S T A T E O F N E W Y O R K
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6914
2019-2020 Regular Sessions
I N A S S E M B L Y
March 27, 2019
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Introduced by M. of A. GANTT -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to authorizing a local supple-
mental tax on passenger car rentals in the city of Rochester
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The tax law is amended by adding a new section 1202-yy to
read as follows:
§ 1202-YY. LOCAL SUPPLEMENTAL TAX ON PASSENGER CAR RENTALS IN THE CITY
OF ROCHESTER. (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE
CONTRARY, THE CITY OF ROCHESTER, IN THE COUNTY OF MONROE, IS HEREBY
AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN SUCH
CITY A TAX, IN ADDITION TO ANY OTHER TAX AUTHORIZED AND IMPOSED PURSUANT
TO THIS ARTICLE, SUCH AS THE LEGISLATURE HAS OR WOULD HAVE THE POWER AND
AUTHORITY TO IMPOSE UPON ANY PERSON A USE TAX FOR THE USE WITHIN THE
CITY OF ROCHESTER OF ANY PASSENGER CAR RENTED BY THE USER, WHICH IS A
PURCHASE AT RETAIL OF SUCH PASSENGER CAR, BUT NOT INCLUDING ANY LEASE OF
A PASSENGER CAR TO WHICH SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEV-
EN OF THIS CHAPTER APPLIES. THE RATE OF SUCH TAX SHALL NOT EXCEED FIVE
PERCENT OF THE CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR SUCH
PROPERTY, OR FOR THE USE OF SUCH PROPERTY, INCLUDING ANY CHARGES FOR
SHIPPING OR DELIVERY AS DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (B)
OF SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER, BUT EXCLUDING ANY CREDIT
FOR TANGIBLE PERSONAL PROPERTY ACCEPTED IN PART PAYMENT AND INTENDED FOR
RESALE.
(2) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL
APPLY:
A. MOTOR VEHICLE. A MOTOR VEHICLE AS DEFINED IN SECTION ONE HUNDRED
TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW, BUT NOT INCLUDING A MOTORCY-
CLE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10838-01-9
A. 6914 2
B. PASSENGER CAR. A MOTOR VEHICLE HAVING A GROSS VEHICLE WEIGHT OF
NINE THOUSAND POUNDS OR LESS WITH A SEATING CAPACITY OF NINE PERSONS OR
LESS DESIGNED FOR PASSENGER TRANSPORTATION.
C. RENTAL. THE TRANSFER OF POSSESSION OF A MOTOR VEHICLE, WHETHER OR
NOT THE MOTOR VEHICLE IS REQUIRED TO BE OR IS REGISTERED BY THIS STATE,
FOR A CONSIDERATION, WITHOUT THE TRANSFER OF THE OWNERSHIP OF SUCH MOTOR
VEHICLE, BUT NOT INCLUDING A LEASE DESCRIBED IN SUBDIVISION (I) OF
SECTION ELEVEN HUNDRED ELEVEN OF THIS CHAPTER.
(3) SUCH TAXES MAY BE COLLECTED AND ADMINISTERED BY THE CHIEF FISCAL
OFFICER OF THE CITY OF ROCHESTER BY SUCH MEANS AND IN SUCH MANNER AS
OTHER TAXES WHICH ARE NOW COLLECTED AND ADMINISTERED BY SUCH OFFICER OR
AS OTHERWISE MAY BE PROVIDED BY SUCH LOCAL LAW.
(4) SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAXES IMPOSED SHALL BE PAID
BY THE PERSON LIABLE THEREFOR TO THE OWNER OF THE PASSENGER CAR OR TO
THE PERSON ENTITLED TO BE PAID OR CHARGE FOR THE PURCHASE AT RETAIL OF
THE PASSENGER CAR FOR AND ON ACCOUNT OF THE CITY OF ROCHESTER IMPOSING
THE TAX AND THAT SUCH OWNER OR PERSON ENTITLED TO BE PAID OR CHARGE FOR
THE PURCHASE AT RETAIL OF THE PASSENGER CAR SHALL BE LIABLE FOR THE
COLLECTION AND PAYMENT OF THE TAX; AND THAT SUCH OWNER OR PERSON ENTI-
TLED TO BE PAID OR CHARGE FOR THE PURCHASE AT RETAIL OF THE PASSENGER
CAR SHALL HAVE THE SAME RIGHT IN RESPECT TO COLLECTING THE TAX FROM THE
PERSON PURCHASING THE PASSENGER CAR AT RETAIL, OR IN RESPECT TO NONPAY-
MENT OF THE TAX BY THE PERSON PURCHASING THE PASSENGER CAR AT RETAIL, AS
IF THE TAXES WERE A PART OF THE PURCHASE AND PAYABLE AT THE SAME TIME AS
THE PURCHASE; PROVIDED HOWEVER, THAT THE CHIEF FISCAL OFFICER OF THE
CITY, SPECIFIED IN SUCH LOCAL LAWS, SHALL BE JOINED AS A PARTY IN ANY
ACTION OR PROCEEDING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY THE
PERSON ENTITLED TO BE PAID FOR THE PURCHASE AT RETAIL OF THE PASSENGER
CAR.
(5) SUCH LOCAL LAWS MAY PROVIDE FOR THE FILING OF RETURNS AND THE
PAYMENT OF THE TAXES ON A MONTHLY BASIS OR ON A BASIS OF ANY LONGER OR
SHORTER PERIOD OF TIME.
(6) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH TAX UPON
ANY OF THE FOLLOWING:
A. THE STATE OF NEW YORK, OR ANY PUBLIC CORPORATION (INCLUDING A
PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER
STATE OR THE DOMINION OF CANADA), IMPROVEMENT DISTRICT OR OTHER POLI-
TICAL SUBDIVISION OF THE STATE;
B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS IMMUNE FOR TAXATION;
OR
C. ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND
OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA-
BLE OR EDUCATION PURPOSES, OR FOR THE PREVENTION OF CRUELTY TO CHILDREN
OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE BENE-
FIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART OF
THE ACTIVITIES OF WHICH IS CARRYING ON PROPAGANDA, OR OTHERWISE ATTEMPT-
ING TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN THIS
PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED FOR THE PRIMARY PURPOSE
OF CARRYING ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT ALL OF ITS
PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN THIS PARA-
GRAPH.
(7) 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 NOTICE OF SUCH
A. 6914 3
FINAL DETERMINATION, PROVIDED, HOWEVER, THAT ANY SUCH PROCEEDING UNDER
ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES SHALL NOT BE
INSTITUTED UNLESS:
A. THE AMOUNT OF ANY TAX SOUGHT TO BE REVIEWED, WITH SUCH INTEREST AND
PENALTIES THEREON AS MAY BE PROVIDED FOR BY LOCAL LAWS OR REGULATIONS
SHALL BE FIRST DEPOSITED AND THERE SHALL BE FILED AN UNDERTAKING, ISSUED
BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE AND
APPROVED BY THE SUPERINTENDENT OF INSURANCE OF THIS STATE AS TO SOLVENCY
AND RESPONSIBILITY, IN SUCH AMOUNT 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; OR
B. AT THE OPTION OF THE PETITIONER, SUCH UNDERTAKING MAY BE IN A SUM
SUFFICIENT TO COVER THE TAXES, INTERESTS AND PENALTIES STATED IN SUCH
DETERMINATION PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN
THE PROSECUTION OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL
NOT BE REQUIRED TO PAY SUCH TAXES, INTERESTS OR PENALTIES AS A CONDITION
PRECEDENT TO THE APPLICATION.
(8) WHERE ANY TAXES IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY,
ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED AND APPLICATION FOR THE REFUND
THEREFOR 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 TAXES CONFIRMED, THE PETITIONER WILL PAY
ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH
PROCEEDING.
(9) EXCEPT IN THE CASE OF A WILLFULLY FALSE OR FRAUDULENT RETURN WITH
INTENT TO EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE
AFTER THE EXPIRATION OF MORE THAN THREE YEARS FROM THE DATE OF THE
FILING OF A RETURN, PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN
FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME.
(10) ALL REVENUES RESULTING FROM THE IMPOSITION OF THE TAX UNDER THE
LOCAL LAWS SHALL BE PAID INTO THE TREASURY OF THE CITY OF ROCHESTER AND
SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF THE CITY. SUCH
REVENUES MAY BE USED FOR ANY LAWFUL PURPOSE.
(11) EACH ENACTMENT OF SUCH A LOCAL LAW MAY PROVIDE FOR THE IMPOSITION
OF A LOCAL SUPPLEMENTAL PASSENGER CAR RENTAL TAX FOR A PERIOD OF TIME NO
LONGER THAN THREE YEARS FROM THE DATE OF ITS ENACTMENT. NOTHING IN THIS
SECTION SHALL PROHIBIT THE ADOPTION AND ENACTMENT OF LOCAL LAWS, PURSU-
ANT TO THE PROVISIONS OF THIS SECTION, UPON THE EXPIRATION OF ANY OTHER
LOCAL LAW ADOPTED PURSUANT TO THIS SECTION.
(12) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO
ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS
SECTION AND THE APPLICATION OF SUCH PROVISION TO OTHER PERSONS OR
CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY.
§ 2. This act shall take effect immediately.