[Adopted 7-1-1937 by L.L.
No. 1-1937]
[Amended 5-31-1938 by L.L.
No. 1-1938; 7-3-1939 by L.L.
No. 1-1939; 7-1-1940 by L.L.
No. 1-1940; 6-30-1941 by L.L.
No. 1-1941; 6-29-1942 by L.L.
No. 3-1942; 7-1-1944 by L.L.
No. 1-1944; 7-1-1945 by L.L.
No. 1-1945; 7-1-1946 by L.L.
No. 1-1946; 7-1-1947 by L.L.
No. 1-1947; 7-1-1948 by L.L.
No. 2-1948; 7-1-1949 by L.L.
No. 2-1949; 7-1-1950 by L.L.
No. 2-1950]
A. Pursuant to the authority granted by § 20-b
of the General City Law of the State of New York and further authority of
Chapter 381 of the Laws of 1950, a tax equal to 1% of the gross income from
July 1, 1950, until rescinded by action of this Council is hereby imposed
upon every utility doing business in the City of Watertown which is subject
to the provisions of the State Department of Public Service, except motor
carriers or brokers subject to such supervision of Article 3-B of the Public Service Law, and a tax equal to 1% of its gross
income is hereby imposed for the same period upon every other utility doing
business in the City of Watertown, which taxes shall have application only
within the territorial limits of the City of Watertown and shall be in addition
to any and all taxes and fees imposed by any other provisions of law for the
same period. Such taxes shall not be imposed on any transaction originating
or consummated outside of the territorial limits of the City of Watertown,
notwithstanding that some act is necessarily performed with respect to such
transaction within such limits.
B. Pursuant to the authority granted by § 20-b
of the General City Law of the State of New York, as amended by Chapter 843
of the Laws of 1955, omnibus corporations created and operating subject to
the supervision of the State Department of Public Service under Article 3-A of the Public Service Law, solely within the City of Watertown,
are hereby declared to be exempt from such tax as was imposed by this article.
[Added 4-9-1956 by L.L. No.
1-1956]
[Amended 6-30-1941 by L.L.
No. 1-1941]
As used in this article, the following terms shall have the meanings
indicated:
GROSS INCOME
Includes receipts received in or by reason of any sale, conditional
or otherwise, made (except sales hereinafter referred to with respect to which
it is provided that profits from the sale shall be included in "gross income")
or service rendered for ultimate consumption or use by the purchaser in the
City of Watertown, including cash, credits and property of any kind or nature
(whether or not such sale is made or such service is rendered for profit),
without any deduction therefrom on account of the cost of the property sold,
the cost of the materials used, labor or services or other costs, interest
or discount paid or any other expense whatsoever; also profits from the sale
of securities; also profits from the sale of real property growing out of
the ownership or use of or interest in such property; also profit from the
sale of personal property (other than property of a kind which would properly
be included in the inventory of the taxpayer if on hand at the close of the
period for which a return is made); also receipts from interest, dividends
and royalties derived from sources within the City of Watertown other than
such as are received from a corporation, a majority of whose voting stock
is owned by the taxpaying utility, without any deduction therefrom for any
expenses whatsoever incurred in connection with the receipt thereof; and also
profits from any transaction, (except sales for resale and rentals) within
the City of Watertown whatsoever.
GROSS OPERATING INCOME
Includes receipts received in or by reason of any sale, conditional
or otherwise, made for ultimate consumption or use by the purchaser of gas,
electricity, steam, water, refrigeration, telephony or telegraphy or in or
by reason of the furnishing for such consumption or use of gas, electric,
steam, water, refrigerator, telephone or telegraph service in the City of
Watertown, including cash, credits and property of any kind or nature, without
any deduction therefrom on account of the cost of the property sold, the cost
of materials used, labor or services or other costs, interest or discount
paid or any other expenses whatsoever.
PERSON
Persons, corporations, companies, associations, joint-stock associations,
copartnerships, estates, assignees of rents, any person acting in a fiduciary
capacity or any other entity and persons, their assignees, lessees, trustees
or receivers appointed by any court whatsoever or by any other means, except
the state, municipalities, political and civil subdivisions of the state or
municipality and public districts.
UTILITY
Includes every person subject to the supervision of either division
of the State Department of Public Service, except persons engaged in the business
of operating or leasing sleeping and parlor railroad cars or of operating
railroads other than street surface, rapid transit, subway and elevated railroads,
and also includes every person, (whether or not such person is subject to
such supervision), who sells gas, electricity, steam, water, refrigeration
or telegraphy delivered through mains, pipes or wires or furnishes gas, electric,
steam, water, refrigerator, telephone or telegraph service by means of mains,
pipes or wires, regardless of whether such activities are the main business
of such person or are only incidental thereto or of whether use is made of
the public streets.
[Amended 10-21-1991 by L.L.
No. 6-1991]
Every utility subject to tax under this article shall keep such records
of its business and in such form as the City Comptroller may require, and
such records shall be preserved for a period of three years, except that the
City Comptroller may consent to their destruction within that period or may
require that they be kept longer.
[Amended 7-3-1939 by L.L.
No. 1-1939; 6-30-1941 by L.L.
No. 1-1941; 6-29-1942 by L.L.
No. 3-1942; 10-21-1991 by L.L
No. 6-1991]
Every utility subject to tax hereunder shall file, on or before September
25, December 25, March 25 and June 25, a return for the three calendar months
preceding each such return date, including any period for which the tax imposed
hereby or by any amendment hereof is effective, each of which returns shall
state the gross income or gross operating income for the period covered by
each such return. Returns shall be filed with the City Comptroller on a form
to be furnished by him for such purpose and shall contain such other data,
information or matter as the City Comptroller may require to be included therein.
Notwithstanding the foregoing provisions of this section, any utility whose
average gross income or average gross operating income, as the case may be,
for the aforesaid three-month periods is less than $1,500 may file its returns
for such periods on June 25, 1939; June 25, 1940; June 25, 1942; June 25,
1943; and June 25, 1944, respectively. The City Comptroller, in order to ensure
payment of the tax imposed, may require at any time a further or supplemental
return, which shall contain any data that may be specified by the City Comptroller.
Every return shall have annexed thereto an affidavit of the head of the utility
making the same or of the copartner thereof or of a principal officer of the
corporation, if such business is conducted by a corporation, to the effect
that the statements contained therein are true.
[Amended 10-21-1991 by L.L.
No. 6-1991]
At the time of filing a return as required by this article, each utility
shall pay to the City Comptroller the tax imposed by this article for the
period covered by such return. Such tax shall be due and payable at the time
of filing the return or, if a return is not filed when due, on the last day
on which the return is required to be filed.
[Amended 7-3-1939 by L.L.
No. 1-1939; 10-21-1991 by L.L.
No. 6-1991]
In case any return filed pursuant to this article shall be insufficient
or unsatisfactory to the City Comptroller, and if a corrected or sufficient
return is not filed within 20 days after the same is required by notice from
the City Comptroller, or if no return is made for any period, the City Comptroller
shall determine the amount of tax due from such information as he is able
to obtain and, if necessary, may estimate the tax on the basis of external
indices or otherwise. The City Comptroller shall give notice of such determination
to the person liable for such tax. Such determination shall finally and irrevocably
fix such tax unless the person against whom it is assessed shall, within 30
days after the giving of notice of such determination, apply to the City Comptroller
for a hearing or unless the City Comptroller, of his own motion, shall reduce
the same. After such hearing, the City Comptroller shall give notice of his
decision to the person liable for the tax. The decision of the City Comptroller
may be reviewed by a proceeding under Article 78 of the Civil Practice Act
of the State of New York, if application therefor is made within 30 days after
the giving of notice of such decision. An order to review such decision shall
not be granted unless the amount of any tax sought to be reviewed, with interest
and penalties thereon, if any, shall be first deposited with the City Comptroller
and an undertaking filed with him in such amount and with such sureties as
a Justice of the Supreme Court shall approve, to the effect that if such proceeding
is dismissed or the tax confirmed, the applicant will pay all costs and charges
which may accrue in the prosecution of such proceeding, or, at the option
of the applicant, such undertaking may be in a sum sufficient to cover the
tax, interest, penalties, costs and charges aforesaid, in which event the
applicant shall not be required to pay such tax, interest and penalties as
a condition precedent to the granting of such order.
Any notice authorized or required under the provisions of this article
may be given by mailing the same to the person for whom it is intended in
a postpaid envelope addressed to such person at the address given by him in
the last return filed by him under this article or, if no return has been
filed, then to such address as may be obtainable. The mailing of such notice
shall be presumptive evidence of the receipt of the same by the person to
whom addressed. Any period of time which is determined according to the provisions
of this article by the giving of notice shall commence to run from the date
of mailing of such notice.
[Amended 10-21-1991 by L.L.
No. 6-1991]
Any person failing to file a return or corrected return or to pay any
tax or any portion thereof within the time required by this article shall
be subject to a penalty of 5% of the amount of tax due, plus 1% of such tax
for each month of delay or fraction thereof, except the first month after
such return was required to be filed or such tax became due, but the City
Comptroller, if satisfied that the delay was excusable, may remit all or any
portion of such penalty.
[Amended 7-3-1939 by L.L.
No. 1-1939; 10-21-1991 by L.L.
No. 6-1991]
If, within one year from the payment of any tax or penalty, the payer
thereof shall make application for a refund thereof and the City Comptroller
or the court shall determine that such tax or penalty or any portion thereof
was erroneously or illegally collected, the City Comptroller shall refund
the amount so determined. For like cause and within the same period a refund
may be so made on the initiative of the City Comptroller. However, no refund
shall be made of a tax or penalty paid pursuant to a determination of the
City Comptroller as hereinbefore provided unless the City Comptroller, after
a hearing as hereinbefore provided or of his own motion, shall have reduced
the tax or penalty or it shall have been established in a proceeding under
Article 78 of the Civil Practice Act of the State of New York that such determination
was erroneous or illegal. All refunds shall be made out of moneys collected
under this article. An application for a refund, made as hereinbefore provided,
shall be deemed an application for the revision of any tax or penalty complained
of, and the City Comptroller may receive additional evidence with respect
thereto. After making this determination, the City Comptroller shall give
notice thereof to the person interested, and he shall be entitled to an order
to review such determination under said Article 78, subject to the provisions
hereinbefore contained relating to the granting of such an order.
The tax imposed by this article shall be charged against and paid by
the utility and shall not be added as a separate item to bills rendered by
the utility to customers or others but shall constitute a part of the operating
costs of such utility.
[Amended 10-21-1991 by L.L.
No. 6-1991]
Whenever any person shall fail to pay any tax or penalty imposed by
this article, the Corporation Counsel shall, upon the request of the City
Comptroller, bring an action to enforce payment of the same. The proceeds
of any judgment obtained in any such action shall be paid to the City Comptroller.
Each such tax and penalty shall be a lien upon the property of the person
liable to pay the same in the same manner and to the same extent that the
tax and penalty imposed by § 186-a of the Tax Law is made a lien.
[Amended 10-21-1991 by L.L.
No. 6-1991]
In the administration of this article, the City Comptroller shall have
the power to make such reasonable rules and regulations, not inconsistent
with law, as may be necessary for the exercise of his powers and the performance
of his duties and to prescribe the form of blanks, reports and other records
relating to the administration and enforcement of the tax, to take testimony
and proofs under oath with reference to any matter within the line of his
official duty under this article and to subpoena and require the attendance
of witnesses and the production of books, papers and documents.
A. Except in accordance with the proper judicial order or
as otherwise provided by law, it shall be unlawful for the City Comptroller
or any agent, clerk or employee of the City of Watertown to divulge or make
known, in any manner, the amount of gross income or gross operating income
or any particulars set forth or disclosed in any return under this article.
The officer charged with the custody of such returns shall not be required
to produce any of them or evidence of anything contained in them in any action
or proceeding in any court, except on behalf of the City of Watertown in an
action or proceeding under the provisions of this article or on behalf of
the State Tax Commission in an action or proceeding under the provisions of
the Tax Law of the State of New York or on behalf of any party to any action
or proceeding under the provisions of this article when the returns or facts
shown thereby are directly involved in such action or proceeding, in either
of which events, the court may require the production of and may admit in
evidence so much of said returns or of the facts shown thereby as are pertinent
to the action or proceeding and no more. Nothing herein shall be construed
to prohibit the delivery to a person or his duly authorized representative
of a copy of any return filed by him nor to prohibit the publication of statistics
so classified as to prevent the identification of particular returns and the
items thereof or the publication of delinquent lists showing the names of
persons who have failed to pay their taxes at the time and in the manner provided
for by this article, together with any relevant information which, in the
opinion of the City Comptroller, may assist in the collection of such delinquent
taxes or the inspection by the Corporation Counsel or other legal representatives
of the City of Watertown of the return of any person who shall bring action
to set aside or review the tax based thereon or against whom an action has
been instituted in accordance with the provisions of this article.
[Amended 10-21-1991 by L.L.
No. 6-1991]
B. Any offense against the foregoing secrecy provisions
shall be punishable by a fine not exceeding $1,000 or by imprisonment not
exceeding six months, or both; and if the offender is an officer, agent, clerk
or employee of the City of Watertown, he shall be dismissed from office and
shall be incapable of holding any office or employment in the City of Watertown
for a period of five years thereafter.
C. Notwithstanding any provisions of this article, the City
Comptroller may exchange with the chief fiscal officer of any other city in
the State of New York information contained in returns filed under this article,
provided that such other city grants similar privileges to the City of Watertown
and provided that such information is to be assessed for tax purposes only,
and the City Comptroller shall, upon request, furnish the State Tax Commission
with any information contained in such returns.
[Amended 10-21-1991 by L.L.
No. 6-1991]
[Amended 6-29-1942 by L.L.
No. 3-1942; 10-21-1991 by L.L.
No. 6-1991]
All taxes and penalties received by the City Comptroller for taxes heretofore
or hereafter imposed under this article shall be credited and deposited by
him in the general fund of the City.