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 statutes
is 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 advisory

opinion 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.

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