Authorizes certain counties, cities and school districts to impose up to a four percent rate of sales and compensating use taxes; repealer

Section 2 repeals subparagraph (ii) of the opening paragraph of section 1210 of the Tax Law and adds a new subparagraph (ii) to allow cities that impose taxes described in subdivision (a) of this section at the current rates without having to seek re-authorization from the State every two years listing those cities and their rates.

Section 3 repeals subparagraph (iii) of the opening paragraph of section 1210 of the Tax Law and adds a new subparagraph (iii) to allow the maximum rate referred to in section 1224 of this article to be calculated without reference to the additional rates authorized for counties, other than the counties of Cayuga, Cortland, Fulton, Madison and Otsego in subparagraph (i) and the cities in subparagraph (ii) of this paragraph.

Section 4 adds a new subdivision (q) to Section 1210 of the Tax Law.

Section 5 repeals section 1210-E of the Tax Law

Section 6 repeals many subdivisions of section 1224 of the Tax Law.

Section 7 Adds four new subdivisions of the Tax Law. (d), (e), (f), (g).

Section 8 amends the Tax Law to add three new sections 1262-t, 1262-u and 1262-v concerning (t) Oneida County, (u) Clinton County and (v) Ontario County

Section 9 amends section 1262-s of the Tax Law, as amended by Chapter 226 of the Law of 2011 concerning the collection of an additional one-quarter of one percent rate of sales and compensating use taxes by Herkimer County.

Section 10 Adds a new section, 1265, to the Tax law relating to referencing.

Section 11 deals with severability.

Section 12 gives effective date

Justification

As more and more localities have been authorized over the years to impose additional rates of sales and use taxes, the requirement to have their authority renewed every other year has placed an extraordinary administrative burden on them incurring additional time and expense by staff This bill would provide local mandate relief by easing or eliminating this burden. The biennial renewal of bills is also a burden on the State Legislature every other year in the same way. Drafting and renewing the State enabling legislation for this ever-expanding population of counties and cities, and then preparing model enactments for them to impose or extend the additional rates, have also tied up the Tax Department's resources. Often, a county or city seeks to rush a bill through the Legislature to meet a local fiscal emergency. These bills often get passed without sufficient time for the Tax Department to notify vendors and other persons required to collect taxes. Those businesses then do not have sufficient time to adjust their cash registers and take other steps necessary to collect the correct amount of tax on the effective date of the new rate, putting them at risk and threatening the locality's revenues until the businesses can come into compliance.

By authorizing counties and cities each to impose at their current sales tax rate, the 52 counties and 5 cities that need the biannual renewals will be removed. This will alleviate the workload for those laboring in the counties, cities, New York State Legislature and New York State Tax Department. This authorization will also enhance flexibility for counties and cities to secure needed revenues as local requirements dictate, without the need for special state legislation.

This legislation benefits all stakeholders it streamlines and optimizes state and local government operations. It also helps to minimize compliance problems for businesses required to collect sales and use taxes because there will be no need for state enabling legislation allowing cities and counties boards to adopt local enactments reauthorize their existing tax rates.

Legislative history

2015: S. 5321 Passed Senate / A. 2387 Ways and Means 2013-14: S. 3812-C Passed Senate(2013) Rules(2014) / A 7713-B Ways and Means 2011-12: S. 5629-B Advanced to Third Reading/A. 6575-A Ways and Means

Fiscal implications

Minimal Savings.

Effective date

This act shall take effect immediately.