BILL NUMBER:S4804

TITLE OF BILL:  An act to amend the tax law, in relation to the
imposition of additional rates of sales and compensating use taxes by
Erie county

PURPOSE OF THE BILL: To authorize Erie County to impose an additional
one percent rate and an additional three-quarters of one percent rate
of sales and compensating use taxes, for the period commencing
December 1, 2015, and ending November 30, 2017, and to provide for
retention for solely county purposes of all net collections from the
additional three-quarters of one percent rate.

SUMMARY OF SPECIFIC PROVISIONS:  Bill section 1 would amend clause 4
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. Clause 4 would authorize Erie County to
impose an additional one percent rate and an additional three-quarters
of one percent rate of such taxes for the period commencing December
1, 2015, and ending November 30, 2017. Currently the county is
authorized to impose these two additional rates through November 30,
2015 pursuant to section 1210 of the Tax Law.

Bill section 2 would amend paragraph 2 of Tax Law section 1262-q to
continue to provide that net collections from the additional
three-quarters of one percent rate shall be used by the county solely
              

for county purposes and shall not be subject to any revenue
distribution agreement the county entered into under section 1262(c)
of the Tax Law.

Bill section 3 provides that the bill would take effect immediately.

EXISTING LAW: Section 1210 of the Tax Law authorizes counties and
cities to impose sales and compensating use taxes generally at a rate
not to exceed three percent. More than 50 counties outside New York
City and five cities are each authorized to impose an additional rate
of tax in excess of three percent. 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
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 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 related
use taxes. Erie County currently imposes the "general" sales and use
taxes at the rate of three percent. The county is also authorized to,
and does, impose an additional one percent rate pursuant to section
1210 of the Tax Law for the period December 1, 2013, through November
30, 2015. The county is also authorized to, and does, impose an
additional three-quarters of one percent rate pursuant to section 1210
of the Tax Law for the period December 1, 2013, through November 30,
2015.

JUSTIFICATION: Erie County has requested authorization to impose an
additional one percent and three-quarters percent sales and
compensating use tax. The revenue anticipated from this additional tax


will allow the County of Erie to continue to provide services deemed
vital to the community while maintaining a balanced budget.

PRIOR LEGISLATIVE HISTORY: Chapter 324 of the Laws of 2013.

FISCAL IMPLICATIONS: None to the State. Failure to extend the
additional one percent and three-quarters percent sales and
compensating use tax rate would mean the annual loss of nearly $278
million in County revenue, $12.5 million of which is shared with local
governments, and would create a severe challenge to the continued
operation of County government and its delivery of services.

EFFECTIVE DATE: This act shall take effect immediately.