What's happening
This bill requires that 0.25% of state sales tax collected in rural counties be given to those counties for local infrastructure, emergency, and senior services.
Why it matters
Directs new funding to critical rural needs. By earmarking a portion of state sales tax for rural counties, the bill ensures that funds are specifically available for infrastructure, emergency services, and senior service agencies—areas often underfunded in rural communities.
Recognizes rural population challenges. The bill defines "rural areas" based on counties with populations under 200,000, targeting support to places likely to face shrinking tax bases and aging infrastructure.
Improves local control and service delivery. Allowing counties to directly receive and allocate these funds gives local governments more flexibility to address urgent, locally-identified priorities, rather than relying solely on state-managed programs.
May set a precedent for targeted revenue sharing. If successful, this approach could encourage similar measures to address disparities between rural and urban funding, potentially influencing future state policy on revenue distribution.
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Who cares
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Send Sales Tax to Counties
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Sponsors
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History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
892
2017-2018 Regular Sessions
IN SENATE
January 5, 2017
Introduced by Sen. AMEDORE -- 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 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
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1148 of the tax law, as amended by section 57 of part HH of chapter 57 of the laws of 2013, is amended to read as follows:
§ 1148. Deposit and disposition of revenue. [All] (a) Except as otherwise provided in subdivision (b) of this section, all taxes, interest and penalties collected or received by the commissioner under this article shall be deposited and disposed of pursuant to the provisions of section one hundred seventy-one-a of this chapter; provided however, the comptroller shall on or before the twelfth day of each month, pay all such taxes, interest and penalties collected under this article and remaining to the comptroller's credit in such banks, banking houses or trust companies at the close of business on the last day of the preceding month, into the general fund of the state treasury, except as otherwise provided in sections ninety-two-d, ninety-two-h, and ninety-two-r of the state finance law and sections eleven hundred two, eleven hundred four and eleven hundred nine of this article.
(b) Notwithstanding the provisions of subdivision (a) of this section and section one hundred seventy-one-a of this chapter, one-quarter of one percent of all taxes, interest and penalties collected or received by the commissioner under this article for sales and uses in a county which is a rural area, shall be distributed and paid by the commissioner to the county in a rural area in which the collection of the tax for a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03810-01-7
S. 892 2
sale or use was collected. Each county receiving monies pursuant to this subdivision shall disburse funds solely for the purposes of infrastructure projects, volunteer fire departments and companies, emergency medical services and/or senior service agencies. For the purposes of this subdivision, "rural areas" means a county having a population of less than two hundred thousand according to the federal decennial census conducted in two thousand ten.
§ 2. This act shall take effect on the first of July next succeeding the date on which it shall have become a law.
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 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
2015/16-S.5403- referred to investigations and operations.
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.