senate Bill S4458

Authorizes Erie county to impose an additional one percent and three-quarters percent sales and compensating use taxes

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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

  • 03 / Apr / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 30 / May / 2013
    • 1ST REPORT CAL.864
  • 03 / Jun / 2013
    • 2ND REPORT CAL.
  • 04 / Jun / 2013
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2013
    • SUBSTITUTED BY A6533

Summary

Authorizes Erie County to impose an additional one percent and three-quarters percent sales and compensating use tax.

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Bill Details

See Assembly Version of this Bill:
A6533
Versions:
S4458
Legislative Cycle:
2013-2014
Law Section:
Tax Law
Laws Affected:
Amd ยงยง1210 & 1262-q, Tax L

Votes

7
0
7
Aye
0
Nay
1
aye with reservations
0
absent
1
excused
0
abstained
show Investigations and Government Operations committee vote details

Sponsor Memo

BILL NUMBER:S4458 REVISED 04/03/2013

TITLE OF BILL: An act to amend the tax law, in relation to the
imposition of additional rates of sales and compensating use taxes by
Erie county

PURPOSE OF THE BILL:

To extend the authorization to Erie County to impose an additional one
percent rate and an additional three-quarters of one percent rate of
sales and compensating use taxes, fox the period commencing December
1, 2011, and ending November 30, 2015, and to provide for retention
for solely county purposes of all net collections from the additional
three quarters of one percent rate.

SUMMARY OF SPECIFIC PROVISIONS:

Bill section 1 would amend clause 4 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. Clause 4
would authorize Erie County to impose an additional one percent rate
and an additional three-quarters of one percent rate of such taxes for
the period commencing December 1, 2011, and ending November 30, 2015.
Currently the county is authorized to impose these two additional
rates through November 30, 2013 pursuant to section 1210 of the Tax
Law.

Bill section 2 would amend paragraph 2 of Tax Law section 1262-q to
Continue to provide that net collections from the additional
three-quarters of one percent rate shall be used by the county solely
for county purposes and shall not be subject to any revenue
distribution agreement the county entered into under section 1262(c)
of the Tax Law.

Bill 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
three percent. More than 50 counties outside New York City and five
cities are each authorized to impose an additional rate of tax in
excess of three percent. 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 use taxes in section 1110
of the Tax Law, which imposes the State's use taxes. Or, pursuant to
section 1210(b), a county or city can impose one or more of the taxes
described in section 1105(b), (d), (a), or (f), which are known as the
"segmented taxes," plus related use taxes. Erie County currently
imposes the "general" sales and use taxes at the rate of three
percent. The county is also authorized to, and does, impose an
additional one percent rate pursuant to section 1210 of the Tax Law
for the period December 1, 2011, through November' 30, 2013, The
county is also authorized to, and does, impose an additional
three-quarters of one percent rate pursuant to section 1210 of the Tax
Law for the period December 1, 2011, through November 30, 2013.


JUSTIFICATION:

Erie County has requested an extension of its authorization to impose
an additional one percent and three-quarters percent sales and
compensating use tax. The revenue anticipated from this additional tax
will allow the County of Erie to continue to provide services deemed
vital to the community while maintaining a balanced budget.

PRIOR LEGISLATIVE HISTORY:

Chapter 243 of the Laws of 2011.

FISCAL IMPLICATIONS:

None to the State. Failure to extend the additional one Percent and
three-quarters percent sales and compensating use tax rate would mean
the annual loss of nearly $265 million in County revenue and would
create a severe challenge to the continued operation of County
government and its delivery of services. This loss in revenue would
require an exorbitant property tax increase of 100 percent, more than
doubling the existing levy. In addition, it would be likely that
entire departments not mandated by state law would be eliminated and
Erie County would put a stop to all capital work, including road and
bridge reconstruction throughout our community. Finally, Erie County
shares its sales tax with its municipalities and school districts. If
the sales tax extension is not approved, Erie County's cities, towns,
and villages would lose $12.5 million annually.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  4458

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              April 3, 2013
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government Operations

AN ACT to amend the tax law, in relation to the imposition of additional
  rates of sales and compensating use taxes by Erie county

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Clause 4 of subparagraph (i) of the  opening  paragraph  of
section  1210  of  the tax law, as amended by chapter 243 of the laws of
2011, is amended to read as follows:
  (4) the county of Erie is hereby further authorized and  empowered  to
adopt  and  amend  local  laws,  ordinances or resolutions imposing such
taxes (i) at a rate which is one percent additional to the three percent
rate authorized above in this paragraph for such county for  the  period
beginning January tenth, nineteen hundred eighty-eight and ending Novem-
ber thirtieth, two thousand [thirteen] FIFTEEN; and (ii) at a rate which
is  three-quarters  of  one percent additional to the three percent rate
authorized above in this paragraph, and which is also additional to  the
one  percent  rate also authorized above in this clause for such county,
for the period beginning December first, two thousand eleven, and ending
November thirtieth, two thousand [thirteen] FIFTEEN;
  S 2. Subdivision 2 of section 1262-q of the tax law, as added by chap-
ter 243 of the laws of 2011, is amended to read as follows:
  (2) Net collections from the additional three-quarters of one  percent
rate  of  sales  and  compensating use taxes which the county may impose
during the period commencing December first, two  thousand  eleven,  and
ending  November thirtieth, two thousand [thirteen] FIFTEEN, pursuant to
the authority of item (ii) of clause (4)  of  subparagraph  (i)  of  the
opening paragraph 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 the county entered  into  pursuant
to  the authority of subdivision (c) of section twelve hundred sixty-two
of this part.
  S 3. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08514-01-3

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