Bill Text: NY S05344 | 2019-2020 | General Assembly | Introduced

Bill Title: Imposes an occupancy tax in the city of Cortland to be used for tourism development and promotion.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-06-18 - SUBSTITUTED BY A7390 [S05344 Detail]

Download: New_York-2019-S05344-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                     April 26, 2019
        Introduced  by  Sen.  SEWARD -- 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 the imposition of  an  occu-
          pancy  tax  in  the  city of Cortland; and providing for the repeal of
          such provisions upon the 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-ff to
     2  read as follows:
     3    § 1202-ff. Occupancy tax in the city of Cortland. (1)  Notwithstanding
     4  any other provision of law to the contrary, the city of Cortland, in the
     5  county  of  Cortland,  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  any  room  for  hire  in  any hotel. For the purposes of this
    10  section, the term "hotel" shall mean a building or portion of  it  which
    11  is  regularly  used and kept open as such for the lodging of guests. The
    12  term "hotel" includes an apartment hotel, a motel or a  boarding  house,
    13  whether  or  not meals are served. The rate of such tax shall not exceed
    14  three percent of the per diem rental rate for  each  room  whether  such
    15  room is rented on a daily or longer basis.
    16    (2)  Such  taxes may be collected and administered by the chief fiscal
    17  officer of the city of Cortland by such means  and  in  such  manner  as
    18  other  taxes which are now collected and administered by such officer or
    19  as otherwise may be provided by such local law.
    20    (3) Such local laws may provide that any taxes imposed shall  be  paid
    21  by  the  person liable therefor to the owner of the room for hire in the
    22  tourist home, inn, club, hotel, motel or other similar place  of  public
    23  accommodation  occupied or to the person entitled to be paid the rent or
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 5344                             2
     1  charge the room for hire in the tourist home, inn, club,  hotel,  motel,
     2  or  other  similar  place  of  public  accommodation occupied for and on
     3  account of the city of Cortland imposing the tax and that such owner  or
     4  person  entitled  to  be paid the rent or charge shall be liable for the
     5  collection and payment of the tax; and that such owner or  person  enti-
     6  tled  to be paid the rent or charge shall have the same right in respect
     7  to collecting the tax from the person occupying the room for hire in the
     8  tourist home, inn, club, hotel, motel or other similar place  of  public
     9  accommodation,  or  in  respect  to  nonpayment of the tax by the person
    10  occupying the room for hire in  the  tourist  home,  inn,  club,  hotel,
    11  motel,  or similar place of public accommodation, as if the taxes were a
    12  part of the rent or charge and payable at the same time as the  rent  or
    13  charge;  provided  however,  that  the chief fiscal officer of the city,
    14  specified in such local laws, shall be joined as a party in  any  action
    15  or  proceeding  brought to collect the tax by the owner or by the person
    16  entitled to be paid the rent or charge.
    17    (4) Such local laws may provide for the  filing  of  returns  and  the
    18  payment  of  the taxes on a monthly basis or on a basis of any longer or
    19  shorter period of time.
    20    (5) This section shall not authorize the imposition of such  tax  upon
    21  any of the following:
    22    a.  The  state  of  New  York,  or any public corporation (including a
    23  public corporation created pursuant to agreement or compact with another
    24  state or the dominion of Canada), improvement district  or  other  poli-
    25  tical subdivision of the state;
    26    b. The United States of America, insofar as it is immune for taxation;
    27  or
    28    c.  Any corporation or association, or trust, or community chest, fund
    29  or foundation organized and operated exclusively for religious, charita-
    30  ble or education purposes, or for the prevention of cruelty to  children
    31  or animals, and no part of the net earnings of which inures to the bene-
    32  fit  of any private shareholder or individual and no substantial part of
    33  the activities of which is carrying on propaganda, or otherwise attempt-
    34  ing to influence legislation; provided, however, that  nothing  in  this
    35  paragraph shall include an organization operated for the primary purpose
    36  of carrying on a trade or business for profit, whether or not all of its
    37  profits are payable to one or more organizations described in this para-
    38  graph.
    39    d.  A permanent resident of a hotel or motel. For the purposes of this
    40  section, the term "permanent resident" shall mean a natural person occu-
    41  pying any room or rooms in a hotel or motel for at least thirty  consec-
    42  utive days.
    43    (6) Any final determination of the amount of any tax payable hereunder
    44  shall  be reviewable for error, illegality or unconstitutionality or any
    45  other reason whatsoever by a proceeding under article  seventy-eight  of
    46  the  civil practice law and rules if application therefor is made to the
    47  supreme court within thirty days after the  giving  of  notice  of  such
    48  final  determination,  provided, however, that any such proceeding under
    49  article seventy-eight of the civil practice law and rules shall  not  be
    50  instituted unless:
    51    a. The amount of any tax sought to be reviewed, with such interest and
    52  penalties  thereon  as  may be provided for by local laws or regulations
    53  shall be first deposited and there shall be filed an undertaking, issued
    54  by a surety company authorized to transact business in  this  state  and
    55  approved by the superintendent of financial services of this state as to
    56  solvency  and responsibility, in such amount as a justice of the supreme

        S. 5344                             3
     1  court shall approve to the effect that if such proceeding  be  dismissed
     2  or the tax confirmed the petitioner will pay all costs and charges which
     3  may accrue in the prosecution of such proceeding; or
     4    b.  At  the option of the petitioner, such undertaking may be in a sum
     5  sufficient to cover the taxes, interests and penalties  stated  in  such
     6  determination  plus the costs and charges which may accrue against it in
     7  the prosecution of the proceeding, in which event the  petitioner  shall
     8  not  be required to pay such taxes, interest or penalties as a condition
     9  precedent to the application.
    10    (7) Where any taxes imposed hereunder  shall  have  been  erroneously,
    11  illegally or unconstitutionally collected and application for the refund
    12  therefor  duly  made  to the proper fiscal officer or officers, and such
    13  officer or officers shall have made a determination denying such refund,
    14  such determination shall be reviewable by  a  proceeding  under  article
    15  seventy-eight  of  the  civil practice law and rules, provided, however,
    16  that such proceeding is instituted within thirty days after  the  giving
    17  of  the notice of such denial, that a final determination of tax due was
    18  not previously made, and that an undertaking is filed  with  the  proper
    19  fiscal  officer  or  officers in such amount and with such sureties as a
    20  justice of the supreme court shall approve to the effect  that  if  such
    21  proceeding  be dismissed or the taxes confirmed, the petitioner will pay
    22  all costs and charges which  may  accrue  in  the  prosecution  of  such
    23  proceeding.
    24    (8)  Except in the case of a willfully false or fraudulent return with
    25  intent to evade the tax, no assessment of additional tax shall  be  made
    26  after  the  expiration  of  more  than  three years from the date of the
    27  filing of a return, provided, however, that where  no  return  has  been
    28  filed as provided by law the tax may be assessed at any time.
    29    (9)  All  revenues  resulting from the imposition of the tax under the
    30  local laws shall be paid into the treasury of the city of  Cortland  and
    31  shall  be  credited to and deposited in the hospitality tax fund of such
    32  city.  Such  revenues  may  be  used  for  infrastructure   development,
    33  construction,  rehabilitation and promotion of designation tourism as so
    34  determined by the city of Cortland Common Council.
    35    (10) Each enactment of such a 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  date of its enactment. Nothing in this section shall prohibit
    38  the adoption and enactment of local laws, pursuant to the provisions  of
    39  this  section, upon the expiration of any other local law adopted pursu-
    40  ant to this section.
    41    (11) If any provision of this section or the  application  thereof  to
    42  any  person or circumstance shall be held invalid, the remainder of this
    43  section and the application  of  such  provision  to  other  persons  or
    44  circumstances shall not be affected thereby.
    45    §  2.  This  act shall take effect immediately and shall expire and be
    46  deemed repealed on September 1, 2022.