BILL NUMBER:  S723

 TITLE OF BILL :  An act to amend the tax law, in relation to
extending the period during which the city of White Plains is
authorized to impose an additional one-half of one percent, an
additional one-quarter of one percent rate of sales and compensating
use tax and an additional one-quarter of one percent rate of sales and
compensating use tax

 PURPOSE :

Authorizes the imposition for an additional two years of an additional
one-half of one percent, an additional one-quarter of one percent and
an additional one-quarter of one percent rate of sales and
compensating use tax by the city of White Plains, for the period
ending August thirty-first, two thousand seventeen.

 SUMMARY OF PROVISIONS :

Section 1 amends clause 3 of subparagraph (ii) of the opening
paragraph of section 1210 of the tax law, as amended by chapter 30 of
the laws of 2011, by further authorizing the city of White Plains to
impose the specified taxes at a rate which is (i) one-half of one
percent additional to the three percent rate authorized in this
paragraph for such city for an additional two year period ending
August 31, 2017 and (ii) an additional one-quarter of one percent in
              

addition to the other rates authorized in this paragraph for such city
for an additional two year period ending August 31, 2017; and (iii) an
additional one quarter of one percent in addition to the other rates
authorized in this paragraph for such city for the period ending
August 31, 2017.

Section 2 provides that notwithstanding the provisions of subdivision
(d) of section 1210 of the tax law or any other provision of law to
the contrary, a local law enacted or amended pursuant to the authority
of this act, imposing an additional rate of tax in the city of White
Plains shall become effective in accordance with the provisions of
subdivision (d) of section 1210 of the tax law, except that the
certified copy of such local law must be mailed by certified or
registered mail at least twenty-one days prior to the date on which
such local law is to take effect.

Section 3 requires the city of White Plains to pay the estimated
revenue from the additional one quarter of one percent rate of sales
tax first authorized by chapter seventy-four of the laws of two
thousand ten into the city's contingency and tax stabilization reserve
fund, subject to all the limitations and other provisions of section
6-e of the general municipal law.

 JUSTIFICATION :

Since 1993, the State has authorized the city of White Plains to
impose an additional one-half of one percent rate of sales tax to
replace revenues lost through local preemption. Since 2008, the State
has approved an additional one quarter of one percent rate of sales
tax bringing the city of White Plains sales tax rate to two and a
quarter percent. Since 2010, legislation has been enacted to permit
the city of White Plains to impose an additional one quarter of one
percent rate of sales tax and to require the city to pay the proceeds
of the rate increase into a contingency and tax stabilization reserve
fund, under section 6-e of the general municipal law.

This bill will permit the city of White Plains to continue to impose
each of these additional tax rates through August 31, 2017. This bill
also extends through August 31, 2017 the requirement that the city pay
the proceeds of the rate increase first authorized by chapter
seventy-four of the laws of 2010 into the contingency and tax
stabilization reserve fund of such city, subject to all the
limitations and other provisions of section 6-e of the general
municipal law. This bill will not affect the sales tax revenue of the
State of New York or the County of Westchester.

Sales and use taxes are a significant source of revenue for the city.
In the fiscal year ended June 30,2014, sales and use taxes amounted to
$51.9 million, inclusive of the amount restricted for tax
stabilization, (34% of $152.6 million in total revenues) compared to
$51.1 million (33% of total revenues) collected from property taxes
and related items (Pilots', interest and penalties, etc.). The
additional one-quarter of one percent rate of tax first authorized by
chapter seventy-four of the laws of 2010 generates approximately $5
million of restricted revenue each fiscal year. The city prudently
applied $5 million from this fund to the adopted budget for the fiscal
year ending June 30, 2015, which had the effect of lowering the
required property tax rate increase from 11.7% to 2.3%. Without the
sales tax revenue generated from the half per cent authorized since
1993 and the quarter percent authorized since 2008, the city would
lose an estimated $15.5 million in sales tax revenue each year in
addition to the $5 million earned for its contingency and tax
stabilization fund.

 LEGISLATIVE HISTORY :

A.6105/S.3796 of 2011(enacted in 2011);
A.9966A/S.6868-A of 2009-2010 (enacted in 2010);
A.3129/S.1087 of 2009-2010 (enacted in 2009);
A.6105/S.3796 of 2011-2012 (enacted in 2011);
A.3883/S.3406 of 2013-14 (enacted in 2013)

 FISCAL STATE IMPLICATIONS :

None to the State.

 FISCAL LOCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately and shall expire and be deemed
repealed on August thirty-first, two thousand seventeen.