NY State Senate Bill 2019-S4940B

Senate Bill S4940B

Signed By Governor

2019-2020 Legislative Session

Relates to authorizing the county of Westchester to impose an additional rate of sales and compensating use tax; extends provisions of law relating thereto

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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

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 30, 2019	signed chap.44
Jun 28, 2019	delivered to governor
Apr 09, 2019	returned to senate passed assembly home rule request ordered to third reading rules cal.60 substituted for a7081 referred to ways and means delivered to assembly passed senate ordered to third reading cal.397
Apr 05, 2019	print number 4940b
Apr 05, 2019	amend and recommit to rules
Apr 04, 2019	print number 4940a
Apr 04, 2019	amend and recommit to rules
Apr 01, 2019	referred to rules

Votes

- Apr 9, 2019 - Floor Vote
  S4940B
  
  32
  
  Aye
  
  28
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Apr 9, 2019
      
      aye (32)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Felder
      
      Gianaris
      
      Gounardes
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Liu
      
      May
      
      Mayer
      
      Montgomery
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Rivera
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serrano
      
      Stavisky
      
      Stewart-Cousins
      
      nay (28)
      
      Akshar
      
      Amedore
      
      Antonacci
      
      Boyle
      
      Brooks
      
      Flanagan
      
      Funke
      
      Gaughran
      
      Griffo
      
      Harckham
      
      Helming
      
      Jacobs
      
      Jordan
      
      Kaplan
      
      LaValle
      
      Lanza
      
      Little
      
      Martinez
      
      Metzger
      
      O'Mara
      
      Ortt
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Serino
      
      Skoufis
      
      Tedisco
      
      Thomas
      
      excused (2)
      
      Gallivan
      
      Seward
  Apr 9, 2019 - Rules Committee Vote
  S4940B
  
  11
  
  Aye
  
  2
  
  Nay
  
  5
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Apr 9, 2019
      
      aye (11)
      
      Benjamin
      
      Breslin
      
      Comrie
      
      Gianaris
      
      Hoylman-Sigal
      
      Krueger
      
      Little
      
      Liu
      
      Parker
      
      Savino
      
      Stewart-Cousins
      
      nay (2)
      
      Flanagan
      
      Martinez
      
      aye wr (5)
      
      Griffo
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Robach
      
      excused (1)
      
      Seward

Bill Amendments

Original

B (Active)

2019-S4940 - Details

See Assembly Version of this Bill:: A7081
Law Section:: Tax Law
Laws Affected:: Amd §§1210, 1223, 1224 & 1262-b, Tax L; amd §§4, 5, 7 & 16, Chap 272 of 1991

2019-S4940 - Summary

Authorizes the county of Westchester to impose an additional rate of sales and compensating use tax; extends the Westchester county spending limitation act.

2019-S4940 - Sponsor Memo

                                
 
BILL NUMBER: S4940

SPONSOR: MAYER
 
TITLE OF BILL:  An act to amend the tax law, in relation to authoriz-
ing the county of Westchester to impose an additional rate of sales and
compensating use tax; and to amend chapter 272 of the laws of 1991,
amending the tax law relating to the method of disposition of sales and
compensating use tax revenue in Westchester county and enacting the
Westchester county spending limitation act, in relation to extending the
expiration thereof

 
PURPOSE OR GENERAL IDEA:

The purpose of this bill is to ensure that Westchester County has a
stable source of funding to continue providing community services.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Subparagraph (i) of the opening paragraph of section 1210 of
the tax law is amended by adding a new subdivision (42)

Section 1224 of the tax law is amended by adding a new paragraph (jj)

Section 1262-b of the tax law as adopted by chapter 272 of the laws of
1991, as amended by section 1 of chapter 81 of the laws of 2017, known
as the "Westchester county spending limitation act"

1262-b. The Westchester county property tax stabilization and relief act

Subdivision e of section 4, and sections 5, 7 and 16 of chapter 272 of
the laws of 1991, amending the tax law relating to the method of dispo-
sition of sales and compensating use tax revenue in Westchester County
and enacting the Westchester county spending limitation act, as amended
by chapter 81 of the laws of 2017.

Mandatory tax reduction. In the event that the county spending subject
to the spending limitation exceeds such limitation in the adoptive coun-
ty budget for county fiscal year, then. section 1262-b of the tax law
shall be repealed.

Paragraph 16 of Section 1262-b of the tax law as adopted by chapter 272
of the laws of 1991, as amended by section 1 of chapter 81 of the laws
of 2017, known as the "Westchester county spending limitation act"

Subdivision a of subparagraph 2 of section 3(c) of the general municipal
law as adopted by chapter 97 of the laws of 2011

 
JUSTIFICATION:

Westchester has struggled to balance the budget as a result of not stay-
ing property tax cap compliant. As a result, the comptroller of New York
downgraded the credit of Westchester from AAA rating to AA1.  Failure to
address the situation will ensure a structural deficit and exhaust the
reserve budget by FY2021. Therefore, we must equalize rates among the
rest of the County.

 
PRIOR LEGISLATIVE HISTORY:

New Bill
 
FISCAL IMPLICATIONS:  None

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S4940 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4940
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               April 1, 2019
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the tax law, in relation to authorizing  the  county  of
   Westchester to impose an additional rate of sales and compensating use
   tax;  and  to  amend chapter 272 of the laws of 1991, amending the tax
   law relating to the method of disposition of  sales  and  compensating
   use  tax  revenue  in  Westchester county and enacting the Westchester
   county spending limitation act, in relation to extending  the  expira-
   tion thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (i) of the opening paragraph of  section  1210
 of the tax law is amended by adding a new clause 42 to read as follows:
   (42)  THE  COUNTY  OF  WESTCHESTER  IS  HEREBY  FURTHER AUTHORIZED AND
 EMPOWERED TO ADOPT AND  AMEND  LOCAL  LAWS,  ORDINANCES  OR  RESOLUTIONS
 IMPOSING  SUCH  TAXES  AT  A  RATE THAT IS ONE PERCENT ADDITIONAL TO THE
 THREE PERCENT RATE AUTHORIZED ABOVE IN THIS PARAGRAPH  FOR  SUCH  COUNTY
 FOR  THE  PERIOD BEGINNING MARCH FIRST, TWO THOUSAND NINETEEN AND ENDING
 NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-TWO;
   § 2. Section 1224 of the tax law is amended by adding a  new  subdivi-
 sion (jj) to read as follows:
   (JJ) THE COUNTY OF WESTCHESTER SHALL HAVE THE SOLE RIGHT TO IMPOSE THE
 ADDITIONAL  ONE  PERCENT  RATE OF TAX WHICH SUCH COUNTY IS AUTHORIZED TO
 IMPOSE PURSUANT TO THE AUTHORITY OF SECTION TWELVE HUNDRED TEN  OF  THIS
 ARTICLE.  SUCH  ADDITIONAL RATE OF TAX SHALL BE IN ADDITION TO ANY OTHER
 TAX WHICH SUCH COUNTY MAY IMPOSE OR MAY BE  IMPOSING  PURSUANT  TO  THIS
 ARTICLE  OR  ANY  OTHER LAW AND SUCH ADDITIONAL RATE OF TAX SHALL NOT BE
 SUBJECT TO PREEMPTION. THE MAXIMUM THREE PERCENT  RATE  REFERRED  TO  IN
 THIS SECTION SHALL BE CALCULATED WITHOUT REFERENCE TO THE ADDITIONAL ONE
 PERCENT  RATE  OF  TAX WHICH THE COUNTY OF WESTCHESTER IS AUTHORIZED AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09824-05-9

 S. 4940                             2
 
 EMPOWERED TO ADOPT PURSUANT TO SECTION TWELVE HUNDRED TEN OF THIS  ARTI-
 CLE.
   §  3. Section 1262-b of the tax law, as amended by section 1 of part A
 of chapter 8 of the laws of 2004, is amended to read as follows:
   § 1262-b. The Westchester county property tax stabilization and relief
 act. (a) Notwithstanding any other provision of law to the contrary,  if
 the  county  of  Westchester  imposes  sales  and compensating use taxes
 pursuant to [subdivision (a)] CLAUSE FORTY-TWO OF  SUBPARAGRAPH  (I)  OF
 THE  OPENING  PARAGRAPH of section twelve hundred ten of this article at
 the rate of [three] FOUR percent:
   (1) The county shall allocate net collections from such taxes  imposed
 at  the rate of one and one-half percent countywide among the cities and
 towns of the county on the basis of the ratio which the  full  valuation
 of  real property in each city or town bears to the aggregate full valu-
 ation of real property in all cities and towns of the county.    Amounts
 so  allocated shall be credited to each of said cities and towns against
 the county taxes levied upon real property in said cities and towns.
   (2) The county shall  allocate  and  credit  or  pay  net  collections
 received  by  the county by reason of its additional one percent rate of
 such taxes on the area of the county outside any city imposing sales and
 compensating use taxes at a rate of one and one-half percent or  greater
 pursuant  to the authority of subdivision (a) or at any rate pursuant to
 the authority of [subdivision (b)] CLAUSE FORTY-TWO OF SUBPARAGRAPH  (I)
 OF  THE  OPENING PARAGRAPH of section twelve hundred ten of this article
 as follows:
   (A) One-third of such net collections shall be allocated and  credited
 in the manner set forth in paragraph one of this subdivision.
   (B)  One-sixth  of  such  net  collections shall be allocated and paid
 quarterly by the county commissioner of finance, in cash, to the several
 school districts in such area of the county outside any such city impos-
 ing sales and compensating use taxes. Such allocation  and  payment,  to
 such  several  school districts, shall be made on the basis of the ratio
 which the population of each such school district bears to the aggregate
 population of all of the school districts in such area. In the  case  of
 school  districts  which  are partially within and partially without the
 county, or partially within or partially without the area of the  county
 outside a city imposing sales and compensating use taxes, the allocation
 and  payment  to each such school district shall be made on the basis of
 the population in such school district in the county, or in such area of
 the county outside a city imposing sales and compensating use taxes,  as
 the case may be. Such populations shall be determined in accordance with
 the  latest  federal  census  or special population census under section
 twenty of the general municipal law completed and published prior to the
 end of the quarter in which such allocation and payment are made,  which
 special  population  census shall include the entire area of the county;
 provided that such special population census shall  not  be  taken  more
 than  once in every two years. A school district split between Westches-
 ter county and another county shall apply such  allocation  and  payment
 solely  to the benefit of the residents of the county in which the sales
 and compensating use taxes are imposed.
   (C) One-half of such net collections shall be allocated and paid quar-
 terly by the county commissioner of finance, in cash, to the cities  not
 imposing  sales and compensating use taxes and to the towns and villages
 on which such additional one percent rate is imposed, on  the  basis  of
 the  ratio  which  the  population of each such city, town or village on
 which such additional one percent rate is imposed bears  to  the  entire

 S. 4940                             3
 
 population  of  all such cities, towns and villages in the area on which
 such additional one percent rate is imposed. Such populations  shall  be
 determined in accordance with the latest federal census or special popu-
 lation  census  under  section  twenty  of  the  general  municipal  law
 completed and published prior to the end of the quarter  in  which  such
 allocation  is  made,  which special population census shall include the
 entire area of the county; provided that such special population  census
 shall not be taken more than once in every two years.
   (D)  The  quarterly  allocation  and payment of cash to cities, towns,
 villages and school districts provided  for  under  this  paragraph  and
 under  paragraph  three of this subdivision may be made after payment by
 the state comptroller to the county of the net  collections  subject  to
 such allocation and receipt by the county commissioner of finance of the
 quarterly  settlement  report  issued by the department, and may include
 adjustments for corrections applicable to such allocations.  All  ratios
 established  by the county commissioner of finance with respect to allo-
 cations to cities, towns,  villages  and  school  districts  under  this
 subdivision  shall  be carried to four decimal places. The allocation of
 net collections and payment of cash provided for  under  this  paragraph
 and  under  paragraph  three of this subdivision shall be made to a town
 based upon the population of the town less the population of any village
 therein, provided that a town/village or village/town shall be deemed  a
 village  for  the purpose of determining such allocation. The allocation
 of net collections and payment of cash provided for under this paragraph
 and under paragraph three of this subdivision shall be  applied  by  the
 cities,  towns,  villages and school districts receiving such allocation
 and payment as a credit against the taxes upon real property imposed  by
 such  municipalities  and school districts, respectively. The allocation
 and payment received by towns shall be credited  against  real  property
 taxes  in  either the general fund town-wide or the town outside village
 fund or a combination thereof.
   (3) The county shall  allocate  and  credit  or  pay  net  collections
 received  by  the  county  by  reason of its additional ONE AND one-half
 percent rate of such taxes imposed on the area of the county outside any
 city imposing sales and compensating use taxes at  a  rate  of  one  and
 one-half percent or greater pursuant to the authority of subdivision (a)
 or  at  any rate pursuant to the authority of subdivision (b) of section
 twelve hundred ten of this article as follows:
   (A) Seventy percent of such net collections shall be retained  by  the
 county to be used for any county purpose.
   (B) Ten percent of such net collections shall be allocated and paid in
 the manner set forth in subparagraph (B) of paragraph two of this subdi-
 vision.
   (C) Twenty percent of such net collections shall be allocated and paid
 in  the  manner  set  forth in subparagraph (C) of paragraph two of this
 subdivision.
   (b) Nothing in this section shall be construed to impair the powers of
 a city currently imposing sales and compensating use taxes  pursuant  to
 the authority of section twelve hundred ten of this article from contin-
 uing  to  do  so  in accordance with law. No school district in any city
 imposing such sales and compensating use  taxes  shall  be  entitled  to
 receive  a  cash  allocation and payment under paragraph two or three of
 subdivision (a) of this section. No city, town or village authorized  or
 entitled  to  receive  an allocation under subparagraph (C) of paragraph
 two or subparagraph (C) of paragraph three of subdivision  (a)  of  this

 S. 4940                             4
 
 section  shall  be authorized or entitled to receive any cash allocation
 under section twelve hundred sixty-two of this article.
   §  4.  Subdivision  e of section 4 and sections 5, 7 and 16 of chapter
 272 of the laws of 1991, amending the tax law relating to the method  of
 disposition  of  sales  and  compensating use tax revenue in Westchester
 county and enacting the Westchester county spending limitation  act,  as
 amended  by  chapter  81  of  the  laws  of 2017, are amended to read as
 follows:
   e. "Spending limitation" means the maximum amount of  county  spending
 established  in  county fiscal years 1992, 1993, 1994, 1995, 1996, 1997,
 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008,  2009,
 2010,  2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [and], 2020,
 2021 AND 2022.
   § 5. Establishment of annual spending limitation. a. For county fiscal
 years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001,  2002,
 2003,  2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014,
 2015, 2016, 2017, 2018, 2019 [and], 2020, 2021 AND 2022 there  shall  be
 in  effect  an annual spending limitation. The spending limitation shall
 be derived from a fixed percentage reflecting the  ratio  of  base  year
 spending  to  county  personal  income.  County personal income for such
 calculation shall be for the period January 1, 1986 through December 31,
 1986. Such percentage shall be applied to county personal income for the
 period January 1, 1989 through  December  31,  1989,  to  determine  the
 spending limitation for county fiscal year 1992; to determine the spend-
 ing  limitation  for  county  fiscal year 1993, such percentage shall be
 applied to county personal income for the period January 1, 1990 through
 December 31, 1990; to  determine  the  spending  limitation  for  county
 fiscal  year  1994,  such percentage shall be applied to county personal
 income for the period January 1, 1991  through  December  31,  1991;  to
 determine  the  spending  limitation  for  county fiscal year 1995, such
 percentage shall be applied to county personal  income  for  the  period
 January  1,  1992  through  December 31, 1992; to determine the spending
 limitation for county fiscal year 1996, such percentage shall be applied
 to county personal income for the period January 1, 1993 through  Decem-
 ber  31,  1993;  to  determine the spending limitation for county fiscal
 year 1997, such percentage shall be applied to  county  personal  income
 for  the  period January 1, 1994 through December 31, 1994; to determine
 the spending limitation for county fiscal  year  1998,  such  percentage
 shall  be  applied  to  county personal income for the period January 1,
 1995 through December 31, 1995; to determine the spending limitation for
 county fiscal year 1999, such percentage  shall  be  applied  to  county
 personal  income  for  the  period  January 1, 1996 through December 31,
 1996; to determine the spending limitation for county fiscal year  2000,
 such percentage shall be applied to county personal income for the peri-
 od  January 1, 1997 through December 31, 1997; to determine the spending
 limitation for county fiscal year 2001, such percentage shall be applied
 to county personal income for the period January 1, 1998 through  Decem-
 ber  31,  1998;  to  determine the spending limitation for county fiscal
 year 2002, such percentage shall be applied to  county  personal  income
 for  the  period January 1, 1999 through December 31, 1999; to determine
 the spending limitation for county fiscal  year  2003,  such  percentage
 shall  be  applied  to  county personal income for the period January 1,
 2000 through December 31, 2000; to determine the spending limitation for
 county fiscal year 2004, such percentage  shall  be  applied  to  county
 personal  income  for  the  period  January 1, 2001 through December 31,
 2001; to determine the spending limitation for county fiscal year  2005,

 S. 4940                             5
 
 such percentage shall be applied to county personal income for the peri-
 od  January 1, 2002 through December 31, 2002; to determine the spending
 limitation for county fiscal year 2006, such percentage shall be applied
 to  county personal income for the period January 1, 2003 through Decem-
 ber 31, 2003; to determine the spending limitation for the county fiscal
 year 2007, such percentage shall be applied to  county  personal  income
 for  the  period January 1, 2004 through December 31, 2004; to determine
 the spending limitation for the county fiscal year 2008, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2005 through December 31, 2005; to determine the spending limitation for
 the  county fiscal year 2009, such percentage shall be applied to county
 personal income for the period January  1,  2006  through  December  31,
 2006;  to  determine  the spending limitation for the county fiscal year
 2010, such percentage shall be applied to county personal income for the
 period January 1, 2007 through  December  31,  2007;  to  determine  the
 spending  limitation  for  the  county fiscal year 2011, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2008 through December 31, 2008; to determine the spending limitation for
 the  county fiscal year 2012, such percentage shall be applied to county
 personal income for the period January  1,  2009  through  December  31,
 2009;  to  determine  the spending limitation for the county fiscal year
 2013, such percentage shall be applied to county personal income for the
 period January 1, 2010 through  December  31,  2010;  to  determine  the
 spending  limitation  for  the  county fiscal year 2014, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2011 through December 31, 2011; to determine the spending limitation for
 the  county fiscal year 2015, such percentage shall be applied to county
 personal income for the period January  1,  2012  through  December  31,
 2012;  to determine the spending limitation for county fiscal year 2016,
 such percentage shall be applied to the county personal income  for  the
 period  January  1,  2013  through  December  31, 2013; to determine the
 spending limitation for the county fiscal  year  2017,  such  percentage
 shall  be  applied  to  county personal income for the period January 1,
 2014 through December 31, 2014; and to determine the spending limitation
 for county fiscal year 2018, such percentage shall  be  applied  to  the
 county  personal  income for the period January 1, 2015 through December
 31, 2015; to determine the spending limitation  for  the  county  fiscal
 year  2019,  such  percentage shall be applied to county personal income
 for the period January 1, 2016 through December 31, 2016; and to  deter-
 mine  the spending limitation for county fiscal year 2020, such percent-
 age shall be applied to the county personal income for the period  Janu-
 ary  1,  2017  through  December 31, 2017; AND TO DETERMINE THE SPENDING
 LIMITATION FOR THE COUNTY FISCAL YEAR 2021,  SUCH  PERCENTAGE  SHALL  BE
 APPLIED TO COUNTY PERSONAL INCOME FOR THE PERIOD JANUARY 1, 2018 THROUGH
 DECEMBER  31,  2018;  AND  TO  DETERMINE THE SPENDING LIMITATION FOR THE
 COUNTY FISCAL YEAR 2022, SUCH PERCENTAGE  SHALL  BE  APPLIED  TO  COUNTY
 PERSONAL  INCOME  FOR  THE  PERIOD  JANUARY 1, 2019 THROUGH DECEMBER 31,
 2019.
   b. The spending limitation shall serve as a statutory  cap  on  county
 spending  to be reflected in the tentative budget as well as the enacted
 budget for county fiscal years beginning in 1992.
   § 7. Mandatory tax reduction. In the event that  the  county  spending
 subject  to the spending limitation exceeds such limitation in the adop-
 tive county budget for county fiscal year 1992, 1993, 1994, 1995,  1996,
 1997,  1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008,

 S. 4940                             6
 
 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018,  2019  [or],
 2020, 2021 OR 2022 then section 1262-b of the tax law shall be repealed.
   §  16. This act shall take effect immediately, provided, however, that
 sections one through seven of this act shall be in full force and effect
 until [May 31, 2020, provided, however, that if the county of  Westches-
 ter  imposes the tax authorized by section 1210 of the tax law in excess
 of three percent, then sections one through seven of this act  shall  be
 deemed  repealed; provided that the commissioner of taxation and finance
 shall notify the legislative bill drafting commission upon the repeal of
 section 1262-b of the tax law pursuant to section seven of the Westches-
 ter county spending limitation act in  order  that  the  commission  may
 maintain an accurate and timely effective data base of the official text
 of  laws  of  the  state  of  New  York  in furtherance of effecting the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law] NOVEMBER 30, 2022.
   §  5. This act shall take effect immediately; provided that the amend-
 ments to section 1262-b of the tax law made by section three of this act
 shall not affect the expiration of such section and shall expire  there-
 with.

2019-S4940A - Details

See Assembly Version of this Bill:: A7081
Law Section:: Tax Law
Laws Affected:: Amd §§1210, 1223, 1224 & 1262-b, Tax L; amd §§4, 5, 7 & 16, Chap 272 of 1991

2019-S4940A - Summary

Authorizes the county of Westchester to impose an additional rate of sales and compensating use tax; extends the Westchester county spending limitation act.

2019-S4940A - Sponsor Memo

                                
 
BILL NUMBER: S4940A

SPONSOR: MAYER
 
TITLE OF BILL:

An act to amend the tax law, in relation to authorizing the county of
Westchester to impose an additional rate of sales and compensating use
tax; and to amend chapter 272 of the laws of 1991, amending the tax law
relating to the method of disposition of sales and compensating use tax
revenue in Westchester county and enacting the Westchester county spend-
ing limitation act, in relation to extending the expiration thereof

 
PURPOSE OR GENERAL IDEA:

The purpose of this bill is to ensure that Westchester County has a
stable source of funding to continue providing community services.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Subparagraph (i) of the opening paragraph of section 1210 of
the tax law is amended by adding a new subdivision (42)

Subdivision (a) of Section 1223 of the tax law is amended to include
references to Westchester and ensure that that rate references are
correct

Subdivision (a) Section 1223 of the tax law is amended to include refer-
ences to Westchester and ensure that that rate references are correct

Section 1224 of the tax law is amended by adding a new paragraph (jj)

Section 1262-b of the tax law as adopted by chapter 272 of the laws of
1991, as amended by section 1 of chapter 81 of the laws of 2017, known
as the "Westchester county spending limitation act"

Subdivision e of section 4, and sections 5, 7 and 16 of chapter 272 of
the laws of 1991, amending the tax law relating to the method of dispo-
sition of sales and compensating use tax revenue in Westchester County
and enacting the Westchester county spending limitation act, as amended
by chapter 81 of the laws of 2017.

Mandatory tax reduction. In the event that the county spending subject
to the spending limitation exceeds such limitation in the adoptive coun-
ty budget for county fiscal year, then. section 1262-b of the tax law
shall be repealed.

Paragraph 16 of Section 1262-b of the tax law as adopted by chapter 272
of the laws of 1991, as amended by section 1 of chapter 81 of the laws
of 2017, known as the "Westchester county spending limitation act"

 
JUSTIFICATION:

Westchester has struggled to balance the budget as a result of not stay-
ing property tax cap compliant. As a result, the comptroller of New York
downgraded the credit of Westchester from AAA rating to AA1.  Failure to
address the situation will ensure a structural deficit and exhaust the
reserve budget by FY2021. Therefore, we must equalize rates among the
rest of the County.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that section
three of this act shall take effect December 1, 2020; provided, further,
that the amendments to section 1262-b of the tax law made by section
five of this act shall not affect the expiration of such section and
shall expire therewith; provided, further, that the amendments to
sections 4, 5, and 7 of chapter 272 of the laws of 1991 shall not affect
the expiration of such sections and shall expire therewith.

2019-S4940A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4940--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               April 1, 2019
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Rules  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend the tax law, in relation to authorizing the county of
   Westchester to impose an additional rate of sales and compensating use
   tax; and to amend chapter 272 of the laws of 1991,  amending  the  tax
   law  relating  to  the method of disposition of sales and compensating
   use tax revenue in Westchester county  and  enacting  the  Westchester
   county  spending  limitation act, in relation to extending the expira-
   tion thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subparagraph (i) of the opening paragraph of section 1210
 of the tax law is amended by adding a new clause 42 to read as follows:
   (42) THE COUNTY  OF  WESTCHESTER  IS  HEREBY  FURTHER  AUTHORIZED  AND
 EMPOWERED  TO  ADOPT  AND  AMEND  LOCAL  LAWS, ORDINANCES OR RESOLUTIONS
 IMPOSING SUCH TAXES AT A RATE THAT IS  ONE  PERCENT  ADDITIONAL  TO  THE
 THREE  PERCENT  RATE  AUTHORIZED ABOVE IN THIS PARAGRAPH FOR SUCH COUNTY
 FOR THE PERIOD BEGINNING JUNE FIRST, TWO THOUSAND  NINETEEN  AND  ENDING
 NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-TWO;
   §  2.  Subdivision  (a)  of section 1223 of the tax law, as separately
 amended by chapters 191 and 217 of the laws of 2013, is amended to  read
 as follows:
   (a)  No  transaction taxable under sections twelve hundred two through
 twelve hundred four of this article shall  be  taxed  pursuant  to  this
 article  by any county or by any city located therein, or by both, at an
 aggregate rate in excess of the highest rate set forth in the applicable
 subdivision of section twelve hundred one of this  article  or,  in  the
 case  of  any  taxes imposed pursuant to the authority of section twelve
 hundred ten or twelve hundred eleven of this article (other  than  taxes
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09824-10-9

 S. 4940--A                          2
 
 imposed  by  the  county of Nassau, Erie, Steuben, Cattaraugus, Suffolk,
 Oneida, Genesee, Greene, Franklin, Hamilton, Herkimer,  Tioga,  Orleans,
 Allegany,  Ulster,  Albany,  Rensselaer,  Tompkins,  Wyoming,  Columbia,
 Schuyler,  Rockland, Chenango, Monroe, Chemung, Seneca, Sullivan, Wayne,
 Livingston, Schenectady, Montgomery, Delaware, Clinton, Niagara,  Yates,
 Lewis,  Essex,  Dutchess, Schoharie, Putnam, Chautauqua, Orange, Oswego,
 Ontario, Jefferson, St. Lawrence, WESTCHESTER or  Onondaga  and  by  the
 county  of Cortland and the city of Cortland and by the county of Broome
 and the city of Binghamton and by the county of Cayuga and the  city  of
 Auburn  and  by  the county of Otsego and the city of Oneonta and by the
 county of Madison and the city of Oneida and by the county of Fulton and
 the city of Gloversville or the city of Johnstown as provided in section
 twelve hundred ten of this  article)  at  a  rate  in  excess  of  three
 percent,  except  that,  [in  the city of Yonkers,] in the city of Mount
 Vernon, in the city of New Rochelle, in the city of Fulton [and], in the
 city of Oswego, [the rate may not be in excess of four percent]  and  in
 the city of White Plains, the rate may not be in excess of four percent,
 AND  IN  THE  CITY OF YONKERS, THE RATE MAY NOT BE IN EXCESS OF FOUR AND
 ONE-HALF PERCENT, and except that in the city  of  Poughkeepsie  in  the
 county  of  Dutchess,  if  such  county  withdraws from the metropolitan
 commuter transportation district  pursuant  to  section  twelve  hundred
 seventy-nine-b  of the public authorities law and if the revenues from a
 three-eighths percent rate of such tax imposed by such county,  pursuant
 to  the  authority  of  section  twelve hundred ten of this article, are
 required by local laws, ordinances or resolutions to be  set  aside  for
 mass transportation purposes, the rate may not be in excess of three and
 three-eighths percent.
   §  3.  Subdivision  (a)  of section 1223 of the tax law, as amended by
 section two of this act, is amended to read as follows:
   (a) No transaction taxable under sections twelve hundred  two  through
 twelve  hundred  four  of  this  article shall be taxed pursuant to this
 article by any county or by any city located therein, or by both, at  an
 aggregate rate in excess of the highest rate set forth in the applicable
 subdivision  of  section  twelve  hundred one of this article or, in the
 case of any taxes imposed pursuant to the authority  of  section  twelve
 hundred  ten  or twelve hundred eleven of this article (other than taxes
 imposed by the county of Nassau, Erie,  Steuben,  Cattaraugus,  Suffolk,
 Oneida,  Genesee,  Greene, Franklin, Hamilton, Herkimer, Tioga, Orleans,
 Allegany,  Ulster,  Albany,  Rensselaer,  Tompkins,  Wyoming,  Columbia,
 Schuyler,  Rockland, Chenango, Monroe, Chemung, Seneca, Sullivan, Wayne,
 Livingston, Schenectady, Montgomery, Delaware, Clinton, Niagara,  Yates,
 Lewis,  Essex,  Dutchess, Schoharie, Putnam, Chautauqua, Orange, Oswego,
 Ontario, Jefferson, St. Lawrence, Westchester or  Onondaga  and  by  the
 county  of Cortland and the city of Cortland and by the county of Broome
 and the city of Binghamton and by the county of Cayuga and the  city  of
 Auburn  and  by  the county of Otsego and the city of Oneonta and by the
 county of Madison and the city of Oneida and by the county of Fulton and
 the city of Gloversville or the city of Johnstown as provided in section
 twelve hundred ten of this  article)  at  a  rate  in  excess  of  three
 percent,  except  that,  IN  THE  CITY  OF YONKERS, in the city of Mount
 Vernon, in the city of New Rochelle, in the city of Fulton, in the  city
 of  Oswego,  and  in  the  city  of White Plains, the rate may not be in
 excess of four percent[, and in the city of Yonkers, the rate may not be
 in excess of four and one-half percent], and except that in the city  of
 Poughkeepsie  in  the  county of Dutchess, if such county withdraws from
 the metropolitan commuter transportation district  pursuant  to  section

 S. 4940--A                          3
 
 twelve  hundred  seventy-nine-b of the public authorities law and if the
 revenues from a three-eighths percent rate of such tax imposed  by  such
 county,  pursuant to the authority of section twelve hundred ten of this
 article, are required by local laws, ordinances or resolutions to be set
 aside for mass transportation purposes, the rate may not be in excess of
 three and three-eighths percent.
   §  4.  Section 1224 of the tax law is amended by adding a new subdivi-
 sion (jj) to read as follows:
   (JJ) THE COUNTY OF WESTCHESTER SHALL HAVE THE SOLE RIGHT TO IMPOSE THE
 ADDITIONAL ONE PERCENT RATE OF TAX WHICH SUCH COUNTY  IS  AUTHORIZED  TO
 IMPOSE  PURSUANT  TO THE AUTHORITY OF SECTION TWELVE HUNDRED TEN OF THIS
 ARTICLE IN THE AREA OF THE COUNTY OUTSIDE THE CITIES  OF  MOUNT  VERNON,
 NEW  ROCHELLE,  WHITE  PLANES AND YONKERS.   SUCH ADDITIONAL RATE OF TAX
 SHALL BE IN ADDITION TO ANY OTHER TAX WHICH SUCH COUNTY  MAY  IMPOSE  OR
 MAY BE IMPOSING PURSUANT TO THIS ARTICLE OR ANY OTHER LAW AND SUCH ADDI-
 TIONAL RATE OF TAX SHALL NOT BE SUBJECT TO PREEMPTION. THE MAXIMUM THREE
 PERCENT  RATE  REFERRED  TO  IN THIS SECTION SHALL BE CALCULATED WITHOUT
 REFERENCE TO THE ADDITIONAL ONE PERCENT RATE OF TAX WHICH THE COUNTY  OF
 WESTCHESTER  IS  AUTHORIZED  AND  EMPOWERED TO ADOPT PURSUANT TO SECTION
 TWELVE HUNDRED TEN OF THIS ARTICLE.
   § 5. Section 1262-b of the tax law, as amended by section 1 of part  A
 of chapter 8 of the laws of 2004, is amended to read as follows:
   § 1262-b. The Westchester county property tax stabilization and relief
 act.  [(a)] Notwithstanding any other provision of law to the contrary[,
 if]: (A) IF the county of Westchester imposes sales and compensating use
 taxes pursuant to subdivision (a) of section twelve hundred ten of  this
 article at the rate of three percent:
   (1)  The  county  shall allocate ONE-HALF OF net collections from such
 taxes imposed [at the rate of one  and  one-half  percent]  PURSUANT  TO
 SUBDIVISION TWO OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE countywide
 among the cities and towns of the county on the basis of the ratio which
 the  full  valuation  of real property in each city or town bears to the
 aggregate full valuation of real property in all cities and towns of the
 county.  Amounts so allocated shall be credited to each of  said  cities
 and  towns  against  the  county taxes levied upon real property in said
 cities and towns.
   (2) The county shall allocate and  credit  or  pay  ONE-THIRD  OF  net
 collections  [received  by  the  county  by reason of its additional one
 percent rate of] FROM such taxes [on] IMPOSED PURSUANT TO SECTION TWELVE
 HUNDRED TEN OF THIS ARTICLE TO the area of the county outside  any  city
 imposing  sales and compensating use taxes at a rate of one and one-half
 percent or greater pursuant to the authority of subdivision  (a)  or  at
 any rate pursuant to the authority of [subdivision (b)] CLAUSE FORTY-TWO
 OF  SUBPARAGRAPH  (I) OF THE OPENING PARAGRAPH of section twelve hundred
 ten of this article as follows:
   (A) One-third of such net collections shall be allocated and  credited
 in the manner set forth in paragraph one of this subdivision.
   (B)  One-sixth  of  such  net  collections shall be allocated and paid
 quarterly by the county commissioner of finance, in cash, to the several
 school districts in such area of the county outside any such city impos-
 ing sales and compensating use taxes. Such allocation  and  payment,  to
 such  several  school districts, shall be made on the basis of the ratio
 which the population of each such school district bears to the aggregate
 population of all of the school districts in such area. In the  case  of
 school  districts  which  are partially within and partially without the
 county, or partially within or partially without the area of the  county

 S. 4940--A                          4
 
 outside a city imposing sales and compensating use taxes, the allocation
 and  payment  to each such school district shall be made on the basis of
 the population in such school district in the county, or in such area of
 the  county outside a city imposing sales and compensating use taxes, as
 the case may be. Such populations shall be determined in accordance with
 the latest federal census or special  population  census  under  section
 twenty of the general municipal law completed and published prior to the
 end  of the quarter in which such allocation and payment are made, which
 special population census shall include the entire area of  the  county;
 provided  that  such  special  population census shall not be taken more
 than once in every two years. A school district split between  Westches-
 ter  county  and  another county shall apply such allocation and payment
 solely to the benefit of the residents of the county in which the  sales
 and compensating use taxes are imposed.
   (C) One-half of such net collections shall be allocated and paid quar-
 terly  by the county commissioner of finance, in cash, to the cities not
 imposing sales and compensating use taxes and to the towns and  villages
 on  which such [additional one percent] rate is imposed, on the basis of
 the ratio which the population of each such city,  town  or  village  on
 which  such [additional one percent] rate is imposed bears to the entire
 population of all such cities, towns and villages in the area  on  which
 such [additional one percent] rate is imposed. Such populations shall be
 determined in accordance with the latest federal census or special popu-
 lation  census  under  section  twenty  of  the  general  municipal  law
 completed and published prior to the end of the quarter  in  which  such
 allocation  is  made,  which special population census shall include the
 entire area of the county; provided that such special population  census
 shall not be taken more than once in every two years.
   (D)  The  quarterly  allocation  and payment of cash to cities, towns,
 villages and school districts provided  for  under  this  paragraph  and
 under  paragraph  three of this subdivision AND UNDER SUBDIVISION (B) OF
 THIS SECTION may be made after payment by the state comptroller  to  the
 county  of the net collections subject to such allocation and receipt by
 the county commissioner of finance of the  quarterly  settlement  report
 issued  by  the  department, and may include adjustments for corrections
 applicable to such allocations. All ratios  established  by  the  county
 commissioner  of  finance  with respect to allocations to cities, towns,
 villages and school districts under this subdivision AND UNDER  SUBDIVI-
 SION  (B)  OF  THIS SECTION shall be carried to four decimal places. The
 allocation of net collections and payment of  cash  provided  for  under
 this  paragraph  and under paragraph three of this subdivision AND UNDER
 SUBDIVISION (B) OF THIS SECTION shall be made to a town based  upon  the
 population  of  the  town  less  the  population of any village therein,
 provided that a town/village or village/town shall be deemed  a  village
 for  the  purpose  of determining such allocation. The allocation of net
 collections and payment of cash provided for under  this  paragraph  and
 under  paragraph  three of this subdivision AND UNDER SUBDIVISION (B) OF
 THIS SECTION shall be applied by the cities, towns, villages and  school
 districts  receiving such allocation and payment as a credit against the
 taxes upon real property  imposed  by  such  municipalities  and  school
 districts,  respectively.  The  allocation and payment received by towns
 shall be credited against real property taxes in either the general fund
 town-wide or the town outside village fund or a combination thereof.
   (3) The county shall allocate and  credit  or  pay  ONE-SIXTH  OF  net
 collections [received by the county by reason of its additional one-half
 percent  rate  of]  FROM such taxes imposed [on] PURSUANT TO SUBDIVISION

 S. 4940--A                          5
 
 TWO OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE TO  the  area  of  the
 county  outside  any city imposing sales and compensating use taxes at a
 rate of one and one-half percent or greater pursuant to the authority of
 subdivision  (a) or at any rate pursuant to the authority of subdivision
 (b) of section twelve hundred ten of this article as follows:
   (A) Seventy percent of such net collections shall be retained  by  the
 county to be used for any county purpose.
   (B) Ten percent of such net collections shall be allocated and paid in
 the manner set forth in subparagraph (B) of paragraph two of this subdi-
 vision.
   (C) Twenty percent of such net collections shall be allocated and paid
 in  the  manner  set  forth in subparagraph (C) of paragraph two of this
 subdivision.
   (b) IF THE COUNTY OF WESTCHESTER IMPOSES THE  ADDITIONAL  ONE  PERCENT
 RATE OF SALES AND COMPENSATING USE TAX AUTHORIZED BY CLAUSE FORTY-TWO OF
 SUBPARAGRAPH  (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN
 OF THIS ARTICLE, THE   COUNTY SHALL  ALLOCATE  AND  CREDIT  OR  PAY  NET
 COLLECTIONS  FROM  SUCH  ADDITIONAL  ONE  PERCENT RATE IN THE MANNER SET
 FORTH IN PARAGRAPH THREE OF SUBDIVISION (A) OF THIS SECTION WITH RESPECT
 TO THE AREA OF THE COUNTY OUTSIDE ANY CITY IMPOSING SALES AND COMPENSAT-
 ING USE TAXES AT A RATE OF ONE AND ONE-HALF PERCENT OR GREATER  PURSUANT
 TO  THE  AUTHORITY  OF  SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF
 THIS ARTICLE OR AT ANY RATE PURSUANT TO THE AUTHORITY OF SUBDIVISION (B)
 OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE.
   (C) Nothing in this section shall be construed to impair the powers of
 a city currently imposing sales and compensating use taxes  pursuant  to
 the authority of section twelve hundred ten of this article from contin-
 uing  to  do  so  in accordance with law. No school district in any city
 imposing such sales and compensating use  taxes  shall  be  entitled  to
 receive  a  cash  allocation and payment under paragraph two or three of
 subdivision (a) OR UNDER SUBDIVISION (B) of this section. No city,  town
 or village authorized or entitled to receive an allocation under subpar-
 agraph  (C)  of  paragraph two or subparagraph (C) of paragraph three of
 subdivision (a) OR UNDER  SUBDIVISION  (B)  of  this  section  shall  be
 authorized  or  entitled  to  receive  any cash allocation under section
 twelve hundred sixty-two of this article.
   § 6. Subdivision e of section 4 and sections 5, 7 and  16  of  chapter
 272  of the laws of 1991, amending the tax law relating to the method of
 disposition of sales and compensating use  tax  revenue  in  Westchester
 county  and  enacting the Westchester county spending limitation act, as
 amended by chapter 81 of the laws  of  2017,  are  amended  to  read  as
 follows:
   e.  "Spending  limitation" means the maximum amount of county spending
 established in county fiscal years 1992, 1993, 1994, 1995,  1996,  1997,
 1998,  1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009,
 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [and],  2020,
 2021 AND 2022.
   § 5. Establishment of annual spending limitation. a. For county fiscal
 years  1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002,
 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013,  2014,
 2015,  2016,  2017, 2018, 2019 [and], 2020, 2021 AND 2022 there shall be
 in effect an annual spending limitation. The spending  limitation  shall
 be  derived  from  a  fixed percentage reflecting the ratio of base year
 spending to county personal income.  County  personal  income  for  such
 calculation shall be for the period January 1, 1986 through December 31,
 1986. Such percentage shall be applied to county personal income for the

 S. 4940--A                          6
 
 period  January  1,  1989  through  December  31, 1989, to determine the
 spending limitation for county fiscal year 1992; to determine the spend-
 ing limitation for county fiscal year 1993,  such  percentage  shall  be
 applied to county personal income for the period January 1, 1990 through
 December  31,  1990;  to  determine  the  spending limitation for county
 fiscal year 1994, such percentage shall be applied  to  county  personal
 income  for  the  period  January  1, 1991 through December 31, 1991; to
 determine the spending limitation for  county  fiscal  year  1995,  such
 percentage  shall  be  applied  to county personal income for the period
 January 1, 1992 through December 31, 1992;  to  determine  the  spending
 limitation for county fiscal year 1996, such percentage shall be applied
 to  county personal income for the period January 1, 1993 through Decem-
 ber 31, 1993; to determine the spending  limitation  for  county  fiscal
 year  1997,  such  percentage shall be applied to county personal income
 for the period January 1, 1994 through December 31, 1994;  to  determine
 the  spending  limitation  for  county fiscal year 1998, such percentage
 shall be applied to county personal income for  the  period  January  1,
 1995 through December 31, 1995; to determine the spending limitation for
 county  fiscal  year  1999,  such  percentage shall be applied to county
 personal income for the period January  1,  1996  through  December  31,
 1996;  to determine the spending limitation for county fiscal year 2000,
 such percentage shall be applied to county personal income for the peri-
 od January 1, 1997 through December 31, 1997; to determine the  spending
 limitation for county fiscal year 2001, such percentage shall be applied
 to  county personal income for the period January 1, 1998 through Decem-
 ber 31, 1998; to determine the spending  limitation  for  county  fiscal
 year  2002,  such  percentage shall be applied to county personal income
 for the period January 1, 1999 through December 31, 1999;  to  determine
 the  spending  limitation  for  county fiscal year 2003, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2000 through December 31, 2000; to determine the spending limitation for
 county  fiscal  year  2004,  such  percentage shall be applied to county
 personal income for the period January  1,  2001  through  December  31,
 2001;  to determine the spending limitation for county fiscal year 2005,
 such percentage shall be applied to county personal income for the peri-
 od January 1, 2002 through December 31, 2002; to determine the  spending
 limitation for county fiscal year 2006, such percentage shall be applied
 to  county personal income for the period January 1, 2003 through Decem-
 ber 31, 2003; to determine the spending limitation for the county fiscal
 year 2007, such percentage shall be applied to  county  personal  income
 for  the  period January 1, 2004 through December 31, 2004; to determine
 the spending limitation for the county fiscal year 2008, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2005 through December 31, 2005; to determine the spending limitation for
 the  county fiscal year 2009, such percentage shall be applied to county
 personal income for the period January  1,  2006  through  December  31,
 2006;  to  determine  the spending limitation for the county fiscal year
 2010, such percentage shall be applied to county personal income for the
 period January 1, 2007 through  December  31,  2007;  to  determine  the
 spending  limitation  for  the  county fiscal year 2011, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2008 through December 31, 2008; to determine the spending limitation for
 the  county fiscal year 2012, such percentage shall be applied to county
 personal income for the period January  1,  2009  through  December  31,
 2009;  to  determine  the spending limitation for the county fiscal year
 2013, such percentage shall be applied to county personal income for the

 S. 4940--A                          7

 period January 1, 2010 through  December  31,  2010;  to  determine  the
 spending  limitation  for  the  county fiscal year 2014, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2011 through December 31, 2011; to determine the spending limitation for
 the  county fiscal year 2015, such percentage shall be applied to county
 personal income for the period January  1,  2012  through  December  31,
 2012;  to determine the spending limitation for county fiscal year 2016,
 such percentage shall be applied to the county personal income  for  the
 period  January  1,  2013  through  December  31, 2013; to determine the
 spending limitation for the county fiscal  year  2017,  such  percentage
 shall  be  applied  to  county personal income for the period January 1,
 2014 through December 31, 2014; and to determine the spending limitation
 for county fiscal year 2018, such percentage shall  be  applied  to  the
 county  personal  income for the period January 1, 2015 through December
 31, 2015; to determine the spending limitation  for  the  county  fiscal
 year  2019,  such  percentage shall be applied to county personal income
 for the period January 1, 2016 through December 31, 2016; and to  deter-
 mine  the spending limitation for county fiscal year 2020, such percent-
 age shall be applied to the county personal income for the period  Janu-
 ary  1,  2017  through  December 31, 2017; AND TO DETERMINE THE SPENDING
 LIMITATION FOR THE COUNTY FISCAL YEAR 2021,  SUCH  PERCENTAGE  SHALL  BE
 APPLIED TO COUNTY PERSONAL INCOME FOR THE PERIOD JANUARY 1, 2018 THROUGH
 DECEMBER  31,  2018;  AND  TO  DETERMINE THE SPENDING LIMITATION FOR THE
 COUNTY FISCAL YEAR 2022, SUCH PERCENTAGE  SHALL  BE  APPLIED  TO  COUNTY
 PERSONAL  INCOME  FOR  THE  PERIOD  JANUARY 1, 2019 THROUGH DECEMBER 31,
 2019.
   b. The spending limitation shall serve as a statutory  cap  on  county
 spending  to be reflected in the tentative budget as well as the enacted
 budget for county fiscal years beginning in 1992.
   § 7. Mandatory tax reduction. In the event that  the  county  spending
 subject  to the spending limitation exceeds such limitation in the adop-
 tive county budget for county fiscal year 1992, 1993, 1994, 1995,  1996,
 1997,  1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008,
 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018,  2019  [or],
 2020, 2021 OR 2022 then section 1262-b of the tax law shall be repealed.
   §  16. This act shall take effect immediately, provided, however, that
 sections one through seven of this act shall be in full force and effect
 until [May 31, 2020, provided, however, that if the county of  Westches-
 ter  imposes the tax authorized by section 1210 of the tax law in excess
 of three percent, then sections one through seven of this act  shall  be
 deemed  repealed; provided that the commissioner of taxation and finance
 shall notify the legislative bill drafting commission upon the repeal of
 section 1262-b of the tax law pursuant to section seven of the Westches-
 ter county spending limitation act in  order  that  the  commission  may
 maintain an accurate and timely effective data base of the official text
 of  laws  of  the  state  of  New  York  in furtherance of effecting the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law] NOVEMBER 30, 2022.
   §  7.  This act shall take effect immediately; provided, however, that
 section three of this act shall take effect December 1, 2020,  provided,
 further,  that  the  amendments to section 1262-b of the tax law made by
 section five of this act shall not affect the expiration of such section
 and shall expire therewith; provided, further, that  the  amendments  to
 sections 4, 5, and 7 of chapter 272 of the laws of 1991 shall not affect
 the expiration of such sections and shall expire therewith.

2019-S4940B (ACTIVE) - Details

See Assembly Version of this Bill:: A7081
Law Section:: Tax Law
Laws Affected:: Amd §§1210, 1223, 1224 & 1262-b, Tax L; amd §§4, 5, 7 & 16, Chap 272 of 1991

2019-S4940B (ACTIVE) - Summary

Authorizes the county of Westchester to impose an additional rate of sales and compensating use tax; extends the Westchester county spending limitation act.

2019-S4940B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4940B

SPONSOR: MAYER
 
TITLE OF BILL:  An act to amend the tax law, in relation to authoriz-
ing the county of Westchester to impose an additional rate of sales and
compensating use tax; and to amend chapter 272 of the laws of 1991,
amending the tax law relating to the method of disposition of sales and
compensating use tax revenue in Westchester county and enacting the
Westchester county spending limitation act, in relation to extending the
expiration thereof

 
PURPOSE OR GENERAL IDEA:

The purpose of this bill is to ensure that Westchester County has a
stable source of funding to continue providing community services.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Subparagraph (i) of the opening paragraph of section 1210 of
the tax law is amended by adding a new subdivision (42)

§ 2. Amends Subdivision (a) of Section 1223 of the tax law is amended to
include references to Westchester and ensure that that rate references
are correct

§ 3. Amends Subdivision (a) Section 1223 of the tax law is amended to
include references to Westchester and ensure that that rate references
are correct

§ 4.Amends Section 1224 of the tax law is amended by adding a new para-
graph (ii)

§ 5. Amends Section 1262-b of the tax law as adopted by chapter 272 of
the laws of 1991, as amended by section 1 of chapter 81 of the laws of
2017, known as the "Westchester county property tax stabilization and
relief act"

§ 6. Amends Subdivision e of section 4, and sections 5, 7 and 16 of
chapter 272 of the laws of 1991, amending the tax law relating to the
method of disposition of sales and compensating use tax revenue in West-
chester County and enacting the Westchester county spending limitation
act, as amended by chapter 81 of the laws of 2017.

§ 7. Sets the effective date.

 
JUSTIFICATION:

Westchester has struggled to balance the budget as a result of not stay-
ing property tax cap compliant. As a result, the comptroller of New York
downgraded the credit of Westchester from AAA rating to AA1.  Failure to
address the situation will ensure a structural deficit and exhaust the
reserve budget by FY2021. Therefore, we must equalize rates among the
rest of the County.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:
None

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that section
three of this act shall take effect December 1, 2020; provided, further,
that the amendments to section 1262-b of the tax law made by section
five of this act shall not affect the expiration of such section and
shall expire therewith; provided, further, that the amendments to
sections 4, 5, and 7 of chapter 272 of the laws of 1991 shall not affect
the expiration of such sections and shall expire therewith.

2019-S4940B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4940--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               April 1, 2019
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Rules  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee  --  committee  discharged,  bill amended, ordered
   reprinted as amended and recommitted to said committee

 AN ACT to amend the tax law, in relation to authorizing  the  county  of
   Westchester to impose an additional rate of sales and compensating use
   tax;  and  to  amend chapter 272 of the laws of 1991, amending the tax
   law relating to the method of disposition of  sales  and  compensating
   use  tax  revenue  in  Westchester county and enacting the Westchester
   county spending limitation act, in relation to extending  the  expira-
   tion thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (i) of the opening paragraph of  section  1210
 of the tax law is amended by adding a new clause 42 to read as follows:
   (42)  THE  COUNTY  OF  WESTCHESTER  IS  HEREBY  FURTHER AUTHORIZED AND
 EMPOWERED TO ADOPT AND  AMEND  LOCAL  LAWS,  ORDINANCES  OR  RESOLUTIONS
 IMPOSING  SUCH  TAXES  AT  A  RATE THAT IS ONE PERCENT ADDITIONAL TO THE
 THREE PERCENT RATE AUTHORIZED ABOVE IN THIS PARAGRAPH  FOR  SUCH  COUNTY
 FOR  THE  PERIOD  BEGINNING JUNE FIRST, TWO THOUSAND NINETEEN AND ENDING
 NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-TWO;
   § 2. Subdivision (a) of section 1223 of the  tax  law,  as  separately
 amended  by chapters 191 and 217 of the laws of 2013, is amended to read
 as follows:
   (a) No transaction taxable under sections twelve hundred  two  through
 twelve  hundred  four  of  this  article shall be taxed pursuant to this
 article by any county or by any city located therein, or by both, at  an
 aggregate rate in excess of the highest rate set forth in the applicable
 subdivision  of  section  twelve  hundred one of this article or, in the
 case of any taxes imposed pursuant to the authority  of  section  twelve
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09824-12-9

 S. 4940--B                          2
 
 hundred  ten  or twelve hundred eleven of this article (other than taxes
 imposed by the county of Nassau, Erie,  Steuben,  Cattaraugus,  Suffolk,
 Oneida,  Genesee,  Greene, Franklin, Hamilton, Herkimer, Tioga, Orleans,
 Allegany,  Ulster,  Albany,  Rensselaer,  Tompkins,  Wyoming,  Columbia,
 Schuyler, Rockland, Chenango, Monroe, Chemung, Seneca, Sullivan,  Wayne,
 Livingston,  Schenectady, Montgomery, Delaware, Clinton, Niagara, Yates,
 Lewis, Essex, Dutchess, Schoharie, Putnam, Chautauqua,  Orange,  Oswego,
 Ontario,  Jefferson,  St.  Lawrence,  WESTCHESTER or Onondaga and by the
 county of Cortland and the city of Cortland and by the county of  Broome
 and  the  city of Binghamton and by the county of Cayuga and the city of
 Auburn and by the county of Otsego and the city of Oneonta  and  by  the
 county of Madison and the city of Oneida and by the county of Fulton and
 the city of Gloversville or the city of Johnstown as provided in section
 twelve  hundred  ten  of  this  article)  at  a  rate in excess of three
 percent, except that, [in the city of Yonkers,] in  the  city  of  Mount
 Vernon, in the city of New Rochelle, in the city of Fulton [and], in the
 city  of  Oswego, [the rate may not be in excess of four percent] and in
 the city of White Plains, the rate may not be in excess of four percent,
 AND IN THE CITY OF YONKERS, THE RATE MAY NOT BE IN EXCESS  OF  FOUR  AND
 ONE-HALF  PERCENT,  and  except  that in the city of Poughkeepsie in the
 county of Dutchess, if  such  county  withdraws  from  the  metropolitan
 commuter  transportation  district  pursuant  to  section twelve hundred
 seventy-nine-b of the public authorities law and if the revenues from  a
 three-eighths  percent rate of such tax imposed by such county, pursuant
 to the authority of section twelve hundred  ten  of  this  article,  are
 required  by  local  laws, ordinances or resolutions to be set aside for
 mass transportation purposes, the rate may not be in excess of three and
 three-eighths percent.
   § 3. Subdivision (a) of section 1223 of the tax  law,  as  amended  by
 section two of this act, is amended to read as follows:
   (a)  No  transaction taxable under sections twelve hundred two through
 twelve hundred four of this article shall  be  taxed  pursuant  to  this
 article  by any county or by any city located therein, or by both, at an
 aggregate rate in excess of the highest rate set forth in the applicable
 subdivision of section twelve hundred one of this  article  or,  in  the
 case  of  any  taxes imposed pursuant to the authority of section twelve
 hundred ten or twelve hundred eleven of this article (other  than  taxes
 imposed  by  the  county of Nassau, Erie, Steuben, Cattaraugus, Suffolk,
 Oneida, Genesee, Greene, Franklin, Hamilton, Herkimer,  Tioga,  Orleans,
 Allegany,  Ulster,  Albany,  Rensselaer,  Tompkins,  Wyoming,  Columbia,
 Schuyler, Rockland, Chenango, Monroe, Chemung, Seneca, Sullivan,  Wayne,
 Livingston,  Schenectady, Montgomery, Delaware, Clinton, Niagara, Yates,
 Lewis, Essex, Dutchess, Schoharie, Putnam, Chautauqua,  Orange,  Oswego,
 Ontario,  Jefferson,  St.  Lawrence,  Westchester or Onondaga and by the
 county of Cortland and the city of Cortland and by the county of  Broome
 and  the  city of Binghamton and by the county of Cayuga and the city of
 Auburn and by the county of Otsego and the city of Oneonta  and  by  the
 county of Madison and the city of Oneida and by the county of Fulton and
 the city of Gloversville or the city of Johnstown as provided in section
 twelve  hundred  ten  of  this  article)  at  a  rate in excess of three
 percent, except that, IN THE CITY OF  YONKERS,  in  the  city  of  Mount
 Vernon,  in the city of New Rochelle, in the city of Fulton, in the city
 of Oswego, and in the city of White Plains,  the  rate  may  not  be  in
 excess of four percent[, and in the city of Yonkers, the rate may not be
 in  excess of four and one-half percent], and except that in the city of
 Poughkeepsie in the county of Dutchess, if such  county  withdraws  from

 S. 4940--B                          3
 
 the  metropolitan  commuter  transportation district pursuant to section
 twelve hundred seventy-nine-b of the public authorities law and  if  the
 revenues  from  a three-eighths percent rate of such tax imposed by such
 county,  pursuant to the authority of section twelve hundred ten of this
 article, are required by local laws, ordinances or resolutions to be set
 aside for mass transportation purposes, the rate may not be in excess of
 three and three-eighths percent.
   § 4. Section 1224 of the tax law is amended by adding a  new  subdivi-
 sion (jj) to read as follows:
   (JJ) THE COUNTY OF WESTCHESTER SHALL HAVE THE SOLE RIGHT TO IMPOSE THE
 ADDITIONAL  ONE  PERCENT  RATE OF TAX WHICH SUCH COUNTY IS AUTHORIZED TO
 IMPOSE PURSUANT TO THE AUTHORITY OF SECTION TWELVE HUNDRED TEN  OF  THIS
 ARTICLE  IN  THE  AREA OF THE COUNTY OUTSIDE THE CITIES OF MOUNT VERNON,
 NEW ROCHELLE, WHITE PLAINS AND YONKERS.   SUCH ADDITIONAL  RATE  OF  TAX
 SHALL  BE  IN  ADDITION TO ANY OTHER TAX WHICH SUCH COUNTY MAY IMPOSE OR
 MAY BE IMPOSING PURSUANT TO THIS ARTICLE OR ANY OTHER LAW AND SUCH ADDI-
 TIONAL RATE OF TAX SHALL NOT BE SUBJECT TO PREEMPTION. THE MAXIMUM THREE
 PERCENT RATE REFERRED TO IN THIS SECTION  SHALL  BE  CALCULATED  WITHOUT
 REFERENCE  TO THE ADDITIONAL ONE PERCENT RATE OF TAX WHICH THE COUNTY OF
 WESTCHESTER IS AUTHORIZED AND EMPOWERED TO  ADOPT  PURSUANT  TO  SECTION
 TWELVE HUNDRED TEN OF THIS ARTICLE.
   §  5. Section 1262-b of the tax law, as amended by section 1 of part A
 of chapter 8 of the laws of 2004, is amended to read as follows:
   § 1262-b. The Westchester county property tax stabilization and relief
 act. [(a)] Notwithstanding any other provision of law to the  contrary[,
 if]: (A) IF the county of Westchester imposes sales and compensating use
 taxes  pursuant to subdivision (a) of section twelve hundred ten of this
 article at the rate of three percent:
   (1) The county shall allocate ONE-HALF OF net  collections  from  such
 taxes  imposed  [at  the  rate  of one and one-half percent] PURSUANT TO
 SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE countywide
 among the cities and towns of the county on the basis of the ratio which
 the full valuation of real property in each city or town  bears  to  the
 aggregate full valuation of real property in all cities and towns of the
 county.    Amounts so allocated shall be credited to each of said cities
 and towns against the county taxes levied upon  real  property  in  said
 cities and towns.
   (2)  The  county  shall  allocate  and  credit or pay ONE-THIRD OF net
 collections [received by the county by  reason  of  its  additional  one
 percent  rate  of]  FROM such taxes [on] IMPOSED PURSUANT TO SUBDIVISION
 (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE TO  the  area  of  the
 county  outside  any city imposing sales and compensating use taxes at a
 rate of one and one-half percent or greater pursuant to the authority of
 subdivision (a) or at any rate pursuant to the authority of  subdivision
 (b) of section twelve hundred ten of this article as follows:
   (A)  One-third of such net collections shall be allocated and credited
 in the manner set forth in paragraph one of this subdivision.
   (B) One-sixth of such net collections  shall  be  allocated  and  paid
 quarterly by the county commissioner of finance, in cash, to the several
 school districts in such area of the county outside any such city impos-
 ing  sales  and  compensating use taxes. Such allocation and payment, to
 such several school districts, shall be made on the basis of  the  ratio
 which the population of each such school district bears to the aggregate
 population  of  all of the school districts in such area. In the case of
 school districts which are partially within and  partially  without  the
 county,  or partially within or partially without the area of the county

 S. 4940--B                          4
 
 outside a city imposing sales and compensating use taxes, the allocation
 and payment to each such school district shall be made on the  basis  of
 the population in such school district in the county, or in such area of
 the  county outside a city imposing sales and compensating use taxes, as
 the case may be. Such populations shall be determined in accordance with
 the latest federal census or special  population  census  under  section
 twenty of the general municipal law completed and published prior to the
 end  of the quarter in which such allocation and payment are made, which
 special population census shall include the entire area of  the  county;
 provided  that  such  special  population census shall not be taken more
 than once in every two years. A school district split between  Westches-
 ter  county  and  another county shall apply such allocation and payment
 solely to the benefit of the residents of the county in which the  sales
 and compensating use taxes are imposed.
   (C) One-half of such net collections shall be allocated and paid quar-
 terly  by the county commissioner of finance, in cash, to the cities not
 imposing sales and compensating use taxes and to the towns and  villages
 on  which such [additional one percent] rate is imposed, on the basis of
 the ratio which the population of each such city,  town  or  village  on
 which  such [additional one percent] rate is imposed bears to the entire
 population of all such cities, towns and villages in the area  on  which
 such [additional one percent] rate is imposed. Such populations shall be
 determined in accordance with the latest federal census or special popu-
 lation  census  under  section  twenty  of  the  general  municipal  law
 completed and published prior to the end of the quarter  in  which  such
 allocation  is  made,  which special population census shall include the
 entire area of the county; provided that such special population  census
 shall not be taken more than once in every two years.
   (D)  The  quarterly  allocation  and payment of cash to cities, towns,
 villages and school districts provided  for  under  this  paragraph  and
 under  paragraph  three of this subdivision AND UNDER SUBDIVISION (B) OF
 THIS SECTION may be made after payment by the state comptroller  to  the
 county  of the net collections subject to such allocation and receipt by
 the county commissioner of finance of the  quarterly  settlement  report
 issued  by  the  department, and may include adjustments for corrections
 applicable to such allocations. All ratios  established  by  the  county
 commissioner  of  finance  with respect to allocations to cities, towns,
 villages and school districts under this subdivision AND UNDER  SUBDIVI-
 SION  (B)  OF  THIS SECTION shall be carried to four decimal places. The
 allocation of net collections and payment of  cash  provided  for  under
 this  paragraph  and under paragraph three of this subdivision AND UNDER
 SUBDIVISION (B) OF THIS SECTION shall be made to a town based  upon  the
 population  of  the  town  less  the  population of any village therein,
 provided that a town/village or village/town shall be deemed  a  village
 for  the  purpose  of determining such allocation. The allocation of net
 collections and payment of cash provided for under  this  paragraph  and
 under  paragraph  three of this subdivision AND UNDER SUBDIVISION (B) OF
 THIS SECTION shall be applied by the cities, towns, villages and  school
 districts  receiving such allocation and payment as a credit against the
 taxes upon real property  imposed  by  such  municipalities  and  school
 districts,  respectively.  The  allocation and payment received by towns
 shall be credited against real property taxes in either the general fund
 town-wide or the town outside village fund or a combination thereof.
   (3) The county shall allocate and  credit  or  pay  ONE-SIXTH  OF  net
 collections [received by the county by reason of its additional one-half
 percent  rate  of]  FROM such taxes imposed [on] PURSUANT TO SUBDIVISION

 S. 4940--B                          5
 
 (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE TO  the  area  of  the
 county  outside  any city imposing sales and compensating use taxes at a
 rate of one and one-half percent or greater pursuant to the authority of
 subdivision  (a) or at any rate pursuant to the authority of subdivision
 (b) of section twelve hundred ten of this article as follows:
   (A) Seventy percent of such net collections shall be retained  by  the
 county to be used for any county purpose.
   (B) Ten percent of such net collections shall be allocated and paid in
 the manner set forth in subparagraph (B) of paragraph two of this subdi-
 vision.
   (C) Twenty percent of such net collections shall be allocated and paid
 in  the  manner  set  forth in subparagraph (C) of paragraph two of this
 subdivision.
   (b) IF THE COUNTY OF WESTCHESTER IMPOSES THE  ADDITIONAL  ONE  PERCENT
 RATE OF SALES AND COMPENSATING USE TAX AUTHORIZED BY CLAUSE FORTY-TWO OF
 SUBPARAGRAPH  (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN
 OF THIS ARTICLE, THE   COUNTY SHALL  ALLOCATE  AND  CREDIT  OR  PAY  NET
 COLLECTIONS  FROM  SUCH  ADDITIONAL  ONE  PERCENT RATE IN THE MANNER SET
 FORTH IN PARAGRAPH THREE OF SUBDIVISION (A) OF THIS SECTION WITH RESPECT
 TO THE AREA OF THE COUNTY OUTSIDE ANY CITY IMPOSING SALES AND COMPENSAT-
 ING USE TAXES AT A RATE OF ONE AND ONE-HALF PERCENT OR GREATER  PURSUANT
 TO  THE  AUTHORITY  OF  SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF
 THIS ARTICLE OR AT ANY RATE PURSUANT TO THE AUTHORITY OF SUBDIVISION (B)
 OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE.
   (C) Nothing in this section shall be construed to impair the powers of
 a city currently imposing sales and compensating use taxes  pursuant  to
 the authority of section twelve hundred ten of this article from contin-
 uing  to  do  so  in accordance with law. No school district in any city
 imposing such sales and compensating use  taxes  shall  be  entitled  to
 receive  a  cash  allocation and payment under paragraph two or three of
 subdivision (a) OR UNDER SUBDIVISION (B) of this section. No city,  town
 or village authorized or entitled to receive an allocation under subpar-
 agraph  (C)  of  paragraph two or subparagraph (C) of paragraph three of
 subdivision (a) OR UNDER  SUBDIVISION  (B)  of  this  section  shall  be
 authorized  or  entitled  to  receive  any cash allocation under section
 twelve hundred sixty-two of this article.
   § 6. Subdivision e of section 4 and sections 5, 7 and  16  of  chapter
 272  of the laws of 1991, amending the tax law relating to the method of
 disposition of sales and compensating use  tax  revenue  in  Westchester
 county  and  enacting the Westchester county spending limitation act, as
 amended by chapter 81 of the laws  of  2017,  are  amended  to  read  as
 follows:
   e.  "Spending  limitation" means the maximum amount of county spending
 established in county fiscal years 1992, 1993, 1994, 1995,  1996,  1997,
 1998,  1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009,
 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [and],  2020,
 2021 AND 2022.
   § 5. Establishment of annual spending limitation. a. For county fiscal
 years  1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002,
 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013,  2014,
 2015,  2016,  2017, 2018, 2019 [and], 2020, 2021 AND 2022 there shall be
 in effect an annual spending limitation. The spending  limitation  shall
 be  derived  from  a  fixed percentage reflecting the ratio of base year
 spending to county personal income.  County  personal  income  for  such
 calculation shall be for the period January 1, 1986 through December 31,
 1986. Such percentage shall be applied to county personal income for the

 S. 4940--B                          6
 
 period  January  1,  1989  through  December  31, 1989, to determine the
 spending limitation for county fiscal year 1992; to determine the spend-
 ing limitation for county fiscal year 1993,  such  percentage  shall  be
 applied to county personal income for the period January 1, 1990 through
 December  31,  1990;  to  determine  the  spending limitation for county
 fiscal year 1994, such percentage shall be applied  to  county  personal
 income  for  the  period  January  1, 1991 through December 31, 1991; to
 determine the spending limitation for  county  fiscal  year  1995,  such
 percentage  shall  be  applied  to county personal income for the period
 January 1, 1992 through December 31, 1992;  to  determine  the  spending
 limitation for county fiscal year 1996, such percentage shall be applied
 to  county personal income for the period January 1, 1993 through Decem-
 ber 31, 1993; to determine the spending  limitation  for  county  fiscal
 year  1997,  such  percentage shall be applied to county personal income
 for the period January 1, 1994 through December 31, 1994;  to  determine
 the  spending  limitation  for  county fiscal year 1998, such percentage
 shall be applied to county personal income for  the  period  January  1,
 1995 through December 31, 1995; to determine the spending limitation for
 county  fiscal  year  1999,  such  percentage shall be applied to county
 personal income for the period January  1,  1996  through  December  31,
 1996;  to determine the spending limitation for county fiscal year 2000,
 such percentage shall be applied to county personal income for the peri-
 od January 1, 1997 through December 31, 1997; to determine the  spending
 limitation for county fiscal year 2001, such percentage shall be applied
 to  county personal income for the period January 1, 1998 through Decem-
 ber 31, 1998; to determine the spending  limitation  for  county  fiscal
 year  2002,  such  percentage shall be applied to county personal income
 for the period January 1, 1999 through December 31, 1999;  to  determine
 the  spending  limitation  for  county fiscal year 2003, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2000 through December 31, 2000; to determine the spending limitation for
 county  fiscal  year  2004,  such  percentage shall be applied to county
 personal income for the period January  1,  2001  through  December  31,
 2001;  to determine the spending limitation for county fiscal year 2005,
 such percentage shall be applied to county personal income for the peri-
 od January 1, 2002 through December 31, 2002; to determine the  spending
 limitation for county fiscal year 2006, such percentage shall be applied
 to  county personal income for the period January 1, 2003 through Decem-
 ber 31, 2003; to determine the spending limitation for the county fiscal
 year 2007, such percentage shall be applied to  county  personal  income
 for  the  period January 1, 2004 through December 31, 2004; to determine
 the spending limitation for the county fiscal year 2008, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2005 through December 31, 2005; to determine the spending limitation for
 the  county fiscal year 2009, such percentage shall be applied to county
 personal income for the period January  1,  2006  through  December  31,
 2006;  to  determine  the spending limitation for the county fiscal year
 2010, such percentage shall be applied to county personal income for the
 period January 1, 2007 through  December  31,  2007;  to  determine  the
 spending  limitation  for  the  county fiscal year 2011, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2008 through December 31, 2008; to determine the spending limitation for
 the  county fiscal year 2012, such percentage shall be applied to county
 personal income for the period January  1,  2009  through  December  31,
 2009;  to  determine  the spending limitation for the county fiscal year
 2013, such percentage shall be applied to county personal income for the

 S. 4940--B                          7
 
 period January 1, 2010 through  December  31,  2010;  to  determine  the
 spending  limitation  for  the  county fiscal year 2014, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2011 through December 31, 2011; to determine the spending limitation for
 the  county fiscal year 2015, such percentage shall be applied to county
 personal income for the period January  1,  2012  through  December  31,
 2012;  to determine the spending limitation for county fiscal year 2016,
 such percentage shall be applied to the county personal income  for  the
 period  January  1,  2013  through  December  31, 2013; to determine the
 spending limitation for the county fiscal  year  2017,  such  percentage
 shall  be  applied  to  county personal income for the period January 1,
 2014 through December 31, 2014; and to determine the spending limitation
 for county fiscal year 2018, such percentage shall  be  applied  to  the
 county  personal  income for the period January 1, 2015 through December
 31, 2015; to determine the spending limitation  for  the  county  fiscal
 year  2019,  such  percentage shall be applied to county personal income
 for the period January 1, 2016 through December 31, 2016; and to  deter-
 mine  the spending limitation for county fiscal year 2020, such percent-
 age shall be applied to the county personal income for the period  Janu-
 ary  1,  2017  through  December 31, 2017; AND TO DETERMINE THE SPENDING
 LIMITATION FOR THE COUNTY FISCAL YEAR 2021,  SUCH  PERCENTAGE  SHALL  BE
 APPLIED TO COUNTY PERSONAL INCOME FOR THE PERIOD JANUARY 1, 2018 THROUGH
 DECEMBER  31,  2018;  AND  TO  DETERMINE THE SPENDING LIMITATION FOR THE
 COUNTY FISCAL YEAR 2022, SUCH PERCENTAGE  SHALL  BE  APPLIED  TO  COUNTY
 PERSONAL  INCOME  FOR  THE  PERIOD  JANUARY 1, 2019 THROUGH DECEMBER 31,
 2019.
   b. The spending limitation shall serve as a statutory  cap  on  county
 spending  to be reflected in the tentative budget as well as the enacted
 budget for county fiscal years beginning in 1992.
   § 7. Mandatory tax reduction. In the event that  the  county  spending
 subject  to the spending limitation exceeds such limitation in the adop-
 tive county budget for county fiscal year 1992, 1993, 1994, 1995,  1996,
 1997,  1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008,
 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018,  2019  [or],
 2020, 2021 OR 2022 then section 1262-b of the tax law shall be repealed.
   §  16. This act shall take effect immediately, provided, however, that
 sections one through seven of this act shall be in full force and effect
 until [May 31, 2020, provided, however, that if the county of  Westches-
 ter  imposes the tax authorized by section 1210 of the tax law in excess
 of three percent, then sections one through seven of this act  shall  be
 deemed  repealed; provided that the commissioner of taxation and finance
 shall notify the legislative bill drafting commission upon the repeal of
 section 1262-b of the tax law pursuant to section seven of the Westches-
 ter county spending limitation act in  order  that  the  commission  may
 maintain an accurate and timely effective data base of the official text
 of  laws  of  the  state  of  New  York  in furtherance of effecting the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law] NOVEMBER 30, 2022.
   §  7.  This act shall take effect immediately; provided, however, that
 section three of this act shall take effect December 1, 2020,  provided,
 further,  that  the  amendments to section 1262-b of the tax law made by
 section five of this act shall not affect the expiration of such section
 and shall expire therewith; provided, further, that  the  amendments  to
 sections 4, 5, and 7 of chapter 272 of the laws of 1991 shall not affect
 the expiration of such sections and shall expire therewith.

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Senate Bill S4940B

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Sponsored By

Shelley B. Mayer

Archive: Last Bill Status - Signed by Governor

Bill Amendments

2019-S4940 - Details

2019-S4940 - Summary

2019-S4940 - Sponsor Memo

2019-S4940 - Bill Text download pdf

2019-S4940A - Details

2019-S4940A - Summary

2019-S4940A - Sponsor Memo

2019-S4940A - Bill Text download pdf

2019-S4940B (ACTIVE) - Details

2019-S4940B (ACTIVE) - Summary

2019-S4940B (ACTIVE) - Sponsor Memo

2019-S4940B (ACTIVE) - Bill Text download pdf

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