Extends provisions of law relating to the disposition of sales and compensating use tax revenue in the county of Westchester

BILL NUMBER:S5214

Title of bill

An act 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 of bill

This bill extends the expiration of the provisions of the Westchester County spending limitation act from May 31, 2013 to May 31, 2015.

Summary of specific provisions

Subdivision e of section 4 and sections 5, 7 and 16 of chapter 272 of the laws of 1991, amending the tax law in 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 section 1 of part DD of chapter 118 of the laws of 2001 are amended to extend the expiration thereof from May 31, 2013 to May 31, 2015.

Justification

The Westchester County Spending Limitation Act, as first enacted by Chapter 272 of the Laws of 1991, added a new Section 1262-b to the New York State Tax ("Tax Law") to provide for a special distribution of Westchester County's sales tax revenue. Pursuant to the terms of Chapter 272 of the Laws of 1991, Section 1262-b of the Tax Law was to expire on June 30, 1994. This sunset date has been extended, at two-year intervals, by Acts of the state Legislature adopted in the calendar year preceding that of the scheduled expiration date, as follows: L. 1993, Chap 265 extending expiration date from June 30, 1994 to May 31, 1996; L. 1995, Chap 180 (extending expiration date from May 31, 1996 to May 31, 1998); L. 1997, Chap. 676 (extending expiration date from May 31, 1998 to May 31, 2000); L. 1999, Chap. 285 (extending expiration date from May 31, 2000 to May 31, 2002); L. 2001, Chap. 118, Pt, DD (extending expiration date from May 31, 2002 to May 31, 2004). L. 2003 and L. 2005, Chap. 679, extended the expiration date to May 31, 2008. L. 2007, Chap. 367 extended the expiration date to May 31, 2010. Chap. 112 of 2009 extended the expiration date to May 31, 2012. Chap. 199 of 2011 extended the expiration to May 31, 2014.

The state legislature's adoption of an Act in the form annexed hereto would extend the expiration date of the Westchester County Spending Limitation Act from May 31, 2013 to May 31, 2015, and would authorize Westchester County's continued distribution of its sales tax revenue in the manner set forth in section 1262-b of the Tax Law until such extended expiration date. This extender applies to both the original sales tax authorized in 1991 and the additional sales tax authorized in 1994.

Since its inception, the sales tax has been a vitally important source of revenue to the county, its local governments, and school districts.

Providing for the extension of this provision during the 2011 legislative session will enable the County, and the various local governments, and school districts that rely on the revenues generated from the sales and compensating use tax to more appropriately plan their budgets for the coming fiscal year.

Legislative history

This bill extends the provisions of the Westchester County spending Limitation act which have been statutorily extended by two year intervals since 1991.

Fiscal implications

No cost to state and positive fiscal impact to Westchester County, its municipal governments, and school districts.

Effective date

Immediately.