Authorizes the city of Yonkers to impose an additional one-half of one percent sales tax

BILL NUMBER:S5993A

Title of bill

An act to amend the tax law, in relation to authorizing the city of Yonkers to impose additional sales tax; and providing for the repeal of such provisions upon expiration thereof

Purpose or general idea of bill

To authorize the city of Yonkers to impose additional sales tax

Summary of specific provisions

Section 1: Clause 1 of subparagraph (ii) of the opening paragraph of section 1210 of the tax law, is amended to include; and (b) one-half of one percent in addition to the other rates authorized in the paragraph for such city;

Section 2: § 2. Subparagraph (iii) of the opening paragraph of section 1210 of the tax law, as separately amended by chapters 191, 217, and 325 of the laws of 2013, is amended to include one percent and one-half of one percent for the city of Yonkers;

Section 3: § 3. Subdivision (d) of section 1224 of the tax law, as added by chapter 871 of the laws of 1975, is amended to impose the additional one-half of one percent rate;

Section 4: § 4. Paragraph 2 of subdivision (c) of section 1261 of the tax law, as amended by section 9 of part SS-1 of chapter. 57 of the laws of 2008, is amended to read as follows: The city of Yonkers is authorized to impose pursuant to item (a) of clause (1) of subparagraph (ii) of the opening paragraph of section twelve hundred ten of this article,

Section 5: § 5. The tax law is amended by adding a new section 1262-t, to read as follows: § 1262-t. City of Yonkers - Disposition of net collections from the additional one-half of one percent rate of sales and compensating use taxes in the city of Yonkers. If the city of Yonkers imposes the additional one-half percent rate of sales and compensating use taxes authorized by item (b) of clause (1) of subparagraph (ii) of the opening paragraph of section twelve hundred ten of this article, the city shall use the net collections from such additional one-half of one percent rate solely for the support of education, unless the city council votes, on an annual basis, to use such net collections for a different purpose of the city.

Justification

The City of Yonkers currently imposes a sales and compensating use tax of 8.375% which is shared by New York State, Westchester. County and the Metropolitan Transportation Authority as authorized pursuant to Article 29 of the Tax Law of the State of New York; and

The portion of the sales and compensating use tax collected in the City of Yonkers and dedicated to the City has been the same rate of 2.5% for nearly thirty years. The City of Yonkers has a critical need

for additional revenues to help ensure fiscal stability and the provision of all necessary public services. The City of Yonkers has determined that a one-half percent increase in the sales and use compensating tax for this City would significantly alleviate the present fiscal stress on the City, including its newly merged public school system, enabling efforts toward financial stability.

Prior legislative history

New legislation.

Fiscal implications for state and local governments

None to the State, positive fiscal implication to the City of Yonkers.

Effective date

This act shall take effect immediately.