[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income from July 1, 1950, until rescinded by action of this Council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.