NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10271
SPONSOR: Rules (Lupardo) TITLE OF BILL:
An act to amend the tax law, in relation to authorizing the city of
Binghamton to establish hotel and motel taxes
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to establish an occupancy tax in the
City of Binghamton.
SUMMARY OF PROVISIONS:
Section 1: The tax law is amended by adding a new section 1202-jj.
Section 2: Establishes the effective date.
JUSTIFICATION:
The Mayor and City Council have requested home rule legislation which
would establish an occupancy tax of 5% on hotel/motel rooms in the City
of Binghamton. The occupancy tax is a non-resident tax which will lessen
the burden of real property tax on residents and will assist the City in
meeting its financial obligations.
PRIOR LEGISLATIVE HISTORY:
This is new legislation.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
This legislation will have no fiscal implications for the State. The
bill will impose a 5% occupancy tax on hotel/motel rooms in the City of
Binghamton.
EFFECTIVE DATE:
This act shall take effect immediately and sunset in three years.
STATE OF NEW YORK
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10271
IN ASSEMBLY
May 15, 2024
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Lupardo) --
read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to authorizing the city of
Binghamton to establish hotel and motel taxes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 1202-jj to
2 read as follows:
3 § 1202-jj. Hotel or motel taxes in the city of Binghamton. (1)
4 Notwithstanding any other provision of law to the contrary, the city of
5 Binghamton, Broome county, is hereby authorized and empowered to adopt
6 and amend local laws imposing in such city a tax, in addition to any
7 other tax authorized and imposed pursuant to this article, such as the
8 legislature has or would have the power and authority to impose upon
9 persons occupying hotel or motel rooms in such city. For the purposes of
10 this section, the term "hotel" or "motel" shall mean and include any
11 facility providing lodging on an overnight basis and shall include those
12 facilities designated and commonly known as "bed and breakfast" and
13 "tourist" facilities. The rates of such tax shall not exceed five
14 percent of the per diem rental rate for each room, provided however,
15 that such tax shall not be applicable to a permanent resident of a hotel
16 or motel. For the purposes of this section, the term "permanent resi-
17 dent" shall mean a person occupying any room or rooms in a hotel or
18 motel for at least thirty consecutive days.
19 (2) Such tax may be collected and administered by the chief fiscal
20 officer of the city of Binghamton by such means and in such manner as
21 other taxes, which are now collected and administered by such officer,
22 or as otherwise may be provided by such local law.
23 (3) Such local laws may provide that any tax imposed shall be paid by
24 the person liable therefor to the owner of the hotel or motel room occu-
25 pied or to the person entitled to be paid the rent or charge for the
26 hotel or motel room occupied for and on account of the city of Bingham-
27 ton imposing the tax and that such owner or person entitled to be paid
28 the rent or charge shall be liable for the collection and payment of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15599-01-4
A. 10271 2
1 tax; and that such owner or person entitled to be paid the rent or
2 charge shall have the same right in respect to collecting the tax from
3 the person occupying the hotel or motel room, or in respect to nonpay-
4 ment of the tax by the person occupying the hotel or motel room, as if
5 the tax were a part of the rent or charge and payable at the same time
6 as the rent or charge; provided, however, that the chief fiscal officer
7 of the city, specified in such local law, shall be joined as a party in
8 any action or proceeding brought to collect the tax by the owner or by
9 the person entitled to be paid the rent or charge.
10 (4) Such local laws may provide for the filing of returns and the
11 payment of the tax on a monthly basis or on the basis of any longer or
12 shorter period of time.
13 (5) This section shall not authorize the imposition of such tax upon
14 any transaction, by or with any of the following in accordance with
15 section twelve hundred thirty of this article:
16 a. The state of New York, or any public corporation (including a
17 public corporation created pursuant to agreement or compact with another
18 state or the Dominion of Canada), improvement district or other poli-
19 tical subdivision of the state;
20 b. The United States of America, insofar as it is immune from taxa-
21 tion;
22 c. Any corporation or association, or trust, or community chest, fund
23 or foundation organized and operated exclusively for religious, charita-
24 ble, or educational purposes, or for the prevention of cruelty to chil-
25 dren or animals, and no part of the net earnings of which inures to the
26 benefit of any private shareholders or individual and no substantial
27 part of the activities of which is carrying on propaganda, or otherwise
28 attempting to influence the legislation; provided, however, that nothing
29 in this paragraph shall include an organization operated for the primary
30 purpose of carrying on a trade or business for profit, whether or not
31 all of its profits are payable to one or more organizations described in
32 this paragraph.
33 (6) Any final determination of the amount of any tax payable pursuant
34 to this section shall be reviewable for error, illegality or unconstitu-
35 tionality or any other reason whatsoever by a proceeding under article
36 seventy-eight of the civil practice law and rules if application there-
37 for is made to the supreme court within thirty days after the giving of
38 the notice of such final determination, provided, however, that any such
39 proceeding under article seventy-eight of the civil practice law and
40 rules shall not be instituted unless:
41 a. The amount of any tax sought to be reviewed, with such interest and
42 penalties thereon as may be provided for by local law or regulation
43 shall be first deposited and there is filed an undertaking, issued by a
44 surety company authorized to transact business in this state and
45 approved by the superintendent of financial services of this state as to
46 solvency and responsibility, in such amount as a justice of the supreme
47 court shall approve to the effect that if such proceeding be dismissed
48 or the tax confirmed the petitioner will pay all costs and charges which
49 may accrue in the prosecution of such proceeding; or
50 b. At the option of the petitioner such undertaking may be in a sum
51 sufficient to cover the taxes, interests and penalties stated in such
52 determination plus the costs and charges which may accrue against it in
53 the prosecution of the proceeding, in which event the petitioner shall
54 not be required to pay such taxes, interest or penalties as a condition
55 precedent to the application.
A. 10271 3
1 (7) Where any tax imposed pursuant to this section shall have been
2 erroneously, illegally or unconstitutionally collected and application
3 for the refund thereof duly made to the proper fiscal officer or offi-
4 cers, and such officer or officers shall have made a determination deny-
5 ing such refund, such determination shall be reviewable by a proceeding
6 under article seventy-eight of the civil practice law and rules,
7 provided, however, that such proceeding is instituted within thirty days
8 after the giving of the notice of such denial, that a final determi-
9 nation of tax due was not previously made, and that an undertaking is
10 filed with the proper fiscal officer or officers in such amount and with
11 such sureties as a justice of the supreme court shall approve to the
12 effect that if such proceeding be dismissed or the tax confirmed, the
13 petitioner will pay all costs and charges which may accrue in the prose-
14 cution of such proceeding.
15 (8) Except in the case of a willfully false or fraudulent return with
16 intent to evade the tax, no assessment of additional tax shall be made
17 after the expiration of more than three years from the date of the
18 filing of a return, provided, however, that where no return has been
19 filed as provided by law the tax may be assessed at any time.
20 (9) All revenues resulting from the imposition of the tax under the
21 local laws shall be paid into the treasury of the city of Binghamton and
22 shall be credited to and deposited in the general fund of the city.
23 Such revenues may be used for any lawful purpose.
24 (10) If any provision of this section or the application thereof to
25 any person or circumstance shall be held invalid, the remainder of this
26 section and the application of such provision to other persons or
27 circumstances shall not be affected thereby.
28 (11) Each enactment of such local law may provide for the imposition
29 of a hotel or motel tax for a period of time no longer than three years
30 from the effective date of its enactment. Nothing in this section shall
31 prohibit the adoption and enactment of local laws, pursuant to the
32 provisions of this section, upon the expiration of any other local law
33 adopted pursuant to this section.
34 § 2. This act shall take effect immediately.
