Bill S3406-2013

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

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

Details

Actions

  • May 22, 2013: SUBSTITUTED BY A3883
  • May 21, 2013: ORDERED TO THIRD READING CAL.728
  • May 21, 2013: REPORTED AND COMMITTED TO RULES
  • Feb 1, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Votes

Memo

BILL NUMBER:S3406

TITLE OF BILL: An act to amend the tax law, in relation to extending the period during which the city of White Plains is authorized to impose an additional one-half of one percent, an additional one-quarter of one percent rate of sales and compensating use tax and an additional onequarter of one percent rate of sales and compensating use tax

PURPOSE: Authorizes the imposition for an additional two years of an additional one-half of one percent, an additional one-quarter of one percent and an additional one-quarter of one percent rate of sales and compensating use tax by the city of White Plains, for the period ending August thirty-first, two thousand thirteen.

SUMMARY OF PROVISIONS:

Section 1 amends clause 3 of subparagraph (ii) of the opening paragraph of section 1210 of the tax law, as amended by chapter 74 of the laws of 2010, by further authorizing the city of White Plains to impose the specified taxes at a rate which is (i) one-half of one percent additional to the three percent rate authorized in this paragraph for such city for an additional two year period ending August 31, 2015 and (ii) an additional one-quarter of one percent in addition to the other rates authorized in this paragraph for such city for an additional two year period ending August 31, 2015; 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 ending August 31, 2015.

Section 2 provides that notwithstanding the provisions of subdivision (d) of section 1210 of the tax law or any other provision of law to the contrary, a local law 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 must be mailed by certified or registered mail at least twenty-one days prior to the date on which such local law is to take effect.

Section 3 requires the city of White Plains to pay the estimated revenue from the additional one-quarter of one percent rate of sales tax first authorized by chapter seventy-four of the laws of two thousand ten 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.

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 those laws was extended for an additional two year period ending August 31, 2011.

Legislation enacted in 2010 permitted the city of White Plains to impose an additional one-quarter of one percent rate of sales tax for the period ending August 31, 2011. Given the sharp downturn in the local economy, sales tax revenues had declined substantially since the last onequarter of one percent rate of sales tax increase had been enacted in 2008. Since then, the city had depleted almost all of its fund balance. The 2010 legislation required the city 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 would assist the city in replenishing its depleted fund balance. Accordingly, upon being paid into the reserve fund, the proceeds of the rate increase could only be used upon the approval of a super majority of the city's common council and had 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 in accordance with section 6-e of the general municipal law. Thus, safeguards were built into the rate increase to ensure that the proceeds of the increase were applied prudently.

This bill will permit the city of White Plains to continue to impose each of these additional tax rates through August 31, 2013. This bill also extends through August 31, 2013 the requirement that the city pay the proceeds of the rate increase first authorized by chapter seventy four of the laws of 2010 into the contingency and tax stabilization reserve fund of such city, subject to all the limitations and other provisions of section 6-e of the general municipal law. This bill will not affect the sales tax revenue of Westchester County.

Sales and use taxes are the single greatest source of revenue for the city. In fiscal year ended June 30, 2012, sales and use taxes amounted to $51 million (36% of $1424 million in total revenues) compared to $47.1 million (33% of total revenues) collected from property taxes and related items (PILOTS, interest and penalties, etc.). The additional one-quarter of one percent rate of tax first authorized by chapter seventy-four of the laws of 2010 generates approximately $5 million of revenue each fiscal year. The city prudently applied $5 million from this fund to the adopted budget for fiscal year ending June 30, 2013, which had the effect of lowering the required property tax rate increase from 15% to 4.75%.

LEGISLATIVE HISTORY: A.6105/S.3796 of 2011 (enacted in 2011); A.9966A/S.6868-A of 2009-2010 (enacted in 2010); A.3129/S.1087 of 20092010 (enacted in 2009): A.6105/S.3796 of 2011-2012 (enacted in 2011)

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 3406 2013-2014 Regular Sessions IN SENATE February 1, 2013 ___________
Introduced by Sen. LATIMER -- 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 extending the period during which the city of White Plains is authorized to impose an additional one-half of one percent, an additional one-quarter of one percent rate of sales and compensating use tax and 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 30 of the laws of 2011, 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 [thirteen] FIFTEEN; 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 beginning March first, two thousand eight and ending August thir- ty-first, two thousand [thirteen] FIFTEEN; 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 thou- sand ten and ending August thirty-first, two thousand [thirteen] FIFTEEN; S 2. 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 3. The estimated revenue from the additional one-quarter of one percent rate of tax first authorized by chapter seventy-four of the laws of two thousand ten 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 stabiliza- tion 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 4. This act shall take effect immediately.

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