Bill Text: NY S07778 | 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: (Passed) 2020-12-23 - signed chap.361 [S07778 Detail]

Download: New_York-2019-S07778-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          7778

                    IN SENATE

                                    February 19, 2020
                                       ___________

        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-gg to
     2  read as follows:
     3    § 1202-gg. 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
    24  charge the room for hire in the tourist home, inn, club,  hotel,  motel,
    25  or  other  similar  place  of  public  accommodation occupied for and on
    26  account of the city of Cortland imposing the tax and that such owner  or

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11173-02-0

        S. 7778                             2

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

        S. 7778                             3

     1    b. At the option of the petitioner, such undertaking may be in  a  sum
     2  sufficient  to  cover  the taxes, interests and penalties stated in such
     3  determination plus the costs and charges which may accrue against it  in
     4  the  prosecution  of the proceeding, in which event the petitioner shall
     5  not  be required to pay such taxes, interest or penalties as a condition
     6  precedent to the application.
     7    (7) Where any taxes imposed hereunder  shall  have  been  erroneously,
     8  illegally or unconstitutionally collected and application for the refund
     9  therefor  duly  made  to the proper fiscal officer or officers, and such
    10  officer or officers shall have made a determination denying such refund,
    11  such determination shall be reviewable by  a  proceeding  under  article
    12  seventy-eight  of  the  civil practice law and rules, provided, however,
    13  that such proceeding is instituted within thirty days after  the  giving
    14  of  the notice of such denial, that a final determination of tax due was
    15  not previously made, and that an undertaking is filed  with  the  proper
    16  fiscal  officer  or  officers in such amount and with such sureties as a
    17  justice of the supreme court shall approve to the effect  that  if  such
    18  proceeding  be dismissed or the taxes confirmed, the petitioner will pay
    19  all costs and charges which  may  accrue  in  the  prosecution  of  such
    20  proceeding.
    21    (8)  Except in the case of a willfully false or fraudulent return with
    22  intent to evade the tax, no assessment of additional tax shall  be  made
    23  after  the  expiration  of  more  than  three years from the date of the
    24  filing of a return, provided, however, that where  no  return  has  been
    25  filed as provided by law the tax may be assessed at any time.
    26    (9)  All  revenues  resulting from the imposition of the tax under the
    27  local laws shall be paid into the treasury of the city of  Cortland  and
    28  shall  be  credited to and deposited in the hospitality tax fund of such
    29  city.  Such  revenues  may  be  used  for  infrastructure   development,
    30  construction,  rehabilitation and promotion of designation tourism as so
    31  determined by the city of Cortland Common Council.
    32    (10) Each enactment of such a local law may provide for the imposition
    33  of a hotel or motel tax for a period of time no longer than three  years
    34  from  the  date of its enactment. Nothing in this section shall prohibit
    35  the adoption and enactment of local laws, pursuant to the provisions  of
    36  this  section, upon the expiration of any other local law adopted pursu-
    37  ant to this section.
    38    (11) If any provision of this section or the  application  thereof  to
    39  any  person or circumstance shall be held invalid, the remainder of this
    40  section and the application  of  such  provision  to  other  persons  or
    41  circumstances shall not be affected thereby.
    42    §  2.  This  act shall take effect immediately and shall expire and be
    43  deemed repealed on September 1, 2023.
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