TITLE OF BILL:
to amend the tax law, in relation to authorizing Clinton county to
impose an additional rate of sales and compensating use tax
To extend Clinton County's authorization to impose an additional rate
of sales and compensating use tax until November 31, 2013.
SUMMARY OF PROVISIONS:
Section 1 would amend clause 36 of subparagraph (i) of the opening
paragraph of section 1210 of the Tax Law, which authorizes counties
and cities to impose sales and use taxes at specified rates, to
authorize Clinton County to impose an additional 1% rate of such
taxes for the period commencing December 1, 2011, and ending November
30, 2013. Currently the county imposes an additional rate of 1%
through November 30,2013.
Section 2 would amend Tax Law section 1224(cc), which provides that
Clinton County has the sole right to impose the additional 1% rate
of tax, and that such additional rate is not subject to preemption,
to provide that net collections from the additional 1% rate of tax
shall be used by the county solely for county purposes and shall not
be subject to any revenue distribution agreement under Tax Law
Section 3 provides that the bill would take effect immediately.
Section 1210 of the Tax Law authorizes counties and cities to impose
sales and compensating use taxes generally at a rate not to exceed
3%. Pursuant to section 1210(a), a county or city can impose the
"general" sales and use taxes, consisting of the six subdivisions of
section 1105 of the Tax Law, which imposes the State's sales taxes,
and of the related compensating and use taxes in section 1110 of the
Tax Law, which imposes the State's use taxes. Or, pursuant to section
1210(b), a county or a city can impose one or more of the taxes
described in section 1105(b), (d), (e), or (f), which are known as
the "segmented taxes," plus any related use taxes. If a locality
imposes the general sales and use taxes at the maximum rate of 3%, the
State Legislature may authorize the locality to impose such taxes at
an additional rate. Clinton County currently imposes the "general"
sales and use taxes at the rate of 3%, and an additional 1% rate,
for a total rate of 4%.
The amendment of section 1224(cc) merely codifies an unconsolidated
provision in section 4 of Chapter 179 of the Laws of 2007. This
provision ensures that revenues from Clinton County's additional one
percent rate may be retained by the county, to be used for county
Otherwise, revenues from the additional rate might be subject to a
revenue sharing agreement the county has with the city of Plattsburgh
under Tax Law section 1262(c).
Section 1210(d) of the Tax Law requires a county or city to enact or
amend its local law, ordinance or resolution imposing an additional
rate of tax and to give notice of such enactment to the Commissioner
of Taxation and Finance at least 90 days before the effective date,
although the Commissioner can waive and reduce such 90 day period to
not less than 30 days if the Commissioner finds it to be consistent
with the Commissioner's duties to do so. Section 1210(e) of the Tax
Law requires a county or city also to file a certified copy of its
local enactment with the State Comptroller, Secretary of State and
county or city clerk, within five days of enactment.
Clinton County has requested an authorization from the legislature to
impose an additional one percent sales and compensating use tax above
the standard three percent rate for the period beginning December
1, 2011, and ending November 30, 2013. Revenues from the additional tax
will assist Clinton County in providing essential services, while
maintaining a balanced budget.
None to the State.
LOCAL FISCAL IMPLICATIONS:
Approximately $12 million to Clinton County.
This act shall take effect immediately.