What's happening
This bill repeals Niagara County's authority to impose additional sales and use taxes and shifts Medicaid expenses there to New York State.
Why it matters
Financial Relief for Local Government. By shifting the responsibility for Medicaid expenses from Niagara County to New York State, the bill could significantly alleviate the county's budget pressures, potentially freeing up local funds for other priorities or reducing the need for local tax increases.
Impact on Local Sales Tax Revenue. The repeal of Niagara County's authority to impose an additional sales and use tax rate will likely decrease county revenue, which may affect funding for county services unless offset by other state support.
Tax Uniformity Across Counties. Removing Niagara from the list of counties with special authorization for higher sales taxes promotes greater consistency in sales tax rates statewide. This could make the region more attractive to shoppers and businesses who compare tax rates across county borders.
Precedent for State-County Fiscal Relationships. If successful, this legislation could serve as a model for other counties seeking state assumption of Medicaid costs, potentially reshaping how Medicaid is funded and administered at the local level in New York.
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Who cares
Headline styles
State Takes Niagara Medicaid Costs
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 62
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Shift Medicaid Costs to State
In Assembly Committee · Ways And Means · Sponsor Michael J. Norris
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
684
2017-2018 Regular Sessions
IN SENATE
January 4, 2017
Introduced by Sen. ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to medicaid payments by the county of Niagara and to repeal certain provisions of the tax law and section 5 of chapter 4 of the laws of 2003, relating to authorizing Niagara county to impose an additional rate of sales and compensating use taxes, relating thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Clause 29 of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by chapter 183 of the laws of 2015, is REPEALED.
§ 2. Subdivision (v) of section 1224 of the tax law, as added by chapter 4 of the laws of 2003, is REPEALED.
§ 3. Section 1262-n of the tax law is REPEALED.
§ 4. Section 5 of chapter 4 of the laws of 2003, relating to authorizing Niagara county to impose an additional rate of sales and compensating use taxes, is REPEALED.
§ 5. Subparagraph (iii) of the opening paragraph of section 1210 of the tax law, as separately amended by chapters 67, 213 and 332 of the laws of 2015, is amended to read as follows:
(iii) the maximum rate referred to in section twelve hundred twentyfour of this article shall be calculated without reference to the following additional rates authorized in subparagraphs (i) and (ii) of this paragraph: one and one-half percent for the county of Allegany; one percent for the counties of Rensselaer, Erie, Cattaraugus, Wyoming, Ulster, Albany, Suffolk, Essex, Greene, Orleans, Franklin, Hamilton, Herkimer, Jefferson, Genesee, Columbia, Schuyler, Chenango, Monroe, Steuben, Chemung, Seneca, Livingston, [Niagara,] Yates, Tioga, Montgomery, Delaware, Wayne, Schoharie, Putnam, Clinton, St. Lawrence and Onondaga and the cities of Mount Vernon and New Rochelle; three-quarters of one percent for the counties of Dutchess, Lewis, and Orange; one percent and three-quarters of one percent or one-half of one percent for the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04518-01-7
S. 684 2
county of Oneida; three-quarters of one percent and one-half of one percent for the county of Nassau; one-half of one percent and one-quarter of one percent and one-quarter of one percent for the city of White Plains; one-half or one percent for the county of Tompkins; threeeighths of one percent and five-eighths of one percent for the county of Rockland; one-half of one percent for the counties of Putnam and Schenectady; one-eighth of one percent and three-eighths of one percent for the county of Ontario; one-half of one percent and one-half of one percent for the county of Sullivan; one percent and one-half of one percent for the city of Yonkers; and three-quarters of one percent or one-half of one percent for the county of Chautauqua;
§ 6. Subdivision (a) of section 1223 of the tax law, as separately amended by chapters 191 and 217 of the laws of 2013, is amended to read as follows:
(a) No transaction taxable under sections twelve hundred two through twelve hundred four of this article shall be taxed pursuant to this article by any county or by any city located therein, or by both, at an aggregate rate in excess of the highest rate set forth in the applicable subdivision of section twelve hundred one of this article or, in the case of any taxes imposed pursuant to the authority of section twelve hundred ten or twelve hundred eleven of this article (other than taxes imposed by the county of Nassau, Erie, Steuben, Cattaraugus, Suffolk, Oneida, Genesee, Greene, Franklin, Hamilton, Herkimer, Tioga, Orleans, Allegany, Ulster, Albany, Rensselaer, Tompkins, Wyoming, Columbia, Schuyler, Rockland, Chenango, Monroe, Chemung, Seneca, Sullivan, Wayne, Livingston, Schenectady, Montgomery, Delaware, Clinton, [Niagara,] Yates, Lewis, Essex, Dutchess, Schoharie, Putnam, Chautauqua, Orange, Oswego, Ontario, Jefferson, St. Lawrence or Onondaga and by the county of Cortland and the city of Cortland and by the county of Broome and the city of Binghamton and by the county of Cayuga and the city of Auburn and by the county of Otsego and the city of Oneonta and by the county of Madison and the city of Oneida and by the county of Fulton and the city of Gloversville or the city of Johnstown as provided in section twelve hundred ten of this article) at a rate in excess of three percent, except that, in the city of Yonkers, in the city of Mount Vernon, in the city of New Rochelle, in the city of Fulton and in the city of Oswego, the rate may not be in excess of four percent and in the city of White Plains, the rate may not be in excess of four percent and except that in the city of Poughkeepsie in the county of Dutchess, if such county withdraws from the metropolitan commuter transportation district pursuant to section twelve hundred seventy-nine-b of the public authorities law and if the revenues from a three-eighths percent rate of such tax imposed by such county, pursuant to the authority of section twelve hundred ten of this article, are required by local laws, ordinances or resolutions to be set aside for mass transportation purposes, the rate may not be in excess of three and three-eighths percent.
§ 7. Notwithstanding any other law, rule or regulation to the contrary, expenses for Medicaid in the county of Niagara shall be borne by New York state.
§ 8. This act shall take effect immediately and shall apply in taxable years beginning on and after such date; provided, however, that the amendments made to subparagraph (iii) of the opening paragraph of section 1210 of the tax law, made by section five of this act, shall not affect the expiration and reversion of such paragraph and shall expire and revert therewith.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to medicaid payments by the county of Niagara and to repeal certain provisions of the tax law and section 5 of chapter 4 of the laws of 2003, relating to authorizing Niagara county to impose an additional rate of sales and compensating use taxes, relating thereto
Purpose or general idea of bill
Repeals the authorization for the additional 1% sales tax for Niagara County in conjunction with a State takeover of Medicaid payments made by the County.
Summary of specific provisions
Sections 1-6 repeal the additional 1% Sales tax authorization for Niagara County. Section 7 states that expenses for Medicaid for Niagara County will be borne by the State.
Section 8 is the effective date.
Justification
In 2003 Niagara County asked for and agreed to a 1% Sales tax increase with that increase to be used directly to pay for the County share of Medicaid.
This legislation would repeal that additional sales tax but allow for a State takeover of Medicaid costs.
This concept would remove a significant tax burden from the residents of Niagara County, while at the same time make the County more business and consumer friendly by lowering its Sales Tax.
Prior legislative history
S. 3447A of 2015/2016; Referred to Committee on Investigations and Government Operations
Fiscal implications
To be determined
Effective date
This act shall take effect immediately and shall apply in taxable years beginning on and after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.