senate Bill S5214

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

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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

  • 14 / May / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 30 / May / 2013
    • 1ST REPORT CAL.905
  • 03 / Jun / 2013
    • 2ND REPORT CAL.
  • 04 / Jun / 2013
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2013
    • SUBSTITUTED BY A7501

Summary

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

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Bill Details

See Assembly Version of this Bill:
A7501
Versions:
S5214
Legislative Cycle:
2013-2014
Law Section:
Taxation
Laws Affected:
Amd ยงยง4, 5, 7 & 16, Chap 272 of 1991

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: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.

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

                                  5214

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10999-01-3

S. 5214                             2

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

S. 5214                             3

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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