BILL NUMBER:  S2961

 TITLE OF BILL :  An act to amend the tax law, in relation to
extending the period during which the city of White Plains is
authorized to impose an additional sales and compensating use tax

 PURPOSE :

Authorizes the imposition for an additional two years of an additional
one-half of one percent, an additional one-quarter of one percent and
an additional one-quarter of one percent rate of sales and
compensating use tax by the city of White Plains, for the period
ending August thirty-first, two thousand seventeen.

 SUMMARY OF PROVISIONS :

Section 1 amends clause 3 of subparagraph (ii) of the opening
paragraph of section 1210 of the tax law, as amended by chapter 17 of
the laws of 2015, is amended to read as follow:

(3) the city of White Plains is hereby further authorized and
empowered to adopt and amend local laws, ordinances or resolutions
imposing such a taxes at a rate which is: (i) one-half of one percent
additional to the three percent rate authorized above in this
paragraph for such city for the period beginning September 1, 1993 and
ending August 31, 2019; and (ii) and additional one-quarter of one
              

percent in addition to the other rates authorized in this paragraph
for such city for the period beginning March 1, 2008 and ending August
31, 2019; and (iii) and additional one quarter of one percent in
addition to the other rates authorized in this paragraph for such city
for the period beginning June 1, 2010 and ending August 31, 2019.

§ 2 Notwithstanding the provisions of subdivision (d) of section 1210
of the tax law or any other provision of law , local, rule or
regulation to the to the contrary, a local law, ordinance or
resolution enacted or amended pursuant to the authority of this act,
imposing an additional rate of tax in the city of White Pains, shall
become effective in accordance with the provisions of subdivision (d)
of section 1210 of the tax law, except the the certified copy of such
local law ordinance or resolution which must be mailed by certified or
registered mail to the commissioner of taxation and finance at the
commissioner's office in Albany must be so mailed at least twenty-on
days prior to the date which such local, ordinance or resolutions is
to take effect.

§ 3 The estimated revenue from the additional one-quarter of one
percent rate of tax first authorized by chapter seventy-four of the
laws of two thousand ten to be imposed by the city of White Plains,
which is expected to be received during a fiscal year of such city and
which is included in the annual budget, as finally adopted, of such
city, for that fiscal year, shall be paid into the contingency and tax
stabilization reserve fund of such city as provided by budgetary
appropriation of such city, subject to all the limitations and other
provisions of section 6-e of the general municipal law

§ 4 This act shall take effect immediately

 JUSTIFICATION :

Sales and use taxes are a significant source of revenue for the city.
In the fiscal year ended June 30, 2016, sales and use taxes amounted
to $49.8 million inclusive of the amount restricted for tax
stabilization, (32% of $153.9 million in total revenues) compared to
$53.4 million (35% of total revenues) collected from property taxes
and related items (PILOTs, interest and penalties, etc.). The
additional one-quarter of one percent rate of tax first authorized by
chapter seventy-four of the laws of 2010 generates approximately $5
million of restricted revenue each fiscal year. The city prudently
applied $5.1 million from this fund to the adopted budget for the
fiscal year ending June 30, 2017, which had the effect of lowering the
required property tax rate increase from 9.3% to

0.1%. Without the sales tax, revenue generated from the half percent
authorized since 1993 and the quarter percent authorized since 2008.
The city would lose an estimated $15 million in sales tax revenue each
year in addition to the $5 million earned for its contingency and tax
stabilization fund. Since 1993, the State has authorized the city of
White Plains to impose an additional one-half of one percent rate of
sales tax to replace revenues lost through local preemption. Since
2008, the State has approved an additional one quarter of one percent
rate of sales tax bringing the city of White Plains sales tax rate to
two and a quarter percent.  Since 2010, legislation has been enacted
to permit the city of White Plains to impose an additional one quarter
of one percent rate of sales tax and to require the city to pay the
proceeds of the rate increase into a contingency and tax stabilization
reserve fund, under section 6-e of the general municipal law.

This bill will permit the city of White Plains to continue to impose
each of these additional tax rates through August 31, 2019. This bill
also extends through August 31, 2019 the requirement that the city pay
the proceeds of the rate increase first authorized by chapter
seventy-four of the laws of 2010 into the contingency and tax
stabilization reserve fund of such city, subject to all the
limitations and other provisions of section 6-e of the general
municipal law. This bill will not affect the sales tax revenue of the
State of New York or the County of Westchester.

 LEGISLATIVE HISTORY :

A.6105/S.3796 of 2011(enacted in 2011);
A.9966A/S.6868-A of 2009-2010 (enacted in 2010);
A.3129/S.1087 of 2009-2010 (enacted in 2009);
A.6105/S.3796 of 2011-2012 (enacted in 2011);
A.3883/S.3406 of 2013-14 (enacted in 2013)
A.222/S.723 of 2015-16 (enacted in 2015)

 FISCAL STATE IMPLICATIONS :

None to the State.

 FISCAL LOCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately and shall expire and be deemed
repealed on August thirty-first, two thousand seventeen.