S T A T E O F N E W Y O R K
________________________________________________________________________
8763
2009-2010 Regular Sessions
I N A S S E M B L Y
June 5, 2009
___________
Introduced by M. of A. MILLER -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the state finance law, in relation to state aid to coun-
ties, cities, and school districts for tax receipts foregone as a
result of the exemption of clothing and footwear from sales and
compensating use taxes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The state finance law is amended by adding a new section
54-m to read as follows:
S 54-M. STATE TAX RELIEF FOR COUNTIES, CITIES, AND SCHOOL DISTRICTS
FOR TAX RECEIPTS FOREGONE DUE TO THE EXEMPTION OF CLOTHING AND FOOTWEAR
FROM SALES AND COMPENSATING USE TAXES. 1. (A) EXCEPT AS OTHERWISE
PROVIDED BY LAW, THE PROVISIONS OF THIS SECTION SHALL BE UTILIZED BY THE
STATE TO CALCULATE THE ANNUAL AMOUNT DUE TO BE PAID TO COUNTIES, CITIES,
AND SCHOOL DISTRICTS BY THE STATE TO HOLD HARMLESS SUCH COUNTIES,
CITIES, AND SCHOOL DISTRICTS FOR TAX RECEIPTS FOREGONE AS A RESULT OF
PROVISIONS OF ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF THE TAX LAW AND
ANY OTHER GENERAL, SPECIAL, OR LOCAL LAWS EXEMPTING THE PURCHASE OF
CLOTHING AND FOOTWEAR FOR WHICH THE RECEIPT OR CONSIDERATION GIVEN OR
CONTRACTED TO BE GIVEN IS LESS THAN ONE HUNDRED TEN DOLLARS PER ARTICLE
OF CLOTHING, PER PAIR OF SHOES OR OTHER ARTICLES OF FOOTWEAR OR PER ITEM
USED OR CONSUMED TO MAKE OR REPAIR SUCH CLOTHING AND WHICH BECOMES A
PHYSICAL COMPONENT PART OF SUCH CLOTHING FROM SALES OR COMPENSATING USE
TAXES.
(B) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY JURISDICTION
TO WHICH THE PROVISIONS OF SUBDIVISION (G) OF SECTION ELEVEN HUNDRED
NINE OF THE TAX LAW APPLY.
2. THE AMOUNT OF SUCH REIMBURSEMENT SHALL BE EQUAL TO THE TAX RECEIPTS
FOREGONE BY COUNTIES, CITIES, AND SCHOOL DISTRICTS PURSUANT TO THE
PROVISIONS OF THE TAX REDUCTIONS DESCRIBED IN SUBDIVISION ONE OF THIS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09669-01-9
A. 8763 2
SECTION FOR THE CALENDAR YEAR ENDING IN EACH SUCH STATE FISCAL YEAR AND
SHALL BE DETERMINED ANNUALLY BEGINNING WITH THE FIRST STATE FISCAL YEAR
AFTER THE EFFECTIVE DATE OF THIS SECTION AND EACH YEAR THEREAFTER. SUCH
AMOUNT, AS FINALLY DETERMINED PURSUANT TO THIS SECTION, SHALL REPRESENT
A STATE CHARGE AND SHALL BE PAID TO COUNTIES, CITIES, AND SCHOOL
DISTRICTS AS PROVIDED IN SUBDIVISION FIVE OF THIS SECTION.
3. (A) THE AMOUNT OF SUCH REIMBURSEMENT SHALL BE ESTIMATED BY THE
COMMISSIONER OF TAXATION AND FINANCE ON OR BEFORE DECEMBER FIRST OF THE
YEAR PRECEDING THE STATE FISCAL YEAR DURING WHICH SUCH AMOUNT IS TO BE
PAID BEGINS. SUCH COMMISSIONER SHALL USE THE BEST AVAILABLE INFORMATION
AT HIS OR HER DISPOSAL TO ESTIMATE SUCH AMOUNT. IN ADDITION TO SUCH
METHODS AND INFORMATION SUCH COMMISSIONER MAY USE IN MAKING SUCH ESTI-
MATE, HE OR SHE SHALL CONSULT WITH COUNTIES, CITIES, AND SCHOOL
DISTRICTS DURING THE PREPARATION OF THE DETERMINATION OF SUCH AMOUNT.
(B) THE ESTIMATE SHALL BE PROVIDED TO THE DIRECTOR OF THE BUDGET FOR
USE IN PREPARING THE BUDGET FOR THE NEXT SUBSEQUENT STATE FISCAL YEAR ON
OR BEFORE THE TENTH DAY OF DECEMBER IN EACH SUCH YEAR, AND COPIES OF
SUCH ESTIMATE SHALL ALSO BE SUPPLIED TO THE CHAIRMAN OF THE SENATE
FINANCE COMMITTEE AND TO THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS
COMMITTEE.
(C) IN EACH YEAR FOLLOWING THE PREPARATION OF THE INITIAL DETERMI-
NATION OF SUCH AMOUNT THE COMMISSIONER OF TAXATION AND FINANCE SHALL
REVISE SUCH ESTIMATE AND SHALL PROVIDE SUCH REVISION TO THE DIRECTOR OF
THE BUDGET AND SHALL ALSO SUPPLY COPIES OF SUCH REVISION TO THE CHAIRMAN
OF THE SENATE FINANCE COMMITTEE AND TO THE CHAIRMAN OF THE ASSEMBLY WAYS
AND MEANS COMMITTEE.
4. THE GOVERNOR SHALL INCLUDE THE AMOUNTS DETERMINED IN PARAGRAPHS (A)
AND (C) OF SUBDIVISION THREE OF THIS SECTION AS AN IDENTIFIABLE ITEM OF
APPROPRIATION IN EACH ANNUAL EXECUTIVE BUDGET SUBMISSION REQUIRED BY
THIS CHAPTER FOR FIRST FISCAL YEARS FOLLOWING THE EFFECTIVE DATE OF THIS
SECTION AND THEREAFTER.
5. AMOUNTS DETERMINED TO BE DUE COUNTIES, CITIES, AND SCHOOL DISTRICTS
PURSUANT TO THIS SECTION SHALL BE PAID OUT PURSUANT TO THE FOLLOWING
SCHEDULE: FOR THE FIRST STATE FISCAL YEAR FOLLOWING THE EFFECTIVE DATE
OF THIS SECTION, ONE HUNDRED PERCENT OF ANY REQUIRED AMOUNT SHALL BE
MADE BY MARCH FIFTEENTH IN SUCH FISCAL YEAR; FOR THE SECOND STATE FISCAL
YEAR FOLLOWING THE EFFECTIVE DATE OF THIS SECTION, FIFTY PERCENT SHALL
BE PAID OUT ON MARCH FIFTEENTH AND FIFTY PERCENT ON DECEMBER FIFTEENTH
OF SUCH YEAR; AND FOR THE THIRD STATE FISCAL YEAR FOLLOWING THE EFFEC-
TIVE DATE OF THIS SECTION AND THEREAFTER, THIRTY-THREE AND ONE-THIRD
PERCENT SHALL BE PAID OUT ON THE FIFTEENTH DAY OF SEPTEMBER, DECEMBER
AND MARCH OF SUCH YEAR.
6. THE CALCULATION OF THE AMOUNT OF TAX RECEIPTS FOREGONE BY ANY COUN-
TY, CITY, OR SCHOOL DISTRICT SHALL BE BASED ON THE AMOUNT OF SALES AND
COMPENSATING USE TAXES ACCRUING TO EACH SUCH COUNTY, CITY, OR SCHOOL
DISTRICT FOR THE PERIOD DECEMBER FIRST, TWO THOUSAND SEVEN THROUGH
NOVEMBER THIRTIETH, TWO THOUSAND EIGHT ON THE BASIS OF TAX LIABILITY
INCURRED DURING SUCH PERIOD AND A COMPARISON OF SUCH AMOUNT WITH THE
SAME AMOUNT ACCRUING DURING THE PERIOD OF DECEMBER FIRST, TWO THOUSAND
EIGHT THROUGH NOVEMBER THIRTIETH, TWO THOUSAND NINE. ANY EXCESS OF THE
FORMER OVER THE LATTER SHALL BE TERMED THE DIFFERENTIAL. THE STATE SHALL
HOLD EACH COUNTY, CITY, AND SCHOOL DISTRICT HARMLESS FOR THE DIFFEREN-
TIAL, IF ANY. IN THE EVENT THAT SALES AND COMPENSATING USE TAXES
RECEIPTS FOR ANY ANNUAL PERIOD EXCEED RECEIPTS FOR THE LATTER PERIOD,
THE DIFFERENTIAL, FOR THAT YEAR, SHALL BE ACCORDINGLY ADJUSTED OR ELIMI-
NATED.
A. 8763 3
7. PAYMENT OF HOLD HARMLESS REIMBURSEMENT PURSUANT TO THIS SECTION
SHALL BE OFFSET BY PROPERTY TAX RECEIPTS AS FOLLOWS: ANY ADDITIONAL
PROPERTY TAX RECEIPTS, RESULTING NOT FROM INCREASES IN TAX RATES BUT
FROM ADDITIONAL ASSESSED VALUATION ATTRIBUTABLE TO BUSINESS ESTABLISH-
MENTS SELLING EXEMPTED CLOTHING AND FOOTWEAR, SUCH ADDITIONAL ASSESSED
VALUATION BEING ADDED TO THE ASSESSMENT ROLLS AFTER THE EFFECTIVE DATE
OF THIS SECTION SHALL, TO THE EXTENT OF FIFTY PERCENT THEREOF, BE OFFSET
AGAINST ANY PAYMENT OTHERWISE DUE PURSUANT TO THIS SECTION. THE OFFICE
OF REAL PROPERTY SERVICES, IN CONSULTATION WITH COUNTY, CITY, AND SCHOOL
DISTRICT REAL PROPERTY TAX OFFICIALS, SHALL ASSIST THE DEPARTMENT OF
TAXATION AND FINANCE IN MAKING THE CALCULATIONS AND DETERMINATIONS
NECESSITATED BY THIS SUBDIVISION.
S 2. This act shall take effect on the first of December next succeed-
ing the date on which it shall have become a law. State agencies and
municipal corporations are authorized to promulgate any and all rules
and regulations and take any other measures necessary to implement this
act on its effective date on or before such date.