Bill S4531-2013

Increases from 3/4% to 1%, the rate of additional sales and compensating use taxes the county of Essex is authorized to impose and extends expiration thereof

Increases from 3/4% to 1%, the rate of additional sales and compensating use taxes the county of Essex is authorized to impose, and extends the authority of such county to impose such additional tax until November 30, 2015.

Details

Actions

  • Jun 21, 2013: SUBSTITUTED BY A6548
  • Jun 21, 2013: ORDERED TO THIRD READING CAL.1644
  • Jun 21, 2013: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Apr 8, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Votes

VOTE: COMMITTEE VOTE: - Rules - Jun 21, 2013
Ayes (19): Skelos, Libous, Bonacic, Farley, Flanagan, LaValle, Marcellino, Maziarz, Nozzolio, Seward, Valesky, Stewart-Cousins, Breslin, Hassell-Thompson, Krueger, Montgomery, Parker, Perkins, Espaillat
Ayes W/R (3): Fuschillo, Hannon, Gianaris
Nays (2): Carlucci, Dilan
Excused (1): Larkin

Memo

BILL NUMBER:S4531

TITLE OF BILL: An act to amend the tax law, in relation to authorizing the county of Essex to impose an additional one percent of sales and compensating use tax

PURPOSE: Increases from three-quarters of a percent to one percent, the rate of additional sales and compensating use taxes the county of Essex is authorized to impose and extends the expiration thereof.

SUMMARY OF PROVISIONS:

Section one of the bill would amend clause 36 of subparagraph (i) of the opening paragraph of section 1210 of the tax law, to authorize the county of Essex to impose an additional one percent of sales and compensating use taxes for the period commencing December 1, 2013 and ending November 30, 2015.

Section two of the bill would amend subparagraph (iii) of the opening paragraph of section 1210 of the tax law, regarding the calculation of the maximum tax rate for preemption purposes under section 1224 of the tax law, to provide that Essex Counties additional one percent rate would be excluded from that calculation.

Section three of the bill would amend subdivision (cc) of section 1224 of the tax law to provide that Essex County has the sole right to impose the additional one percent rate of tax.

Section four of the bill contains the effective date.

EXISTING LAW: Essex County currently imposes the general three percent rate of sales and use taxes pursuant to section 1210(a)(1)(i) of the tax law. In addition to its underlying three percent rate, Essex County currently imposes an additional three-quarters of one percent rate for the period beginning on December 1, 2011 and ending November 30, 2013. Pursuant to section 1224(cc) of the tax law, Essex County has the sole right to impose its additional tax rate.

JUSTIFICATION: The Essex County Board of Supervisors has requested introduction of this legislation to allow the county to impose and additional one quarter of one percent rate of sales tax. Due to the estimated loss of nearly $4 million in revenue from all sources including state and federal funds, the county is trying to seek additional sources of revenue to balance their budget. Essex County's current three and three-quarters percent is not sufficiently adequate to offset their increased costs. Essex County intends to direct all additional income to be derived from the additional one quarter of one percent to go directly to reduce the real property tax levy.

LEGISLATIVE HISTORY: 2011: S. 344-B Referred to Investigations and Government Operations; A. 150-B Third Calendar 2010: S. 8214-A Referred to Rules; A. 11466-A Passed Assembly

FISCAL IMPLICATIONS: None to the State

LOCAL FISCAL IMPLICATIONS: The county estimates that this will generate approximately $1.6 million in revenue.

EFFECTIVE DATE: This act shall take effect December 1, 2013; provided that on and after the date this act shall have become a law, Essex county shall be authorized to adopt and amend local laws, ordinances, or resolutions to impose the additional rate of tax authorized by this act to take effect as provided for in this act.


Text

STATE OF NEW YORK ________________________________________________________________________ S. 4531 A. 6548 2013-2014 Regular Sessions S E N A T E - A S S E M B L Y April 8, 2013 ___________
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 IN ASSEMBLY -- Introduced by M. of A. STEC -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to authorizing the county of Essex to impose an additional one percent 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 119 of the laws of 2011, is amended to read as follows: (36) the county of Essex is hereby further authorized and empowered to adopt and amend local laws, ordinances or resolutions imposing such taxes at a rate which is [three-quarters of] one percent additional to the three percent rate authorized above in this paragraph for such coun- ty for the period beginning [June] DECEMBER first, two thousand [four] THIRTEEN, and ending November thirtieth, two thousand [thirteen] FIFTEEN; S 2. Subparagraph (iii) of the opening paragraph of section 1210 of the tax law, as amended by chapter 74 of the laws of 2010, 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, ESSEX, Greene, Orleans, Franklin, Herkimer, Genesee, Columbia, Schuyler, Chenango, Monroe, Steuben, Chemung, Seneca,
Livingston, Niagara, Yates, Tioga, Montgomery, Delaware, Wayne, Schohar- ie, Putnam, Clinton and Onondaga and the cities of Yonkers, Mount Vernon and New Rochelle; three-quarters of one percent for the counties of Dutchess, [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 coun- ty of Ontario; one-half of one percent[;] AND 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 (cc) of section 1224 of the tax law, as added by chapter 139 of the laws of 2004, is amended to read as follows: (cc) The county of Essex shall have the sole right to impose the addi- tional [three-quarters of] one percent rate of tax which such county is authorized to 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 [three-quarters of] one percent rate of tax which the county of Essex is authorized and empowered to adopt pursuant to section twelve hundred ten of this article. S 4. This act shall take effect December 1, 2013; provided that on and after the date this act shall have become a law, Essex county shall be authorized to adopt and amend local laws, ordinances, or resolutions to impose the additional rate of tax authorized by this act to take effect as provided for in this act.

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