NYC-WTC_000195490

NYC 9/11 Public Portal Document

LEGISLATIVE HISTORY S ction broadcast or in the transmission, as well as services vessel (effective date: March 1, 2001); and tangible OOI). (effective date: September 1, 2000); food and non­ personal property and building materials used in luced alcoholic beverages sold at dining facilities located farm production, as well as utility services, and iness in senior citizen residences, where use of the dining services provided to farm real property. The 1998 1 the room is lirnited to residents and their guests, and exemption for promotional materials is extended to Stax / where the food and drink are served only in the prospectuses, paper, ink, mechanicals, layouts, rials diping room dr a resident’s room (effective date; i artwork, photographs, color separations and similar i tax December 1, 2000); manufacturing and industrial property furnished to a printer for use in producing tion pollution control, prevention, and abatement ; promotional materials that are then sold to the es is equipment and machinery (effective date: March 1, furnisher of those items (effective date; retroactive ecial 2001); candy, soda and certain fruit drinks sold for to March 1, 1997). Additionally, commercial horse '2 to 75 cents, or less through vending machines (effective boarding operations receive the same exemptions as date; September 1, 2000); purchases by out-of-state ' farms (effective date; September 1, 2000). state ocal residents of vessels and trailers sold for use with the 7 >e 1, :eof ■s or I Administration: New York State and local sales tax laws provide that the State Department of Taxation im a and Finance will administer the sales taxes imposed by both the State and the localities. A general sales tax is s or & collected from approximately 590,500 vendors in New York State. Vendors are responsible for collecting the ning I Sales tax from the purchaser at the time of sale. These vendors must file tax returns periodically. The «npf frequency and timing of filing is determined mainly by their level of receipts. Large vendors submit estimated IS or. gas f; (payments to the State for the first two months of each reporting quarter. In the third month they submit a a Of return with remittances for complete quarterly collections. Small vendors submit returns quarterly or annually. *L earn The State distributes estimated monthly payments to the City based on prior year payment patterns. At erti' the end of a reporting quarter remittances are conveyed to the City based on vendor returns received by the inst end of the third month. In subsequent months, the State reviews returns for accuracy and processes late less returns. This may lead to substantial reconciliations of the distributions made in prior periods giving rise to ty's what are khown as prior period adjustments (PPAs). The State charges an administrative fee for this service, nto which is allocated to each locality based on the locality’s share of total statewide, collections. For 2000, the iber sry', administraijive charge paid by the City was $19.3 million. ible met Forecast: The 2001 sales tax forecast is increased by $52 million to $3,651 million, a 4.0 percent , as increase over the prior year. The 2002 tax revenue forecast is $3,710 million, 1.6 percent growth over the tain i prioryear. , are ible Sales tax revenue growth has been strong in recent years, averaging 8.4 percent growth from 1997 through ing 2000 (common fate and base). Historic employment gains and strong growth in the tourism industry spurred net the growth in sales tax revenue over this period. Additionally, increased discretionary income in the City, as mt, robust Wall Street profits were translated into strong bonus payouts and a wealth effect resulting from the des steep appreciation of equities held by households, also buoyed consumption. ible or The sales tax is forecast to grow 4.() percent in 2001, a slowdown from the robust growth of nearly ten Ite: percent in 2000, Sales tax revenue growth in the first three quarters of 2001 has been strong with the year-to- ■es: date collections averaging 6.1 percent growth. Record employment gains during calendar year 2000 and a her record bonus payout on 2000 Wall Street profits continue to bolster consumption locally, despite signs of a ‘In , for slowing national economy. Through the end of the year sales tax collections are forecast to grow 2.0 percent. U I ' . ( i \ . I t ’ ('" I 73

NYC-WTC_000195570