What's happening
This bill prohibits cable television companies from using franchise license fees collected from subscribers to offset their real property taxes.
Why it matters
Prevents cable TV companies from reducing their real property tax bills by claiming credits for the franchise fees they collect from subscribers. this means those companies can't lower their taxes by passing the cost of franchise fees onto customers and then using those same fees to offset taxes.
May result in higher local tax revenues or prevent potential tax revenue loss for municipalities. , since cable companies will no longer be able to use subscriber-paid franchise fees as a tax deduction.
Could impact cable subscribers indirectly. , as companies might respond to the loss of the tax credit by adjusting their fee structures or service rates to maintain profitability.
Addresses a specific loophole in how franchise fees and property taxes interact. , aiming to ensure that cable television companies pay their full share of property taxes rather than shifting the burden to local taxpayers or subscribers.
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Who cares
Headline styles
End Cable Tax Credits
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to real property taxation
- Referred to real property taxation
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
192
2019-2020 Regular Sessions
IN ASSEMBLY (Prefiled)
January 9, 2019
Introduced by M. of A. CAHILL -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to prohibiting tax credits against real property tax for franchise fees collected and remitted by cable television companies to assessing units
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 626 of the real property tax law, as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended and a new subdivision 5 is added to read as follows:
1. When a tax levied on a special franchise is due in any assessing unit, if the special franchise owner has paid such assessing unit for its exclusive use during the past year under any agreement or statute requiring the same, a sum based upon a percentage of gross earnings or other income, a license fee, except as provided in subdivision five of this section, or other sum of money on account of such special franchise possessed by such special franchise owner, which payment was in the nature of a tax, all amounts so paid for the exclusive use of such assessing unit, except money paid or expended for paving or repairing the pavement of a street, highway or public place, and except in a city having a population of one hundred seventy-five thousand or more according to the latest federal census, car license fees or tolls paid for the privilege of crossing a bridge owned by the city, shall be deducted from the tax based on the assessment made by the commissioner for purposes of the assessing unit, but not otherwise, and the remainder shall be the tax on such special franchise payable for such purposes.
5. Notwithstanding the foregoing provisions, a cable television company, as defined in section two hundred twelve of the public service law, that is a special franchise owner and collects a license fee from
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00232-01-9
A. 192 2
subscribers shall not be allowed any credit pursuant to the provisions of this section against the amount of real property tax, determined by its current special franchise assessment, due to the assessing unit with which such cable television company maintains a special franchise agreement.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to assessment rolls with taxable status dates occurring on and after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.