Requires that 1/4% of the state sales tax collected in rural counties be paid to such counties for infrastructure, fire fighting, emergency services and senior services

BILL NUMBER:S5403

Title of bill

An act to amend the tax law, in relation to requiring one-quarter of one percent of the state sales and compensating use taxes collected in rural areas to be paid to the county in which such rural area is located

Purpose

Requires that one-quarter of one percent of the state sales tax collected in rural counties be paid to such counties for infrastructure, fire fighting, emergency services and senior services.

Summary of provisions

Section 1 states Section 1148 of the tax law, as amended by section 57 of part HH of chapter 57 of the laws of 2013 is amended and adds subdivision (b).

Section 2 establishes the effective date as the first of July next succeeding the date on which it shall have become a law.

Justification

Some of the most expensive aspects of county government are a high priority for the majority of all rural communities: creating and maintaining critical infrastructure, financially supporting our first responders, and senior citizen care agencies. Through this legislation counties that are designated as rural will receive back one quarter of one percent of sales tax that the county would send to the state. The state will return that amount to the county the sales and compensating use tax was collected from. These monies may only be used for : infrastructure projects, volunteer fire departments/companies, emergency medical services and or senior service agencies.

Legislative history

This is a new bill.

Fiscal implications

An estimated $4.3 million will be redistributed to the counties. The amount received by each county varies.

Effective date

This act shall take effect on the first of July next succeeding the date on which it shall have become law.