Bill S5214-2013

Extends provisions of law relating to the disposition of sales and compensating use tax revenue in the county of Westchester

Extends provisions of law relating to the disposition of sales and compensating use tax revenue in the county of Westchester.

Details

Actions

  • Jun 21, 2013: SUBSTITUTED BY A7501
  • Jun 4, 2013: ADVANCED TO THIRD READING
  • Jun 3, 2013: 2ND REPORT CAL.
  • May 30, 2013: 1ST REPORT CAL.905
  • May 14, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - May 30, 2013
Ayes (7): Marcellino, Carlucci, Golden, Nozzolio, O'Mara, Hoylman, Squadron
Ayes W/R (1): Zeldin
Excused (1): Diaz

Memo

BILL NUMBER:S5214

TITLE OF BILL: An act to amend chapter 272 of the laws of 1991, amending the tax law relating to the method of disposition of sales and compensating use tax revenue in Westchester county and enacting the Westchester county spending limitation act, in relation to extending the expiration thereof

PURPOSE OF BILL: This bill extends the expiration of the provisions of the Westchester County spending limitation act from May 31, 2013 to May 31, 2015.

SUMMARY OF SPECIFIC PROVISIONS: Subdivision e of section 4 and sections 5, 7 and 16 of chapter 272 of the laws of 1991, amending the tax law in relating to the method of disposition of sales and compensating use tax revenue in Westchester County and enacting the Westchester County spending limitation act, as amended by section 1 of part DD of chapter 118 of the laws of 2001 are amended to extend the expiration thereof from May 31, 2013 to May 31, 2015.

JUSTIFICATION: The Westchester County Spending Limitation Act, as first enacted by Chapter 272 of the Laws of 1991, added a new Section 1262-b to the New York State Tax ("Tax Law") to provide for a special distribution of Westchester County's sales tax revenue. Pursuant to the terms of Chapter 272 of the Laws of 1991, Section 1262-b of the Tax Law was to expire on June 30, 1994. This sunset date has been extended, at two-year intervals, by Acts of the state Legislature adopted in the calendar year preceding that of the scheduled expiration date, as follows: L. 1993, Chap 265 extending expiration date from June 30, 1994 to May 31, 1996; L. 1995, Chap 180 (extending expiration date from May 31, 1996 to May 31, 1998); L. 1997, Chap. 676 (extending expiration date from May 31, 1998 to May 31, 2000); L. 1999, Chap. 285 (extending expiration date from May 31, 2000 to May 31, 2002); L. 2001, Chap. 118, Pt, DD (extending expiration date from May 31, 2002 to May 31, 2004). L. 2003 and L. 2005, Chap. 679, extended the expiration date to May 31, 2008. L. 2007, Chap. 367 extended the expiration date to May 31, 2010. Chap. 112 of 2009 extended the expiration date to May 31, 2012. Chap. 199 of 2011 extended the expiration to May 31, 2014.

The state legislature's adoption of an Act in the form annexed hereto would extend the expiration date of the Westchester County Spending Limitation Act from May 31, 2013 to May 31, 2015, and would authorize Westchester County's continued distribution of its sales tax revenue in the manner set forth in section 1262-b of the Tax Law until such extended expiration date. This extender applies to both the original sales tax authorized in 1991 and the additional sales tax authorized in 1994.

Since its inception, the sales tax has been a vitally important source of revenue to the county, its local governments, and school districts.

Providing for the extension of this provision during the 2011 legislative session will enable the County, and the various local governments, and school districts that rely on the revenues generated from the sales and compensating use tax to more appropriately plan their budgets for the coming fiscal year.

LEGISLATIVE HISTORY: This bill extends the provisions of the Westchester County spending Limitation act which have been statutorily extended by two year intervals since 1991.

FISCAL IMPLICATIONS: No cost to state and positive fiscal impact to Westchester County, its municipal governments, and school districts.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5214 2013-2014 Regular Sessions IN SENATE May 14, 2013 ___________
Introduced by COMMITTEE ON RULES -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend chapter 272 of the laws of 1991, amending the tax law relating to the method of disposition of sales and compensating use tax revenue in Westchester county and enacting the Westchester county spending limitation act, in relation to extending the expiration ther- eof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision e of section 4 and sections 5, 7 and 16 of chapter 272 of the laws of 1991, amending the tax law relating to the method of disposition of sales and compensating use tax revenue in West- chester county and enacting the Westchester county spending limitation act, as amended by chapter 199 of the laws of 2011, are amended to read as follows: e. "Spending limitation" means the maximum amount of county spending established in county fiscal years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, [and] 2014, 2015 AND 2016. S 5. Establishment of annual spending limitation. a. For county fiscal years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, [and] 2014, 2015 AND 2016 there shall be in effect an annual spending limita- tion. The spending limitation shall be derived from a fixed percentage reflecting the ratio of base year spending to county personal income. County personal income for such calculation shall be for the period January 1, 1986 through December 31, 1986. Such percentage shall be applied to county personal income for the period January 1, 1989 through December 31, 1989, to determine the spending limitation for county fiscal year 1992; to determine the spending limitation for county fiscal
year 1993, such percentage shall be applied to county personal income for the period January 1, 1990 through December 31, 1990; to determine the spending limitation for county fiscal year 1994, such percentage shall be applied to county personal income for the period January 1, 1991 through December 31, 1991; to determine the spending limitation for county fiscal year 1995, such percentage shall be applied to county personal income for the period January 1, 1992 through December 31, 1992; to determine the spending limitation for county fiscal year 1996, such percentage shall be applied to county personal income for the peri- od January 1, 1993 through December 31, 1993; to determine the spending limitation for county fiscal year 1997, such percentage shall be applied to county personal income for the period January 1, 1994 through Decem- ber 31, 1994; to determine the spending limitation for county fiscal year 1998, such percentage shall be applied to county personal income for the period January 1, 1995 through December 31, 1995; to determine the spending limitation for county fiscal year 1999, such percentage shall be applied to county personal income for the period January 1, 1996 through December 31, 1996; to determine the spending limitation for county fiscal year 2000, such percentage shall be applied to county personal income for the period January 1, 1997 through December 31, 1997; to determine the spending limitation for county fiscal year 2001, such percentage shall be applied to county personal income for the peri- od January 1, 1998 through December 31, 1998; to determine the spending limitation for county fiscal year 2002, such percentage shall be applied to county personal income for the period January 1, 1999 through Decem- ber 31, 1999; to determine the spending limitation for county fiscal year 2003, such percentage shall be applied to county personal income for the period January 1, 2000 through December 31, 2000; to determine the spending limitation for county fiscal year 2004, such percentage shall be applied to county personal income for the period January 1, 2001 through December 31, 2001; to determine the spending limitation for county fiscal year 2005, such percentage shall be applied to county personal income for the period January 1, 2002 through December 31, 2002; to determine the spending limitation for county fiscal year 2006, such percentage shall be applied to county personal income for the peri- od January 1, 2003 through December 31, 2003; to determine the spending limitation for the county fiscal year 2007, such percentage shall be applied to county personal income for the period January 1, 2004 through December 31, 2004; to determine the spending limitation for the county fiscal year 2008, such percentage shall be applied to county personal income for the period January 1, 2005 through December 31, 2005; to determine the spending limitation for the county fiscal year 2009, such percentage shall be applied to county personal income for the period January 1, 2006 through December 31, 2006; to determine the spending limitation for the county fiscal year 2010, such percentage shall be applied to county personal income for the period January 1, 2007 through December 31, 2007; to determine the spending limitation for the county fiscal year 2011, such percentage shall be applied to county personal income for the period January 1, 2008 through December 31, 2008; to determine the spending limitation for the county fiscal year 2012, such percentage shall be applied to county personal income for the period January 1, 2009 through December 31, 2009; to determine the spending limitation for the county fiscal year 2013, such percentage shall be applied to county personal income for the period January 1, 2010 through December 31, 2010; to determine the spending limitation for the county fiscal year 2014, such percentage shall be applied to county personal
income for the period January 1, 2011 through December 31, 2011; TO DETERMINE THE SPENDING LIMITATION FOR THE COUNTY FISCAL YEAR 2015, SUCH PERCENTAGE SHALL BE APPLIED TO COUNTY PERSONAL INCOME FOR THE PERIOD JANUARY 1, 2012 THROUGH DECEMBER 31, 2012; AND TO DETERMINE THE SPENDING LIMITATION FOR COUNTY FISCAL YEAR 2016, SUCH PERCENTAGE SHALL BE APPLIED TO THE COUNTY PERSONAL INCOME FOR THE PERIOD JANUARY 1, 2013 THROUGH DECEMBER 31, 2013. b. The spending limitation shall serve as a statutory cap on county spending to be reflected in the tentative budget as well as the enacted budget for county fiscal years beginning in 1992. S 7. Mandatory tax reduction. In the event that the county spending subject to the spending limitation exceeds such limitation in the adop- tive county budget for county fiscal year 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, [or] 2014, 2015 OR 2016 then section 1262-b of the tax law shall be repealed. S 16. This act shall take effect immediately, provided, however, that sections one through seven of this act shall be in full force and effect until May 31, [2014] 2016, provided, however, that if the county of Westchester imposes the tax authorized by section 1210 of the tax law in excess of three percent, then sections one through seven of this act shall be deemed repealed; provided that the commissioner of taxation and finance shall notify the legislative bill drafting commission upon the repeal of section 1262-b of the tax law pursuant to section seven of the Westchester county spending limitation act in order that the commission may maintain an accurate and timely effective data base of the official text of laws of the state of New York in furtherance of effecting the provisions of section 44 of the legislative law and section 70-b of the public officers law. S 2. This act shall take effect immediately.

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