N.Y. Village Law § 5-530: Villages authorized to impose taxes on utilities

§ 5-530 Villages authorized to impose taxes on utilities. 1.

Notwithstanding any other provisions of law to the contrary, any village

is hereby authorized and empowered to adopt and amend local laws

imposing in any such village a tax such as was imposed by section one

hundred eighty-six-a of the tax law, in effect on January first,

nineteen hundred fifty-nine, except that the rate thereof shall not

exceed one per centum of gross income or of gross operating income, as

the case may be, and may make provision for the collection thereof by

the chief fiscal officer of such village; provided, however, that

nothing herein contained shall be construed so as to prevent any village

from adopting local laws exempting from such tax omnibus corporations

subject to the supervision of the state department of public service

under article three-a of the public service law. A tax imposed pursuant

to this section shall have application only within the territorial

limits of any such village, and shall be in addition to any and all

other taxes. This section shall not authorize the imposition of a tax on

any transaction originating or consummated outside of the territorial

limits of any such village, notwithstanding that some act be necessarily

performed with respect to such transaction within such limits.

2. Revenues resulting from the imposition of taxes authorized by this

section heretofore or hereafter imposed shall be paid to the treasurer

of the village imposing the same, and shall be credited to and deposited

in the general fund of such village.

3. All of the provisions of section one hundred eighty-six-a of the

tax law, so far as the same are or can be made applicable, with such

limitations as are set forth in this section, and such modifications as

may be necessary in order to adapt such taxes to local conditions shall

apply to the taxes authorized by this section.

4. Notwithstanding any other provisions of this section or of section

one hundred eighty-six-a of the tax law, the words "gross income" shall

include:

a. In the case of a utility engaged in selling telephony or telephone

service, only receipts from local exchange service wholly consummated

within the village; and

b. In the case of a utility engaged in selling telegraphy or telegraph

service, only receipts from transactions wholly consummated within the

village.

5. 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 the proceeding is commenced within

ninety days after the giving of the notice of such final determination;

provided, however, that any such proceeding under said article

seventy-eight shall not be instituted unless the amount of any tax

sought to be reviewed, with such interest and penalties thereon as may

be provided for by local law, ordinance or resolution, shall be first

deposited and an undertaking filed, 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.

6. 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 commenced within ninety 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.

7. Except in the case of a willfully false or fraudulent return with

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

with respect to taxes imposed under this section, after the expiration

of more than three years from the date of the filing of a return,

provided, that where no return has been filed as provided by local law

the tax may be assessed at any time.