S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   63

                      Eighth Extraordinary Session

                            I N  S E N A T E

                              June 29, 2009
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- 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  imposition  of  sales  and
  compensating use taxes in the county of Chautauqua

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Clause 38 of subparagraph (i) of the opening  paragraph  of
section  1210  of  the tax law, as amended by chapter 468 of the laws of
2007, is amended to read as follows:
  (38) the  county  of  Chautauqua  is  hereby  further  authorized  and
empowered  to  adopt  and  amend  local  laws, ordinances or resolutions
imposing such taxes at a rate that is: (i) one and  one-quarter  percent
additional  to the three percent rate authorized above in this paragraph
for such county for the period beginning March first, two thousand  five
and ending August thirty-first, two thousand six; (ii) one percent addi-
tional  to the three percent rate authorized above in this paragraph for
such county for the period beginning September first, two  thousand  six
and  ending  November  thirtieth, two thousand seven; [and] (iii) three-
quarters of one percent additional to the three percent rate  authorized
above  in this paragraph for such county for the period beginning Decem-
ber first, two thousand seven and ending November thirtieth,  two  thou-
sand  [nine]  TEN;  AND  (IV)  ONE-HALF OF ONE PERCENT ADDITIONAL TO THE
THREE PERCENT RATE AUTHORIZED ABOVE IN THIS PARAGRAPH  FOR  SUCH  COUNTY
FOR  THE  PERIOD  BEGINNING  DECEMBER FIRST, TWO THOUSAND TEN AND ENDING
NOVEMBER THIRTIETH, TWO THOUSAND ELEVEN;
  S 2. Subparagraph (iii) of the opening paragraph of  section  1210  of
the tax law, as amended by chapter 65 of the laws of 2008, is amended to
read as follows:
  (iii)  the  maximum rate referred to in section twelve hundred twenty-
four of this article  shall  be  calculated  without  reference  to  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14064-01-9
              

S. 63                               2

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, Greene, Orleans, Franklin, Herkimer, Genesee,
Columbia, Schuyler, Chenango, Monroe, Steuben, Chemung, Seneca,  Living-
ston,  Niagara,  Yates,  Tioga,  Montgomery, Delaware, Wayne, Schoharie,
Putnam, Clinton and Onondaga and the cities of Yonkers, Mount Vernon and
New Rochelle; three-quarters of one percent for the counties  of  Dutch-
ess,  Essex,  Lewis, Orange, AND Jefferson [and Chautauqua]; one percent
and three-quarters of one percent or one-half of  one  percent  for  the
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-quar-
ter of one percent for the city of White Plains; one-half or one percent
for  the  county  of  Tompkins;  three-eighths  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 for the county of Ontario; one-half of one percent  [and];  one-
half  of  one  percent for the county of Sullivan; AND THREE-QUARTERS OF
ONE PERCENT OR ONE-HALF OF ONE PERCENT FOR THE COUNTY OF CHAUTAUQUA;
  S 3. Subdivision (ee) of section 1224 of the tax law,  as  amended  by
chapter 468 of the laws of 2007, is amended to read as follows:
  (ee)  The county of Chautauqua shall have the sole right to impose the
additional three-quarters OR ONE-HALF of one percent rate of  tax  which
such county is authorized to impose pursuant to the authority of section
twelve hundred ten of this article. Such additional rate of tax shall be
in  addition  to  any  other  tax which such county may impose or may be
imposing pursuant to this article or any other law and  such  additional
rate  of  tax  shall  not  be  subject  to preemption. The maximum three
percent rate referred to in this section  shall  be  calculated  without
reference  to  the  additional three-quarters OR ONE-HALF of one percent
rate of tax which the county of Chautauqua is authorized  and  empowered
to adopt pursuant to section twelve hundred ten of this article.
  S  4.  Section 1262-o of the tax law, as amended by chapter 468 of the
laws of 2007, is amended to read as follows:
  S 1262-o. Disposition of net collections from the additional  rate  of
sales  and compensating use taxes in the county of Chautauqua.  Notwith-
standing any contrary provision of law,  if  the  county  of  Chautauqua
imposes  the  additional  one  and one-quarter percent rate of sales and
compensating use taxes authorized by section twelve hundred ten of  this
article  for all or any portion of the period beginning March first, two
thousand five and ending August  thirty-first,  two  thousand  six,  the
additional one percent rate authorized by such section for all or any of
the period beginning September first, two thousand six and ending Novem-
ber  thirtieth,  two thousand seven, [and] the additional three-quarters
of one percent rate authorized by such section for all  or  any  of  the
period  beginning December first, two thousand seven and ending November
thirtieth, two thousand [nine] TEN, the county shall allocate  one-fifth
of the net collections from the additional three-quarters of one percent
to  the  cities,  towns and villages in the county on the basis of their
respective populations, determined in accordance with the latest  decen-
nial  federal  census  or  special  population  census taken pursuant to
section twenty of the general  municipal  law  completed  and  published
prior  to  the  end of the quarter for which the allocation is made, and
allocate the remainder of the net collections from the additional three-
quarters of one percent as follows: (1) to pay the county's expenses for
Medicaid and other expenses required by law; (2) to pay for  local  road

S. 63                               3

and bridge projects; (3) for the purposes of capital projects and repay-
ing  any debts incurred for such capital projects in the county of Chau-
tauqua that are not otherwise paid for  by  revenue  received  from  the
mortgage  recording  tax;  and  (4)  for deposit into a reserve fund for
bonded indebtedness established pursuant to the general  municipal  law.
NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF CHAUTAU-
QUA IMPOSES THE ADDITIONAL ONE-HALF PERCENT RATE OF SALES AND COMPENSAT-
ING  USE  TAXES AUTHORIZED BY SUCH SECTION TWELVE HUNDRED TEN FOR ALL OR
ANY OF THE PERIOD BEGINNING DECEMBER FIRST, TWO THOUSAND TEN AND  ENDING
NOVEMBER  THIRTIETH,  TWO  THOUSAND  ELEVEN,  THE  COUNTY SHALL ALLOCATE
THREE-TENTHS OF THE NET COLLECTIONS FROM THE ADDITIONAL ONE-HALF OF  ONE
PERCENT  TO THE CITIES, TOWNS AND VILLAGES IN THE COUNTY ON THE BASIS OF
THEIR RESPECTIVE POPULATIONS, DETERMINED IN ACCORDANCE WITH  THE  LATEST
DECENNIAL  FEDERAL CENSUS OR SPECIAL POPULATION CENSUS TAKEN PURSUANT TO
SECTION TWENTY OF THE GENERAL  MUNICIPAL  LAW  COMPLETED  AND  PUBLISHED
PRIOR  TO  THE  END OF THE QUARTER FOR WHICH THE ALLOCATION IS MADE, AND
ALLOCATE THE REMAINDER  OF  THE  NET  COLLECTIONS  FROM  THE  ADDITIONAL
ONE-HALF OF ONE PERCENT AS FOLLOWS: (1) TO PAY THE COUNTY'S EXPENSES FOR
MEDICAID  AND  OTHER EXPENSES REQUIRED BY LAW; (2) TO PAY FOR LOCAL ROAD
AND BRIDGE PROJECTS; (3) FOR THE PURPOSES OF CAPITAL PROJECTS AND REPAY-
ING ANY DEBTS INCURRED FOR SUCH CAPITAL PROJECTS IN THE COUNTY OF  CHAU-
TAUQUA  THAT  ARE  NOT  OTHERWISE  PAID FOR BY REVENUE RECEIVED FROM THE
MORTGAGE RECORDING TAX; AND (4) FOR DEPOSIT  INTO  A  RESERVE  FUND  FOR
BONDED  INDEBTEDNESS  ESTABLISHED PURSUANT TO THE GENERAL MUNICIPAL LAW.
The net collections from the additional rates imposed pursuant  to  this
section shall be deposited in a special fund to be created by such coun-
ty separate and apart from any other funds and accounts of the county to
be used for purposes above described.
  S  5.  The  authorization  granted in section one of this act shall be
suspended in any sales tax quarter,  as  defined  in  paragraph  (i)  of
subdivision  1  of  section  5-a  of the tax law, in which the county of
Chautauqua is imposing, pursuant to subdivision (a) of section  1210  of
the tax law, taxes at a rate greater than zero on the retail sale or use
of  fuel  oil and coal used for residential purposes, the retail sale or
use of wood used for residential heating purposes, the sale, other  than
for  resale, of propane (except when sold in containers of less than one
hundred pounds), natural gas, electricity, steam and gas,  electric  and
steam services used for residential purposes and the use of gas or elec-
tricity used for residential purposes.
  S 6. This act shall take effect immediately.