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\ntaxes for cities of under one million. (a) General. On the first day of\nthe first month following the month in which a municipal assistance\ncorporation is created under article ten of the public authorities law\nfor a city of less than one million, in addition to the taxes imposed by\nsections eleven hundred five and eleven hundred ten, there is hereby\nimposed on such date, within the territorial limits of such city, and\nthere shall be paid, additional taxes, at the rate of three percent,\nwhich except as provided in subdivision (b) of this section, shall be\nidentical to the taxes imposed by sections eleven hundred five and\neleven hundred ten. Such sections and the other sections of this\narticle, including the definition and exemption provisions, shall apply\nfor purposes of the taxes imposed by this section in the same manner and\nwith the same force and effect as if the language of those sections had\nbeen incorporated in full into this section and has expressly referred\nto the taxes imposed by this section.\n (b) Exceptions. (1) Notwithstanding any provision of law to the\ncontrary, the receipts from the following shall be exempt from the tax\non retail sales and the compensating use tax imposed by this section:\nAll sales of tangible personal property for use or consumption directly\nand predominantly in the production of tangible personal property, gas,\nelectricity, refrigeration or steam, for sale, by manufacturing,\nprocessing, generating, assembling, refining, mining or extracting; and\nall sales of tangible personal property for use or consumption\npredominantly either in the production of tangible personal property,\nfor sale, by farming or in a commercial horse boarding operation, or in\nboth.\n (2) The transitional provisions contained in section eleven hundred\nsix shall not apply to the taxes imposed by this section.\n (3) Where a sale of tangible personal property or services, including\nan agreement therefor, is made in a city in which the taxes imposed by\nsubdivision (a) of this section apply, but the property sold, the\nproperty upon which the services were performed or such service is or\nwill be delivered to the purchaser elsewhere, such sale will not be\nsubject to taxes imposed by such subdivision (a). However, if delivery\noccurs or will occur in any city where the tax imposed by such\nsubdivision (a) applies, a vendor will be required to collect from the\npurchaser, the sales or compensating use taxes imposed by this section.\nFor the purposes of this section delivery shall be deemed to include\ntransfer of possession to the purchaser and the receiving of the\nproperty or of the service by the purchaser.\n (4) The provisions of section twelve hundred fourteen shall be\napplicable to this section, but any reference in that section to a local\nsales or use tax imposed by a city shall mean the additional taxes\nimposed by subdivision (a) hereof.\n (5) Where a retail sales tax or a compensating use tax was legally due\nand paid to any municipal corporation in this state, without any right\nto a refund or credit thereof, with respect to the sale or use of\ntangible personal property or any of the services subject to sales or\ncompensating use tax, if the use of such property or services is then\nsubject to the compensating use tax imposed by this section and such tax\nis at a higher rate than the rate of tax imposed by such municipal\ncorporation, the tax imposed by this section shall also apply but only\nto the extent of the difference in such rates. For purposes of this\nsubdivision, a payment to the tax commission of a tax imposed by a\nmunicipal corporation shall be deemed a payment to such municipal\ncorporation.\n (c) Termination of taxes. At the end of the last day of the month in\nwhich all the notes and bonds of such municipal assistance corporation\nshall have been fully paid and discharged, together with interest\nthereon and interest on unpaid installments of interest, the taxes\nimposed by this section shall terminate. Despite such termination, the\nprovisions of this section and any regulations promulgated thereunder,\nincluding the provisions with respect to assessment, payment,\ntermination, collection and refund of such taxes, the requirements for\nfiling returns, preservations of records and disposition of revenue\nshall continue in full force and effect with respect to all such taxes\naccrued up to the effective date of such termination.\n