Authorizes the county of St. Lawrence to impose an additional 1% of sales and compensating use taxes

2 Co-sponsors

• Joseph A. Griffo
• Betty Little

BILL NUMBER:S5104

Title of bill

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

Purpose

To authorize St. Lawrence County to impose an additional one percent rate of sales and compensating use taxes for the period beginning December 1, 2013 and ending November 30, 2015.

Summary of provisions

Section 1 would add a new clause (41) to subparagraph (i) of the opening paragraph of section 1210 of the Tax Law, to authorize St Lawrence County to impose an additional one percent rate of sales and compensating use taxes for the period commencing December 1, 2013, and ending November 30, 2015.

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 that St. Lawrence County's additional one Descent rate would be excluded from that calculation.

Section 3 would amend subdivision (a) of section 1223 of the Tax Law, to provide technical changes to sections 1210 or 2011, respectively, of the Tax Law that reflect the authorization of the St. Lawrence County to impose an additional one percent rate of sales tax.

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

Section 5 provides that the bill would take effect December 1, 2013, provided that St. Lawrence County would be authorized to adopt and amend local laws, ordinances or resolutions to impose the additional rate of tax authorized by this act on or after it becomes law.

Section 6 provides the effective date, which is immediate.

Justification

This legislation was submitted at the request of the St. Lawrence County Legislature in order to relieve its current severe fiscal stress. A recent report by the State Comptroller found a budget imbalance despite increasing revenues that has resulted in an overreliance on reserve fund balance by the County. During a 10-year review for the period 2001-2011, the Comptroller found that county revenues increased at a rate faster than the state average. At the same time, however, spending also increased at a pace (4.6%) that exceeded the state average (3.3%) (revenue growth for the period was 4.2%).

No level of government has been immune to the effects of the national recession, but all have had to adjust to the new economic realities by

making difficult decisions and reevaluating their methods of providing critically needed services and programs in order to better align spending and revenue. The Comptroller recommended that the county adopt a long-range plan to restore its fund balance and improve its overall fiscal outlook.

At the request of the sponsors, the county has proposed such a plan that holds the line on spending, restores fund balance, reduces the county's reliance on short-term borrowing to meet recurring budgetary needs and, importantly, provides sorely needed property tax relief to county residents, which includes a 14% reduction in the property tax levy. This plan is premised on the approval of this home rule legislation, and subsequent adoption of a local law.

Legislative history

New Bill

Fiscal implications

None to the State.

Effective date

This act shall take effect immediately.