N.Y. Tax Law § 1104: Convention center hotel unit fee

§ 1104. Convention center hotel unit fee. (a) Imposition. In addition

to any other fee or tax imposed by this article or any other law, on and

after April first, two thousand five, there is hereby imposed within the

territorial limits of a city with a population of a million or more and

there shall be paid a unit fee on every occupancy of a unit in a hotel

or short term rental unit in such city at the rate of one dollar and

fifty cents per unit per day, except that such unit fee shall not be

imposed upon (1) occupancy by a permanent resident or (2) where the rent

per unit is not more than at the rate of two dollars per day.

(b) Administration and enforcement. The unit fee imposed by this

section shall be administered and collected in a like manner as the tax

imposed by subdivision (e) of section eleven hundred five of this

article. All the provisions of this article (except sections eleven

hundred seven, eleven hundred eight and eleven hundred nine), including

the definition and exemption provisions, relating to or applicable to

the administration, collection and disposition of the tax imposed by

subdivision (e) of such section eleven hundred five of this article

shall apply to the unit fee imposed by this section so far as such

provisions can be made applicable to such unit fee with such limitations

as are set forth in this article, and such modifications as are set

forth in this section and as may be necessary in order to adopt such

language to the unit fee so imposed. Such provisions shall apply with

the same force and effect as if the language of those provisions had

been incorporated in full in this section and had expressly referred to

the unit fee imposed by this section, except to the extent that any

provision is either inconsistent with a provision of this section or is

not relevant to the unit fee imposed by this section. For purposes of

this section, unless a different meaning is clearly required: (1) any

reference in this article to the tax or taxes imposed by this article

shall be deemed to refer also to the unit fee imposed by this section;

and (2) any reference to tax, taxes or sales tax in section eighteen

hundred seventeen of this chapter shall be deemed to refer also to the

unit fee imposed by this section.

(c) Transitional provision. The unit fee imposed by this section shall

be paid on any occupancy on or after April first, two thousand five,

although such occupancy is pursuant to a prior contract, lease or other

arrangement. Where the charge for occupancy is paid on a weekly, monthly

or other term basis, the occupancy shall be subject to the unit fee

imposed by this section to the extent that it covers any day on or after

April first, two thousand five. Where a person occupies a unit for less

than a full day and pays less than the rent for a full day, the unit fee

due pursuant to this section shall nevertheless be the same amount as

would be due had such person occupied the unit for a full day at the

rent for a full day.

(d) Deposit and disposition of revenue. (1) Notwithstanding any

provision of law to the contrary, the fees, interest and penalties

imposed by this section and received by the commissioner, after

deducting the amount which the commissioner shall determine to be

necessary for reasonable costs to administer, collect and distribute

such fees, penalties and interest, shall be deposited daily with such

responsible banks, banking houses or trust companies, as may be

designated by the comptroller, to the credit of the comptroller, to be

held in trust for the convention center development corporation

established by chapter thirty-five of the laws of nineteen hundred

seventy-nine, as amended. Such an account may be established in one or

more of such depositories. Such deposits shall be kept separate and

apart from all other money in the possession of the comptroller. The

comptroller shall require adequate security from all such depositories.

Of the total revenue collected or received under this section, the

comptroller shall retain in the comptroller's hands such amount as the

commissioner may determine to be necessary for refunds under this

section.

(2) On or before the twelfth day of each month: (A) after reserving

such amount for such refunds and such costs, the commissioner shall

certify to the comptroller the amount of all revenues so received during

the prior month as a result of the fees, interest and penalties so

imposed; and (B) the amount of revenues so certified shall be paid by

the comptroller to the chief fiscal officer of the convention center

development corporation established by chapter thirty-five of the laws

of nineteen hundred seventy-nine, as amended, for disposition in the

convention center development fund established by such chapter

thirty-five of the laws of nineteen hundred seventy-nine, as amended.

(e) Termination of unit fee. (1) At the end of the last day of the

month in which all the bonds, secured in whole or in part by such fee,

issued by such convention center development corporation, established by

chapter thirty-five of the laws of nineteen hundred seventy-nine, as

amended, shall have been fully paid and discharged or shall have been

deemed to be paid under the resolution authorizing such bonds, together

with interest thereon and interest on unpaid installments of interest,

the unit fee imposed by this section shall terminate. Despite such

termination, the provisions of this section and any regulations

promulgated thereunder, including the provisions with respect to

assessment, payment, termination, collection and refund of such fees,

penalties and interest, the requirements for filing returns,

preservation of records and disposition of revenue shall continue in

full force and effect with respect to all such fees accrued up to the

effective date of such termination.

(2) At least ninety days prior to the date that the unit fee is

imposed by this section shall have terminated pursuant to paragraph one

of this subdivision, the chief executive officer, or such officer's

delegate, of such development corporation shall provide written

notification to the commissioner of the date by which such unit fee

shall have terminated, so that such commissioner can timely notify

persons required to collect tax, as defined by subdivision one of

section eleven hundred thirty-one of this article, of such termination

and take such other steps as are necessary or desirable to administer

such termination. Provided that failure by such chief executive officer

or such officer's delegate to provide such notice shall not affect the

termination of such unit fee.