 follows: 21 (ii) the following cities that impose taxes described in subdivision 22 (a) of this section at the rate of one and one-half percent or higher as 23 authorized above in this paragraph for such cities are hereby further 24 authorized and empowered to adopt and amend local laws, ordinances, or 25 resolutions imposing such taxes described in subdivision (a) of this 26 section at the following additional rates, in quarter percent incre- 27 ments, which rates are additional to the one and one-half percent or 28 higher rates authorized above in this paragraph and, in the case of a 29 city authorized to impose more than one additional rate, also in addi- 30 tion to each other, for each such city: 31 (1) One-quarter of one percent - None. 32 (2) One-half of one percent - None. 33 (3) Three-quarters of one percent - None. 34 (4) One percent - Mount Vernon; Yonkers; Oswego, for the period begin- 35 ning December first, two thousand twenty, and ending November thirtieth, 36 two thousand twenty-two; New Rochelle, for the period beginning January 37 first, two thousand twenty-one, and ending December thirty-first, two 38 thousand twenty-three; White Plains, for the period beginning September 39 first, two thousand twenty, and ending August thirty-first, two thousand 40 twenty-two. 41 (5) One and one-quarter percent - None. 42 (6) One and one-half percent - None. 43 (7) One and three-quarters percent - None. 44 § 3. Subparagraph (iii) of the opening paragraph of section 1210 of 45 the tax law is REPEALED and a new subparagraph (iii) is added to read as 46 follows: 47 (iii) the maximum rate referred to in section twelve hundred twenty- 48 four of this article shall be calculated without reference to the addi- 49 tional rates authorized for counties, other than the counties of Cayuga, 50 Cortland, Fulton, Madison, and Otsego in subparagraph (i) and the cities 51 in subparagraph (ii) of this paragraph. 52 § 4. Section 1210 of the tax law is amended by adding a new subdivi- 53 sion (p) to read as follows: 54 (p) Notwithstanding any provision of this section or any other law, a 55 county may, by a majority vote of its governing body, pass a local law, 56 ordinance or resolution to impose the additional rate or rates of suchA. 5881 3 1 sales and compensating use taxes authorized by clause two of subpara- 2 graph (i) of the opening paragraph of this section for a period not to 3 exceed two years. Any such local law, ordinance, or resolution shall 4 also be subject to the provisions of subdivisions (d) and (e) of this 5 section. 6 § 5. Section 1210-E of the tax law is REPEALED. 7 § 6. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), 8 (n), (o), (p), (q), (r), (t), (u), (v), (w), (x), (y), (z), (z-1), (aa), 9 (bb), (cc), (dd), (ee), (ff) and (gg) of section 1224 of the tax law are 10 REPEALED. 11 § 7. Section 1224 of the tax law is amended by adding four new subdi- 12 visions (d), (e), (f), and (g) to read as follows: 13 (d) For purposes of this section, the term "prior right" shall mean 14 the preferential right to impose any tax described in sections twelve 15 hundred two and twelve hundred three, or twelve hundred ten and twelve 16 hundred eleven, of this article and thereby to preempt such tax and to 17 preclude another municipal corporation from imposing or continuing the 18 imposition of such tax to the extent that such right is exercised. 19 However, the right of preemption shall only apply within the territorial 20 limits of the taxing jurisdiction having the right or preemption. 21 (e) Each of the following counties and cities shall have the sole 22 right to impose the following additional rate of sales and compensating 23 use taxes in excess of three percent that such county or city is author- 24 ized to impose pursuant to the authority of subdivision (a) of section 25 twelve hundred ten of this article. Such additional rates of tax shall 26 not be subject to preemption. 27 (1) Counties: 28 (A) One-quarter of one percent - None. 29 (B) One-half of one percent - Ontario, Schenectady. 30 (C) Three-quarters of one percent - Dutchess, Essex, Lewis, Orange. 31 (D) One percent - Albany, Broome, Cattaraugus, Chautauqua, Chemung, 32 Chenango, Clinton, Columbia, Delaware, Franklin, Genesee, Greene, 33 Jefferson, Livingston, Monroe, Montgomery, Niagara, Onondaga, Orleans, 34 Otsego, Putnam, Rensselaer, Rockland, Schoharie, Schuyler, Seneca, Steu- 35 ben, Suffolk, Sullivan, Tioga, Tompkins, Ulster, Wayne, Wyoming, Yates. 36 (E) One and one-quarter percent - Herkimer, Nassau. 37 (F) One and one-half percent - Allegany. 38 (G) One and three-quarters percent - Erie, Oneida. 39 (2) Cities: 40 (A) One-quarter of one percent - None. 41 (B) One-half of one percent - None. 42 (C) Three-quarters of one percent - None. 43 (D) One percent - Mount Vernon, New Rochelle, White Plains. 44 (E) One and one-half percent - Yonkers. 45 (f) Each of the following cities is authorized to preempt the taxes 46 imposed by the county in which it is located pursuant to the authority 47 of subdivision (a) of section twelve hundred ten of this article, to the 48 extent of one-half the maximum aggregate rate authorized under section 49 twelve hundred ten of this article, including the additional rate that 50 the county in which such city is located is authorized to impose: 51 Auburn, in Cayuga county; Cortland, in Cortland county; Gloversville and 52 Johnstown, in Fulton county; Oneida, in Madison county; Oneonta, in 53 Otsego county. As of the effective date of this subdivision, any such 54 preemption by such a city in effect on such date shall continue in full 55 force and effect until the effective date of a local law, ordinance, or 56 resolution adopted or amended by the city to change such preemption,A. 5881 4 1 provided such a city's rate of tax in excess of one and one-half percent 2 shall not continue in effect if the county in which it is located does 3 not extend its additional rate in excess of three percent. Any 4 preemption by such a city to take effect under this subdivision after 5 the date this subdivision takes effect shall be subject to the notice 6 requirements in section twelve hundred twenty-three of this subpart and 7 to the other requirements of this article. 8 (g) Notwithstanding the foregoing provisions of this section or other 9 law, if the county of Dutchess, the county of Orange or the county of 10 Rockland withdraws from the metropolitan commuter transportation 11 district and imposes the additional three-eighths percent rate of tax, 12 the net collections from which the county has set aside for mass trans- 13 portation purposes, as authorized by subparagraph (iv) of the opening 14 paragraph of section twelve hundred ten of this article, such additional 15 three-eighths percent rate of tax shall be in addition to any other 16 additional rate of tax such county is authorized to impose and shall not 17 be subject to preemption and such county shall not include such addi- 18 tional three-eighths percent rate of tax in determining its additional 19 rate of tax on the area of the county outside any city in the county 20 imposing tax for purposes of subdivision (d) of section twelve hundred 21 sixty-two of this article. 22 § 8. The tax law is amended by adding three new sections 1262-u, 23 1262-v and 1262-w to read as follows: 24 § 1262-u. Oneida county net collections from additional rate of tax. 25 Net collections from an additional three-quarters percent rate of Oneida 26 county's sales and compensating use taxes imposed pursuant to the 27 authority of clause two of subparagraph (i) of the opening paragraph of 28 section twelve hundred ten of this article shall not be subject to any 29 revenue distribution agreement entered into by the county and the cities 30 in the county under subdivision (c) of section twelve hundred sixty-two 31 of this part. 32 § 1262-v. Clinton county net collections from additional rate of tax. 33 Net collections from any additional rate of sales and compensating use 34 taxes Clinton county imposes pursuant to the authority of clause two of 35 subparagraph (i) of the opening paragraph of section twelve hundred ten 36 of this article shall be paid to the county and the county shall set 37 aside such net collections and use them solely for county purposes. Such 38 net collections shall not be subject to any revenue distribution agree- 39 ment entered into by the county and the city in the county under subdi- 40 vision (c) of section twelve hundred sixty-two of this part. 41 § 1262-w. Ontario county net collections from additional rate of tax. 42 Notwithstanding any law to the contrary, after Ontario county allocates 43 net collections from its additional one-eighth of one percent rate of 44 sales and compensating use taxes pursuant to the authority of section 45 twelve hundred sixty-two-r of this part, as added by chapter thirty-sev- 46 en of the laws of two thousand six, net collections from the county's 47 additional three-eighths of one percent rate of such taxes shall be set 48 aside for county purposes and shall not be subject to any agreement 49 entered into by the county and the cities in the county under subdivi- 50 sion (c) of section twelve hundred sixty-two or section twelve hundred 51 sixty-two-r of this part, as added by chapter thirty-seven of the laws 52 of two thousand six. 53 § 9. Section 1262-s of the tax law, as amended by section 3 of subpart 54 U of part A of chapter 61 of the laws of 2017, is amended to read as 55 follows:A. 5881 5 1 § 1262-s. Disposition of net collections from the additional one-quar- 2 ter of one percent rate of sales and compensating use taxes in the coun- 3 ty of Herkimer. Notwithstanding any contrary provision of law, if the 4 county of Herkimer imposes the additional one-quarter of one percent 5 rate of sales and compensating use taxes in excess of four percent 6 authorized by section twelve hundred [ten-E] ten of this article for all 7 or any portion of the period beginning December first, two thousand 8 seven and ending November thirtieth, two thousand twenty, the county 9 shall use all net collections from such additional one-quarter of one 10 percent rate to pay the county's expenses for the construction of addi- 11 tional correctional facilities. The net collections from [the] such 12 additional rate [imposed pursuant to section twelve hundred ten-E] shall 13 be deposited in a special fund to be created by such county separate and 14 apart from any other funds and accounts of the county. Any and all 15 remaining net collections from such additional tax, after the expenses 16 of such construction are paid, shall be deposited by the county of 17 Herkimer in the general fund of such county for any county purpose. 18 § 10. The tax law is amended by adding a new section 1265 to read as 19 follows: 20 § 1265. References to certain provisions authorizing additional rates 21 or to expirations of a period. Notwithstanding any provision of law to 22 the contrary: Any reference in any section of this chapter or other law, 23 or in any local law, ordinance, or resolution adopted pursuant to the 24 authority of this article, or in any agreement entered into by a county 25 and all the cities in that county under subdivision (c) of section 26 twelve hundred sixty-two of this part, to net collections or revenues 27 from a tax imposed by a county or city pursuant to the authority of a 28 clause, or to a subclause of a clause, of subparagraph (i) or (ii) of 29 the opening paragraph of section twelve hundred ten of this article 30 repealed by section one or two of the chapter of the laws of two thou- 31 sand nineteen that added this section or to section twelve hundred ten-E 32 of this article repealed by section five of such chapter of the laws of 33 two thousand nineteen shall be deemed to be a reference to net 34 collections or revenues from a tax imposed by that county or city pursu- 35 ant to the authority of the equivalent provision of clause two of 36 subparagraph (i) or to subparagraph (ii) of the opening paragraph of 37 such section twelve hundred ten as added by such section one or two of 38 such chapter of the laws of two thousand nineteen. 39 § 11. Severability. If any provision of this act shall for any reason 40 be finally adjudged by any court of competent jurisdiction to be inval- 41 id, such judgment shall not affect, impair, or invalidate the remainder 42 of this act, but shall be confined in its operation to the provision 43 directly involved in the controversy in which such judgment shall have 44 been rendered. It is hereby declared to be the intent of the legislature 45 that this act would have been enacted even if such invalid provision had 46 not been included in this act. 47 § 12. This act shall take effect immediately.
