Referred to: The Ways and Means Committee (Chairman Gerentine and Legislators

Allen, Belfiglio, Briggs, Gregorius, Maio, Maloney, and Richard Parete)

Chairman of the Ways and Means Committee, Richard A. Gerentine, and Deputy

Chairman Donald Gregorius offer the following:

WHEREAS, Resolution No. 286 of 1968 imposes taxes on sales and uses of

tangible personal property, and on various charges and services as set forth therein;

and

WHEREAS, said Resolution No. 286 of 1968 has been amended on various

occasions, including by Resolution No. 164 adopted July 8, 1971, Resolution No. 18

adopted February 8, 1973, Resolution No. 211 adopted June 10, 1976, Resolution

No. 445 adopted December 14, 1976, Resolution No. 183 adopted August 12, 1993,

Resolution No. 211 adopted August 10, 1995, Resolution No. 240 adopted August

14, 1997, Resolution No. 245 adopted August 12, 1999, Resolution No. 260 adopted

August 22, 2001, Resolution No. 218 adopted July 30, 2003, Resolution No. 246

adopted August 31, 2005, Resolution No. 272 adopted July 31, 2007, Resolution No.

247 adopted August 12, 2009, Resolution No. 177 adopted August 16, 2011,

Resolution No. 9 adopted January 23, 2014 and Resolution No. 397 adopted

November 18, 2014; and

WHEREAS, Chapter 181 of the Laws of 2015 authorizes the County to

impose an additional 1% rate of such taxes for the period December 1, 2015 through

November 30, 2017; now, therefore, be it

RESOLVED, by the Ulster County Legislature, that Resolution No. 286 of

1968, as amended, be amended as follows:

Section 1. The first sentence of Section 2 thereof is amended to read as follows:

On and after March 1, 1977, there is hereby imposed, and there shall be paid a

tax of three percent upon, and for the period commencing December 1, 2015

and ending November 30, 2017, there is hereby imposed and there shall be

paid an additional tax of one percent upon:

Section 2. Subdivision (h) of Section 3 thereof is amended to read as follows:

(h) With respect to the additional tax of one percent imposed for the period

commencing December 1, 2015, and ending November 30, 2017, the

provisions of subdivisions (a), (b), (c), (d) and (e) of this Section apply, except

that for the purposes of this subdivision, all references in said subdivisions (a),

(b), (c), and (d), to an effective date shall be read as referring to December 1,

2015, all references in said subdivision (a) to the date four months prior to the

effective date shall be read as referring to August 1, 2015, and the reference in

subdivision (b) to the date immediately preceding the effective date shall be

read as referring to November 30, 2015. Nothing herein shall be deemed to

exempt from tax at the rate in effect prior to December 1, 2015, any

transaction which may not be subject to the additional tax imposed effective

on that date.

Section 3. Section 4 thereof is amended to read as follows:

Section 4. Imposition of compensating use tax.

(a) Except to the extent that the property or services have already been or will

be subject to the sales tax under this enactment, there is hereby imposed on

every person a use tax for the use within this taxing jurisdiction on and

after December 1, 2015, except as otherwise exempted under this

enactment, (A) of any tangible personal property purchased at retail, (B) of

any tangible personal property (other than computer software used by the

author or other creator) manufactured, processed or assembled by the user,

(i) if items of the same kind of tangible personal property are offered by

sale by him in the regular course of business or (ii) if items are used as

such or incorporated into a structure, building or real property by a

contractor, subcontractor or repairman in erecting structures or buildings,

or building on, or otherwise adding to, altering, improving, maintaining,

servicing or repairing real property, property or land, as the terms real

property, property or land are defined in the real property tax law, if items

of the same kind are not offered for sale as such by such contractor,

subcontractor or repairman or other user in the regular course of business,

(C) of any of the services described in paragraphs (1), (7) and (8) of 

subdivision (c) of Section Two, (D) of any tangible personal property,

however acquired, where not acquired for purposes of resale, upon which

any of the services described under paragraphs (2), (3) and (7) of

subdivision (c) of Section Two have been performed, (E) of any telephone

answering service described in subdivision (b) of Section Two and (F) of

any computer software written or otherwise created by the user if the user

offers software of a similar kind for sale as such or as a component part of

other property in the regular course of business.

(b) For purposes of clause (A) of subdivision (a) of this Section, for the period

commencing December 1, 2015, and ending November 30, 2017, the tax shall

be at the rate of four percent and on and after December 1, 2017, the tax shall

be at the rate of three percent, of the consideration given or contracted to be

given for such property, or for the use of such property, including any charges

for shipping or delivery, as described in paragraph three of subdivision (b) of

Section One, but excluding any credit for tangible personal property accepted

in part payment and intended for resale.

(c) For purposes of subclause (i) of Clause (B) of subdivision (a) of this

Section, for the period commencing December 1, 2015, and ending November

30, 2017, the tax shall be at the rate of four percent, and on and after

December 1, 2017, the tax shall be at the rate of three percent, of the price at

which items of the same kind of tangible personal property are offered for sale

by the user, and the mere storage, keeping, retention or withdrawal from

storage of tangible personal property by the person who manufactured,

processed or assembled such property shall not be deemed a taxable use by

him.

(d) For purposes of subclause (ii) of clause (B) of subdivision (a) of this

Section, for the period commencing December 1, 2015, and ending November

30, 2017, the tax shall be at the rate of four percent, and on and after

December 1, 2017, the tax shall be at the rate of three percent, of the

consideration given or contracted to be given for the tangible personal

property manufactured, processed or assembled into the tangible personal

property the use of which is subject to tax, including any charges for shipping

or delivery as described in paragraph three of subdivision (b) of Section One.

(C) With respect to the additional one percent tax imposed for the period

beginning February 1, 2014, and ending November 30, 2017, in respect to the

use of property used by the purchaser in this County prior to February 1, 2014.

Section 5. Section 14 thereof is amended to read as follows:

Section 14. Disposition of Revenue

(a) Net collections distributed to the County by the State Comptroller pursuant

to subdivision (c) of Section 1261 of the Tax Law of the State of New York,

including net collections from the additional one percent rate of sales and

compensating use taxes imposed for the periods beginning September 1, 2002,

and ending, November 30, 2013 and commencing February 1, 2014, and

ending November 30, 2017, shall be set aside for County purposes and shall

be available for any County purpose, except that such net collections shall be

set aside or disposed of in accordance with the Sales Tax allocation agreement

entered into by Ulster County and the City of Kingston (the “City”) on

January 18, 2006 and approved by the State Comptroller pursuant to section

1262 ( c ) of the Tax Law most recently for the period March 1, 2011, through

February 29, 2016, during the period that such agreement is in effect. Such

agreement provides as follows:

(1) 85.5% of such monies shall be set aside for County purposes and

shall be available for any County purpose.

(2) 11.5% of such monies shall be paid monthly directly to the City and

the County shall pay such share of the monies to the City within seven

work days after receiving the same from the State Comptroller.

(3)(a) 3% of such monies shall be allocated monthly or otherwise as

provided by law, to the area of the County outside of the City, to be

distributed among the towns and villages therein based upon full

valuation.

(b) As used in this Section the following terms shall mean or include:

(1) Net collections. The moneys collected from a tax or taxes imposed

pursuant to this enactment, after deducting therefrom expenses of

administration and collection and amounts refunded or to be refunded.

(2) General town taxes. Taxes levied for any town purpose, including

highways, upon the entire area of a town.

(3) Full valuation of real property. The assessed valuation of real

property divided by the equalization rate as determined in accordance

with Article Eight of the Real Property Tax Law.

(4) Part-town activities. Activities of town government, including

highway programs, which are chargeable to the area of the town

outside of villages, exclusive of special district purposes, unless such

special district is a fire protection district coterminous with the area of a

town outside of villages.

Section 6. This enactment shall take effect December 1, 2015,

and move its adoption.

ADOPTED BY THE FOLLOWING VOTE:

AYES: 23 NOES: 0

Passed Committee: Ways and Means on August 12, 2015

FINANCIAL IMPACT:

$23,085,589.00 – COUNTY - ANNUALIZED REVENUES FOR 12 MONTHS

$ 3,105,079.00 – CITY OF KINGSTON - ANNUALIZED REVENUES FOR 12

 MONTHS

$ 810,021.00 – TOWNS - ANNUALIZED REVENUES FOR 12 MONTHS

STATE OF NEW YORK

 ss:

COUNTY OF ULSTER

I, the undersigned Clerk of the Legislature of the County of Ulster, hereby certify that the foregoing resolution is

the original resolution adopted by the Ulster County Legislature on the 18th Day of August in the year Two Thousand and

Fifteen, and said resolution shall remain on file in the office of said clerk.

IN WITNESS WHEREOF, I have hereunto set my hand and seal of the County of Ulster this 19th Day of August

in the year Two Thousand and Fifteen.

|s| Victoria A. Fabella

Victoria A. Fabella, Clerk

Ulster County Legislature

Submitted to the County Executive this Approved by the County Executive this

19th Day of August, 2015. 19

th Day of August, 2015.

|s| Victoria A. Fabella |s| Michael P. Hein

Victoria A. Fabella, Clerk Michael P. Hein, County Executive

Ulster County Legislature