Extends Clilnton county's authorization to impose an additional 1% rate of sales and compensating use tax through November 30, 2013.
TITLE OF BILL: An act to amend the tax law, in relation to authorizing Clinton county to impose an additional rate of sales and compensating use tax
PURPOSE: To extend Clinton County's authorization to impose an additional rate of sales and compensating use tax until November 31, 2013.
SUMMARY OF PROVISIONS: Section 1 would amend clause 36 of subparagraph (i) of the opening paragraph of section 1210 of the Tax Law, which authorizes counties and cities to impose sales and use taxes at specified rates, to authorize Clinton County to impose an additional 1% rate of such taxes.
Section 2 would amend Tax Law section 1224(cc), which provide that Clinton County has the sole right to impose the additional 1 % rate of tax, and that such additional rate is not subject to preemption, to provided that net collections from the additional 1 % rate of tax shall be used by the county solely for county purposes and shall not be subject to any revenue distribution agreement under Tax Law section 1262(c)
Section 3 provides that the bill would take effect immediately.
EXISTING LAW: Section 1210 of the Tax Law authorizes counties and cities to impose sales and compensating use taxes generally at a rate not to exceed 3%. Pursuant to section 1210(a), a county or city can impose the "general" sales and use taxes, consisting of the six subdivisions of section 1105 of the Tax Law, which imposes the State's sales taxes, and of the related compensating and use taxes in section 1110 of the Tax Law, which imposes the State's use taxes. Or, pursuant to section 1210(b), a county of a city can impose one or more of the taxes described in section 1105(b), (d), (e), or (f), which are known as the "segmented taxes," plus any related use taxes. If a locality imposes the general sales and use taxes at the maximum rate of 3%, the State Legislature may authorize the locality to impose such taxes at an additional rate. Clinton County currently imposes the "general" sales and use taxes at the rate of 3%, and an additional 1% rate, for a total rate of 4%.
The amendment of section 1224(cc) merely codifies an unconsolidated provision in section 4 of Chapter 179 of the Laws of 2007. This provision ensures that revenues from Clinton County's additional one percent rate may be retained by the county, to be used for county purposes.
Otherwise, revenues from the additional rate might be subject to a revenue sharing agreement the county has with the city of Plattsburgh under Tax Law section 1262(c).
Section 1210(d) of the Tax Law requires a county or city to enact or amend its local law, ordinance or resolution imposing an additional rate of tax and to give notice of such enactment to the Commissioner of Taxation and Finance at least 90 days before the effective date, although the Commissioner can waive and reduce such 90 day period to not less than 30 days if the Commissioner finds it to be consistent with the Commissioner's duties to do so. Section 1210(e) of the Tax Law requires a county or city also to file a certified copy of its local enactment with the State Comptroller, Secretary of State and county or city clerk, within five days of enactment.
JUSTIFICATION: Clinton County has requested an extension from the legislature to impose an additional one percent sales and compensating use tax above the standard three percent rate. Revenues from the additional tax will assist Clinton County in providing essential services, while maintaining a balanced budget.
LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: None to the State.
LOCAL FISCAL IMPLICATIONS: Approximately $12 million to Clinton County.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ S. 3996--A A. 6264--A Cal. No. 477 2011-2012 Regular Sessions S E N A T E - A S S E M B L Y March 11, 2011 ___________IN SENATE -- Introduced by Sen. LITTLE -- read twice and ordered print- ed, and when printed to be committed to the Committee on Investi- gations and Government Operations -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading IN ASSEMBLY -- Introduced by M. of A. DUPREY -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee AN ACT to amend the tax law, in relation to authorizing Clinton county to impose an additional 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 36 of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by chapter 126 of the laws of 2009, is amended to read as follows: (36) the county of Clinton is hereby further authorized and empowered to adopt and amend local laws, ordinances or resolutions imposing such taxes at a rate which is
[: (i) three-quarters of one percent additional to the three percent rate authorized above in this paragraph for such county for the period beginning June first, two thousand four, and ending November thirtieth, two thousand seven; and (ii)]one percent additional to the three percent rate authorized above in this paragraph for such county [for the period beginning December first, two thousand seven, and ending November thirtieth, two thousand eleven]; S 2. Subdivision (cc) of section 1224 of the tax law, as amended by chapter 179 of the laws of 2007, is amended to read as follows: (cc) The county of Clinton shall have the sole right to impose the additional one percent rate of tax which such county is authorized toEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09981-02-1 S. 3996--A 2 A. 6264--A
impose pursuant to the authority of section twelve hundred ten of this article. Such additional rate of tax shall be in addition to any other tax which such county may impose or may be imposing pursuant to this article or any other law and such additional rate of tax shall not be subject to preemption. The maximum three percent rate referred to in this section shall be calculated without reference to the additional one percent rate of tax which the county of Clinton is authorized and empowered to adopt pursuant to section twelve hundred ten of this arti- cle. NET COLLECTIONS FROM ANY ADDITIONAL RATE OF SALES AND COMPENSATING USE TAXES WHICH THE COUNTY MAY IMPOSE PURSUANT TO THE AUTHORITY OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE SHALL BE USED BY THE COUNTY SOLELY FOR COUNTY PURPOSES AND SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREEMENT ENTERED INTO PURSUANT TO THE AUTHORITY OF SUBDI- VISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS ARTICLE. S 3. This act shall take effect immediately.