Extends authorization of the county of Steuben to impose an additional one percent of sales and compensating use taxes until November 30, 2011

Title of bill

An act to amend the tax law, in relation to extending the authorization of the county of Steuben to impose an additional one percent of sales and compensating use taxes

Purpose

To extend the authorization for Steuben County's additional 1% sales tax for an additional 2 years.

Summary of provisions

The bill amends sections 1210 and 1262-h of the tax law to extend the additional 1% Steuben County sales tax from November 30, 2009 to November 30, 2011.

Existing law

Authorizes the County to impose the additional tax until November 30, 2009.

Justification

Steuben County has had an increase in the County sales tax (from 3% to 4%) since 1992 when the additional 1% was first authorized by the State Legislature. The original authorization was extended until November 30, 1997 through the enactment of Chapter 217 of the Laws of 1995, was subsequently extended by Chapter 343 of the laws of 1997, Chapter 406 of the laws of 1999, Chapter 118 of the Laws of 2001, Chapter 247 of the laws of 2003 and was subsequently reextended.

The additional 1% sales tax has again been requested by the Steuben County legislature to alleviate what would otherwise be a disproportionate tax increase upon real property owners as well as a potentially major reduction in services. At the County's request, the bill also adjusts the current statutorily provided allocation formula from $550,000 to $610,000 annually to the City of Hornell and from $600,000 to $650,000 annually to the City of Corning. The towns and villages of Steuben County will continue to receive a proportionate allotment of $750,000 based upon their respective equalized full value assessment.

Legislative history

New Bill.

Local fiscal implications

Approximately 7.2 million dollars of additional revenue generated to municipalities annually.

Effective date

Immediately.