Authorizes the county of Hamilton to impose an additional 1% of sales and compensating use taxes

BILL NUMBER:S4854A

Title of bill

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

Purpose

To authorize Hamilton County to impose and additional one percent rate of sales and compensating use taxes for the period beginning December 1, 2012 and ending November 30, 2013.

Summary of provisions

Bill section 1 would add a new clause (41) of subparagraph (i) of the opening paragraph of section 1210 of the Tax Law, to authorize Hamilton County to impose an additional one percent rate of sales and compensating use taxes for the period commencing December 1, 2012, and ending November 30, 2013.

Bill section 2 would amend subparagraph (iii) of the opening paragraph of section 1210 of the Tax Law, regarding the calculation of the maximum tax rate for preemption purposes under section 1224 of the Tax Law, to provide Hamilton County with the authority to impose an additional one percent.

Bill section 3 would amend subparagraph (a) of section 1223 of the Tax Law, to include Hamilton County to the list of municipalities authorized to impose an additional one percent rate of tax above the three percent rate set in section 1210.

Bill section 4 would add a new subdivision (ii) of section 1224 of the Tax Law to provide that Hamilton County has the sole right to impose the additional one percent rate of tax.

Bill section 5 authorizes Hamilton County to adopt and amend local laws, ordinances or resolutions to impose the additional rate of tax authorized by this act on December 1, 2012.

Bill section 6 provides the effective date of the bill.

Existing law

Hamilton County currently imposes the general three percent rate of sales and Use taxes pursuant to section 1210(a)(i)(i) of the Tax Law.

Justification

The Hamilton County Board of supervisors has requested introduction of this legislation to allow the county to impose an additional one percent rate of sales tax. Hamilton County has continued to suffer under the burden of decreasing state revenues, and the County has continued to be confronted by increasing mandated Costs. This trend has continuously depleted the County fund balance and increased

property taxes even with significant restructuring and the elimination of County positions. The county is trying to seek additional sources of revenue to balance the 2011 budget. Hamilton County's current 3% sales tax rate is not sufficiently adequate to offset the increased costs. Hamilton County intends to direct all additional income to be derived from the additional one percent sales tax increase to go directly to reduce the real property tax levy.

Legislative history

2011: S.4854 Referred to Investigations Government Operations; A.7272 Ways and Means

Fiscal implications

None to the state.

LOCAL FISCAL IMPLICATIONS:; The County estimates this will generate approximately $766,000 in revenue.

Effective date

This act shall take effect immediately.