2023 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.