7/17/2019 NYCOM Petition to PSC Regarding Local GRT Talking Points

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NYCOM Petition to PSC Regarding Local GRT

Talking Points

•  Cities and villages have very few sources of non-property tax revenues and

therefore it is essential that what they are entitled to pursuant to the GRT statutesis actually collected and remitted.

•  The last increase in state aid for cities and villages came in SFY 2008-09 and

since then AIM funding has decreased by 14 percent in real dollars.

•  Given the lack of state aid coupled with the extension of the tax cap -- which is

far less than 2 percent – to 2020, it is essential that local governments receive

every penny that is rightfully owed them.

•  In 2009, the State Department of Taxation and Finance issued an advisoryopinion stating that ESCO transactions were subject to the local GRT. Although

the GRT is a locally-administered tax, municipal governments need the state to

help clarify and enforce the law.

•  The state must develop reporting requirements so that local governments are

able to easily identify those CLECs and ESCOs operating within their municipal

boundaries.

•  Additionally the state should compel the ESCOs to provide the requested

delivery revenue data.