senate Bill S6296

Extends the authority of the county of Ulster to impose an additional 1 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

  • 09 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 14 / Jan / 2014
    • REPORTED AND COMMITTED TO RULES
  • 23 / Jan / 2014
    • ORDERED TO THIRD READING CAL.51
  • 23 / Jan / 2014
    • SUBSTITUTED BY A7949B

Summary

Extends the authority of the county of Ulster to impose an additional 1 percent sales and compensating use tax; provides that the provisions of this act shall only take effect if the county of Ulster on January 1, 2015 assumes the entire cost of the safety net assistance program.

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Bill Details

See Assembly Version of this Bill:
A7949B
Versions:
S6296
Legislative Cycle:
2013-2014
Law Section:
Tax Law
Laws Affected:
Amd §1210, Tax L; amd §3, Chap 200 of 2002

Votes

7
0
7
Aye
0
Nay
2
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details

Sponsor Memo

BILL NUMBER:S6296

TITLE OF BILL: An act to amend the tax law and chapter 200 of the
laws of 2002 amending the tax law relating to certain tax rates
imposed by the county of Ulster, in relation to extending the
authority of the county of Ulster to impose an additional 1 percent
sales and compensating use tax

PURPOSE: This bill would permit Ulster County to begin imposing an
additional 1percent rate of sales and compensating use tax beginning
February 1, 2014 until December 31, 2014. It would also allow Ulster
County to begin imposing an additional 1 percent rate of sales and
compensating use tax beginning January 1, 2015 until November 30, 2015
if the Ulster County Legislature certifies to the Commissioner of the
Department of Taxation and Finance that the County of Ulster will be
responsible for the full local share of the Safety Net Assistance
Program.

SUMMARY OF PROVISIONS:

Section one of the bill permits Ulster County to collect sales taxes
for the periods of February 1, 2014 to December 31, 2014 and January
1, 2015 to November 30, 2015.

Section three requires Ulster County to honor its existing sales tax
collection and disbursement agreement with the City of Kingston within
this new agreement.

Section three also requires the Ulster County Legislature to pass a
local ordinance in order to impose a one percent additional rate of
sales and compensating use tax authorized by this act for the period
beginning February 1, 2014 and ending December 31, 2014 and send that
ordinance to the commissioner of Taxation and Finance shall be
received on or prior to January 23, 2014.

Section four requires the Ulster County Legislature to pass a local
ordinance in order to impose a one percent additional rate of sales
and compensating use tax authorized by this act for the period
beginning January 1, 2015 and ending November 30, 2015. This ordinance
also must include language which certifies that the County will take
over all Safety Net costs from municipalities by January 1, 2015.

JUSTIFICATION: Ulster County is the only county in New York State
that passes on the cost of the Safety Net Program to local
municipalities. While Ulster County will assume two thirds of the
local share annually beginning in 2014 as part of a phased takeover,
municipalities had been assuming a 50 percent share of the cost of the
program until a 2011 increase left localities to cover a 71%. share.
This has caused a significant fiscal burden on Ulster County's local
governments. The estimated revenue from the extension of a 1 percent
sales and compensating use tax is more than enough funding to cover
these costs and provide much needed relief to municipalities. It is
also germane that State and Federal funding of the cost of separate
public assistance programs was assumed completely at the same time the
towns of Ulster County and the City of Kingston were required to pay
an increased share of Safety Net costs. Where in other counties, the
increased burden of Safety Net was more than offset by increased


Public Assistance support, in Ulster County uniquely the county
government was enriched at the expense of the towns and City of
Kingston. This legislation corrects that inequity.

FISCAL IMPLICATIONS: None to the State.

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
________________________________________________________________________

                                  6296

                            I N  S E N A T E

                             January 9, 2014
                               ___________

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 the tax law and chapter 200 of the laws of 2002 amending
  the  tax  law  relating  to certain tax rates imposed by the county of
  Ulster, in relation to extending the authority of the county of Ulster
  to impose an additional 1 percent 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  7 of subparagraph (i) of the opening paragraph of
section 1210 of the tax law, as amended by chapter 231 of  the  laws  of
2011, is amended to read as follows:
  (7) the county of Ulster is hereby further authorized and empowered to
adopt  and  amend  local  laws,  ordinances or resolutions imposing such
taxes at a rate which is one percent additional  to  the  three  percent
rate  authorized  above  in  this  paragraph for such county (I) for the
period beginning September first, two thousand two and  ending  November
thirtieth,  two  thousand  thirteen  AND  (II)  FOR THE PERIOD BEGINNING
FEBRUARY FIRST, TWO THOUSAND FOURTEEN, AND ENDING DECEMBER THIRTY-FIRST,
TWO THOUSAND FOURTEEN AND (III) FOR THE PERIOD BEGINNING JANUARY  FIRST,
TWO  THOUSAND  FIFTEEN  AND  ENDING  NOVEMBER  THIRTIETH,  TWO  THOUSAND
FIFTEEN;
  S 2.  Section 3 of chapter 200 of the laws of 2002  amending  the  tax
law  relating  to  certain tax rates imposed by the county of Ulster, as
amended by chapter 231 of the laws  of  2011,  is  amended  to  read  as
follows:
  S  3.  If, pursuant to the authority of this act, the county of Ulster
imposes sales and compensating use taxes at a rate  greater  than  three
percent  for  all  or  any portion of the period commencing September 1,
2002, and ending November 30, [2013] 2015,  net  collections  from  such
additional rate of tax imposed during such period shall be deemed to be,
and  shall  be  included  in,  net  collections subject to such county's
existing agreement with the city of Kingston entered  into  pursuant  to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08813-29-4

S. 6296                             2

subdivision  (c) of section 1262 of the tax law and such net collections
shall be allocated in accordance with such agreement.
  S  3.  Notwithstanding any provision of law to the contrary, if Ulster
county adopts or amends a local law, ordinance, or resolution to  impose
a  one  percent  additional  rate  of  sales  and compensating use taxes
authorized by this act for the period beginning  February  1,  2014  and
ending December 31, 2014, such local law, ordinance, or resolution shall
take  effect  on that date in accordance with the provisions of subdivi-
sion (d) of section 1210 of the tax law,  except  that  such  additional
rate  may  take  effect  on  February  1,  2014,  and the minimum notice
requirements to the commissioner of taxation and finance shall be deemed
complied with if such county mails, by certified or registered  mail,  a
certified  copy  of  such  local  law,  ordinance  or resolution to such
commissioner at his or her office in Albany, and provides a true copy of
such local law, ordinance or resolution to such  commissioner  by  elec-
tronic mail on or before January 23, 2014.
  S  4.  (a) As a condition precedent to imposing the additional rate of
sales and compensating use taxes authorized by this act for  the  period
beginning  January  1, 2015, and ending November 30, 2015, the county of
Ulster shall adopt the resolution set out in  subdivision  (b)  of  this
section,  in exactly the form set out in such subdivision (b), and shall
mail a certified copy of such resolution to the commissioner of taxation
and finance at the same time and in the same envelope  that  the  county
mails  a  certified copy of its local enactment imposing such additional
rate of tax, in accordance with the provisions  of  subdivision  (d)  of
section 1210 of the tax law; provided, however, that notwithstanding the
effective  dates specified in such subdivision (d), such additional rate
of tax may take effect on January 1, 2015.  Upon receiving  such  certi-
fied  copy  of the county's resolution adopted pursuant to this section,
together with the certified copy of such enactment imposing  such  addi-
tional  rate  of tax, the commissioner shall be authorized to administer
such additional rate of tax for the period authorized by this act and as
set forth in such enactment imposing such additional rate.
  (b) The form of the resolution described in subdivision  (a)  of  this
section shall be exactly as follows:
  RESOLUTION of the county of Ulster regarding the Safety Net Assistance
Program
  Section 1. The county of Ulster will be responsible for the full local
share of the Safety Net Assistance Program required of the county by the
State  of  New  York  and  will  not require towns and cities within its
limits to contribute to the cost of this  program.  This  responsibility
has  also  been  assumed  in Ulster County's Adopted Budget for the year
2015.
  This resolution shall take effect January 1, 2015.
  S 5. This act shall take effect immediately.

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