BILL NUMBER: S10266
SPONSOR: WEBB
 
TITLE OF BILL:
An act to amend the tax law, in relation to providing that the addi-
tional rate of sales and compensating use tax imposed by Cortland county
shall not be subject to preemption
 
PURPOSE:
This bill ensures that the additional 1percent sales tax collected by
Cortland County is not subject to preemption by any municipality within
the county.
 
SUMMARY OF PROVISIONS:
Sections 1 & 2 of the bill amend subparagraph (iii) of opening paragraph
of section 1210 of the Tax Law is amended to provide that the maximum
rate of sales and compensating use tax referred to in section 1224 of
the Tax Law shall be calculated without reference to the additional rate
of 1percent the County of Cortland is allowed to collect.
Section 3 of the bill amends section 1224 of the Tax Law to add a new
subdivision (kk) to give the Cortland County the sole right to impose
the additional 1 percent authorized under section 1210 of the Tax Law,
and that percentage cannot be subject to preemption. This section also
ensures that the maximum 3 percent rate collected under section 1210 of
the Tax Law cannot be calculated without reference to the additional 1
percent rate for which the county is authorized.
Section 4 of the bill sets the effective date.
 
JUSTIFICATION:
Cortland County currently imposes an additional 1% rate of sales tax
pursuant to section 1210 of the Tax Law. However, counties across NYS,
including Cortland county, continue to face escalating costs. While the
county has taken meaningful steps to control costs and improve efficien-
cy, these measures have not fully offset growing fiscal pressures. Cort-
land County has formally requested legislation to clarify the treatment
of Cortland county's existing additional 1 percent tax rate, specif-
ically to clarify that this additional rate is not subject to preemption
under section 1224 of the Tax Law. This legislation matches precedent in
law giving many other counties similar rights.
 
LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
To be determined
 
LOCAL FISCAL IMPLICATIONS:
To be determined
 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
amendments to subparagraph (iii) of the opening paragraph of section
1210 of the Tax Law made by section one of this act shall be subject to
the expiration and reversion of such subparagraph pursuant to section 7
of chapter 67 of the laws of 2015, as amended, when upon such date the
provisions of section two of this act shall take effect.

Statutes affected:
S10266: 1210 tax law, 1224 tax law