N.Y. Tax Law § 1202-l*3: Hotel or motel taxes in Niagara Falls

* § 1202-l. Hotel or motel taxes in Niagara Falls. (1) Notwithstanding

any other provisions of law to the contrary, the city of Niagara Falls

is hereby authorized and empowered to adopt and amend local laws

imposing in such city a tax in addition to any tax authorized and

imposed pursuant to this article such as the legislature has or would

have the power and authority to impose on persons occupying hotel and

motel rooms in such city. The rate of such tax shall be six per centum

(6%) per day of the rent or charge for each room; provided, however,

such tax shall not be applicable to a permanent resident of a hotel. For

the purposes of this section, the term "permanent resident" shall mean a

person occupying any room or rooms in a hotel for at least thirty

consecutive days.

(2) Such tax may be collected and administered by the comptroller of

the city of Niagara Falls by such means and in such manner as other

taxes which are now collected and administered by such officers as

provided by local law.

(3) Such local laws may provide that any tax imposed shall be paid by

the person liable therefor to the owner of the hotel room occupied or to

the person entitled to be paid the rent or charge for the hotel room

occupied for and on account of the city of Niagara Falls imposing the

tax and that such owner or person entitled to be paid the rent or charge

shall be liable for the collection and payment of the tax; and that such

owner or person entitled to be paid the rent or charge shall have the

same right in respect to collecting the tax from the person occupying

the hotel room, or in respect to nonpayment of the tax by the person

occupying the hotel room, as if the tax were a part of the rent or

charge and payable at the same time as the rent or charge; provided,

however, that the city comptroller of the city of Niagara Falls shall be

joined as a party in any action or proceeding brought to collect the tax

by the owner or by the person entitled to be paid the rent or charge.

(4) Such local laws may provide for the filing of returns and the

payment of the tax on a monthly basis or on the basis of any longer or

shorter period of time. Such returns shall be filed within twenty days

from the expiration of the period covered.

(5) This section shall not authorize the imposition of such tax upon

the following:

a. The state of New York, or any public corporation (including a pub-

lic corporation created pursuant to agreement or compact with another

state or the Dominion of Canada), improvement district or other

political subdivision of the state;

b. The United States of America, insofar as it is immune from

taxation;

c. The United Nations or other world-wide international organization

of which the United States is a member; and

d. Any corporation, or association, or trust, or community chest, fund

or foundation, organized and operated exclusively for religious,

charitable, or educational purposes, or for the prevention of cruelty to

children or animals, and no part of the net earnings of which inures to

the benefit of any private shareholder or individual and no substantial

part of the activities of which is carrying on propaganda, or otherwise

attempting to influence legislation; provided, however, that nothing in

this paragraph shall include an organization operated for the primary

purpose of carrying on a trade or business for profit, whether or not

all of its profits are payable to one or more organizations described in

this paragraph.

(6) Any final determination of the amount of any tax payable hereunder

shall be reviewable for error, illegality or unconstitutionality or any

other reason whatsoever by a proceeding under article seventy-eight of

the civil practice law and rules if application therefor is made to the

supreme court within thirty days after the giving of the notice of such

final determination, provided, however, that any such proceeding under

article seventy-eight of the civil practice law and rules shall not be

instituted unless (a) the amount of any tax sought to be reviewed, with

such interest and penalties thereon as may be provided for by local law

or regulation, shall be first deposited and there is filed an

undertaking, issued by a surety company authorized to transmit business

in this state and approved by the superintendent of financial services

of this state as to solvency and responsibility, in such amount as a

justice of the supreme court shall approve to the effect that if such

proceeding be dismissed or the tax confirmed the petitioner will pay all

costs and charges which may accrue in the prosecution of such proceeding

or (b) at the option of the petitioner such undertaking may be in a sum

sufficient to cover the taxes, interest and penalties stated in such

determination plus the costs and charges which may accrue against it in

the prosecution of the proceedings in which event the petitioner shall

not be required to pay such taxes, interest or penalties as a condition

precedent to the application.

(7) Where any tax imposed hereunder shall have been erroneously,

illegally or unconstitutionally collected and application for the refund

thereof duly made to the proper fiscal officer or officers, and such

officer or officers shall have made a determination denying such refund,

such determination shall be reviewable by a proceeding under article

seventy-eight of the civil practice law and rules, provided, however,

that such proceeding is instituted within thirty days after the giving

of the notice of such denial, that a final determination of tax due was

not previously made, and that an undertaking is filed with the proper

fiscal officer or officers in such amount and with such sureties as a

justice of the supreme court shall approve to the effect that if such

proceeding be dismissed or the tax confirmed, the petitioner will pay

all costs and charges which may accrue in the prosecution of such

proceeding.

(8) Except in the case of a wilfully false or fraudulent return with

intent to evade the tax, no assessment of additional tax shall be made

after the expiration of more than three years from the date of the

filing of a return, provided, however, that where no return has been

filed as provided by law the tax may be assessed at any time.

(9) Revenues resulting from the imposition of tax authorized by this

act shall be paid into the treasury of the city of Niagara Falls and

shall be credited to and deposited in the general fund account of such

city and shall be used only for the promotion of convention activities

and tourism as follows: (a) from the first four per centum (4%), eighty

percent of such revenue from this tax shall be allocated and paid to a

not-for-profit corporation under contract with the county for the

promotion of tourism in the county; fifteen percent of such revenue

shall be retained by the city of Niagara Falls for any city purpose; and

the remaining five percent of said first four per centum (4%) of revenue

shall be retained by the city of Niagara Falls for administration and

collection costs; (b) the additional one percentum (1%) of such revenue

from this tax first authorized pursuant to chapter two hundred

forty-seven of the laws of two thousand six shall be dedicated to the

continuation of a trolley service for the purpose of transporting guests

of hotels and motels to area tourism attractions; and (c) an additional

one per centum (1%) of revenue shall be dedicated to the operation of

the Discover Niagara shuttle. The terms "convention activities" and

"tourism" may be defined by a resolution of the city council of the city

of Niagara Falls.

(10) If any provision of this section or the application thereof to

any person or circumstance shall be held invalid, the remainder of this

section and the application of such provision to other persons or

circumstances shall not be affected thereby.

* NB There are 3 § 1202-l's