N.Y. Tax Law § 1108: Temporary municipal assistance sales and compensating use taxes for cities of under one million

§ 1108. Temporary municipal assistance sales and compensating use

taxes for cities of under one million. (a) General. On the first day of

the first month following the month in which a municipal assistance

corporation is created under article ten of the public authorities law

for a city of less than one million, in addition to the taxes imposed by

sections eleven hundred five and eleven hundred ten, there is hereby

imposed on such date, within the territorial limits of such city, and

there shall be paid, additional taxes, at the rate of three percent,

which except as provided in subdivision (b) of this section, shall be

identical to the taxes imposed by sections eleven hundred five and

eleven hundred ten. Such sections and the other sections of this

article, including the definition and exemption provisions, shall apply

for purposes of the taxes imposed by this section in the same manner and

with the same force and effect as if the language of those sections had

been incorporated in full into this section and has expressly referred

to the taxes imposed by this section.

(b) Exceptions. (1) Notwithstanding any provision of law to the

contrary, the receipts from the following shall be exempt from the tax

on retail sales and the compensating use tax imposed by this section:

All sales of tangible personal property for use or consumption directly

and predominantly in the production of tangible personal property, gas,

electricity, refrigeration or steam, for sale, by manufacturing,

processing, generating, assembling, refining, mining or extracting; and

all sales of tangible personal property for use or consumption

predominantly either in the production of tangible personal property,

for sale, by farming or in a commercial horse boarding operation, or in

both.

(2) The transitional provisions contained in section eleven hundred

six shall not apply to the taxes imposed by this section.

(3) Where a sale of tangible personal property or services, including

an agreement therefor, is made in a city in which the taxes imposed by

subdivision (a) of this section apply, but the property sold, the

property upon which the services were performed or such service is or

will be delivered to the purchaser elsewhere, such sale will not be

subject to taxes imposed by such subdivision (a). However, if delivery

occurs or will occur in any city where the tax imposed by such

subdivision (a) applies, a vendor will be required to collect from the

purchaser, the sales or compensating use taxes imposed by this section.

For the purposes of this section delivery shall be deemed to include

transfer of possession to the purchaser and the receiving of the

property or of the service by the purchaser.

(4) The provisions of section twelve hundred fourteen shall be

applicable to this section, but any reference in that section to a local

sales or use tax imposed by a city shall mean the additional taxes

imposed by subdivision (a) hereof.

(5) Where a retail sales tax or a compensating use tax was legally due

and paid to any municipal corporation in this state, without any right

to a refund or credit thereof, with respect to the sale or use of

tangible personal property or any of the services subject to sales or

compensating use tax, if the use of such property or services is then

subject to the compensating use tax imposed by this section and such tax

is at a higher rate than the rate of tax imposed by such municipal

corporation, the tax imposed by this section shall also apply but only

to the extent of the difference in such rates. For purposes of this

subdivision, a payment to the tax commission of a tax imposed by a

municipal corporation shall be deemed a payment to such municipal

corporation.

(c) Termination of taxes. At the end of the last day of the month in

which all the notes and bonds of such municipal assistance corporation

shall have been fully paid and discharged, together with interest

thereon and interest on unpaid installments of interest, the taxes

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 taxes, the requirements for

filing returns, preservations of records and disposition of revenue

shall continue in full force and effect with respect to all such taxes

accrued up to the effective date of such termination.