S T A T E   O F   N E W   Y O R K
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                                  7350

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 31, 2009
                               ___________

Introduced  by M. of A. GALEF -- read once and referred to the Committee
  on Ways and Means

AN ACT to amend the tax law, in relation  to  authorizing  the  city  of
  Peekskill to impose hotel or motel taxes within such city

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

  Section 1. The tax law is amended by adding a new section  1202-aa  to
read as follows:
  S 1202-AA. HOTEL OR MOTEL TAXES IN THE CITY OF PEEKSKILL. (1) NOTWITH-
STANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY, THE CITY OF PEEKS-
KILL  IS  HEREBY  AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS
IMPOSING IN SUCH CITY A TAX, IN ADDITION TO ANY OTHER TAX AUTHORIZED AND
IMPOSED PURSUANT TO THIS ARTICLE SUCH AS THE LEGISLATURE  HAS  OR  WOULD
HAVE  THE  POWER AND AUTHORITY TO IMPOSE UPON PERSONS OCCUPYING HOTEL OR
MOTEL ROOMS IN SUCH CITY. FOR THE PURPOSES OF  THIS  SECTION,  THE  TERM
"HOTEL"  OR  "MOTEL"  SHALL  MEAN AND INCLUDE ANY FACILITY CONSISTING OF
RENTABLE UNITS AND PROVIDING LODGING ON AN  OVERNIGHT  BASIS  AND  SHALL
INCLUDE  THOSE  FACILITIES  DESIGNATED  AND  COMMONLY  KNOWN AS "BED AND
BREAKFAST" AND "TOURIST" FACILITIES.
  THE RATES OF SUCH TAX SHALL NOT EXCEED THREE PERCENT OF THE  PER  DIEM
RENTAL  RATE FOR EACH ROOM, PROVIDED HOWEVER, THAT SUCH TAX SHALL NOT BE
APPLICABLE TO A PERMANENT RESIDENT OF A HOTEL OR MOTEL. FOR THE PURPOSES
OF THIS SECTION THE TERM "PERMANENT RESIDENT" SHALL MEAN A PERSON  OCCU-
PYING  ANY ROOM OR ROOMS IN A HOTEL OR MOTEL FOR AT LEAST NINETY CONSEC-
UTIVE DAYS.
  (2) SUCH TAX MAY BE COLLECTED AND ADMINISTERED  BY  THE  CHIEF  FISCAL
OFFICER  OF  THE  CITY  OF PEEKSKILL BY SUCH MEANS AND IN SUCH MANNER AS
OTHER TAXES WHICH ARE NOW COLLECTED AND ADMINISTERED BY SUCH OFFICER  OR
AS OTHERWISE MAY BE PROVIDED BY SUCH LOCAL LAW.
  (3)  SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAX IMPOSED SHALL BE PAID BY
THE PERSON LIABLE THEREFOR TO THE OWNER OF THE HOTEL OR MOTEL ROOM OCCU-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04906-01-9
              

A. 7350                             2

PIED OR TO THE PERSON ENTITLED TO BE PAID THE RENT  OR  CHARGE  FOR  THE
HOTEL OR MOTEL ROOM OCCUPIED FOR AND ON ACCOUNT OF THE CITY OF PEEKSKILL
IMPOSING  THE  TAX AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID THE
RENT  OR  CHARGE  SHALL  BE LIABLE FOR THE COLLECTION AND PAYMENT OF THE
TAX; AND THAT SUCH OWNER OR PERSON ENTITLED  TO  BE  PAID  THE  RENT  OR
CHARGE  SHALL  HAVE THE SAME RIGHT IN RESPECT TO COLLECTING THE TAX FROM
THE PERSON OCCUPYING THE HOTEL OR MOTEL ROOM, OR IN RESPECT  TO  NONPAY-
MENT  OF  THE TAX BY THE PERSON OCCUPYING THE HOTEL OR MOTEL ROOM, AS IF
THE TAX WERE A PART OF THE RENT OR CHARGE AND PAYABLE AT THE  SAME  TIME
AS  THE RENT OR CHARGE; PROVIDED, HOWEVER, THAT THE CHIEF FISCAL OFFICER
OF THE CITY, SPECIFIED IN SUCH LOCAL LAW, SHALL BE JOINED AS A PARTY  IN
ANY  ACTION  OR PROCEEDING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY
THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE.
  (4) SUCH LOCAL LAWS MAY PROVIDE FOR THE  FILING  OF  RETURNS  AND  THE
PAYMENT  OF  THE TAX ON A MONTHLY BASIS OR ON THE BASIS OF ANY LONGER OR
SHORTER PERIOD OF TIME.
  (5) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH  TAX  UPON
ANY  TRANSACTION,  BY  OR  WITH  ANY OF THE FOLLOWING IN ACCORDANCE WITH
SECTION TWELVE HUNDRED THIRTY OF THIS CHAPTER:
  A. THE STATE OF NEW YORK,  OR  ANY  PUBLIC  CORPORATION  (INCLUDING  A
PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER
STATE  OR  THE  DOMINION OF CANADA), IMPROVEMENT DISTRICT OR OTHER POLI-
TICAL SUBDIVISION OF THE STATE;
  B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS  IMMUNE  FROM  TAXA-
TION;
  C.  ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND
OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA-
BLE OR EDUCATIONAL PURPOSES, OR FOR THE PREVENTION OF CRUELTY  TO  CHIL-
DREN  OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE
BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART
OF THE ACTIVITIES OF WHICH  IS  CARRYING  ON  PROPAGANDA,  OR  OTHERWISE
ATTEMPTING  TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN
THIS PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED  FOR  THE  PRIMARY
PURPOSE  OF  CARRYING  ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT
ALL OF ITS PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN
THIS PARAGRAPH.
  (6) ANY FINAL DETERMINATION OF THE AMOUNT OF ANY TAX PAYABLE HEREUNDER
SHALL BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITUTIONALITY OR  ANY
OTHER  REASON  WHATSOEVER BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF
THE CIVIL PRACTICE LAW AND RULES IF APPLICATION THEREFOR IS MADE TO  THE
SUPREME  COURT WITHIN THIRTY DAYS AFTER THE GIVING OF THE NOTICE OF SUCH
FINAL DETERMINATION, PROVIDED, HOWEVER, THAT ANY SUCH  PROCEEDING  UNDER
ARTICLE  SEVENTY-EIGHT  OF THE CIVIL PRACTICE LAW AND RULES SHALL NOT BE
INSTITUTED UNLESS:
  A. THE AMOUNT OF ANY TAX SOUGHT TO BE REVIEWED, WITH SUCH INTEREST AND
PENALTIES THEREON AS MAY BE PROVIDED FOR BY LOCAL  LAW  SHALL  BE  FIRST
DEPOSITED  AND THERE IS FILED AN UNDERTAKING, ISSUED BY A SURETY COMPANY
AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE AND APPROVED BY THE SUPER-
INTENDENT OF INSURANCE OF THIS STATE AS TO SOLVENCY AND  RESPONSIBILITY,
IN  SUCH  AMOUNT  AS A JUSTICE OF THE SUPREME COURT SHALL APPROVE TO THE
EFFECT THAT IF SUCH PROCEEDING BE DISMISSED OR  THE  TAX  CONFIRMED  THE
PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE PROSE-
CUTION OF SUCH PROCEEDING; OR
  B.  AT  THE  OPTION OF THE PETITIONER SUCH UNDERTAKING MAY BE IN A SUM
SUFFICIENT TO COVER THE TAXES, INTERESTS AND PENALTIES  STATED  IN  SUCH
DETERMINATION  PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN

A. 7350                             3

THE PROSECUTION OF THE PROCEEDING, IN WHICH EVENT THE  PETITIONER  SHALL
NOT  BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION
PRECEDENT TO THE APPLICATION.
  (7) WHERE ANY TAX IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY, ILLE-
GALLY  OR  UNCONSTITUTIONALLY  COLLECTED  AND APPLICATION FOR THE REFUND
THEREOF DULY MADE TO THE PROPER FISCAL OFFICER  OR  OFFICERS,  AND  SUCH
OFFICER OR OFFICERS SHALL HAVE MADE A DETERMINATION DENYING SUCH REFUND,
SUCH  DETERMINATION  SHALL  BE  REVIEWABLE BY A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND  RULES,  PROVIDED,  HOWEVER,
THAT  SUCH  PROCEEDING IS INSTITUTED WITHIN THIRTY DAYS AFTER THE GIVING
OF THE NOTICE OF SUCH DENIAL, THAT A FINAL DETERMINATION OF TAX DUE  WAS
NOT  PREVIOUSLY  MADE,  AND THAT AN UNDERTAKING IS FILED WITH THE PROPER
FISCAL OFFICER OR OFFICERS IN SUCH AMOUNT AND WITH SUCH  SURETIES  AS  A
JUSTICE  OF  THE  SUPREME COURT SHALL APPROVE TO THE EFFECT THAT IF SUCH
PROCEEDING BE DISMISSED OR THE TAX CONFIRMED, THE  PETITIONER  WILL  PAY
ALL  COSTS  AND  CHARGES  WHICH  MAY  ACCRUE  IN THE PROSECUTION OF SUCH
PROCEEDING.
  (8) EXCEPT IN THE CASE OF A WILFULLY FALSE OR FRAUDULENT  RETURN  WITH
INTENT  TO  EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE
AFTER THE EXPIRATION OF MORE THAN THREE  YEARS  FROM  THE  DATE  OF  THE
FILING  OF  A  RETURN,  PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN
FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME.
  (9) ALL REVENUES RESULTING FROM THE IMPOSITION OF THE  TAX  UNDER  THE
LOCAL  LAWS SHALL BE PAID INTO THE TREASURY OF THE CITY OF PEEKSKILL AND
SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF THE CITY;  AND
THE  LOCAL LAW SHALL PROVIDE THAT THE CITY SHALL BE AUTHORIZED TO RETAIN
THE NECESSARY REVENUE TO DEFER THE EXPENSE OF THE CITY IN  ADMINISTERING
SUCH  TAX AND THE BALANCE OF SUCH REVENUES SHALL BE ALLOCATED TO ENHANCE
THE GENERAL ECONOMY OF THE CITY OF PEEKSKILL.
  (10) IF ANY PROVISION OF THIS SECTION OR THE  APPLICATION  THEREOF  TO
ANY  PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS
SECTION AND THE APPLICATION  OF  SUCH  PROVISION  TO  OTHER  PERSONS  OR
CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY.
  S 2. This act shall take effect immediately.