[Adopted 1-20-2017 by L.L. No. 4-2017]
Pursuant to the authority granted by § 5-530 of the
Village Law of the State of New York, a tax equal to 1% of its gross
income from and after the first day of July 1968 is hereby imposed
upon every utility doing business in the Village of East Hampton which
is subject to the supervision of the State Department of Public Service,
which has a gross income for the 12 months ending June 30, 1968, in
excess of $500, and a tax equal to 1% of its gross operating income
from and after the first day of July 1968 is hereby imposed upon every
other utility doing business in the Village of East Hampton which
has a gross operating income for the 12 months ending June 30, 1968,
in excess of $500, which taxes shall have application only within
the territorial limits of the Village of East Hampton, and shall be
in addition to any and all other taxes and fees imposed by the other
provisions of law. Such taxes shall not be imposed on any transaction
originating or consummated outside of the territorial limits of the
Village of East Hampton, notwithstanding that some act be necessarily
performed with respect to such transaction within such limits.
When used in this article, unless otherwise required by the
context, or unless a contrary intent is expressly declared in the
provision to be construed, the words, phrases or clauses hereafter
shall be construed as follows:
Receipts received in or by reason of any sale, conditional
or otherwise (except sales hereinafter referred to with respect to
which it is provided that profits from the sale shall be included
in gross income) made or service rendered for ultimate consumption
or use by the purchaser in the Village, 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 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 Village 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 Village whatsoever; provided, however, that
the words "gross income" shall include, in the case of a utility engaged
in selling telephony or telephone service, only receipts from local
exchange service wholly consummated within the Village, and in the
case of a utility engaged in selling telegraphy or telegraph service,
only receipts from transactions wholly consummated within the Village.
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 in
or by reason of the furnishing for such consumption or use of gas,
electric, steam, water, refrigerator, telephone or telegraph service
in the Village, 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 expense whatsoever.
Persons, corporations, companies, associations, joint-stock
associations, co-partnerships, 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.
The Treasurer of the Village of East Hampton.
Every person subject to the supervision 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 including every person (whether or not such person is subject
to such supervision) who sells gas, electricity, steam, water, refrigeration,
telephony or telegraphy, delivered through mains, pipes or wires,
or furnishes gas, electric, steam, water, refrigeration, telephone
or telegraph services, 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.
The incorporated Village of East Hampton, Suffolk County,
New York.
Every utility subject to tax under this article shall keep such
records of its business in such form as the Treasurer may require,
and such records shall be preserved for a period of three years, except
that the said Treasurer may consent to their destruction within that
period or may require that they be kept longer.
Every utility subject to tax hereunder shall file annually,
on or before the first of October, a return for the 12 calendar months
preceding such return date (July 1) or any portion thereof for which
the tax imposed is effective; provided, however, that in lieu of the
annual return required by the foregoing provisions, any utility may
file quarterly, on or before November 1, February 1, May 1 and August
1, a return for the three calendar months preceding each such return
date (October 1, January 1, April 1, and July 1), and in the case
of the first such return, for all preceding calendar months during
which the tax imposed hereby was effective. Every return shall state
the gross income or gross operating income for the period covered
thereby. Returns shall be filed with the Treasurer on a form to be
furnished by the Treasurer for such purpose and shall contain such
other data, information or matter as he or she may require to be included
therein. The Treasurer, in order to insure payment of the tax imposed,
may require at any time a further or supplemental return, which shall
contain any data that may be specified, and the Treasurer may require
any utility doing business in the Village to file an annual return,
which shall contain any data specified, regardless of whether the
utility is subject to tax under this article. Every return shall have
annexed thereto an affidavit of the head of the utility making the
same, or of the owner or of a 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.
At the time of filing a return as required by this article,
each utility shall pay to the Treasurer 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.
A.
In case any return filed pursuant to this article shall be insufficient
or unsatisfactory to the Treasurer of the Village, and if a corrected
or sufficient return is not filed within 20 days after the same is
required by notice from him, or if no return is made for any period,
said Treasurer 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. He 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 said Treasurer for a hearing,
or unless said Treasurer, of his own motion, shall reduce same. After
such hearing, the said Treasurer shall give notice of his decision
to the person liable for the tax. Such decision may be reviewed by
a proceeding under Article 78 of the Civil Practice Law and Rules
of the State of New York if application therefor is made within 90
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 said Treasurer 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
be 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 application, 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.
B.
Except in the case of a willfully false or fraudulent return with
intent to evade the tax, no assessment of additional tax shall be
made after the expiration of more than three years from the date of
the filing of a return, provided, however, that where no return has
been filed as required by this article the tax may be assessed at
any time.
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 field, 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.
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,
excepting the first month, after such return was required to be filed
or such tax became due; but the Treasurer, for cause shown, may extend
the time for filing any return and, if satisfied that the delay was
excusable, may remit all or any portion of the penalty fixed by the
foregoing provisions of this section.
If, within one year from the payment of any tax or penalty,
the payer thereof shall make application for a refund thereof and
the Treasurer or the court shall determine that such tax or penalty
or any portion thereof was erroneously or illegally collected, the
same Treasurer 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 said Treasurer. However, no refund shall be made of a tax or
penalty paid pursuant to a determination of the said Treasurer as
hereinbefore provided unless the said Treasurer, 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 Law and Rules 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 same
Treasurer may receive additional evidence with respect thereto. After
making his determination, the said Treasurer 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 the granting of such an order.
The tax imposed by this article shall be charged against and
be 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.
Whenever any person shall fail to pay any tax or penalty imposed
by this article, the Village Attorney shall, upon the request of the
Treasurer, bring an action to enforce payment of the same. The proceeds
of any judgment obtained in any such action shall be paid to the said
Treasurer. 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.
In the administration of this article the Treasurer shall have
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.
All taxes and penalties received by the Treasurer of the Village
of East Hampton under this article shall be paid into the treasury
of the Village and shall be credited to and deposited in the general
fund of the Village.
