Assembly Bill A6626

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6626
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 14, 2019
                                ___________
 
 Introduced by M. of A. McDONALD -- read once and referred to the Commit-
   tee on Cities
 
 AN ACT to amend the general city law and the village law, in relation to
   prohibiting  the imposition of tax by a city or village on certain gas
   or electric transactions that pass through the boundaries of a  taxing
   jurisdiction  but  do  not  serve  residential or commercial customers
   within such boundaries
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 20-b of the general city law, as amended by chapter
 310  of the laws of 1962 and the opening paragraph as amended by chapter
 287 of the laws of 1979, is amended to read as follows:
   § 20-b. Cities authorized to impose taxes on utilities.   1.  Notwith-
 standing  any  other provisions of law to the contrary, any city of this
 state, acting through its local legislative body, is  hereby  authorized
 and  empowered to adopt and amend local laws imposing in any such city a
 tax such as was imposed by section one hundred eighty-six-a of  the  tax
 law,  in  effect  on  January first, nineteen hundred fifty-nine, except
 that the rate thereof shall not exceed one per centum of gross income or
 of gross operating income, as the case may be, and  may  make  provision
 for  the  collection  thereof  by the chief fiscal officer of such city;
 provided, however, that the rate of such tax imposed by  the  cities  of
 Rochester,  Buffalo  and  Yonkers  shall  not exceed three per centum of
 gross income or gross operating income, as the case may be; and provided
 further that nothing herein  contained  shall  be  construed  so  as  to
 prevent  any city from adopting local laws exempting from such tax omni-
 bus corporations subject to the supervision of the state  department  of
 public  service [under article three-a of the public service law]. A tax
 imposed pursuant to this section shall have application only within  the
 territorial limits of any such city, and shall be in addition to any and
 all  other  taxes.  This section shall not authorize the imposition of a
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10233-01-9

 A. 6626                             2
 
 tax on any GAS  OR  ELECTRIC  transaction  [originating  or  consummated
 outside of the territorial limits of any such city, notwithstanding that
 some act be necessarily performed with respect to such transaction with-
 in such limits] THAT PASSES THROUGH THE BOUNDARIES OF A TAXING JURISDIC-
 TION BUT DOES NOT SERVE A RESIDENTIAL OR COMMERCIAL CUSTOMER WITHIN SUCH
 BOUNDARIES,  BUT  SUCH  TAX  SHALL  APPLY  TO  ANY  TRANSACTION  THAT IS
 REQUESTED OR RECEIVED BY A RESIDENTIAL OR  COMMERCIAL  CUSTOMER  LOCATED
 WITHIN THE BOUNDARIES OF SUCH TAXING JURISDICTION.
   2.  Revenues resulting from the imposition of taxes authorized by this
 section heretofore or hereafter imposed shall be paid into the  treasury
 of the city imposing the same, and shall be credited to and deposited in
 the general fund of such city.
   3.  All  of  the provisions of section one hundred eighty-six-a of the
 tax law, so far as the same are or can be  made  applicable,  with  such
 limitations  as are set forth in this section, and such modifications as
 may be necessary in order to adapt such taxes to local conditions  shall
 apply to the taxes authorized by this section.
   4.  Any final determination of the amount of any tax payable hereunder
 shall be reviewable for error, illegality or unconstitutionality or  any
 other  reason  whatsoever by a proceeding under article seventy-eight of
 the civil practice law and rules if application therefor is made to  the
 supreme  court within thirty days after the giving of the notice of such
 final determination, provided, however, that any such  proceeding  under
 article  seventy-eight  of the civil practice law and rules shall not be
 instituted unless the amount of any tax sought to be reviewed, with such
 interest and penalties thereon as may be provided for by  local  law  or
 regulation,  shall  be first deposited and an undertaking filed, in such
 amount and with such sureties as a justice of the  supreme  court  shall
 approve  to  the  effect that if such proceeding be dismissed or the tax
 confirmed the petitioner will pay all costs and charges which may accrue
 in the prosecution of such proceeding.
   5. Where any tax imposed hereunder shall have been erroneously,  ille-
 gally  or  unconstitutionally  collected  and application for the refund
 thereof duly made to the proper fiscal officer  or  officers,  and  such
 officer or officers shall have made a determination denying such refund,
 such  determination  shall  be  reviewable by a proceeding under article
 seventy-eight of the civil practice law and  rules,  provided,  however,
 that  such  proceeding is instituted within thirty days after the giving
 of the notice of such denial, that a final determination of tax due  was
 not  previously  made,  and that an undertaking is filed with the proper
 fiscal officer or officers in such amount and with such  sureties  as  a
 justice  of  the  supreme court shall approve to the effect that if such
 proceeding be dismissed or the tax confirmed, the  petitioner  will  pay
 all  costs  and  charges  which  may  accrue  in the prosecution of such
 proceeding.
   § 2. Subdivision 1 of section 5-530 of the village law is  amended  to
 read as follows:
   1.  Notwithstanding  any  other provisions of law to the contrary, any
 village is hereby authorized and empowered to adopt and amend local laws
 imposing in any such village a tax such as was imposed  by  section  one
 hundred  eighty-six-a  of the tax law, in effect on January first, nine-
 teen hundred fifty-nine, except that the rate thereof shall  not  exceed
 one per centum of gross income or of gross operating income, as the case
 may  be,  and may make provision for the collection thereof by the chief
 fiscal officer of such village; provided, however, that  nothing  herein
 contained  shall be construed so as to prevent any village from adopting

 A. 6626                             3
 
 local laws exempting from such tax omnibus corporations subject  to  the
 supervision  of  the  state  department of public service [under article
 three-a of the public service law].  A  tax  imposed  pursuant  to  this
 section shall have application only within the territorial limits of any
 such  village, and shall be in addition to any and all other taxes. This
 section shall not authorize the imposition of a tax on any GAS OR  ELEC-
 TRIC  transaction [originating or consummated outside of the territorial
 limits of any such village, notwithstanding that some act be necessarily
 performed with respect to such  transaction  within  such  limits]  THAT
 PASSES  THROUGH  THE  BOUNDARIES  OF  A TAXING JURISDICTION BUT DOES NOT
 SERVE A RESIDENTIAL OR COMMERCIAL CUSTOMER WITHIN SUCH  BOUNDARIES,  BUT
 SUCH TAX SHALL APPLY TO ANY TRANSACTION THAT IS REQUESTED OR RECEIVED BY
 A  RESIDENTIAL  OR  COMMERCIAL CUSTOMER LOCATED WITHIN THE BOUNDARIES OF
 SUCH TAXING JURISDICTION.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law, and shall apply to  gross  income  or  gross
 operating income, as the case may be, earned on and after such date.