Relates to a temporary annual assessment and the effectiveness of part NN of chapter 59 of the laws of 2009

2 Co-sponsors

• David Carlucci
• Patrick M. Gallivan

BILL NUMBER:S7662

Title of bill

An act to amend the public service law, in relation to a temporary annual assessment; to amend part NN of chapter 59 of the laws of 2009 amending the public service law relating to financing operations of the department of public service, in relation to the effectiveness thereof; and to amend the public service law, in relation to reducing the amount a utility can be assessed

Purpose

To eliminate the temporary 18-A increase one year early and restore the base assessment back to one-third of one percent.

Summary of provisions

ELIMINATE THE 500 PERCENT ENERGY TAX HIKE: In 2009 this tax was increased from one-third of one percent to two percent, a 500 percent increase. The phase-out of this tax hike from two percent back to the base tax would be accelerated the by one year, from 2014 to 2013.

This bill will also reduce the permanent increase in the base tax from one-third of one percent to one percent that was enacted in 2009. The base rate will be restored to the previous rate of one-third of one percent. This will save New Yorkers $261 million in SFY 2012-13 and another $261 million in SFY 2013-14.

Justification

This bill will reduce utility bills for every resident and business in New York that uses utility services. This reduction will help residents to keep more money in their pockets and will help businesses reduce their cost of doing business allowing them to grow their businesses and create jobs.

Legislative history

This is a new bill.

Fiscal implications

This bill will save New York businesses $261 million this year.

Effective date

Effective immediately.