Bill Text: NY A10330 | 2021-2022 | General Assembly | Introduced

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Bill Title: Increases the rate of hotel and motel taxes in Suffolk county from three percent to five and one-half percent; provides for the distribution of revenue from extending the authorization for the hotel and motel taxes in Suffolk county; makes related provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-12-28 - approval memo.95 [A10330 Detail]

Download: New_York-2021-A10330-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10330

                   IN ASSEMBLY

                                      May 13, 2022
                                       ___________

        Introduced by COMMITTEE ON RULES -- (at request of M. of A. Englebright)
          -- read once and referred to the Committee on Ways and Means

        AN ACT to amend the tax law, in relation to increasing and providing for
          the  distribution  of the revenue from extending the authorization for
          the hotel and motel taxes in Suffolk County

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivisions 1, 6 and 7 of section 1202-o of the tax law,
     2  subdivisions 1 and 6 as amended by chapter 159 of the laws of  2009  and
     3  subdivision 7 as amended by section 1 of item C of subpart D of part XXX
     4  of chapter 58 of the laws of 2020, are amended to read as follows:
     5    (1)  Notwithstanding  any other provisions of law to the contrary, the
     6  county of Suffolk is hereby authorized and empowered to adopt and  amend
     7  local  laws  imposing in such county a tax, in addition to any other tax
     8  authorized and imposed pursuant to this article, such as the legislature
     9  has or would have the power and authority to impose upon persons occupy-
    10  ing hotel or motel rooms in  such  county.  For  the  purposes  of  this
    11  section,  [the  term]  (i) "hotel" or "motel" shall mean and include any
    12  facility providing lodging on an overnight basis and shall include those
    13  facilities designated and commonly known as "bed and  breakfast",  inns,
    14  cabins, cottages, campgrounds, tourist homes and convention centers, and
    15  (ii)  "cultural  programs  and activities" shall mean events, forums, or
    16  actions of benefit to the general public that are  thematically  related
    17  to  art,  music,  performing arts or music, or historic or environmental
    18  preservation or education.
    19    The rates of such tax shall  not  exceed  [three]  five  and  one-half
    20  percent  of  the  per diem rental rate for each room, provided, however,
    21  that such tax shall not be applicable to a permanent  resident  of  such
    22  hotel  or  motel.  For  the purposes of this section the term "permanent
    23  resident" shall mean a person occupying any room or rooms in a hotel  or
    24  motel for at least thirty consecutive days.
    25    (6)  Such local law shall provide that all revenues resulting from the
    26  imposition of the tax payable hereunder shall be paid into the  treasury
    27  of  the county of Suffolk and shall be distributed within thirty days of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15798-03-2
        A. 10330                            2

     1  receipt by the county proportional to the annual amount  due  under  the
     2  following  formula:  (a) [twenty-four percent of all revenues collected,
     3  but not more than two] six million dollars per  fiscal  year,  shall  be
     4  delivered  to  [the]  a not-for-profit tourism promotion agency that has
     5  experience with tourism promotion in the Long Island  Region  which  the
     6  county  of Suffolk contracts with pursuant to the provisions of subdivi-
     7  sion five of this section; (b) [ten percent of all  revenues  collected]
     8  two  million two hundred fifty thousand dollars per fiscal year shall be
     9  utilized by the county of Suffolk in support of  cultural  programs  and
    10  activities  relevant  to the continuation and enhancement of the tourism
    11  industry [which may be increased one percent each county fiscal year  by
    12  the  Suffolk  county  legislature  to  an  amount  not to exceed fifteen
    13  percent of all revenues collected as such legislature reduces the  allo-
    14  cation  for the purposes of paragraph (c) of this subdivision], provided
    15  that one million dollars per fiscal year shall be utilized in support of
    16  cultural programs and activities in the  towns of  Babylon,  Brookhaven,
    17  Huntington,    Islip and Smithtown; one million dollars per fiscal  year
    18  shall  be  utilized  in  support  of  cultural programs and   activities
    19  in    the  towns of Riverhead, Southold, Shelter Island, Southampton and
    20  East Hampton  and  two  hundred  fifty  thousand dollars per fiscal year
    21  shall fund cultural grant programs administered by the county department
    22  of  economic  development  and planning; (c) [ten percent of all  reven-
    23  ues collected] one million two hundred fifty thousand dollars per fiscal
    24  year  shall  be utilized by the county of Suffolk for the support of any
    25  museum accredited by the  American  Association  of  Museums,  which  is
    26  located  in such county's first dedicated park and is also listed on the
    27  National Register of Historic Places[, such amount may be decreased  one
    28  percent  each county fiscal year by the Suffolk county legislature to an
    29  amount not less than five percent of all revenues collected]; (d) [eight
    30  percent of all revenues collected] one million dollars per  fiscal  year
    31  shall  be  utilized  by  the  county of Suffolk for the support of other
    32  museums, and historical  societies,  historic  residences  and  historic
    33  birthplaces[,  provided  that  of such eight percent, an amount equal to
    34  one and one-half percent of all revenue collected shall be  utilized  by
    35  the  county  of  Suffolk  for program support of a not-for-profit museum
    36  organization that manages a National Register of Historic Places site in
    37  Suffolk county that has been named a National Treasure,  is  part  of  a
    38  National  Recreational  Trail  and  is  a New York state historic site];
    39  (d-1) two hundred fifty  thousand  dollars  per  fiscal  year  shall  be
    40  utilized  by the county of Suffolk for program support of a not-for-pro-
    41  fit museum organization that manages a  National  Register  of  Historic
    42  Places  site  in Suffolk county that has been named a National Treasure,
    43  is part of a National Recreational Trail and is a New York state histor-
    44  ic site; (e) [twenty percent of all revenues collected] two million five
    45  hundred thousand dollars per fiscal year shall be utilized by the county
    46  of Suffolk for the care, maintenance, and interpretation for the general
    47  public of the historic structures, sites and unique natural  areas  that
    48  are managed by the Suffolk county department of parks and recreation for
    49  sites and activities that are open to tourists on a regular and predict-
    50  able  basis;  (f)  [not more than two percent of all revenues collected]
    51  two hundred fifty thousand dollars per fiscal year shall be utilized  by
    52  the  county  of  Suffolk for the promotion of the county of Suffolk as a
    53  film friendly location through the county department of economic  devel-
    54  opment  and  [workforce housing] planning; [and] (f-1) three million two
    55  hundred fifty thousand dollars per fiscal year shall be  deposited  into
    56  the  general  fund  of  the county of Suffolk to be utilized for general
        A. 10330                            3

     1  park purposes; (g) five hundred thousand  dollars per fiscal year  shall
     2  be  utilized  by  the  county  of  Suffolk  for  regional  marketing and
     3  promotion provided that two hundred fifty thousand dollars is  delivered
     4  to  a Long Island regional commercial airport, designated as an official
     5  metro airport that does not operate in the  same  airspace  as  airports
     6  located  in  New  York city and two hundred fifty thousand dollars to an
     7  east end tourism agency which the county of Suffolk  contracts  with  to
     8  administer  programs designed to develop, encourage, solicit and enhance
     9  business and tourism on the east end of the county of Suffolk;  (h)  all
    10  remaining  revenue collected by the county of Suffolk shall be deposited
    11  [into the general fund of such county to be utilized  for  general  park
    12  purposes]  into  a  special fund to be designated as the "Suffolk County
    13  Infrastructure Fund," to be created by said  county  therefore  separate
    14  and  apart  from  any other funds and accounts of the county.  Moneys in
    15  such fund shall be deposited and  secured  in  the  manner  provided  by
    16  section  ten of the general municipal law, and, pending expenditure, may
    17  be invested in the manner provided by section ten of the general munici-
    18  pal law. Any interest earned or capital gain realized on monies deposit-
    19  ed shall accrue to and become part of the fund. In no event shall monies
    20  deposited in the fund be transferred to any other  fund  except  as  set
    21  forth  in this subdivision. Monies in said fund may be appropriated from
    22  and transferred or expended in  any  fiscal  year  for  the    planning,
    23  design,  and construction of a convention center and surrounding infras-
    24  tructure, including but not limited to, utilities,  underground  infras-
    25  tructure,  wastewater improvements, parking facilities, traffic improve-
    26  ments, pedestrian access  and  multi-modal  projects,  community  impact
    27  projects,  transportation  facilities  and  related  improvements and to
    28  repay any  indebtedness  or  obligations  incurred,  pursuant  to  local
    29  finance  law, for these purposes; and (i) the funding amounts identified
    30  in paragraphs (a) through (g) of this subdivision shall be increased  by
    31  one percent over the prior fiscal years' funding each fiscal year.
    32    In  the  event  that revenues resulting from the imposition of the tax
    33  payable hereunder are insufficient to  fund  according  to  the  amounts
    34  identified in paragraphs (a) through (g) of this subdivision, the county
    35  of  Suffolk  shall  utilize funds from the Suffolk County Infrastructure
    36  Fund to fund according to  the  amounts  identified  in  paragraphs  (a)
    37  through  (g) of this subdivision, however, if the funds from the Suffolk
    38  County Infrastructure Fund are still  insufficient  to  provide  funding
    39  according  to  paragraphs  (a)  through  (g), distributions set forth in
    40  paragraphs (a) through (g) of this subdivision shall  be  reduced  on  a
    41  proportional basis.
    42    Schedules  of availability of all historic and cultural activities and
    43  events funded from any part of these revenues shall be provided  to  the
    44  aforementioned  tourism promotion agency which is contracted with by the
    45  county of Suffolk so as to enhance tourism promotion and tourist visita-
    46  tion.
    47    Annually, the department of economic development and [workforce  hous-
    48  ing] planning of the county of Suffolk shall submit, to the county exec-
    49  utive  and  the  county  legislature  of  such  county, a report on such
    50  department's progress on the promotion of the county  of  Suffolk  as  a
    51  film  friendly  location, and annual statistics of the revenue generated
    52  pursuant to paragraph (f) of this subdivision.
    53    (7) Such local law shall provide for the  imposition  of  a  hotel  or
    54  motel  tax  [until  December thirty-first, two thousand twenty-three] in
    55  perpetuity.
    56    § 2. This act shall take effect immediately.