What's happening
This bill shortens Westchester County’s authority to impose an additional 1% sales tax and its spending limitation act to end November 30, 2020.
Why it matters
Shortens Westchester County's ability to collect an extra 1% sales tax. By moving the expiration from 2022 to 2020, the county will lose this revenue stream sooner than expected, potentially impacting its budget planning and services funded by this tax.
Accelerates the end of the county’s spending cap law. The Westchester County Spending Limitation Act, which restricts how much the county can spend, will now also expire in 2020 rather than 2022. This could allow for increased county spending after 2020, affecting local fiscal policy and potentially property taxes or services.
Forces earlier budget adjustments. Both the revenue from the extra sales tax and the spending cap were likely incorporated into multi-year budget plans. Their early expiration means the county government must adapt its fiscal planning and may need to find alternative revenue sources or reduce expenditures.
May affect local residents and businesses. Residents could see changes in county services or tax rates sooner, and businesses collecting sales tax will have to adjust their procedures and systems to reflect the earlier end date of the additional tax.
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Headline styles
Shorten Westchester Tax Increase
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by A8088
- Ordered to third reading cal.1525
- Referred to rules
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.
Extend Westchester Sales Tax
Signed by Governor · Sponsor J. Gary Pretlow
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6304
2019-2020 Regular Sessions
IN SENATE
June 4, 2019
Introduced by Sen. MAYER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the tax law, in relation to revising the period of authorization for the county of Westchester's additional one percent rate of sales and compensating use tax and the expiration of the Westchester county spending limitation act; to amend… Show allHide
AN ACT to amend the tax law, in relation to revising the period of authorization for the county of Westchester's additional one percent rate of sales and compensating use tax and the expiration of the Westchester county spending limitation act; to amend chapter 272 of the laws of 1991, amending the tax law relating to the method of disposition of sales and compensating use tax revenue in Westchester county and enacting the Westchester county spending limitation act, in relation to revising the period of authorization for the county of Westchester's additional one percent rate of sales; and to amend a chapter of the laws of 2019, amending the tax law relating to authorizing the county of Westchester to impose an additional rate of sales and compensating use tax, as proposed in legislative bills numbers
S.4940-B and A.7081, in relation to the period of authorization for Westchester's additional one percent rate of sales
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Clause 42 of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as added by a chapter of the laws of 2019, amending the tax law relating to authorizing the county of Westchester to impose an additional rate of sales and compensating use tax, as proposed in legislative bills numbers S. 4940-B and A. 7081, is amended to read as follows:
(42) the county of Westchester is hereby further authorized and empowered to adopt and amend local laws, ordinances or resolutions imposing such taxes at a rate that is one percent additional to the three percent rate authorized above in this paragraph for such county for the period beginning [June] August first, two thousand nineteen and ending November thirtieth, two thousand [twenty-two] twenty;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09824-15-9
S. 6304 2
§ 2. Subdivision e of section 4 and sections 5, 7 and 16 of chapter 272 of the laws of 1991, amending the tax law relating to the method of disposition of sales and compensating use tax revenue in Westchester county and enacting the Westchester county spending limitation act, as amended by a chapter of the laws of 2019, amending the tax law relating to authorizing the county of Westchester to impose an additional rate of sales and compensating use tax, as proposed in legislative bills numbers S. 4940-B and A. 7081, are amended to read as follows:
e. "Spending limitation" means the maximum amount of county spending established in county fiscal years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019[,] and 2020[, 2021 and 2022].
§ 5. Establishment of annual spending limitation. a. For county fiscal years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019[,] and 2020[, 2021 and 2022] there shall be in effect an annual spending limitation. The spending limitation shall be derived from a fixed percentage reflecting the ratio of base year spending to county personal income. County personal income for such calculation shall be for the period January 1, 1986 through December 31, 1986. Such percentage shall be applied to county personal income for the period January 1, 1989 through December 31, 1989, to determine the spending limitation for county fiscal year 1992; to determine the spending limitation for county fiscal year 1993, such percentage shall be applied to county personal income for the period January 1, 1990 through December 31, 1990; to determine the spending limitation for county fiscal year 1994, such percentage shall be applied to county personal income for the period January 1, 1991 through December 31, 1991; to determine the spending limitation for county fiscal year 1995, such percentage shall be applied to county personal income for the period January 1, 1992 through December 31, 1992; to determine the spending limitation for county fiscal year 1996, such percentage shall be applied to county personal income for the period January 1, 1993 through December 31, 1993; to determine the spending limitation for county fiscal year 1997, such percentage shall be applied to county personal income for the period January 1, 1994 through December 31, 1994; to determine the spending limitation for county fiscal year 1998, such percentage shall be applied to county personal income for the period January 1, 1995 through December 31, 1995; to determine the spending limitation for county fiscal year 1999, such percentage shall be applied to county personal income for the period January 1, 1996 through December 31, 1996; to determine the spending limitation for county fiscal year 2000, such percentage shall be applied to county personal income for the period January 1, 1997 through December 31, 1997; to determine the spending limitation for county fiscal year 2001, such percentage shall be applied to county personal income for the period January 1, 1998 through December 31, 1998; to determine the spending limitation for county fiscal year 2002, such percentage shall be applied to county personal income for the period January 1, 1999 through December 31, 1999; to determine the spending limitation for county fiscal year 2003, such percentage shall be applied to county personal income for the period January 1, 2000 through December 31, 2000; to determine the spending limitation for county fiscal year 2004, such percentage shall be applied to county personal income for the period January 1, 2001 through December 31, 2001; to determine the spending limitation for county fiscal year 2005,
S. 6304 3
such percentage shall be applied to county personal income for the period January 1, 2002 through December 31, 2002; to determine the spending limitation for county fiscal year 2006, such percentage shall be applied to county personal income for the period January 1, 2003 through December 31, 2003; to determine the spending limitation for the county fiscal year 2007, such percentage shall be applied to county personal income for the period January 1, 2004 through December 31, 2004; to determine the spending limitation for the county fiscal year 2008, such percentage shall be applied to county personal income for the period January 1, 2005 through December 31, 2005; to determine the spending limitation for the county fiscal year 2009, such percentage shall be applied to county personal income for the period January 1, 2006 through December 31, 2006; to determine the spending limitation for the county fiscal year 2010, such percentage shall be applied to county personal income for the period January 1, 2007 through December 31, 2007; to determine the spending limitation for the county fiscal year 2011, such percentage shall be applied to county personal income for the period January 1, 2008 through December 31, 2008; to determine the spending limitation for the county fiscal year 2012, such percentage shall be applied to county personal income for the period January 1, 2009 through December 31, 2009; to determine the spending limitation for the county fiscal year 2013, such percentage shall be applied to county personal income for the period January 1, 2010 through December 31, 2010; to determine the spending limitation for the county fiscal year 2014, such percentage shall be applied to county personal income for the period January 1, 2011 through December 31, 2011; to determine the spending limitation for the county fiscal year 2015, such percentage shall be applied to county personal income for the period January 1, 2012 through December 31, 2012; to determine the spending limitation for county fiscal year 2016, such percentage shall be applied to the county personal income for the period January 1, 2013 through December 31, 2013; to determine the spending limitation for the county fiscal year 2017, such percentage shall be applied to county personal income for the period January 1, 2014 through December 31, 2014; and to determine the spending limitation for county fiscal year 2018, such percentage shall be applied to the county personal income for the period January 1, 2015 through December 31, 2015; to determine the spending limitation for the county fiscal year 2019, such percentage shall be applied to county personal income for the period January 1, 2016 through December 31, 2016; and to determine the spending limitation for county fiscal year 2020, such percentage shall be applied to the county personal income for the period January 1, 2017 through December 31, 2017[; and to determine the spending limitation for the county fiscal year 2021, such percentage shall be applied to county personal income for the period January 1, 2018 through December 31, 2018; and to determine the spending limitation for the county fiscal year 2022, such percentage shall be applied to county personal income for the period January 1, 2019 through December 31, 2019].
b. The spending limitation shall serve as a statutory cap on county spending to be reflected in the tentative budget as well as the enacted budget for county fiscal years beginning in 1992.
§ 7. Mandatory tax reduction. In the event that the county spending subject to the spending limitation exceeds such limitation in the adoptive county budget for county fiscal year 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019[,] or
S. 6304 4
2020[, 2021 or 2022] then section 1262-b of the tax law shall be repealed.
§ 16. This act shall take effect immediately, provided, however, that sections one through seven of this act shall be in full force and effect until November 30, [2022] 2020.
§ 3. A chapter of the laws of 2019, amending the tax law relating to authorizing the county of Westchester to impose an additional rate of sales and compensating use tax, as proposed in legislative bills numbers S. 4940-B and A. 7081, is amended by adding a new section 6-a to read as follows:
§ 6-a. Notwithstanding any other provision of any state or local law to the contrary, any local law, ordinance or resolution enacted, adopted or amended to impose the sales and compensating use taxes at the one percent additional rate of tax authorized by this act for the period beginning August 1, 2019, and ending November 30, 2020, shall take effect on that date in accordance with the provisions of subdivision (d) of section 1210 of the tax law, except that such additional rate may take effect on August 1, 2019, and the minimum notice requirements shall be deemed complied with if such county mails, by certified or registered mail, a certified copy of such local law, ordinance or resolution to the commissioner of taxation and finance at his or her office in Albany no later than July 1, 2019.
§ 4. This act shall take effect on the same date and in the same manner as a chapter of the laws of 2019, amending the tax law relating to authorizing the county of Westchester to impose an additional rate of sales and compensating use tax, as proposed in legislative bills numbers S. 4940-B and A. 7081, takes effect.
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 revising the period of authorization for the county of Westchester's additional one percent rate of sales and compensating use tax and the expiration of the Westchester county spending limitation act; to amend chapter 272 of the laws of 1991, amending the tax law relating to the method of dispo- sition of sales and compensating use tax revenue in Westchester county and enacting the Westchester county spending limitation act, in relation to revising the period of authorization for the county of Westchester's additional one percent rate of sales; and to amend a chapter of the laws of 2019, amending the tax law relating to authorizing the county of Westchester to impose an additional rate of sales and compensating use tax, as proposed in legislative bills numbers S.4940-B and A.7081, in relation to the period of authorization for Westchester's additional one percent rate of sales
Purpose or general idea
The purpose of this bill is to ensure that Westchester County has a stable source of funding to continue providing community services.
Summary of specific provisions
Section 1. Subparagraph (i) of the opening paragraph of section 1210 of the tax law is amended by adding a new subdivision (42)
§ 2. Amends Subdivision (a) of Section 1223 of the tax law is amended to include references to Westchester and ensure that that rate references are correct
§ 3. Amends Subdivision (a) Section 1223 of the tax law is amended to include references to Westchester and ensure that that rate references are correct
§ 4.Amends Section 1224 of the tax law is amended by adding a new para- graph (ii)
§ 5. Amends Section 1262-b of the tax law as adopted by chapter 272 of the laws of 1991, as amended by section 1 of chapter 81 of the laws of 2017, known as the "Westchester County spending limitation act"
§ 6. Amends Subdivision e of section 4, and sections 5, 7 and 16 of chapter 272 of the laws of 1991, amending the tax law relating to the method of disposition of sales and compensating use tax revenue in West- chester County and enacting the Westchester county spending limitation act, as amended by chapter 81 of the laws of 2017.
§ 7. Sets the effective date.
Justification
Westchester has struggled to balance the budget as a result of not stay- ing property tax cap compliant. As a result, the comptroller of New York downgraded the credit of Westchester from AAA rating to AA1. Failure to address the situation will ensure a structural deficit and exhaust the reserve budget by FY2021. Therefore, we must equalize rates among the rest of the County.
Prior legislative history
New Bill
Fiscal implications
None
Effective date
This act shall take effect on the same date and in the same manner as a chapter of the laws of 2019, amending the tax law relating to authoriz- ing the county of Westchester to impose an additional rate of 10 sales and compensating use tax, as proposed in legislative bills numbers S. 4940-B and A. 7081, takes effect.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.