NY Tax L § 1108 (2021)
2021 New York Laws TAX - Tax Article 28 - Sales and Compensating Use Taxes Part 2 - Imposition of Taxes 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.