NY State Senate Bill 2019-S2634

Senate Bill S2634

Signed By Governor

2019-2020 Legislative Session

Relates to authority of certain municipalities to levy an excise tax on the sale of tobacco products other than cigarettes

download bill text pdf

Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 12, 2019	signed chap.631
Dec 06, 2019	delivered to governor
Jun 20, 2019	returned to senate passed assembly ordered to third reading rules cal.274 substituted for a6369
Jun 19, 2019	referred to ways and means delivered to assembly passed senate ordered to third reading cal.1757 committee discharged and committed to rules
Jan 28, 2019	referred to housing, construction and community development

Votes

- Jun 19, 2019 - Floor Vote
  S2634
  
  46
  
  Aye
  
  16
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 19, 2019
      
      aye (46)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Harckham
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Krueger
      
      Little
      
      Liu
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Ritchie
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      nay (16)
      
      Akshar
      
      Amedore
      
      Antonacci
      
      Griffo
      
      Helming
      
      Jacobs
      
      Jordan
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Martinez
      
      O'Mara
      
      Ortt
      
      Ranzenhofer
      
      Serino
      
      Tedisco
  Jun 19, 2019 - Rules Committee Vote
  S2634
  
  17
  
  Aye
  
  1
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 19, 2019
      
      aye (17)
      
      Benjamin
      
      Breslin
      
      Comrie
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hoylman-Sigal
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Little
      
      Liu
      
      Parker
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
      
      nay (1)
      
      Lanza
      
      aye wr (1)
      
      Martinez

2019-S2634 (ACTIVE) - Details

See Assembly Version of this Bill:: A6369
Law Section:: Public Housing Law
Laws Affected:: Amd §§94, 110, 111 & 112, Pub Hous L
Versions Introduced in 2017-2018 Legislative Session:: S9117, A11172

2019-S2634 (ACTIVE) - Summary

Relates to authority of certain municipalities to levy an excise tax on the sale of tobacco products other than cigarettes; relates to warrants issued pursuant to the administrative code of the city of New York.

2019-S2634 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2634

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the public housing law, in relation to the authority of
certain municipalities to levy an excise tax on the sale of tobacco
products other than cigarettes

 
SUMMARY OF SPECIFIC PROVISIONS:

The Public Housing Law authorizes municipalities to impose excise taxes
on a number of products, including tobacco products other than ciga-
rettes, and requires that any revenue collected from imposition of these
taxes be used for public housing. In August 2017, pursuant to this
authority, the New York City Council enacted a tax on other tobacco
products ("OTP").

Sections one and four of this bill would amend sections 94 and 112 of
the Public Housing Law respectively so that, for the revenue collected
by the City from the tax on OTP, the accounting mechanism is aligned
with Generally Accepted Accounting Principles (GAAP) and with the

requirement that the City's budget be balanced each fiscal year.

Section two would amend section 110 of the Public Housing Law to author-
ize the City to enact legislation allowing the City to administer and
enforce the tax on OTP in the same way that it administers and enforces
the tax on cigarettes.

Section three would amend section 111 of the Public Housing Law to
authorize the City to enact legislation providing for the same review
process for a determination of a tax on OTP as the City provides for a
determination of a tax on cigarettes.

Section five would provide that the bill take effect immediately.

 
JUSTIFICATION:

This bill would amend the Public Housing Law to allow New York City to
conform the review and collection procedures for its tax on OTP to those
used for the review and,collection of all other New York City taxes,
including the New York City cigarette tax. This bill would also amend
the accounting mechanism set forth in the Public Housing Law to ensure
that the revenue collected by the City from the OTP tax be deposited in
the City's general fund and spent within the same fiscal year. Impor-
tantly, this bill does not create any new authority for cities, includ-
ing New York City, to impose an additional tax on OTP; rather, it only
allows the City to use its current authority more effectively.

Subdivision (e) of section 110 of the Public Housing Law, which author-
izes certain villages and cities to impose an OTP tax, was enacted in
1939 and has not been amended since that time. Similarly, section 111 of
the Public Housing Law, which provides for review of local OTP tax
determinations, was enacted in 1939, and with the exception of a
conforming amendment to the CPLR in 1962, has not been otherwise
amended. Accordingly, these enabling provisions were enacted well before
tax collection through tax warrants and before the current procedures
for reviewing tax determinations were put in place.

Sections 94 and 112 of the Public Housing Law, which set forth partic-
ular procedures for depositing the revenue generated by the excise taxes
authorized by section 110 of the Public Housing Law, were also enacted,
before the establishment of current New York City budget practices.

This bill corrects these problems by allowing New York City to conform
its OTP tax to the tax collection and review procedures used for all
other New York City taxes, including the City cigarette tax, by specif-
ically authorizing the use of tax warrants to collect the City OTP tax
and the same review procedures as those used to review City cigarette
tax determinations. The bill also provides for the dedication of reven-
ues for the City OTP tax in a way that is entirely consistent with GAAP
and with the requirement that the City's budget be balanced each fiscal
year.

 
FISCAL IMPLICATIONS:

To be determined.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: S.9117/A.11172 Weinstein - Ways & Means - Passed Assembly

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S2634 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2634
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 28, 2019
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT to amend the public housing law, in relation to the authority of
   certain municipalities to levy an excise tax on the  sale  of  tobacco
   products other than cigarettes

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 94 of the public housing law, as amended by chapter
 540 of the laws of 1958, is amended to read as follows:
   § 94. Authorization to make subsidies.  A municipality  is  authorized
 to make or contract to make capital or periodic subsidies to an authori-
 ty operating within the territorial limits of such municipality, payable
 only with moneys locally appropriated therefor from the general or other
 funds  available  for  current  expenses  of such municipality. Periodic
 subsidies shall not be contracted for a period longer than the  life  of
 the project assisted thereby, and in no event for more than fifty years.
 If  the amount of any periodic subsidy shall be equal to or greater than
 the interest on and the amounts required annually for the payment of the
 indebtedness contracted by the authority on account of a project in  any
 year, such contract shall constitute a guarantee of the principal of and
 the  interest  on  such indebtedness, and such contract and the payments
 thereunder may be pledged by the authority as security  in  addition  to
 all other security which the authority may give for such indebtedness.
   A municipality may levy one or more of the taxes enumerated in section
 one  hundred  ten  for  the  purpose of making municipal subsidies[, and
 the]. THE revenues resulting from the imposition of such tax  or  taxes,
 OTHER THAN THE TAXES DESCRIBED IN SUBDIVISION (E) OF SECTION ONE HUNDRED
 TEN  OF  THIS  CHAPTER  IN  A CITY HAVING A POPULATION OF ONE MILLION OR
 MORE, notwithstanding the provisions of any general,  special  or  local
 law to the contrary, shall be deposited in the city treasury and credit-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08592-01-9

 S. 2634                             2
 
 ed  to a separate account. During each fiscal year of such municipality,
 an amount not in excess of the amount of the subsidies  to  be  made  by
 such  municipality  during  such  fiscal  year  shall be charged to such
 account  and  credited to the general fund for the reduction of taxation
 or into the general or other fund available for current expenses of such
 municipality. No other payment shall be charged  to  such  account.  The
 provisions of section one hundred eleven OF THIS CHAPTER shall be appli-
 cable to any tax or taxes imposed pursuant to this section.
   IN  A  CITY  HAVING  A POPULATION OF ONE MILLION OR MORE, THE REVENUES
 FROM THE TAXES DESCRIBED IN SUBDIVISION (E) OF SECTION ONE  HUNDRED  TEN
 OF  THIS CHAPTER SHALL BE DEPOSITED IN THE GENERAL FUND AND A PAYMENT OF
 AN EQUAL AMOUNT SHALL BE MADE, IN THE SAME FISCAL YEAR  OR  AS  SOON  AS
 PRACTICABLE THEREAFTER, FOR THE PURPOSES DESCRIBED IN SUCH SECTION.
   §  2.  Subdivision  (e)  of  section  110 of the public housing law is
 amended to read as follows:
   (e) (1) An excise tax on the sale of  tobacco  other  than  cigarettes
 sold for consumption within the territorial limits of such municipality.
 Such  tax shall not be in excess of ten per centum of the purchase price
 of such tobacco. [Such] THE local law IMPOSING SUCH  TAX  may  [further]
 provide that the amount of the tax shall be paid by the purchaser to the
 vendor  and for and on account of the municipality, and the vendor shall
 be liable for the collection and the payment  thereof[;  and  the].  THE
 vendor  shall  have the same right in respect to collecting the tax from
 the purchaser or in respect to non-payment of the tax by  the  purchaser
 as  if  the  tax  were  a part of the purchase price of the tobacco, and
 payable at the time of the sale.
   (2) ANY CITY HAVING A POPULATION  OF  ONE  MILLION  OR  MORE  IMPOSING
 EXCISE  TAXES  ON  THE SALE OF TOBACCO OTHER THAN CIGARETTES PURSUANT TO
 PARAGRAPH ONE OF THIS SUBDIVISION IS  HEREBY  AUTHORIZED  TO  ADOPT  AND
 AMEND  LOCAL LAWS TO ADMINISTER, COLLECT AND ENFORCE SUCH TAXES, INCLUD-
 ING THE ISSUANCE OF TAX WARRANTS IN A MANNER CONSISTENT WITH  THE  ISSU-
 ANCE  OF  WARRANTS  PURSUANT  TO CHAPTER THIRTEEN OF TITLE ELEVEN OF THE
 ADMINISTRATIVE CODE OF THE CITY OF  NEW  YORK.  SUCH  ENFORCEMENT  SHALL
 INCLUDE BUT NOT BE LIMITED TO THE FILING WITH THE COUNTY CLERK OF A COPY
 OF  SUCH  WARRANTS,  THE ENTRY IN THE JUDGMENT DOCKET OF THE INFORMATION
 SPECIFIED IN SECTION 11-1314 OF THE ADMINISTRATIVE CODE OF THE  CITY  OF
 NEW  YORK,  AND THE CREATION OF A LIEN UPON THE TITLE TO AND INTEREST IN
 REAL AND PERSONAL PROPERTY OF THE PERSON AGAINST  WHOM  THE  WARRANT  IS
 ISSUED.
   §  3. Section 111 of the public housing law, as amended by chapter 310
 of the laws of 1962, is amended to read as follows:
   § 111. Review. (A) Any such tax may be reviewed by a proceeding  under
 article  seventy-eight of the civil practice law and rules and any local
 law or ordinance imposing any such tax or taxes shall include provisions
 making such review available  upon  reasonable  conditions  including  a
 requirement that application for review be made within thirty days after
 the determination of the amount of the tax or taxes, and that the amount
 of  the  tax or taxes, interest and penalties and security for costs, be
 first deposited.
   (B) ANY CITY HAVING A POPULATION OF ONE  MILLION  OR  MORE  IS  HEREBY
 AUTHORIZED  TO ADOPT AND AMEND LOCAL LAWS THAT PROVIDE FOR THE REVIEW OF
 ANY SUCH TAX IN THE SAME MANNER AS THE REVIEW OF THE TAX  ON  CIGARETTES
 IMPOSED  BY  SUCH  CITY,  INCLUDING  THE  ABILITY  TO  SEEK CONCILIATION
 CONCERNING DETERMINATIONS OF SUCH TAX AS WELL AS REVIEW OF SUCH  TAX  IN
 THE  AGENCY  OR  TRIBUNAL  AUTHORIZED  TO  REVIEW  THE TAX ON CIGARETTES
 IMPOSED BY SUCH CITY.

 S. 2634                             3
 
   § 4. Section 112 of the public housing law, as added by chapter 905 of
 the laws of 1960, is amended to read as follows:
   §  112.  Disposition  of  proceeds  of  taxes.    Notwithstanding  the
 provisions of any general, special or local law to the contrary,  reven-
 ues  heretofore  or  hereafter  resulting  from  the imposition of taxes
 authorized by this article for either or both of the  purposes  referred
 to  in section one hundred ten of this [chapter] ARTICLE, OTHER THAN THE
 TAXES DESCRIBED IN SUBDIVISION (E) OF SUCH SECTION IN A  CITY  HAVING  A
 POPULATION  OF  ONE  MILLION  OR MORE, shall be deposited in the city or
 village treasury and credited to a separate account. During each  fiscal
 year  of  such  city  or  village, an amount not in excess of the amount
 included in the annual budget or estimate for such fiscal year  for  the
 purpose or purposes for which such taxes were levied shall be charged to
 such account and credited to the general fund for the reduction of taxa-
 tion or into the general or other fund available for current expenses of
 such  city  or  village.  No  other  payment  shall be made from such an
 account or accounts.  IN A CITY HAVING A POPULATION OF  ONE  MILLION  OR
 MORE,  THE  REVENUES  FROM  THE  TAXES  DESCRIBED  IN SUBDIVISION (E) OF
 SECTION ONE HUNDRED TEN OF THIS ARTICLE SHALL BE DEPOSITED IN THE GENER-
 AL FUND AND A PAYMENT OF AN EQUAL AMOUNT SHALL  BE  MADE,  IN  THE  SAME
 FISCAL  YEAR  OR  AS  SOON  AS  PRACTICABLE  THEREAFTER FOR THE PURPOSES
 DESCRIBED IN SUCH SECTION.
   § 5. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.