S T A T E   O F   N E W   Y O R K
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                                   133

                    Seventeenth Extraordinary Session

                            I N  S E N A T E

                              July 7, 2009
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
  twice  and  ordered  printed,  and when printed to be committed to the
  Committee on Rules

AN ACT to amend the tax law and the administrative code of the  city  of
  New York, in relation to increasing certain sales and compensating use
  taxes in cities having a population of one million or more persons

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

  Section 1. Clause 1 of subparagraph (i) of the  opening  paragraph  of
section  1210  of  the  tax law, as amended by section 3 of part SS-1 of
chapter 57 of the laws of 2008, is amended to read as follows:
  (1) [for the period beginning August first, two thousand  eight,]  any
such  city  having a population of one million or more is hereby author-
ized and empowered to adopt and amend local laws, ordinances  or  resol-
utions  imposing  such  taxes  in any such city, at the rate of four AND
ONE-HALF percent;
  S 2. Paragraph 4 of subdivision (a) of section 1210 of the tax law, as
amended by section 5 of part SS-1 of chapter 57 of the laws of 2008,  is
amended to read as follows:
  (4)  Notwithstanding  any  other provision of law to the contrary, any
local law enacted by any city of one million or more  that  imposes  the
taxes authorized by this subdivision (i) may omit the exception provided
in  subparagraph  (ii)  of paragraph three of subdivision (c) of section
eleven hundred five of this chapter for receipts from  laundering,  dry-
cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining;
(ii) may impose the tax described in paragraph six of subdivision (c) of
section eleven hundred five of this chapter at a rate in addition to the
rate  prescribed  by this section not to exceed two percent in multiples
of one-half of one percent; (iii) shall provide that the  tax  described
in  paragraph  six  of subdivision (c) of section eleven hundred five of
this chapter does not apply to facilities owned and operated by the city

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12125-01-9
              

S. 133                              2

or an agency or instrumentality of the city or a public corporation  the
majority  of  whose members are appointed by the chief executive officer
of the city or the legislative body of the city or both  of  them;  (iv)
shall  not include any tax on receipts from, or the use of, the services
described in paragraph  seven  of  subdivision  (c)  of  section  eleven
hundred  five  of  this chapter; (v) shall provide that, for purposes of
the tax described in subdivision (e) of section eleven hundred  five  of
this  chapter,  "permanent  resident"  means any occupant of any room or
rooms in a hotel for at least one hundred eighty consecutive  days  with
regard  to  the  period  of  such occupancy; (vi) may omit the exception
provided in paragraph one of subdivision (f) of section  eleven  hundred
five  of  this  chapter for charges to a patron for admission to, or use
of, facilities for sporting activities in which the patron is  to  be  a
participant,  such  as  bowling  alleys and swimming pools; (vii) [shall
not] MAY provide the clothing and footwear exemption in paragraph thirty
of subdivision (a) of section eleven hundred  fifteen  of  this  chapter
[but  must exempt clothing and footwear and any item used or consumed to
make or repair exempt clothing and which becomes  a  physical  component
part  of  that  exempt  clothing], AND, NOTWITHSTANDING ANY PROVISION OF
SUBDIVISION (D) OF THIS SECTION TO THE CONTRARY, ANY LOCAL LAW PROVIDING
FOR SUCH EXEMPTION OR REPEALING SUCH EXEMPTION, MAY GO  INTO  EFFECT  ON
ANY ONE OF THE FOLLOWING DATES: MARCH FIRST, JUNE FIRST, SEPTEMBER FIRST
OR DECEMBER FIRST; (viii) shall omit the exemption provided in paragraph
forty-one  of  subdivision (a) of section eleven hundred fifteen of this
chapter; (ix) shall omit the exemption provided in  subdivision  (c)  of
section  eleven hundred fifteen of this chapter insofar as it applies to
fuel, gas, electricity, refrigeration  and  steam,  and  gas,  electric,
refrigeration  and  steam service of whatever nature for use or consump-
tion directly and exclusively in the  production  of  gas,  electricity,
refrigeration  or  steam;  [and] (x) shall omit, unless such city elects
otherwise, the provision for refund or credit contained in clause six of
subdivision (a) of section eleven hundred nineteen of this chapter;  AND
(XI)  SHALL  PROVIDE  THAT SECTION ELEVEN HUNDRED FIVE-C OF THIS CHAPTER
DOES NOT APPLY TO SUCH TAXES, AND SHALL TAX RECEIPTS  FROM  EVERY  SALE,
OTHER THAN SALES FOR RESALE, OF GAS SERVICE OR ELECTRIC SERVICE OF WHAT-
EVER NATURE, INCLUDING THE TRANSPORTATION,  TRANSMISSION OR DISTRIBUTION
OF GAS OR ELECTRICITY, EVEN IF SOLD SEPARATELY, AT THE RATE SET FORTH IN
CLAUSE ONE OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF THIS SECTION.
  S 3. Paragraph 4 of subdivision (a) of section 1210 of the tax law, as
amended  by section 35 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
  (4) Notwithstanding any other provision of law to  the  contrary,  any
local  law  enacted  by any city of one million or more that imposes the
taxes authorized by this subdivision (i) may omit the exception provided
in subparagraph (ii) of paragraph three of subdivision  (c)  of  section
eleven  hundred  five of this chapter for receipts from laundering, dry-
cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining;
(ii) may impose the tax described in paragraph six of subdivision (c) of
section eleven hundred five of this chapter at a rate in addition to the
rate prescribed by this section not to exceed two percent  in  multiples
of  one-half  of one percent; (iii) shall provide that the tax described
in paragraph six of subdivision (c) of section eleven  hundred  five  of
this chapter does not apply to facilities owned and operated by the city
or  an agency or instrumentality of the city or a public corporation the
majority of whose members are appointed by the chief  executive  officer
of  the  city  or the legislative body of the city or both of them; (iv)

S. 133                              3

shall not include any tax on receipts from, or the use of, the  services
described  in  paragraph  seven  of  subdivision  (c)  of section eleven
hundred five of this chapter; (v) shall provide that,  for  purposes  of
the  tax  described in subdivision (e) of section eleven hundred five of
this chapter, "permanent resident" means any occupant  of  any  room  or
rooms  in  a hotel for at least one hundred eighty consecutive days with
regard to the period of such occupancy;  (vi)  may  omit  the  exception
provided  in  paragraph one of subdivision (f) of section eleven hundred
five of this chapter for charges to a patron for admission  to,  or  use
of,  facilities  for  sporting activities in which the patron is to be a
participant, such as bowling alleys and  swimming  pools;  (vii)  [shall
not] MAY provide the clothing and footwear exemption in paragraph thirty
of  subdivision  (a)  of  section eleven hundred fifteen of this chapter
[but must exempt clothing and footwear and any item used or consumed  to
make  or  repair  exempt clothing and which becomes a physical component
part of that exempt clothing], AND,  NOTWITHSTANDING  ANY  PROVISION  OF
SUBDIVISION (D) OF THIS SECTION TO THE CONTRARY, ANY LOCAL LAW PROVIDING
FOR  SUCH  EXEMPTION  OR REPEALING SUCH EXEMPTION, MAY GO INTO EFFECT ON
ANY ONE OF THE FOLLOWING DATES: MARCH FIRST, JUNE FIRST, SEPTEMBER FIRST
OR DECEMBER FIRST; (viii) shall omit the exemption provided in paragraph
forty-one of subdivision (a) of section eleven hundred fifteen  of  this
chapter;  (ix)  shall  omit the exemption provided in subdivision (c) of
section eleven hundred fifteen of this chapter insofar as it applies  to
fuel,  gas,  electricity,  refrigeration  and  steam, and gas, electric,
refrigeration and steam service of whatever nature for use  or  consump-
tion  directly  and  exclusively  in the production of gas, electricity,
refrigeration or steam; [and] (x) shall omit, unless  such  city  elects
otherwise, the provision for refund or credit contained in clause six of
subdivision (a) or in subdivision (d) of section eleven hundred nineteen
of  this  chapter;  AND  (XI)  SHALL PROVIDE THAT SECTION ELEVEN HUNDRED
FIVE-C OF THIS CHAPTER DOES NOT APPLY  TO  SUCH  TAXES,  AND  SHALL  TAX
RECEIPTS FROM EVERY SALE, OTHER THAN SALES FOR RESALE, OF GAS SERVICE OR
ELECTRIC  SERVICE  OF  WHATEVER   NATURE, INCLUDING THE  TRANSPORTATION,
TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY, EVEN IF  SOLD  SEPA-
RATELY,  AT  THE RATE SET FORTH IN CLAUSE ONE OF SUBPARAGRAPH (I) OF THE
OPENING PARAGRAPH OF THIS SECTION.
  S 4. Paragraphs 2 and 3 of subdivision (a) of section  1212-A  of  the
tax  law,  paragraph 2 as amended by chapter 190 of the laws of 1990 and
paragraph 3 as amended by chapter 525 of the laws of 2008,  are  amended
to read as follows:
  (2)  a tax, at the same uniform rate, but at a rate not to exceed four
AND ONE-HALF per centum, in multiples of one-half of one per centum,  on
the  receipts from every sale of the following services: beauty, barber-
ing,  hair  restoring,  manicuring,  pedicuring,  electrolysis,  massage
services  and  similar  services,  and  every sale of services by weight
control salons, health salons, gymnasiums, turkish and  sauna  bath  and
similar  establishments and every charge for the use of such facilities,
whether or not any tangible personal property is transferred in conjunc-
tion therewith; but excluding services rendered by a  physician,  osteo-
path, dentist, nurse, physiotherapist, chiropractor, podiatrist, optome-
trist,  ophthalmic  dispenser  or  a  person performing similar services
licensed under title VIII of the education law, as amended, and  exclud-
ing such services when performed on pets and other animals.
  (3)  [for  a  period beginning no earlier than January first, nineteen
hundred ninety and ending December thirty-first, two thousand eleven,] a
tax, at the same uniform rate, but at a rate  not  to  exceed  four  AND

S. 133                              4

ONE-HALF  per centum, in multiples of one-half of one per centum, on the
receipts from every sale of any or all  of  the  following  services  in
whole  or  in part:   credit rating, credit reporting, credit adjustment
and  collection  services, including, but not limited to, those services
provided by mercantile and consumer credit rating or  reporting  bureaus
or  agencies  and  credit  adjustment or collection bureaus or agencies,
whether rendered in written or oral form or in any other manner,  except
to the extent otherwise taxable under article twenty-eight of this chap-
ter;  notwithstanding  the  foregoing,  collection  services  shall  not
include those services performed by a law office or a law and collection
office, the maintenance or conduct of which constitutes the practice  of
law,  if  the  services are performed by an attorney at law who has been
duly licensed and admitted to practice law in this state. The local  law
imposing  the  taxes authorized by this paragraph may provide for exclu-
sions and exemptions in addition to those provided  for  in  such  para-
graph.  PROVIDED,  HOWEVER,  THAT THE TAX HEREBY AUTHORIZED SHALL NOT BE
IMPOSED AFTER NOVEMBER THIRTIETH, TWO THOUSAND ELEVEN.
  S 5. Subdivisions (a) and (b) of section 11-2001 of the administrative
code of the city of New York, as added by section 13  of  part  SS-1  of
chapter 57 of the laws of 2008, are amended to read as follows:
  (a)  [On  and after August first, two thousand eight, there] THERE are
hereby imposed and there shall be paid all of the sales and compensating
use taxes described in article twenty-eight of the tax law as authorized
by subdivision (a) of section twelve hundred ten of the tax law, at  the
rate  of four AND ONE-HALF percent, provided that the taxes described in
paragraph six of subdivision (c) of section eleven hundred five  of  the
tax law shall be imposed and paid at the rate of six percent.
  (b)  Notwithstanding  any  contrary provision of this section or other
law, this section:
  (1) does not impose tax on (i) receipts from the sale of the  services
of  laundering, dry-cleaning, tailoring, weaving, pressing, shoe repair-
ing and shoe shining described in subparagraph (ii) of  paragraph  three
of  subdivision  (c) of section eleven hundred five of the tax law; (ii)
receipts from the sale of services described in paragraph six of  subdi-
vision  (c)  of section eleven hundred five of the tax law at facilities
owned and operated by the city or an agency or  instrumentality  of  the
city or a public corporation the majority of whose members are appointed
by the mayor or the city council or both of them;
  (2)  for  purposes  of the tax described in subdivision (e) of section
eleven hundred five of the tax law, defines "permanent resident" to mean
any occupant of any room or rooms in a hotel for at  least  one  hundred
eighty consecutive days with regard to the period of such occupancy;
  (3)  does not omit from the tax described in paragraph one of subdivi-
sion (f) of section eleven hundred five of the  tax  law  charges  to  a
patron  for  admission to, or use of, facilities for sporting activities
in which such patron is to be a participant, such as bowling alleys  and
swimming pools;
  (4) [does not provide] PROVIDES the clothing and footwear exemption in
paragraph thirty of subdivision (a) of section eleven hundred fifteen of
the  tax law [but does exempt clothing and footwear and any item used or
consumed to make or repair exempt clothing and which becomes a  physical
component part of that exempt clothing];
  (5) omits the exemption provided in paragraph forty-one of subdivision
(a) of section eleven hundred fifteen of the tax law;
  (6)  omits the exemption provided in subdivision (c) of section eleven
hundred fifteen of the tax law insofar as it applies to fuel, gas, elec-

S. 133                              5

tricity, refrigeration and steam, and gas, electric,  refrigeration  and
steam  service  of  whatever  nature for use or consumption directly and
exclusively in the production  of  gas,  electricity,  refrigeration  or
steam; [and]
  (7)  omits  the provision for refund or credit contained in clause six
of subdivision (a) of section eleven hundred nineteen of  the  tax  law;
AND
  (8)  MAKES  INAPPLICABLE SECTION ELEVEN HUNDRED FIVE-C OF THE TAX LAW,
AND IMPOSES TAX ON RECEIPTS  FROM  EVERY  SALE,  OTHER  THAN  SALES  FOR
RESALE, OF GAS SERVICE OR ELECTRIC SERVICE OF WHATEVER NATURE, INCLUDING
THE  TRANSPORTATION, TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY,
EVEN IF SOLD SEPARATELY, AT THE RATE SET FORTH  IN  SUBDIVISION  (A)  OF
THIS SECTION.
  S  6. Subdivision (a) of section 11-2002 of the administrative code of
the city of New York, as amended by chapter 525 of the laws of 2008,  is
amended to read as follows:
  (a)  [For  the period commencing August first, two thousand eight, and
ending December thirty-first, two  thousand  eleven,  there]  THERE  are
hereby  imposed  and there shall be paid sales taxes at the rate of four
AND ONE-HALF percent on receipts from every  sale  of  the  services  of
beauty, barbering, hair restoring, manicuring, pedicuring, electrolysis,
massage  services  and  similar  services, and every sale of services by
weight control salons, health salons, gymnasiums, turkish and sauna bath
and similar establishments and every charge for the use of such  facili-
ties,  whether  or  not any tangible personal property is transferred in
conjunction therewith; but excluding services rendered by  a  physician,
osteopath,  dentist,  nurse,  physiotherapist, chiropractor, podiatrist,
optometrist,  ophthalmic  dispenser  or  a  person  performing   similar
services  licensed  under  title eight of the education law, as amended,
and excluding such services when performed on pets and other animals, as
authorized by subdivision (a) of section twelve hundred twelve-A of  the
tax  law.    PROVIDED, HOWEVER, THAT THE TAX HEREBY IMPOSED SHALL NOT BE
IMPOSED AFTER NOVEMBER THIRTIETH, TWO THOUSAND ELEVEN.
  S 7. The opening paragraph of subdivision (a) of  section  11-2040  of
the  administrative  code of the city of New York, as amended by chapter
525 of the laws of 2008, is amended to read as follows:
  [On and after September first, nineteen hundred  seventy-five,  there]
THERE is hereby imposed within the city and there shall be paid a tax at
the rate of four AND ONE-HALF percent upon the receipts from every sale,
except  for  resale,  of the following services, provided, however, that
the tax hereby imposed shall not  be  imposed  after  [December  thirty-
first]  NOVEMBER  THIRTIETH, two thousand eleven, on receipts from sales
of the services specified in paragraph one of this subdivision:
  S 8. This act shall take effect on the first day  of  the  month  next
commencing  after  it  shall  have become a law and shall apply to sales
made, uses occurring and services rendered on  or  after  that  date  in
accordance  with applicable transitional provisions in sections 1106 and
1217 of the tax law; provided, however, that section three of  this  act
shall  take effect on the same date and in the same manner as section 35
of part S-1 of chapter 57 of the laws of 2009, as amended, takes effect.