senate Bill S3406

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

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

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

Summary

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

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Bill Details

See Assembly Version of this Bill:
A3883
Versions:
S3406
Legislative Cycle:
2013-2014
Law Section:
Tax Law
Laws Affected:
Amd ยง1210, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S3796, A6105
2009-2010: S1087, A3129
2007-2008: A9679

Votes

Sponsor 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 one-
quarter 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 addi-
tional 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 peri-
od ending August 31, 2011. Given the sharp downturn in the local econo-
my, sales tax revenues had declined substantially since the last one-
quarter 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 2009-
2010 (enacted in 2009): A.6105/S.3796 of 2011-2012 (enacted in 2011)

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3406

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04415-01-3

S. 3406                             2

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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