Bill A9966A-2009

Authorizes the city of White Plains to impose an additional one-quarter of one percent sales and compensating use tax

Authorizes the city of White Plains to impose an additional one-quarter of one percent sales and compensating use tax.

Details

Actions

  • May 5, 2010: substituted by s6868a
  • May 5, 2010: rules report cal.39
  • May 5, 2010: reported
  • May 3, 2010: reported referred to rules
  • Apr 26, 2010: print number 9966a
  • Apr 26, 2010: amend and recommit to ways and means
  • Feb 22, 2010: referred to ways and means

Memo

BILL NUMBER:A9966A

TITLE OF BILL: An act to amend the tax law, in relation to authorizing the city of White Plains to impose an additional one-quarter of one percent rate of sales and compensating use tax

PURPOSE: For the period beginning June 1, 2010 and ending August 31, 2011, this act authorizes the imposition of an additional one-quarter of one percent rate of sales and compensating use tax by the city of White Plains.

SUMMARY OF PROVISIONS: Section 1 of the bill states that clause 3 of subparagraph (ii) of the opening paragraph of section 1210 of the tax law, as amended by chapter 37 of the laws of 2009, is amended to authorize the city of White Plains to impose, from June 1, 2010 until August 31, 2011, an additional one quarter of one percent rate of sales tax.

Sections 2-4 of the bill provide technical changes to sections 1210, 1223 and 1224, respectively, of the tax law that reflect the authorization of the city of White Plains to impose an additional one-quarter of one percent rate of sales tax.

Section 6 of the bill requires the city of White Plains to pay the estimated revenue from the additional one-quarter of one percent rate of sales tax into the city's contingency and tax stabilization reserve fund, subject to all the limitations and other provisions of section 6-e of the general municipal law.

Section 7 provides the effective date, which is immediate.

EXISTING LAW: This bill authorizes the city of White Plains to impose an additional one-quarter of one percent rate of sales and compensating use tax on the current law for the period beginning June 1, 2010 and ending August 31, 2011.

JUSTIFICATION: Legislation enacted in 1993 authorized the city of White Plains to impose an additional one-half of one percent rate of sales tax. That law was extended for successive two-year periods from 1995 through August 31, 2009. In addition, legislation enacted in 2008 authorized the city of White Plains to impose an additional one-quarter of one percent rate of sales tax through August 31, 2009. In 2009, each of these laws was extended for an additional two year period ending August 31, 2011.

This bill will permit the city of White Plains to impose an additional one-quarter of one percent rate of sales tax for the period beginning June 1, 2010 and ending August 31, 2011. Given the sharp, unexpected

downturn, in the local economy, sales tax revenues have declined substantially since the last one-quarter of one percent rate of sales tax increase was enacted in 2008. Since then, the city has depleted almost all of its fund balance. Under the proposed legislation, the city will be required to pay the proceeds of the rate increase into a contingency and tax stabilization reserve fund, under section 6-e of the general municipal law, which will assist the city in replenishing its depleted fund balance. Accordingly, upon being paid into the reserve fund, the proceeds of the rate increase can only be used upon the approval of a super majority of the city's common council and have to be applied to an unanticipated revenue loss, an unanticipated expenditure or to lessen or prevent certain projected increases in the amount of the city's real property tax levy. Thus, safeguards are built into the rate increase to ensure that the proceeds of the increase are applied prudently.

This bill will not affect the sales tax revenue of Westchester County.

LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 9966--A IN ASSEMBLY February 22, 2010 ___________
Introduced by M. of A. PAULIN -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to authorizing the city of White Plains to impose an additional one-quarter of one percent rate of sales and compensating use tax THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Clause 3 of subparagraph (ii) of the opening paragraph of section 1210 of the tax law, as amended by chapter 37 of the laws of 2009, is amended to read as follows: (3) the city of White Plains is hereby further authorized and empowered to adopt and amend local laws, ordinances or resolutions imposing such taxes at a rate which is: (i) one-half of one percent additional to the three percent rate authorized above in this paragraph for such city for the period beginning September first, nineteen hundred ninety-three and ending August thirty-first, two thousand eleven; and (ii) an additional one-quarter of one percent in addition to the other rates authorized in this paragraph for such city for the period begin- ning March first, two thousand eight and ending August thirty-first, two thousand eleven; AND (III) AN ADDITIONAL ONE-QUARTER OF ONE PERCENT IN ADDITION TO THE OTHER RATES AUTHORIZED IN THIS PARAGRAPH FOR SUCH CITY FOR THE PERIOD BEGINNING JUNE FIRST, TWO THOUSAND TEN AND ENDING AUGUST THIRTY-FIRST, TWO THOUSAND ELEVEN; S 2. Subparagraph (iii) of the opening paragraph of section 1210 of the tax law, as separately amended by chapters 94 and 174 of the laws of 2009, is amended to read as follows: (iii) the maximum rate referred to in section twelve hundred twenty- four of this article shall be calculated without reference to the following additional rates authorized in subparagraphs (i) and (ii) of this paragraph: one and one-half percent for the county of Allegany; one percent for the counties of Rensselaer, Erie, Cattaraugus, Wyoming, Ulster, Albany, Suffolk, Greene, Orleans, Franklin, Herkimer, Genesee, Columbia, Schuyler, Chenango, Monroe, Steuben, Chemung, Seneca, Living-
ston, Niagara, Yates, Tioga, Montgomery, Delaware, Wayne, Schoharie, Putnam, Clinton and Onondaga and the cities of Yonkers, Mount Vernon and New Rochelle; three-quarters of one percent for the counties of Dutch- ess, Essex, Lewis, Orange, and Jefferson; one percent and three-quarters of one percent or one-half of one percent for the county of Oneida; three-quarters of one percent and one-half of one percent for the county of Nassau; one-half of one percent and one-quarter of one percent AND ONE-QUARTER OF ONE PERCENT for the city of White Plains; one-half or one percent for the county of Tompkins; three-eighths of one percent and five-eighths of one percent for the county of Rockland; one-half of one percent for the counties of Putnam and Schenectady; one-eighth of one percent and three-eighths of one percent for the county of Ontario; one-half of one percent; one-half of one percent for the county of Sullivan; and three-quarters of one percent or one-half of one percent for the county of Chautauqua; S 3. Subdivision (a) of section 1223 of the tax law, as separately amended by section 8 of part SS-1 of chapter 57 and chapter 65 of the laws of 2008, is amended to read as follows: (a) No transaction taxable under sections twelve hundred two through twelve hundred four of this article shall be taxed pursuant to this article by any county or by any city located therein, or by both, at an aggregate rate in excess of the highest rate set forth in the applicable subdivision of section twelve hundred one of this article or, in the case of any taxes imposed pursuant to the authority of section twelve hundred ten or twelve hundred eleven of this article (other than taxes imposed by the county of Nassau, Erie, Steuben, Cattaraugus, Suffolk, Oneida, Genesee, Greene, Franklin, Herkimer, Tioga, Orleans, Allegany, Ulster, Albany, Rensselaer, Tompkins, Wyoming, Columbia, Schuyler, Rock- land, Chenango, Monroe, Chemung, Seneca, Sullivan, Wayne, Livingston, Schenectady, Montgomery, Delaware, Clinton, Niagara, Yates, Lewis, Essex, Dutchess, Schoharie, Putnam, Chautauqua, Orange, Oswego, Ontario, Jefferson or Onondaga and by the county of Cortland and the city of Cortland and by the county of Broome and the city of Binghamton and by the county of Cayuga and the city of Auburn and by the county of Otsego and the city of Oneonta and by the county of Madison and the city of Oneida and by the county of Fulton and the city of Gloversville or the city of Johnstown as provided in section twelve hundred ten of this article) at a rate in excess of three percent, except that, in the city of Yonkers, in the city of Mount Vernon, in the city of New Rochelle, in the city of Fulton and in the city of Oswego, the rate may not be in excess of four percent and in the city of White Plains, the rate may not be in excess of [three and three-quarters] FOUR percent and except that in the city of Poughkeepsie in the county of Dutchess, if such county withdraws from the metropolitan commuter transportation district pursu- ant to section twelve hundred seventy-nine-b of the public authorities law and if the revenues from a three-eighths percent rate of such tax imposed by such county, pursuant to the authority of section twelve hundred ten of this article, are required by local laws, ordinances or resolutions to be set aside for mass transportation purposes, the rate may not be in excess of three and three-eighths percent. S 4. Subdivision (m) of section 1224 of the tax law, as added by chap- ter 65 of the laws of 2008, is amended to read as follows: (m) The city of White Plains shall have the sole right to impose the additional one-half of one percent and the additional one-quarter of one percent AND THE ADDITIONAL ONE-QUARTER OF ONE PERCENT rates of tax which such city is authorized to impose pursuant to the authority of section
twelve hundred ten of this chapter. Such additional rates of tax shall be in addition to any other tax which such city may impose or may be imposing pursuant to this article or any other law and such additional rates of tax shall not be subject to pre-emption. The maximum three percent rate referred to in this section shall be calculated without reference to the additional one-half of one percent and the additional one-quarter of one percent AND THE ADDITIONAL ONE-QUARTER OF ONE PERCENT rates of tax which the city of White Plains is authorized and empowered to adopt pursuant to section twelve hundred ten of this article. S 5. Notwithstanding the provisions of subdivision (d) of section 1210 of the tax law or any other provision of law, local law, rule or regu- lation to the contrary, a local law, ordinance or resolution enacted or amended pursuant to the authority of this act, imposing an additional rate of tax in the city of White Plains shall become effective in accordance with the provisions of subdivision (d) of section 1210 of the tax law, except that the certified copy of such local law, ordinance or resolution which must be mailed by certified or registered mail to the commissioner of taxation and finance at the commissioner's office in Albany must be so mailed at least twenty-one days prior to the date on which such local law, ordinance or resolution is to take effect. S 6. The estimated revenue from the additional one-quarter of one percent rate of tax first authorized by this act to be imposed by the city of White Plains, which is expected to be received during a fiscal year of such city and which is included in the annual budget, as finally adopted, of such city, for that fiscal year, shall be paid into the contingency and tax stabilization reserve fund of such city as provided by budgetary appropriation of such city, subject to all the limitations and other provisions of section 6-e of the general municipal law. S 7. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus