N.Y. General City Law § 25-w: Authorization to require and permit rebates for sales tax paid

§ 25-w. Authorization to require and permit rebates for sales tax

paid. (a) Any city having a population of one million or more is hereby

authorized and empowered to adopt and amend local laws:

(1) Requiring utilities selling or otherwise delivering electricity,

including electricity sold by a public utility service operated by such

city in accordance with a local law adopted pursuant to article

fourteen-A of the general municipal law, gas or steam within such city

to: (i) make rebates to non-residential energy users as follows: for

such sales made during the period commencing with the first billing

cycle which begins on or after July first, nineteen hundred eighty-eight

and ending with the last billing cycle which begins on or prior to June

thirtieth, nineteen hundred eighty-nine in an amount equal to

twenty-five per centum of the sales and compensating use taxes imposed

pursuant to section eleven hundred seven of the tax law; for such sales

made during the period commencing with the first billing cycle which

begins on or after July first, nineteen hundred eighty-nine and ending

with the last billing cycle which begins on or prior to June thirtieth,

nineteen hundred ninety in an amount equal to fifty per centum of the

taxes imposed pursuant to such section; for such sales made during the

period commencing with the first billing cycle which begins on or after

July first, nineteen hundred ninety and ending with the last billing

cycle which begins on or prior to June thirtieth, nineteen hundred

ninety-one in an amount equal to seventy-five per centum of the taxes

imposed pursuant to such section; and for such sales made during the

period commencing with the first billing cycle which begins on or after

July first, nineteen hundred ninety-one and thereafter in an amount

equal to one hundred per centum of the taxes imposed pursuant to such

section; and/or (ii) make discounts to eligible vendors of energy

services in amounts equal to the rebates to be made by such eligible

vendors to non-residential energy users, such amounts to be certified to

such utilities by such eligible vendors to non-residential energy users,

such amounts to be certified to such utilities by such eligible vendors,

provided, however, that the mayor of such city or any agency designated

by such mayor may by regulation require any or all classes of eligible

vendors to certify that such rebates have been made as a condition of

such utility being obligated to make discounts in accordance with this

paragraph. For purposes of this paragraph, sales shall be deemed to

include sales of delivery services consisting of transport and billing

provided by a utility to a public utility service operated by such city

in accordance with a local law adopted pursuant to article fourteen-A of

the general municipal law. Any utility providing a discount to an

eligible vendor making a rebate in accordance with paragraph three of

this subdivision where such eligible vendor is certified in accordance

with subdivision (b) of this section may rely upon the amount of rebates

certified by such eligible vendor in accordance with this paragraph,

unless such utility has knowledge that the amount so certified is

incorrect; and/or

(2) Permitting eligible vendors of energy services, in instances where

such eligible vendors sell electricity, gas or steam produced by such

eligible vendors, to: (i) make rebates to non-residential energy users

as follows: for such sales made during the period commencing with the

first billing cycle which begins on or after July first, nineteen

hundred eighty-eight and ending with the last billing cycle which begins

on or prior to June thirtieth, nineteen hundred eighty-nine in an amount

equal to twenty-five per centum of the sales and compensating use taxes

imposed pursuant to section eleven hundred seven of the tax law; for

such sales made during the period commencing with the first billing

cycle which begins on or after July first, nineteen hundred eighty-nine

and ending with the last billing cycle which begins on or prior to June

thirtieth, nineteen hundred ninety in an amount equal to fifty per

centum of the taxes imposed pursuant to such section; for such sales

made during the period commencing with the first billing cycle which

begins on or after July first, nineteen hundred ninety and ending with

the last billing cycle which begins on or prior to June thirtieth,

nineteen hundred ninety-one in an amount equal to seventy-five per

centum of the taxes imposed pursuant to such section; and for such sales

made during the period commencing with the first billing cycle which

begins on or after July first, nineteen hundred ninety-one and

thereafter in an amount equal to one hundred per centum of the taxes

imposed pursuant to such section; and/or (ii) make discounts to other

eligible vendors in amounts equal to the rebates to be made by such

other eligible vendors to non-residential energy users, such amounts to

be certified to such eligible vendors making discounts by such other

eligible vendors, provided, however, that the mayor of such city or any

agency designated by such mayor may by regulation require any or all

classes of such other eligible vendors to certify that such rebates have

been made as a condition of eligibility for receiving discounts in

accordance with this paragraph. Any eligible vendor providing a discount

to another eligible vendor making a rebate in accordance with paragraph

three of this subdivision where such other eligible vendor is certified

in accordance with subdivision (b) of this section may rely upon the

amount of rebates certified by such other eligible vendor in accordance

with this paragraph, unless such eligible vendor providing a discount

has knowledge that the amount so certified is incorrect; and/or

(3) Permitting eligible vendors of energy services, in instances where

such eligible vendors sell electricity, gas or steam not produced by

such eligible vendors, to make rebates to non-residential energy users

as follows: for such sales made during the period commencing with the

first billing cycle which begins on or after July first, nineteen

hundred eighty-eight and ending with the last billing cycle which begins

on or prior to June thirtieth, nineteen hundred eighty-nine in an amount

equal to twenty-five per centum of the sales and compensating use taxes

imposed pursuant to section eleven hundred seven of the tax law; for

such sales made during the period commencing with the first billing

cycle which begins on or after July first, nineteen hundred eighty-nine

and ending with the last billing cycle which begins on or prior to June

thirtieth, nineteen hundred ninety in an amount equal to fifty per

centum of the taxes imposed pursuant to such section; for such sales

made during the period commencing with the first billing cycle which

begins on or after July first, nineteen hundred ninety and ending with

the last billing cycle which begins on or prior to June thirtieth,

nineteen hundred ninety-one in an amount equal to seventy-five per

centum of the taxes imposed pursuant to such section; and for such sales

made during the period commencing with the first billing cycle which

begins on or after July first, nineteen hundred ninety-one and

thereafter in an amount equal to one hundred per centum of the taxes

imposed pursuant to such section.

(4) Any local law or laws enacted pursuant to this section shall

contain a provision or provisions allowing for a refundable credit to be

taken by utilities or eligible vendors of energy services against the

amount of the tax imposed pursuant to authority contained in subdivision

(a) of section twelve hundred one of the tax law by such city upon such

utilities and such eligible vendors in the amounts of rebates and

discounts made by such utilities and such eligible vendors pursuant to

paragraph one or two of this subdivision. If such credit exceeds the

amount of such tax for any month, the excess credit shall be refunded.

Such refundable credit shall be taken only after all other applicable

credits are taken against such tax.

(b) No electricity redistributor shall be authorized to provide a

rebate pursuant to any local law enacted pursuant to this article until

it has obtained a certification of eligibility from the mayor of such

city or any agency designated by such mayor. Such local law may provide

for an application fee as determined by the mayor of such city or such

agency.

(c) (1) Each utility shall reduce each utility bill for each

non-residential energy user by the full amount of the rebate that shall

have accrued as described in paragraph one of subdivision (a) of this

section for the period covered by each such utility bill. Such amount

shall be separately stated and shown on such bills. Each such utility

shall provide a discount in accordance with such paragraph on energy

bills for each eligible vendor of energy services which has certified

that it shall provide or has provided a rebate to a non-residential

energy user's energy bill in accordance with paragraph three of such

subdivision in the aggregate amount of all applicable rebates. The

refundable credit against the tax referred to in paragraph four of such

subdivision shall be used to reduce the monthly payments of such tax

otherwise required by law. If such credit exceeds the amount of such tax

for any month, the excess credit shall be refunded as provided in

paragraph four of such subdivision.

(2) Each eligible vendor of energy services which has elected to

provide a rebate to non-residential energy users shall reduce each

energy bill for each non-residential energy user by the full amount of

the rebate that shall have accrued as described in paragraph two or

three of subdivision (a) of this section for the period covered by each

such energy bill. Such amount shall be separately stated and shown on

such bills. Each eligible vendor of energy services as described in

paragraph two of such subdivision which has elected to provide a

discount in accordance with such paragraph on energy bills for each

eligible vendor of energy services which has certified that it shall

provide or has provided a rebate to a non-residential energy user's

energy bill in accordance with paragraph three of such subdivision shall

reduce such energy bills by the aggregate amount of all applicable

rebates. The refundable credit against the tax referred to in paragraph

four of such subdivision shall be used to reduce the monthly payments of

such tax otherwise required by law. If such credit exceeds the amount of

such tax for any month, the excess credit shall be refunded as provided

in paragraph four of such subdivision.

(d) The mayor of such city or any agency designated by such mayor

shall be authorized to promulgate:

(1) Rules and regulations setting forth criteria by which a

determination may be made as to whether administrative costs exceed a

reasonable percentage mark-up as set forth in paragraph one of

subdivision (c) of section twenty-five-v of this article;

(2) Rules and regulations to determine the eligibility for benefits

conferred by any local law enacted pursuant to this article in instances

where energy is consumed in part by other than a non-residential energy

user;

(3) Rules and regulations to limit or withhold, notwithstanding any

inconsistent provisions of paragraphs one and two of subdivision (a) of

this section, the eligibility for rebates by a utility or eligible

vendor of energy services as described in paragraph two of subdivision

(a) of this section made in accordance with any local law enacted

pursuant to this article in instances where energy is consumed in part

by an electricity redistributor in premises where such electricity

redistributor is also a non-residential energy user and with respect to

the electricity redistributed the mark-up for administrative costs

exceeds that permitted under regulations promulgated pursuant to

paragraph one of this subdivision;

(4) Any other rules and regulations necessary to administer and assure

compliance with the provisions of this article.

(e) The corporation counsel of such city may maintain an action in any

court of competent jurisdiction to recover an amount equal to any

benefits provided under the provisions of any local law or laws adopted

pursuant to this article which are improperly obtained.

(f) Such local law may provide that a duplicate of any certification

provided to a utility or to an eligible vendor of energy services as

described in paragraph two of subdivision (a) of this section of the

amount of a rebate made or to be made to a non-residential energy user

be provided to the mayor of such city or any agency designated by such

mayor and may further provide that such duplicate certification be

deemed a written instrument for purposes of section 175.00 of the penal

law.