Bill Text: NY A10588 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to authorizing the town of Wallkill to adopt a hotel or motel tax of up to 5%.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2020-12-23 - SIGNED CHAP.373 [A10588 Detail]

Download: New_York-2019-A10588-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          10588

                   IN ASSEMBLY

                                      June 5, 2020
                                       ___________

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

        AN ACT to amend the tax law, in relation  to  authorizing  the  town  of
          Wallkill  to adopt a hotel or motel tax of up to 5%; and providing for
          the repeal of such provisions upon expiration thereof

          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-gg to
     2  read as follows:
     3    § 1202-gg. Hotel or motel taxes in the town of Wallkill. (1)  Notwith-
     4  standing  any  other provision of law to the contrary, the town of Wall-
     5  kill, in the county of Orange, is hereby  authorized  and  empowered  to
     6  adopt  and  amend local laws imposing in such town a tax, in addition to
     7  any other tax authorized and imposed pursuant to this  article  such  as
     8  the legislature has or would have the power and authority to impose upon
     9  persons occupying hotel or motel rooms in such town. For the purposes of
    10  this  section,  the  term  "hotel" or "motel" shall mean and include any
    11  facility consisting of rentable units and providing lodging on an  over-
    12  night  basis  and shall include those facilities designated and commonly
    13  known as "bed and breakfast" and "tourist" facilities. The rates of such
    14  tax shall not exceed five percent of the per diem rental rate  for  each
    15  room,  provided  however,  that  such  tax  shall not be applicable to a
    16  permanent resident of a hotel or motel. For the purposes of this section
    17  the term "permanent resident" shall mean a person occupying any room  or
    18  rooms in a hotel or motel for at least ninety consecutive days.
    19    (2)  Such  tax  may  be collected and administered by the chief fiscal
    20  officer of the town of Wallkill by such means  and  in  such  manner  as
    21  other  taxes which are now collected and administered by such officer or
    22  as otherwise may be provided by such local laws.
    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 town of  Wallkill
    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.
                                                                   LBD01774-02-0

        A. 10588                            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 town, specified in such local laws, 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 shareholder or individual and no substantial part
    28  of the activities of which  is  carrying  on  propaganda,  or  otherwise
    29  attempting  to influence legislation; provided, however, that nothing in
    30  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  under
    35  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  shall  be  first
    44  deposited  and there is filed an undertaking, issued by a surety company
    45  authorized to transact business in this state and approved by the super-
    46  intendent of financial services of this state as to solvency and respon-
    47  sibility, in such amount as a justice of the supreme court shall approve
    48  to the effect that if such proceeding be dismissed or the tax  confirmed
    49  the  petitioner  will  pay all costs and charges which may accrue in the
    50  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.

        A. 10588                            3

     1    (7)  Where  any  tax  imposed under this section shall have been erro-
     2  neously, illegally or unconstitutionally collected and  application  for
     3  the  refund  thereof duly made to the proper fiscal officer or officers,
     4  and such officer or officers shall have  made  a  determination  denying
     5  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 wilfully 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 town of  Wallkill  and
    22  shall be credited to and deposited in the general fund of the town. Such
    23  revenues may be used for any lawful purpose.
    24    (10) Each enactment of such a local law may provide for the imposition
    25  of  a hotel or motel tax for a period of time no longer than three years
    26  from the date of its enactment. Nothing in this section  shall  prohibit
    27  the  adoption and enactment of local laws, pursuant to the provisions of
    28  this section, upon the expiration of any other local law adopted  pursu-
    29  ant to this section.
    30    (11)  If  any  provision of this section or the application thereof to
    31  any person or circumstance shall be held invalid, the remainder of  this
    32  section  and  the  application  of  such  provision  to other persons or
    33  circumstances shall not be affected thereby.
    34    § 2. This act shall take effect immediately and shall  expire  and  be
    35  deemed repealed September 1, 2023.
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