A00403 Summary:

BILL NOA00403
 
SAME ASNo Same As
 
SPONSORCahill (MS)
 
COSPNSR
 
MLTSPNSREpstein, Peoples-Stokes, Perry, Thiele
 
Add Title V Art 71 §§3501 - 3506, amd §§1909, 3601, 3602 & 3651, Ed L; rpld Art 13, amd RPT L, generally; rpld §§1204, 1211 & 1212, §1261 sub (e), §1262 sub (e), amd Tax L, generally
 
Makes provisions for the state to assume all costs of basic quality education and for the elimination of real property taxes for the support of education; requires board of regents to establish a schedule of mandatory basic services and costs thereof; provides that school districts shall submit an annual basic budget to the department of education for basic services; increases taxes on personal income and business; makes special provisions for reduction of tax in certain cities and for reduction in rent by tenants in such cities; provides for phased in methods of funding using a "Basic Quality Education" formula; repeals certain provisions of the tax law and real property tax law relating thereto.
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A00403 Actions:

BILL NOA00403
 
01/09/2019referred to education
01/08/2020referred to education
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A00403 Committee Votes:

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A00403 Floor Votes:

There are no votes for this bill in this legislative session.
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A00403 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           403
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 9, 2019
                                       ___________
 
        Introduced by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. EPSTEIN,
          PEOPLES-STOKES, PERRY, THIELE -- read once and referred to the Commit-
          tee on Education
 
        AN ACT to amend the education law, the real property tax law and the tax
          law,  in  relation  to  abolishing certain school taxes, providing for
          alternative taxes and state  distribution  to  school  districts;  and
          repealing  certain provisions of the real property tax law and the tax
          law relating to certain taxes
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Title  V  of the education law is amended by adding a new
     2  article 71 to read as follows:
     3                                 ARTICLE 71
     4                        FINANCING OF SCHOOL DISTRICTS
     5  Section 3501. Legislative intent.
     6          3502. Basic quality education.
     7          3503. Minimum apportionment.
     8          3504. Collection and distribution.
     9          3505. Construction with other laws.
    10          3506. Severability.
    11    § 3501. Legislative intent. It is the intent  of  the  legislature  to
    12  fulfill  its  obligations under article eleven of the state constitution
    13  with respect to the financing of public schools within this  state  and,
    14  at  the  same time, eliminate the inequitable and regressive real estate
    15  tax as the support of  such  schools.  The  legislature  hereby  further
    16  intends  to  guarantee the quality and equality of education for all our
    17  children, while leaving with the individual school districts the present
    18  level of local control including the authority to permit or prohibit the
    19  transfer of students into or out of such districts  in  accordance  with
    20  the provisions of this chapter.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01885-01-9

        A. 403                              2
 
     1    §  3502.  Basic quality education. 1. The state shall assume all costs
     2  of basic quality  education,  in  accordance  with  section  thirty-five
     3  hundred  four  of this article, including all general and special educa-
     4  tional services which the commissioner, under guidelines established  by
     5  the  legislature, shall define as necessary. Basic quality education, as
     6  defined by the commissioner, shall allow  sufficient  latitude  so  that
     7  choices  may  be  made  by  local school districts with respect to their
     8  individual needs. As used in  this  article  "basic"  shall  mean  equal
     9  services  to  all  pupils regardless of differences in cost in different
    10  districts for such services.
    11    2. Such costs shall be funded as provided for by the  legislature,  in
    12  conjunction with the elimination of real estate taxes for the support of
    13  education.  Within  the cities of New York, Buffalo, Rochester, Syracuse
    14  and Yonkers, the tax on real property shall be  reduced  by  the  dollar
    15  amount of such city's share of the cost of public school education. Such
    16  reduction  shall be apportioned to all real property taxpayers on a pro-
    17  rata basis, and tenants shall  receive  tax  credits,  tax  rebates,  or
    18  reductions  in rent as provided in section four hundred sixty-seven-k of
    19  the real property tax law.
    20    3. Each school district shall submit a basic budget to the  department
    21  for purposes of determining reimbursable services.
    22    4.  The  department,  under  direction  of the board of regents, shall
    23  establish a schedule of mandatory basic services  and  authorized  costs
    24  therefor  related  to  differing  costs throughout the state. Such basic
    25  schedule shall reflect guidelines established for this  purpose  by  the
    26  legislature.
    27    § 3503. Minimum apportionment. In any school year a district may elect
    28  to receive as its basic budget the highest of:
    29    1.  The  district  budget of the school year during which this article
    30  shall take effect, except that this  apportionment  option  shall  exist
    31  only  for  the  period  not  exceeding the five school years immediately
    32  after this article shall take effect.
    33    2. The product of (a) the district budget of the  school  year  during
    34  which  this  article  shall take effect divided by the enrollment at the
    35  start of such year and (b) the enrollment at the  start  of  the  school
    36  year for which the budget is being determined. This apportionment option
    37  shall  exist  only  for  the  period not exceeding the five school years
    38  immediately after the effective date of this article.
    39    3. The basic budget submitted in accordance with subdivision three  of
    40  section  thirty-five hundred two of this article, except that in no case
    41  shall the per pupil apportionment exceed the per pupil apportionment  of
    42  the  previous  year  by  more than the average statewide increase of per
    43  pupil budgets plus ten per centum of the per pupil apportionment of  the
    44  previous year.
    45    § 3504. Collection and distribution. Notwithstanding the provisions of
    46  any  other  law,  code, rule or regulation, the state shall, within five
    47  years from the effective date of this article, collect and distribute to
    48  school districts all moneys relating to the financing of  public  educa-
    49  tion,  exclusive  of higher education, within this state, as provided by
    50  the legislature. This assumption by the state  of  all  costs  of  basic
    51  quality  education  shall  be accomplished in approximately equal incre-
    52  ments over a five year period from the effective date of  this  article.
    53  During  this period, the amount of money derived by each school district
    54  from real property taxes shall be reduced accordingly. After five  years
    55  from  the  effective  date  of  this  article, moneys distributed to any
    56  school district shall be reduced by the amount of any revenues  received

        A. 403                              3
 
     1  by  such  school  district  from taxes imposed on real property by or on
     2  behalf of such school district.
     3    §  3505.  Construction with other laws. The provisions of this article
     4  shall be controlling, notwithstanding the provisions of any  other  law,
     5  code,  rule or regulation to the contrary. However, no existing right or
     6  remedy of any character shall be lost, impaired or affected by reason of
     7  this article, nor shall the validity of any action taken by  any  public
     8  official under the law in force immediately prior to the time this arti-
     9  cle  shall  take  effect  be  affected by the enactment of this article.
    10  Collection of all  outstanding  tax  liens  shall  be  pursuant  to  the
    11  provisions of the real property tax law.
    12    §  3506.  Severability. If any clause, sentence, paragraph, section or
    13  part of this article shall be adjudged by any court of competent  juris-
    14  diction to be invalid, such judgment shall not affect, impair or invali-
    15  date  the  remainder  thereof, but shall be confined in its operation to
    16  the clause,  sentence,  paragraph,  section  or  part  thereof  directly
    17  involved  in  the  controversy  in  which  such judgment shall have been
    18  rendered.
    19    § 2. Article 13 of the real property tax law is REPEALED.
    20    § 3. The real property tax law is amended  by  adding  a  new  section
    21  467-l to read as follows:
    22    §  467-l.  Provisions  for  tenants. In every case where taxes on real
    23  property are reduced due to the reduction of school taxes on such  prop-
    24  erty, the amount of such reduction shall be pro-rated among the tenants,
    25  if  any, of such real property, and the total rents reduced in an amount
    26  equal to such real property tax reduction. Where such rent reduction  is
    27  precluded  by  a  lease  or  other  agreement,  such  real  property tax
    28  reduction shall entitle such tenants to a  tax  credit  in  that  amount
    29  against  income  taxes  due,  or to a rebate for any amount in excess of
    30  income taxes due, until the expiration of such lease  or  agreement,  at
    31  which time the rent shall be reduced accordingly.
    32    §  4.  Subdivision  1  and  paragraphs (b) and (c) of subdivision 3 of
    33  section 972 of the real property tax law, as amended by  section  12  of
    34  part  B  of  chapter  389  of  the  laws of 1997, are amended to read as
    35  follows:
    36    1. Adoption.  Notwithstanding any provisions of this chapter,  or  any
    37  other  general,  special  or  local law to the contrary, the legislative
    38  body of a county may, by local law, provide that  thereafter  and  until
    39  such  local  law is repealed, the county shall become the tax collection
    40  agency for the purpose of collecting taxes in installments as prescribed
    41  by this title [and by sections thirteen hundred thirty-six through thir-
    42  teen hundred forty-two of this chapter].  The term "taxes"  as  used  in
    43  this  title  shall  include  special assessments which are levied by the
    44  county legislative body at the time and in the manner  provided  by  law
    45  for the levy of county and town taxes.
    46    (b)  If  an  installment  is not paid on or before the date it is due,
    47  additional interest shall be added as provided by section  nine  hundred
    48  seventy-five  [or  section  thirteen  hundred  forty]  of this [chapter]
    49  title.
    50    (c) The amount of any interest which shall be added to any installment
    51  pursuant to this section  and  section  nine  hundred  seventy-five  [or
    52  section  thirteen hundred forty] of this [chapter] title shall belong to
    53  the county.
    54    § 5. Subdivision 6 of section 975 of the real  property  tax  law,  as
    55  added by chapter 953 of the laws of 1962, is amended to read as follows:

        A. 403                              4
 
     1    6.  The  county  treasurer  of  a county which has enacted a local law
     2  pursuant to section nine hundred seventy-two of this [chapter] title may
     3  promulgate and amend suitable  rules  and  regulations  prescribing  the
     4  necessary  forms  for  carrying into effect the provisions of this title
     5  [and  of  article  thirteen of this chapter] relating to the installment
     6  payment of taxes.
     7    § 6. Subdivision 5 of section 1618 of the real property  tax  law,  as
     8  added  by  chapter  512  of  the  laws of 1993 and as further amended by
     9  subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
    10  2010, is amended to read as follows:
    11    5. When the commissioner has established a final equalization rate for
    12  a  consolidated  assessing  unit  as a whole, school district and county
    13  taxes within the consolidated assessing unit shall be apportioned  with-
    14  out  the  use  of  equalization rates, notwithstanding the provisions of
    15  [articles] article eight [and thirteen] of this chapter.
    16    § 7. The tax law is amended by adding a new section 601-b to  read  as
    17  follows:
    18    §  601-b. Additional taxes for education. (a) In addition to the taxes
    19  on income imposed by this chapter for taxable years or periods ending on
    20  or after December thirty-first, two thousand nineteen,  there  shall  be
    21  imposed  a  tax equal to a percent of the taxes imposed by such sections
    22  and articles as is necessary to  fulfill  the  requirements  of  section
    23  thirty-five  hundred  two of the education law. Such a tax may be levied
    24  either as a surtax, or by readjustment of the appropriate tax schedules.
    25    (b) Each school district may also increase the  additional  taxes  for
    26  education, imposed pursuant to subsection (a) of this section, by resol-
    27  ution  adopted  by  a  two-thirds vote prior to the levy of taxes in any
    28  year. Such resolution shall provide  for  the  increase  to  be  imposed
    29  either  in  the  form  of  a  higher  surtax rate or a standard lump sum
    30  amount; provided, that all such proceeds from the increase on the  addi-
    31  tional tax for education be collected and accrued to the school district
    32  in which such tax was collected.
    33    (c) The commissioner shall establish a separate account or accounts to
    34  receive  the  additional  tax imposed by subsections (a) and (b) of this
    35  section and shall pay into such account or accounts  the  total  of  all
    36  such  taxes when received and retain the same subject to disbursement in
    37  accordance with the provisions of the education law.
    38    § 7-a. The real property tax law is amended by adding  a  new  section
    39  307-b to read as follows:
    40    §  307-b.  Additional  tax on non-residential property. 1. The commis-
    41  sioner of taxation and finance shall  establish  an  additional  tax  on
    42  non-residential  property  to  be  imposed  in addition to other locally
    43  levied property taxes. Such tax shall be levied by the state through the
    44  county, city, town or village governing body and shall  be  a  low-rate,
    45  uniform  tax.  For  the  purposes  of this subdivision, "non-residential
    46  property" shall mean any (a) non-residential  commercial  property,  (b)
    47  industrial property, (c) agricultural property and (d) vacant land which
    48  is either commercial property or industrial property.
    49    2. The commissioner of taxation and finance shall set the rate for the
    50  additional  tax  on non-residential property, as required by subdivision
    51  one of this section, at an adequate rate to provide funding for  meeting
    52  the  requirements  of  sections  thirty-five hundred one and thirty-five
    53  hundred two of the education  law.  The  commissioner  of  taxation  and
    54  finance shall establish a separate account to receive the additional tax
    55  imposed  by  subdivision  one  of  this  section and shall pay into such
    56  account the total of all such taxes when received and  retain  the  same

        A. 403                              5
 
     1  subject  to  disbursement  in  accordance with the provisions of article
     2  seventy-one of the education law.
     3    § 8. Sections 1204, 1211 and 1212 of the tax law are REPEALED.
     4    §  9.  The  tax law is amended by adding a new section 1200 to read as
     5  follows:
     6    § 1200. Certain taxes reduced. Notwithstanding the provisions  of  any
     7  other  section  of this article, on and after the effective date of this
     8  section, the provisions of this article relating to taxes for the  bene-
     9  fit  of  school  districts or school purposes shall be deemed reduced in
    10  accordance with section thirty-five hundred four of the education law.
    11    § 10. Section 1213 of the tax law, as amended by section 2 of part  WW
    12  of chapter 57 of the laws of 2010, is amended to read as follows:
    13    §  1213. Deliveries outside the jurisdiction where sale is made. Where
    14  a sale of tangible personal  property  or  services,  including  prepaid
    15  telephone  calling  services, but not including other services described
    16  in subdivision (b) of section  eleven  hundred  five  of  this  chapter,
    17  including  an  agreement  therefor, is made in any city[,] or county [or
    18  school district], but the property sold, the  property  upon  which  the
    19  services were performed or prepaid telephone calling or other service is
    20  or  will be delivered to the purchaser elsewhere, such sale shall not be
    21  subject to tax by such city[,] or county [or school district].  However,
    22  if  delivery  occurs  or  will  occur  in a city[,] or county [or school
    23  district] imposing a tax on the sale or use of  such  property,  prepaid
    24  telephone  calling  or  other  services, the vendor shall be required to
    25  collect from the  purchaser,  as  provided  in  section  twelve  hundred
    26  fifty-four  of  this  article,  the  aggregate sales or compensating use
    27  taxes imposed by the city, if any, and county [and school  district]  in
    28  which delivery occurs or will occur, for distribution by the commission-
    29  er  to  such  taxing  jurisdiction or jurisdictions. For the purposes of
    30  this section delivery shall be deemed to include transfer of  possession
    31  to  the  purchaser  and the receiving of the property or of the service,
    32  including prepaid telephone calling service, by the purchaser.  Notwith-
    33  standing  the  foregoing,  where  a  transportation service described in
    34  paragraph ten of subdivision (c) of section eleven hundred five of  this
    35  chapter begins in one jurisdiction but ends in another jurisdiction, any
    36  tax  imposed  pursuant to the authority of this article shall be due the
    37  jurisdiction or jurisdictions where the service commenced.
    38    § 11. Section 1220 of the tax law, as amended by section 39 of part  Y
    39  of chapter 63 of the laws of 2000, is amended to read as follows:
    40    §  1220.  Territorial limitations. Any tax imposed under the authority
    41  of this article shall apply only within the territorial  limits  of  the
    42  city[,]  or  county  [or  school district] imposing the tax, except that
    43  where the taxes described in subdivision (b) of section  eleven  hundred
    44  five  and  clauses (E), (G) and (H) of subdivision (a) of section eleven
    45  hundred ten of this chapter or the tax described in subdivision  (e)  of
    46  section  eleven  hundred  five  of this chapter is imposed by a city, as
    47  provided in section twelve hundred ten [or  twelve  hundred  eleven]  of
    48  this  [chapter] article, any establishment located partially within such
    49  city and partially within a town or towns and  receiving  or  using  any
    50  services  or utilities provided by the city shall be deemed to be wholly
    51  within such city for the purposes of such taxes.
    52    § 12. Section 1222 of the tax law, as added by chapter 93 of the  laws
    53  of 1965, is amended to read as follows:
    54    §  1222. Taxes to be in addition to others. Except as expressly other-
    55  wise provided in this article, any tax imposed under  the  authority  of
    56  this  article shall be in addition to any and all other taxes authorized

        A. 403                              6
 
     1  or imposed under any other provision of law. This article shall  not  be
     2  construed  as  limiting  the  power  of any city[,] or county [or school
     3  district] to impose any other tax which it is authorized to impose under
     4  any other provision of law.
     5    §  13.  Section  1256 of the tax law, as amended by chapter 575 of the
     6  laws of 1965, is amended to read as follows:
     7    § 1256. Cooperation by  localities.  Every  city[,]  and  county  [and
     8  school district] shall cooperate with the [state tax commission] commis-
     9  sioner  to  enable  [it] him or her to carry out [its] his or her duties
    10  under [articles] this article and article twenty-eight [and twenty-nine]
    11  of this chapter. Every such locality shall furnish to such  [commission]
    12  commissioner those returns, reports and other information which the [tax
    13  commission]  commissioner  deems  necessary  to  carry  out such duties,
    14  except that cities having a population of one million or more,  may,  in
    15  their  discretion,  furnish  instead copies of such returns, reports and
    16  other information. Such copies shall be furnished at  the  [tax  commis-
    17  sion's]  commissioner's expense, such expenses to be charged to the cost
    18  of administration.  Notwithstanding any other law to the  contrary,  the
    19  duty to furnish returns, reports and other information or copies thereof
    20  shall  apply  to [those returns and reports filed under taxes authorized
    21  under chapter eight  hundred  seventy-three  of  the  laws  of  nineteen
    22  hundred  thirty-four, as amended, chapter three hundred forty-one of the
    23  laws of nineteen hundred forty-six, as amended,  article  two-B  of  the
    24  general  city  law  and chapter two hundred seventy-eight of the laws of
    25  nineteen hundred forty-seven, as amended, and to such other] information
    26  which is relevant to the duties of  the  [tax  commission]  commissioner
    27  under  this  article and such [articles] article twenty-eight [and twen-
    28  ty-nine] or other relevant provisions of this chapter.
    29    § 14. Paragraph 1 of subdivision (g) of section 1132 of the  tax  law,
    30  as  amended  by  chapter  402 of the laws of 1986, is amended to read as
    31  follows:
    32    (1) The clerk of each county when performing the function of registra-
    33  tion of a motor vehicle, snowmobile, vessel or all  terrain  vehicle  or
    34  accepting  an  application for a certificate of title of a motor vehicle
    35  or vessel, pursuant to the authority of the vehicle and traffic law,  or
    36  the commissioner of motor vehicles, when such commissioner performs such
    37  functions, prior to performing such functions, shall act as the agent of
    38  the  [state tax commission] commissioner to collect any retail sales tax
    39  due under this article and under a sales tax imposed pursuant to section
    40  twelve hundred ten [or twelve hundred eleven] of this chapter upon sales
    41  of such motor vehicles, snowmobiles, vessels or all terrain vehicles  by
    42  persons  other  than  dealers  registered  under  sections  four hundred
    43  fifteen, twenty-two hundred twenty-two, twenty-two  hundred  fifty-seven
    44  and  twenty-two  hundred eighty-two of the vehicle and traffic law. Such
    45  county clerks and such commissioner shall also act  as  such  agents  to
    46  collect any compensating use tax due under section eleven hundred ten of
    47  this  article  and  under  a  compensating  use  tax imposed pursuant to
    48  section twelve hundred ten [or twelve hundred eleven]  of  this  chapter
    49  for  the use of a motor vehicle, snowmobile, vessel or all terrain vehi-
    50  cle within this state.  The commissioner of motor vehicles shall act  as
    51  such  agent  without  fee. Each such county clerk shall, after deducting
    52  his or her fee as provided in paragraph two  of  this  subdivision,  and
    53  such  commissioner shall remit to the tax commission all funds collected
    54  pursuant to this subdivision and shall follow such procedures  and  keep
    55  such   records   as   shall   be  prescribed  by  the  [tax  commission]
    56  commissioner.

        A. 403                              7
 
     1    § 15. Subparagraph (iii) of paragraph 1 of subdivision (a) of  section
     2  1214  of  the tax law, as amended by chapter 481 of the laws of 2000, is
     3  amended to read as follows:
     4    (iii)  is  not engaged in carrying on in such jurisdiction any employ-
     5  ment, trade, business or profession in which the motor vehicle or vessel
     6  will be used in such jurisdiction, and such other proof as  the  commis-
     7  sioner  may require to ensure proper administration of the taxes imposed
     8  under the authority of [sections] section twelve hundred ten [and twelve
     9  hundred eleven] of this article.
    10    § 16. Section 1217 of the tax law, as added by chapter 962 of the laws
    11  of 1966, subdivision (a) as amended by chapter 169 of the laws of  1970,
    12  is amended to read as follows:
    13    §  1217.  General transitional provisions. (a) For the purposes of any
    14  local law, ordinance or resolution imposing a local tax pursuant to  the
    15  authority  of section twelve hundred ten[, twelve hundred eleven, twelve
    16  hundred twelve] or twelve hundred twelve-A of this article or increasing
    17  the rate of such tax, all references in section eleven  hundred  six  of
    18  this  chapter to August first, nineteen hundred sixty-five shall be read
    19  as referring to the effective date  of  such  local  law,  ordinance  or
    20  resolution,  all  references  in  said  section to April first, nineteen
    21  hundred sixty-five shall be read as referring  to  a  date  four  months
    22  prior  to  the effective date of such local law, ordinance or resolution
    23  and the reference in subdivision (b) of section eleven  hundred  six  of
    24  this  chapter to July thirty-first, nineteen hundred sixty-five shall be
    25  read as referring to the day immediately before the  effective  date  of
    26  such local law, ordinance or resolution.
    27    (b)  In  applying the provisions of section eleven hundred nineteen of
    28  this chapter with  respect  to  pre-existing  lump  sum  or  unit  price
    29  construction  contracts  to  a  tax on retail sales of tangible personal
    30  property or a compensating use tax imposed pursuant to the authority  of
    31  section  twelve  hundred ten [or twelve hundred eleven] of this article,
    32  all references in said section to the date of the enactment  of  article
    33  twenty-eight  of  this  chapter or the enactment of a law increasing the
    34  rate of tax imposed under said article shall be read as referring to the
    35  date of the enactment of the local law, ordinance or resolution imposing
    36  such local tax or increasing the rate thereof.
    37    § 17. Section 1223 of the tax law, as separately amended  by  chapters
    38  4, 8 and 9 of the laws of 2003 and subdivision (a) as separately amended
    39  by  chapters  191  and  217  of  the laws of 2013, is amended to read as
    40  follows:
    41    § 1223.  Limitations  on  rates.  (a)  No  transaction  taxable  under
    42  sections twelve hundred two [through] and twelve hundred [four] three of
    43  this article shall be taxed pursuant to this article by any county or by
    44  any  city located therein, or by both, at an aggregate rate in excess of
    45  the highest rate set forth in  the  applicable  subdivision  of  section
    46  twelve  hundred one of this article or, in the case of any taxes imposed
    47  pursuant to the authority  of  section  twelve  hundred  ten  or  twelve
    48  hundred  eleven  of this article (other than taxes imposed by the county
    49  of Nassau, Erie, Steuben, Cattaraugus, Suffolk, Oneida, Genesee, Greene,
    50  Franklin, Hamilton, Herkimer, Tioga, Orleans, Allegany, Ulster,  Albany,
    51  Rensselaer,  Tompkins,  Wyoming, Columbia, Schuyler, Rockland, Chenango,
    52  Monroe, Chemung, Seneca, Sullivan, Wayne, Livingston, Schenectady, Mont-
    53  gomery, Delaware, Clinton, Niagara, Yates, Lewis, Essex, Dutchess, Scho-
    54  harie, Putnam,  Chautauqua,  Orange,  Oswego,  Ontario,  Jefferson,  St.
    55  Lawrence or Onondaga and by the county of Cortland and the city of Cort-
    56  land  and  by the county of Broome and the city of Binghamton and by the

        A. 403                              8
 
     1  county of Cayuga and the city of Auburn and by the county of Otsego  and
     2  the  city of Oneonta and by the county of Madison and the city of Oneida
     3  and by the county of Fulton and the city of Gloversville or the city  of
     4  Johnstown  as provided in section twelve hundred ten of this article) at
     5  a rate in excess of three percent, except that, in the city of  Yonkers,
     6  in the city of Mount Vernon, in the city of New Rochelle, in the city of
     7  Fulton  and in the city of Oswego, the rate may not be in excess of four
     8  percent and in the city of White Plains, the rate may not be  in  excess
     9  of four percent and except that in the city of Poughkeepsie in the coun-
    10  ty  of Dutchess, if such county withdraws from the metropolitan commuter
    11  transportation   district   pursuant   to   section    twelve    hundred
    12  seventy-nine-b  of the public authorities law and if the revenues from a
    13  three-eighths percent rate of such tax imposed by such county,  pursuant
    14  to  the  authority  of  section  twelve hundred ten of this article, are
    15  required by local laws, ordinances or resolutions to be  set  aside  for
    16  mass transportation purposes, the rate may not be in excess of three and
    17  three-eighths percent.
    18    (b) If a transaction is taxed by both a county and a city, the rate of
    19  tax  on such transaction imposed by the county or city, not having prior
    20  right thereto pursuant to section twelve  hundred  twenty-four  of  this
    21  subpart, shall be deemed to be reduced (or the entire tax eliminated, if
    22  necessary) to the extent necessary to comply with the foregoing require-
    23  ment. A tax imposed by a county upon any transaction, to the extent that
    24  it  would require a reduction in any tax rate imposed thereon by a city,
    25  shall not become effective in respect to any transaction taxed  by  such
    26  city  (or  in  respect of other similar transactions outside of the city
    27  which, if occurring in such city, would be subject  to  such  city  tax)
    28  before  the  commencement  of the city's next succeeding fiscal year and
    29  then only if the county shall have given notice  to  such  city  of  its
    30  imposition of a tax on such transaction at least six months prior to the
    31  commencement of such fiscal year, provided however that the local legis-
    32  lative  body  of  such city may waive the requirement of such notice and
    33  the postponement of the effective date of such tax. A city tax upon  any
    34  transaction,  to the extent that it would require a reduction in any tax
    35  rate imposed by a county thereon, shall not become effective in  respect
    36  of  any  transaction taxed by such county before the commencement of the
    37  county's next succeeding fiscal year and then only  if  the  city  shall
    38  have  given  notice  to  such  county of its imposition of a tax on such
    39  transaction at least six months prior to the commencement of such fiscal
    40  year, provided, however, that the local legislative body of such  county
    41  may  waive the requirement of such notice and postponement of the effec-
    42  tive date of such tax. However, whether or not the  six  months'  notice
    43  requirement  provided  in  this  section  has been waived, a tax imposed
    44  pursuant to the authority of  section  twelve  hundred  ten  [or  twelve
    45  hundred  eleven]  of this article shall still be subject to the require-
    46  ments provided for in the first three sentences of  subdivision  (d)  of
    47  such  [sections]  section  and  in  subdivision  (e)  of such [sections]
    48  section.
    49    § 18. Paragraph 2 of subdivision (b) of section 1224 of the  tax  law,
    50  as  amended  by  chapter  506 of the laws of 1976, is amended to read as
    51  follows:
    52    (2) all of the taxes described in article twenty-eight  as  authorized
    53  by  subdivision (a) of section twelve hundred ten[, or by section twelve
    54  hundred eleven,] of this article to the extent of one-half  the  maximum
    55  aggregate  rates authorized under such subdivision (a) [and such section
    56  twelve hundred eleven], except as otherwise provided in this section.

        A. 403                              9
 
     1    § 19. Subdivision (k) of section 1224 of the tax law,  as  amended  by
     2  chapter  426  of  the laws of 1968 and separately relettered by chapters
     3  531, 574, 617, 718 and 719 of the laws of 1992, is amended  to  read  as
     4  follows:
     5    (k)  For  purposes  of this section, the term "prior right" shall mean
     6  the preferential right to impose any tax described  in  sections  twelve
     7  hundred  two  [and], twelve hundred three[,] and twelve hundred ten [and
     8  twelve hundred eleven] of this article and thereby to pre-empt such  tax
     9  and  to preclude another municipal corporation from imposing or continu-
    10  ing the imposition of such tax to the extent that such  right  is  exer-
    11  cised.    However,  the right of pre-emption shall only apply within the
    12  territorial limits of the taxing jurisdiction having the right  of  pre-
    13  emption.
    14    §  20.  Subdivision  (a) of section 1235 of the tax law, as amended by
    15  chapter 459 of the laws of 1968, is amended to read as follows:
    16    (a) With respect to taxes  imposed  pursuant  to  subdivision  (a)  of
    17  section twelve hundred ten [and pursuant to section twelve hundred elev-
    18  en] of this article, the  use of tangible personal property purchased at
    19  retail  and  of  any  of  the services subject to the sales tax shall be
    20  exempt from the compensating use tax authorized under subdivision (a) of
    21  such section twelve hundred ten [and under section twelve hundred  elev-
    22  en,] to the extent that a retail sales tax or a compensating use tax was
    23  legally  due  and  paid thereon, without any right to a refund or credit
    24  thereof, to (1) any municipal corporation in this state or (2) any other
    25  state or jurisdiction within any other state, but only when it is  shown
    26  that  such  other state or jurisdiction allows a corresponding exemption
    27  with respect to the sale or use of tangible personal property or of  any
    28  of  the services upon which such a sale or compensating use tax was paid
    29  to this state and any of its municipal corporations, except as  provided
    30  in subdivision (b) of this section.
    31    §  21.  Section  1240 of the tax law, as amended by chapter 356 of the
    32  laws of 2014, is amended to read as follows:
    33    § 1240. Administration and  collection.  The  taxes  authorized  under
    34  sections  twelve hundred one through twelve hundred [four] three of this
    35  article which are now imposed shall  continue  to  be  administered  and
    36  collected  by the fiscal or other officers of the city, county or school
    37  district in the same manner as such taxes  have  been  administered  and
    38  collected  by  such  officers immediately prior to the enactment of this
    39  article, in accordance with the applicable provisions  of  the  charter,
    40  administrative  code,  local law, ordinance or resolution then in force,
    41  with such amendments in respect to administration and collection as  may
    42  be  enacted.  Taxes authorized under sections twelve hundred one through
    43  twelve hundred [four] three of  this  article  which  may  hereafter  be
    44  imposed  by  a city, county or school district shall be administered and
    45  collected in such manner as may be provided in its charter,  administra-
    46  tive  code,  local laws, ordinances or resolutions, with such amendments
    47  in respect to administration and collection as may be enacted.  Notwith-
    48  standing  any  other provision of law to the contrary, the authorization
    49  to impose tax upon the transfer of real property pursuant to subdivision
    50  (b) of section twelve hundred one of this article, shall not,  when  the
    51  conveyance  consists  of  a  transfer of property made as a result of an
    52  order of the court in a foreclosure proceeding ordering the sale of such
    53  property, include the authorization to impose civil or  criminal  penal-
    54  ties,  interest, or other liability upon the referee or sheriff effectu-
    55  ating the transfer.

        A. 403                             10
 
     1    § 22. Subdivision (b) of section 1242 of the  tax  law,  as  added  by
     2  chapter 93 of the laws of 1965, is amended to read as follows:
     3    (b) Cities under one million, counties and school districts. Except in
     4  the  case  of a wilfully false or fraudulent return with intent to evade
     5  the tax, no assessment of additional tax shall be made with  respect  to
     6  taxes  imposed  under  the  authority  of  sections  twelve  hundred two
     7  [through] and twelve hundred [four] three of  this  article,  after  the
     8  expiration  of  more  than  three years from the date of the filing of a
     9  return, provided, however, that  where  no  return  has  been  filed  as
    10  provided  by local law, ordinance or resolution, the tax may be assessed
    11  at any time.
    12    § 23. Subdivision (a) of section 1243 of the tax law,  as  amended  by
    13  chapter  808  of  the laws of 1992 and paragraph 1 as further amended by
    14  section 104 of part A of chapter 62 of the laws of 2011, is  amended  to
    15  read as follows:
    16    (a)  Any  final  determination  of the amount of any tax payable under
    17  sections twelve hundred one through twelve hundred [four] three of  this
    18  article shall be reviewable for error, illegality or unconstitutionality
    19  or  any  other  reason whatsoever by a proceeding under article seventy-
    20  eight of the civil practice law and rules  if  application  therefor  is
    21  made  to  the  supreme  court within four months after the giving of the
    22  notice of such final determination, provided,  however,  that  any  such
    23  proceeding  under  article  seventy-eight  of the civil practice law and
    24  rules shall not be instituted by a taxpayer unless (1) the amount of any
    25  tax sought to be reviewed, with such interest and penalties  thereon  as
    26  may  be  provided for by local law, ordinance, resolution or regulation,
    27  shall be first deposited and there is filed an undertaking, issued by  a
    28  surety  company  authorized  to  transact  business  in  this  state and
    29  approved by the superintendent of financial services of this state as to
    30  solvency and responsibility, in such amount as a justice of the  supreme
    31  court  shall  approve to the effect that if such proceeding be dismissed
    32  or the tax confirmed the taxpayer will pay all costs and  charges  which
    33  may accrue in the prosecution of such proceeding or (2) at the option of
    34  the  taxpayer,  such undertaking may be in a sum sufficient to cover the
    35  taxes, interest and penalties stated in  such  determination,  plus  the
    36  costs  and  charges which may accrue against such taxpayer in the prose-
    37  cution of the proceeding, in which  event  the  taxpayer  shall  not  be
    38  required  to pay such taxes, interest or penalties as a condition prece-
    39  dent to the application.
    40    § 24. Section 1250 of the tax law, as amended by chapter  169  of  the
    41  laws of 1970, is amended to read as follows:
    42    §  1250.  Administration  and  collection. The taxes imposed under the
    43  authority of sections twelve hundred ten[, twelve hundred eleven, twelve
    44  hundred twelve] and twelve hundred twelve-A of  this  article  shall  be
    45  administered and collected by the [state tax commission] commissioner in
    46  the  same manner as the taxes imposed under article twenty-eight of this
    47  chapter are administered and collected by such commission.   All of  the
    48  provisions  of  such  article  relating to or applicable to the adminis-
    49  tration and collection of the taxes imposed by that article shall  apply
    50  to the taxes imposed under the authority of section twelve hundred ten[,
    51  twelve hundred eleven, twelve hundred twelve] or twelve hundred twelve-A
    52  of  this  article,  including  sections  eleven  hundred  one and eleven
    53  hundred eleven and sections eleven  hundred  thirty-one  through  eleven
    54  hundred  forty-seven  of this chapter, with the same force and effect as
    55  if those provisions had been incorporated in full into this article  and
    56  had  expressly  referred  to  the  taxes  imposed  under sections twelve

        A. 403                             11
 
     1  hundred ten [through] and  twelve  hundred  twelve-A  of  this  article,
     2  except  to  the  extent that any provisions of such article twenty-eight
     3  are either inconsistent with a provision of  this  article  or  are  not
     4  relevant  to this article.  For purposes of this article, the term "tax"
     5  in part IV of such article twenty-eight shall include  any  tax  imposed
     6  under the authority of section twelve hundred ten[, twelve hundred elev-
     7  en,  twelve  hundred twelve] or twelve hundred twelve-A of this article.
     8  Wherever there is joint collection of state and local taxes, it shall be
     9  deemed that such collections shall represent proportionally the applica-
    10  ble state and local taxes in determining the amount to  be  remitted  to
    11  local taxing jurisdictions.
    12    §  25.  Subdivision  (a) of section 1251 of the tax law, as amended by
    13  chapter 155 of the laws of 1982, is amended to read as follows:
    14    (a) Every person required to collect any of the  taxes  imposed  under
    15  the  authority  of  section  twelve hundred ten[, twelve hundred eleven,
    16  twelve hundred twelve] or twelve hundred twelve-A of this article  shall
    17  file  a  return as required by subdivision (a) of section eleven hundred
    18  thirty-six of this  chapter  with  the  [tax  commission]  commissioner,
    19  except  that return for the quarterly period ending August thirty-first,
    20  nineteen hundred sixty-five shall only cover the month of August,  nine-
    21  teen  hundred  sixty-five.  The  return of a vendor of tangible personal
    22  property or services shall show his or her receipts from sales and  also
    23  the  aggregate  value of tangible personal property and services sold by
    24  him or her, the use of which is subject  to  a  tax  imposed  under  the
    25  authority  of  this  article  and  the  amount  of  taxes required to be
    26  collected with respect to such sales and use. The return of  a  [recipi-
    27  ent]  receipt  of  amusement charges shall show all such charges and the
    28  amount of tax thereon, and the return of an operator required to collect
    29  tax on rents shall show all rents received or charged and the amount  of
    30  tax  thereon.  Every  person  required  to  file a part-quarterly return
    31  pursuant to subdivision (a) of section eleven hundred thirty-six of this
    32  chapter shall file a return for the same periods for the  taxes  imposed
    33  pursuant  to  this  article.  Provided,  however, where a part-quarterly
    34  return described in paragraph [(i)] one or [(ii)] two of subdivision (a)
    35  of section eleven hundred thirty-six is filed for purposes of  complying
    36  with  this  section and section eleven hundred thirty-six or subdivision
    37  (a) or (b) of section eleven hundred thirty-seven-A of this chapter,  on
    38  such  returns separate amounts due for the taxes imposed by each county,
    39  city or school district, pursuant to the  authority  of  section  twelve
    40  hundred  ten[,  twelve  hundred eleven, twelve hundred twelve] or twelve
    41  hundred twelve-A of this article, need  not  be  shown.    Rather,  such
    42  returns  shall  only  show  the aggregate amount of all such local taxes
    43  calculated in the manner provided for in paragraph [(i)] one  or  [(ii)]
    44  two  of  subdivision  (a)  of  section eleven hundred thirty-six of this
    45  chapter except that in the case of a short-form, part-quarterly  return,
    46  where  a  county,  city  or  school district did not impose a tax in the
    47  comparable quarter of the immediately preceding year, the tax  for  that
    48  locality  shall  be  calculated  on  such  basis as the [tax commission]
    49  commissioner shall by regulation prescribe.
    50    § 26. Subdivision (b) of section 1252 of the tax law,  as  amended  by
    51  chapter 169 of the laws of 1970, is amended to read as follows:
    52    (b) The [tax commission] commissioner, in [its] his or her discretion,
    53  may  require or permit any or all persons liable for any tax or required
    54  to collect any tax authorized under section twelve hundred ten[,  twelve
    55  hundred  eleven,  twelve  hundred  twelve] or twelve hundred twelve-A of
    56  this article to make payment to such  banks,  banking  houses  or  trust

        A. 403                             12
 
     1  companies  designated  by  the [tax commission] commissioner and to file
     2  returns with such banks, banking houses or trust companies, as agent  of
     3  the  state tax commission, in lieu of paying the taxes imposed under the
     4  authority  of section twelve hundred ten[, twelve hundred eleven, twelve
     5  hundred twelve] or twelve hundred twelve-A of this article  directly  to
     6  the state tax commission. However, the [tax commission] commissioner can
     7  only  designate such banks, banking houses and trust companies which are
     8  already designated  by  the  comptroller  as  depositories  pursuant  to
     9  section eleven hundred forty-eight of this chapter.
    10    §  27.  Section  1253 of the tax law, as amended by chapter 169 of the
    11  laws of 1970, is amended to read as follows:
    12    § 1253. Registration. Every person required to  register  pursuant  to
    13  section  eleven hundred thirty-four of this chapter shall be required to
    14  register for purposes of  the  taxes  imposed  under  the  authority  of
    15  sections  twelve  hundred  ten[,  twelve  hundred eleven, twelve hundred
    16  twelve] and twelve hundred twelve-A of this article. However,  only  one
    17  certificate  of  authority need be issued. Persons who elect to register
    18  under such section eleven hundred thirty-four pursuant to  the  election
    19  provided  therein  shall also be required to make a similar election for
    20  purposes of the taxes imposed  under  the  authority  of  such  sections
    21  twelve  hundred  ten[, twelve hundred eleven, twelve hundred twelve] and
    22  twelve hundred twelve-A of this article, but  only  one  certificate  of
    23  authority need be issued.
    24    §  28.  Subdivisions  (a)  and  (b) of section 1254 of the tax law, as
    25  amended by chapter 169 of the laws of  1970,  are  amended  to  read  as
    26  follows:
    27    (a) Every person required to collect tax, as defined in section eleven
    28  hundred thirty-one of this chapter, who is required to collect any state
    29  tax  imposed  under  sections eleven hundred five, eleven hundred six or
    30  eleven hundred ten of this chapter, shall at the same time  collect  any
    31  applicable  tax  imposed  by a city, county or school district under the
    32  authority of [sections] section  twelve  hundred  ten[,  twelve  hundred
    33  eleven,  twelve hundred twelve] or twelve hundred twelve-A of this arti-
    34  cle, and where the state tax is a retail sales tax, shall  also  collect
    35  any  compensating  use  tax  which  may  be  applicable  as  provided in
    36  [sections] section twelve hundred thirteen or twelve hundred fourteen of
    37  this article.
    38    (b) Where the state of New York, any of its  agencies,  instrumentali-
    39  ties, public corporations (including a public corporation created pursu-
    40  ant  to  agreement or compact with another state or Canada) or political
    41  subdivisions sells services or property of a  kind  ordinarily  sold  by
    42  private  persons  it  shall  be  considered a vendor for purposes of the
    43  taxes imposed under the  authority  of  sections  twelve  hundred  ten[,
    44  twelve  hundred  eleven,  twelve  hundred  twelve]  and  twelve  hundred
    45  twelve-A of this article and shall be  required  to  collect  the  taxes
    46  imposed  by cities, counties and school districts under the authority of
    47  such sections.
    48    § 29. Subdivisions (a), (b) and (c) of section 1261 of the tax law, as
    49  amended by chapter 84 of the laws of 2000, subdivision (a) as amended by
    50  chapter 182 of the laws of 2005, subdivision (c) as amended by section 9
    51  of part SS-1 of chapter 57 of the laws of 2008 and paragraph 2 of subdi-
    52  vision (c) as amended by chapter 67 of the laws of 2015, are amended  to
    53  read as follows:
    54    (a)  All  taxes, penalties and interest imposed by cities, counties or
    55  school districts under the authority of  section  twelve  hundred  ten[,
    56  twelve hundred eleven, twelve hundred twelve] or twelve hundred twelve-A

        A. 403                             13
 
     1  of  this  article,  which  are  collected  by the commissioner, shall be
     2  deposited daily with such responsible banks,  banking  houses  or  trust
     3  companies,  as may be designated by the state comptroller, to the credit
     4  of  the  comptroller,  in  trust  for  the  cities,  counties  or school
     5  districts imposing the tax or for (i) the Nassau county interim  finance
     6  authority  or  (ii)  the Buffalo fiscal stability authority or (iii) the
     7  Erie county fiscal stability authority, created by the  public  authori-
     8  ties  law,  (i) to the extent that net collections from taxes imposed by
     9  Nassau county are payable to the Nassau county interim finance authority
    10  or (ii) to the extent that net collections from taxes  imposed  by  Erie
    11  county  or  by  the  city  of  Buffalo are payable to the Buffalo fiscal
    12  stability authority or (iii) to the extent  that  net  collections  from
    13  taxes  imposed  by  Erie  county  are  payable to the Erie county fiscal
    14  stability authority, or for any public benefit corporation to which  the
    15  tax  may be payable pursuant to law. Such deposits and deposits received
    16  pursuant to subdivision (b) of section twelve hundred fifty-two of  this
    17  article  shall  be  kept  in trust and separate and apart from all other
    18  monies in the possession  of  the  comptroller.  The  comptroller  shall
    19  require  adequate  security  from  all such depositories of such revenue
    20  collected by the commissioner, including the deposits received  pursuant
    21  to  subdivision (b) of section twelve hundred fifty-two of this article.
    22  Any amount payable to such authorities pursuant to the  public  authori-
    23  ties  law shall, at the time it is otherwise payable to (i) Nassau coun-
    24  ty, (ii) Erie county or the city  of  Buffalo,  or  (iii)  Erie  county,
    25  respectively,  as  specified  in  this  section, be paid instead to such
    26  respective authority. Any amount payable to a public benefit corporation
    27  pursuant to law shall, at the time it is otherwise payable to the taxing
    28  jurisdiction as specified in this  section,  be  paid  instead  to  such
    29  public benefit corporation.
    30    (b)  The  comptroller  shall  retain  in  the comptroller's hands such
    31  amount as the commissioner may determine to be necessary for refunds  in
    32  respect  to  the taxes imposed by cities, counties and school districts,
    33  under the authority of section twelve hundred ten[, twelve hundred elev-
    34  en, twelve hundred twelve] or twelve hundred twelve-A of  this  article,
    35  and  for reasonable costs of the commissioner in administering, collect-
    36  ing and distributing such taxes, out of which the comptroller shall  pay
    37  any refunds of such taxes to which taxpayers shall be entitled under the
    38  provisions of this article.
    39    (c)  (1)  The  comptroller,  after reserving such refund fund and such
    40  costs shall, on or before the twelfth day  of  each  month  pay  to  the
    41  appropriate  fiscal  officers  of the foregoing taxing jurisdictions the
    42  taxes, penalties and interest imposed by such  jurisdictions  under  the
    43  authority  of  sections  twelve hundred ten [through] and twelve hundred
    44  twelve-A of this article, collected by the commissioner pursuant to this
    45  article during the next preceding  calendar  month,  provided,  however,
    46  that  the comptroller shall on or before the last day of June and Decem-
    47  ber make a partial payment consisting of the collections made during and
    48  including the first twenty-five days of said months to said fiscal offi-
    49  cers of the foregoing taxing jurisdictions.
    50    (2) However, the taxes, penalties and interest from the additional one
    51  percent rate which the city of Yonkers is authorized to impose  pursuant
    52  to  item (a) of clause one of subparagraph (ii) of the opening paragraph
    53  of section twelve hundred ten of this article, after the comptroller has
    54  reserved such refund fund and such cost shall be  paid  to  the  special
    55  sales  and compensating use tax fund for the city of Yonkers established

        A. 403                             14
 
     1  by section ninety-two-f of the state finance law at the times set  forth
     2  in the preceding sentence.
     3    (3) However, the taxes, penalties and interest which (i) the county of
     4  Nassau,  (ii)  the  county  of Erie, to the extent the county of Erie is
     5  contractually or statutorily obligated to allocate and apply or pay  net
     6  collections  to  the  city of Buffalo and to the extent that such county
     7  has set aside net collections for educational purposes  attributable  to
     8  the  Buffalo school district, or the city of Buffalo or (iii) the county
     9  of Erie is authorized to impose pursuant to section twelve  hundred  ten
    10  of this article, other than such taxes in the amounts described, respec-
    11  tively, in subdivisions one and two of section [one thousand two] twelve
    12  hundred  sixty-two-e  of  this part, during the period that such section
    13  authorizes Nassau  county  to  establish  special  or  local  assistance
    14  programs  thereunder,  together  with any penalties and interest related
    15  thereto, and after the comptroller has reserved  such  refund  fund  and
    16  such  costs, shall, commencing on the next payment date after the effec-
    17  tive date of this sentence and of each month thereafter, until such date
    18  as (i) the Nassau county interim finance authority shall have  no  obli-
    19  gations  outstanding,  or  (ii)  the  Buffalo fiscal stability authority
    20  shall cease to exist, or (iii) the Erie county fiscal stability authori-
    21  ty shall cease to exist, be paid by the  comptroller,  respectively,  to
    22  (i)  the  Nassau  county  interim finance authority to be applied by the
    23  Nassau county interim finance authority, or (ii) to the  Buffalo  fiscal
    24  stability  authority  to  be  applied  by  the  Buffalo fiscal stability
    25  authority, or (iii) to the Erie county fiscal stability authority to  be
    26  applied  by  the Erie county fiscal stability authority, as the case may
    27  be, in the following order of priority: first  pursuant  to  the  Nassau
    28  county  interim  finance  authority's  contracts with bondholders or the
    29  Buffalo fiscal stability authority's contracts with bondholders  or  the
    30  Erie  county  fiscal  stability  authority's contracts with bondholders,
    31  respectively, then to pay the Nassau county interim finance  authority's
    32  operating  expenses  not  otherwise  provided  for or the Buffalo fiscal
    33  stability authority's operating expenses not otherwise provided  for  or
    34  the  Erie  county  fiscal  stability  authority's operating expenses not
    35  otherwise provided for, respectively,  and  then  (i)  pursuant  to  the
    36  Nassau  county interim finance authority's agreements with the county of
    37  Nassau, which agreements shall require the Nassau county interim finance
    38  authority to transfer such taxes, penalties and interest remaining after
    39  providing for contractual or other  obligations  of  the  Nassau  county
    40  interim  finance  authority,  and  subject to any agreement between such
    41  authority and the county of Nassau, to the county of Nassau as frequent-
    42  ly as practicable; or (ii) pursuant  to  the  Buffalo  fiscal  stability
    43  authority's  agreements with the city of Buffalo, which agreements shall
    44  require the Buffalo fiscal stability authority to transfer  such  taxes,
    45  penalties  and  interest  remaining  after  providing for contractual or
    46  other obligations of the Buffalo fiscal stability authority, and subject
    47  to any agreement between such authority and the city of Buffalo, to  the
    48  city  of Buffalo or the city of Buffalo school district, as the case may
    49  be, as frequently as practicable; or (iii) pursuant to the  Erie  county
    50  fiscal  stability  authority's agreements with the county of Erie, which
    51  agreements shall require the Erie county fiscal stability  authority  to
    52  transfer  such  taxes,  penalties and interest remaining after providing
    53  for contractual or other obligations of the Erie county fiscal stability
    54  authority, and subject to any agreement between such authority  and  the
    55  county  of  Erie,  to  the  county of Erie as frequently as practicable.
    56  During the period that the comptroller is required to make  payments  to

        A. 403                             15
 
     1  the  Nassau  county  interim finance authority described in the previous
     2  sentence, the county of Nassau shall have no right, title or interest in
     3  or to such taxes, penalties and interest required  to  be  paid  to  the
     4  Nassau  county  interim  finance  authority,  except as provided in such
     5  authority's agreements with the county of Nassau. During the period that
     6  the comptroller is required to  make  payments  to  the  Buffalo  fiscal
     7  stability  authority described in the second previous sentence, the city
     8  of Buffalo and such school district shall have no right, title or inter-
     9  est in or to such taxes, penalties and interest required to be  paid  to
    10  the  Buffalo  fiscal  stability  authority,  except  as provided in such
    11  authority's agreements with the city of Buffalo. During the period  that
    12  the  comptroller  is required to make payments to the Erie county fiscal
    13  stability authority described in the third previous sentence, the county
    14  of Erie shall have no right, title or interest  in  or  to  such  taxes,
    15  penalties  and  interest  required  to be paid to the Erie county fiscal
    16  stability authority, except as provided in such  authority's  agreements
    17  with the county of Erie.
    18    (4) The amount so payable shall be certified to the comptroller by the
    19  commissioner  or  the  commissioner's  delegate,  who  shall not be held
    20  liable for any inaccuracy in such certificate.  Provided,  however,  any
    21  such  certification may be based on such information as may be available
    22  to the commissioner at the time such certificate must be made under this
    23  section and may be estimated  on  the  basis  of  percentages  or  other
    24  indices calculated from distributions for prior periods.
    25    (5)  However, the comptroller shall withhold from the taxes, penalties
    26  and interest imposed by the city of New York on and after August  first,
    27  two  thousand  eight,  and deposit such amounts to the state treasury as
    28  reimbursement for appropriated disbursements made by the New York  state
    29  financial  control  board  established  by  the New York state financial
    30  emergency act for the city of New York and by  the  state  deputy  comp-
    31  troller  for  the city of New York established by section forty-one-a of
    32  the executive law, as the actual, reasonable expenses of that  board  or
    33  that  deputy  comptroller, incurred on behalf of the city, for quarterly
    34  periods commencing July first, two thousand eight,  and  ending  on  the
    35  date  when those expenses are no longer incurred by that board or deputy
    36  comptroller; and the comptroller shall pay those withheld amounts  imme-
    37  diately  into  the  miscellaneous special revenue fund financial control
    38  board account 339-15 and the miscellaneous special revenue  fund  finan-
    39  cial  oversight  account 339-DI of the state. During the period that the
    40  comptroller is required to withhold amounts and make payments  described
    41  in  this paragraph, the city of New York has no right, title or interest
    42  in or to those taxes, penalties and interest required to  be  paid  into
    43  the above referenced miscellaneous special revenue funds.
    44    (6) Where the amount so paid over to any city, county, school district
    45  or the special sales and compensating use tax fund for the city of Yonk-
    46  ers  in  any  such distribution or to any such authority is more or less
    47  than the amount then due to such city, county, school district  or  such
    48  fund or to such authority, the amount of the overpayment or underpayment
    49  shall be certified to the comptroller by the commissioner or the commis-
    50  sioner's  delegate,  who  shall not be held liable for any inaccuracy in
    51  such certificate. The amount of the overpayment or underpayment shall be
    52  so certified to the comptroller as soon after the discovery of the over-
    53  payment or underpayment as reasonably possible and  subsequent  payments
    54  and  distributions  by  the  comptroller  to  such  city, county, school
    55  district or the special sales and compensating use tax fund for the city
    56  of Yonkers or to such authority shall be  adjusted  by  subtracting  the

        A. 403                             16
 
     1  amount  of any such overpayment from or by adding the amount of any such
     2  underpayment to such number of subsequent payments and distributions  as
     3  the  comptroller  and the commissioner shall consider reasonable in view
     4  of the amount of the overpayment or underpayment and all other facts and
     5  circumstances.
     6    § 30. Subdivision (e) of section 1261 of the tax law is REPEALED.
     7    § 31. Subdivision (e) of section 1262 of the tax law is REPEALED.
     8    §  32.  Subdivision  2 of section 302 of the real property tax law, as
     9  amended by chapter 755 of the laws  of  1962,  is  amended  to  read  as
    10  follows:
    11    2.  The  taxable  status  date  of  real  property assessed for school
    12  district and village purposes shall be  determined  in  accordance  with
    13  [sections thirteen hundred two and] article seventy-one of the education
    14  law and section fourteen hundred of this chapter, respectively. The date
    15  of  taxable status of the real property contained on any village assess-
    16  ment roll shall be imprinted or otherwise indicated at the  top  of  the
    17  first page of each volume of such roll.
    18    §  33. Subdivision 2 of section 1909 of the education law, as added by
    19  section 3 of part C of chapter 58 of the laws of  1998,  is  amended  to
    20  read as follows:
    21    2. Any state aid representing tax savings duly provided by a component
    22  school district of the central high school district [pursuant to section
    23  thirteen hundred six-a of the real property tax law] for taxes levied to
    24  fund  expenditures  of the central high school district shall be claimed
    25  by such component school district  [pursuant  to  subdivision  three  of
    26  section  thirteen  hundred  six-a of the real property tax law,] and any
    27  resulting payment of state aid to the component school district based on
    28  such tax savings shall be paid by the component school district,  within
    29  ten  days  after  receipt of such payment, over to the treasurer of such
    30  central high school district in an amount equal to the  product  of  the
    31  total  payment  received  by  such component school district for all tax
    32  savings [provided pursuant to section thirteen hundred six-a of the real
    33  property tax law] multiplied by the quotient of the tax savings provided
    34  for taxes levied  to  fund  expenditures  of  the  central  high  school
    35  district  divided  by the total tax savings duly provided by such compo-
    36  nent school district [pursuant to section thirteen hundred six-a of  the
    37  real property law].
    38    §  34. Section 3601 of the education law, as amended by section 4-a of
    39  part CCC of chapter 59 of the laws  of  2018,  is  amended  to  read  as
    40  follows:
    41    §  3601.  When apportioned and how applied. The amount annually appro-
    42  priated by the legislature for general support for public  schools,  net
    43  of  disallowances,  refunds, reimbursements and credits, shall be appor-
    44  tioned by the commissioner each year prior to the dates of  the  respec-
    45  tive  final payments provided by law and all moneys so apportioned shall
    46  be applied exclusively to school purposes authorized by  law.    General
    47  state  aid  claims,  on  forms  prescribed by the commissioner, shall be
    48  submitted to the commissioner by September second of each  school  year,
    49  except  that  the  audit report required by subdivision three of section
    50  twenty-one hundred sixteen-a of this chapter shall be submitted  to  the
    51  commissioner by October fifteenth following the close of the school year
    52  audited  for  all  districts other than the city school districts of the
    53  cities of Buffalo, Rochester, Syracuse, Yonkers  and  New  York  and  by
    54  January  first  following  the close of the school year audited for such
    55  city school districts. No aid shall be paid  to  a  school  district  or
    56  board  of  cooperative  educational  services prior to the submission of

        A. 403                             17
 
     1  claims as required by the commissioner, except that no aid certified  as
     2  payable to a school district by the commissioner of taxation and finance
     3  [pursuant  to  paragraph  (c)  of  subdivision three of section thirteen
     4  hundred six-a of the real property tax law] shall be withheld due to the
     5  failure  of  the  school  district  to  submit  general state aid claims
     6  required by the commissioner, except that no aids shall be withheld  due
     7  to  the failure of a school district to submit the audit report required
     8  by subdivision three of section twenty-one  hundred  sixteen-a  of  this
     9  chapter until the thirtieth day following the due date specified in this
    10  section  for  such  report,  and  except  that apportionment for general
    11  support of public  schools  from  the  funds  apportioned  to  a  school
    12  district  for  the  current  year in excess of the amount apportioned to
    13  such school district in the base year shall be withheld  until  issuance
    14  of  a  determination  of compliance in writing of such school district's
    15  statement of total funding allocation by the commissioner and the direc-
    16  tor of the budget as required by section thirty-six hundred fourteen  of
    17  this part, whenever such shall occur, provided that for purposes of this
    18  section,  "current year" shall mean the current year as defined in para-
    19  graph a of subdivision one of section thirty-six  hundred  two  of  this
    20  part  and "base year" shall mean the base year as defined in paragraph b
    21  of subdivision one of section thirty-six hundred two of this part.
    22    § 34-a. Section 3601 of the education law, as amended by  section  4-a
    23  of  part A-1 of chapter 58 of the laws of 2006 and as further amended by
    24  subdivision (d) of section 1 of part W of chapter  56  of  the  laws  of
    25  2010, is amended to read as follows:
    26    §  3601.  When apportioned and how applied. The amount annually appro-
    27  priated by the legislature for general support for public  schools,  net
    28  of  disallowances,  refunds, reimbursements and credits, shall be appor-
    29  tioned by the commissioner each year prior to the dates of  the  respec-
    30  tive  final payments provided by law and all moneys so apportioned shall
    31  be applied exclusively to school purposes authorized by  law.    General
    32  state  aid  claims,  on  forms  prescribed by the commissioner, shall be
    33  submitted to the commissioner by September second of each  school  year,
    34  except  that  the  audit report required by subdivision three of section
    35  twenty-one hundred sixteen-a of this chapter shall be submitted  to  the
    36  commissioner by October fifteenth following the close of the school year
    37  audited  for  all  districts other than the city school districts of the
    38  cities of Buffalo, Rochester, Syracuse, Yonkers  and  New  York  and  by
    39  January  first  following  the close of the school year audited for such
    40  city school districts. No aid shall be paid  to  a  school  district  or
    41  board  of  cooperative  educational  services prior to the submission of
    42  claims as required by the commissioner, except that no aid certified  as
    43  payable to a school district by the commissioner of taxation and finance
    44  [pursuant  to  paragraph  (c)  of  subdivision three of section thirteen
    45  hundred six-a of the real property tax law] shall be withheld due to the
    46  failure of the school  district  to  submit  general  state  aid  claims
    47  required  by the commissioner, and except that no aids shall be withheld
    48  due to the failure of a school  district  to  submit  the  audit  report
    49  required by subdivision three of section twenty-one hundred sixteen-a of
    50  this chapter until the thirtieth day following the due date specified in
    51  this section for such report.
    52    §  35.  Paragraph  y of subdivision 1 of section 3602 of the education
    53  law, as amended by section 11 of part B of chapter 57  of  the  laws  of
    54  2007 and as further amended by subdivision (d) of section 1 of part W of
    55  chapter 56 of the laws of 2010, is amended to read as follows:

        A. 403                             18
 
     1    y.  "School  tax  relief aid" shall mean state aid payable to a school
     2  district representing tax savings duly provided by the  school  district
     3  [pursuant  to  section  thirteen  hundred six-a of the real property tax
     4  law] that is claimed by the school district and certified by the commis-
     5  sioner of taxation and finance [pursuant to subdivision three of section
     6  thirteen hundred six-a of the real property tax law].
     7    § 36. Paragraph (j) and subparagraph (iv) of paragraph (k) of subdivi-
     8  sion  2  of  section  425 of the real property tax law, paragraph (j) as
     9  amended by section 1 of part A of chapter 405 of the laws of 1999 and as
    10  further amended by subdivision (b) of section 1 of part W of chapter  56
    11  of  the  laws of 2010 and subparagraph (iv) of paragraph (k) as added by
    12  section 1-a of part E of chapter 83 of the laws of 2002 and redesignated
    13  by chapter 355 of the laws of 2003, are amended to read as follows:
    14    (j) Certain city school districts. The commissioner shall  adjust  the
    15  exempt  amount  for  each  city  containing  a  school district which is
    16  subject to article fifty-two of the education law, to  account  for  the
    17  fact  that the school district is fiscally dependent upon the city. This
    18  adjustment shall be made by multiplying the  exempt  amount  that  would
    19  otherwise  be determined for the city by sixty-seven percent, or, in the
    20  case of a city with a population  of  one  million  or  more,  by  fifty
    21  percent.  The  exempt  amount  resulting  from this calculation shall be
    22  applied both to the assessed value for city school district purposes and
    23  to the assessed value for general city purposes, and state aid shall  be
    24  payable  on  the combined tax savings [in the manner provided by section
    25  thirteen hundred six-a of this chapter].
    26    (iv) Notwithstanding the provisions of subparagraph (ii) of this para-
    27  graph, when a cooperative apartment corporation  is  incorporated  as  a
    28  mutual  company  pursuant  to  the  private housing finance law, and the
    29  granting of an exemption pursuant to this section would not inure to the
    30  benefit of eligible tenant-stockholders because  the  real  property  of
    31  such  corporation  is  subject to an exemption from taxation pursuant to
    32  section thirty-three, ninety-three,  one  hundred  twenty-five  or  five
    33  hundred  fifty-six  of  the  private housing finance law, an alternative
    34  benefit shall be provided to such  corporation  and  passed  through  to
    35  eligible tenant-stockholders in the manner provided by this subdivision.
    36  Such  alternative benefit shall consist of a reduction in the real prop-
    37  erty taxes or payments in lieu of taxes that would otherwise be  payable
    38  on  account  of  such  real property. The total amount of such reduction
    39  shall be the sum of the "STAR savings" for all of the cooperative apart-
    40  ment units that are occupied by one or more  eligible  tenant-stockhold-
    41  ers.  The STAR savings for each such unit shall be equal to one-third of
    42  the exempt amount determined pursuant to paragraph (a) of this  subdivi-
    43  sion  for  purposes  of the basic or enhanced exemption, as the case may
    44  be, multiplied by the applicable school tax rate, or in the  case  of  a
    45  school  district  described in paragraph (j) of this subdivision, by the
    46  applicable city tax rate. Provided, however, in no case shall  the  STAR
    47  savings for any individual unit exceed the amount payable by or chargea-
    48  ble to the unit on account of real property taxes or payments in lieu of
    49  taxes. The STAR savings so determined for each unit shall be credited by
    50  the cooperative apartment corporation against the real property taxes or
    51  payments  in  lieu  of  taxes  otherwise payable by or chargeable to the
    52  eligible tenant-stockholders. The  total  of  the  alternative  benefits
    53  provided  pursuant  to  this  subparagraph shall be a state charge which
    54  shall be payable in the same manner that school  districts  are  compen-
    55  sated  [pursuant  to section thirteen hundred six-a of this chapter] for
    56  tax savings attributable to exemptions granted pursuant to this section.

        A. 403                             19

     1    § 37. Subdivisions 1 and 2 of section 1216 of the  real  property  tax
     2  law,  as  added  by chapter 800 of the laws of 1967 and subdivision 1 as
     3  further amended by subdivision (b) of section 1 of part W of chapter  56
     4  of the laws of 2010, are amended to read as follows:
     5    1.  Where  a supplemental assessment roll has been completed, verified
     6  and filed [pursuant to section  thirteen  hundred  thirty-five  of  this
     7  chapter]  as  per  the  request  of  the  school authorities of a school
     8  district, the commissioner shall determine an equalization rate for such
     9  supplemental assessment roll in the manner provided in this article  for
    10  determining  equalization  rates  for  towns.  The  equalization rate so
    11  determined for the supplemental assessment roll shall be used in comput-
    12  ing the taxable full valuation of  real  property  on  the  supplemental
    13  assessment  roll  for  all  school district purposes except as otherwise
    14  provided [in section thirteen hundred fourteen] by other  provisions  of
    15  this chapter.
    16    2. The full valuation of taxable property for school district purposes
    17  for  a  fiscal  year  of  a  school  district in which such supplemental
    18  assessment rolls were completed, verified and filed [pursuant to section
    19  thirteen hundred thirty-five of this  chapter]  for  such  fiscal  year,
    20  shall be the simple average of the full valuation of taxable property on
    21  the  regular  and  supplemental assessment rolls of such school district
    22  for such fiscal year, provided however, that such  supplemental  assess-
    23  ment  rolls shall not be used in determining limitations on indebtedness
    24  pursuant to the local finance law. Such full valuation shall be computed
    25  for each roll by dividing the taxable assessed valuation  on  each  such
    26  roll by the state equalization rate established for each such roll.
    27    §  38.  Subdivision 1 of section 1226 of the real property tax law, as
    28  added by chapter 280 of the laws of  1985  and  as  further  amended  by
    29  subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
    30  2010, is amended to read as follows:
    31    1. If the commissioner finds that there has been a material change  in
    32  level  of assessment in a town or city since the last state equalization
    33  rate was established, it shall determine and certify a special equaliza-
    34  tion rate for tax apportionment purposes to the district  superintendent
    35  of  schools for use in the apportionment of school taxes [as provided in
    36  section thirteen hundred fourteen of this chapter].
    37    § 39. Paragraph (a) of subdivision 2 of section 1227 of the real prop-
    38  erty tax law, as added by chapter 87 of the laws of 2001 and as  further
    39  amended  by  subdivision (b) of section 1 of part W of chapter 56 of the
    40  laws of 2010, is amended to read as follows:
    41    (a) When a nuclear powered electric generating facility is exempt from
    42  taxation for school district purposes pursuant to section  four  hundred
    43  eighty-five  of this chapter, but it is not exempt for all purposes, the
    44  commissioner shall  establish  a  special  apportionment  rate  for  the
    45  assessing  unit  containing  the  facility, which rate shall be used for
    46  purposes of apportioning school district taxes to  that  assessing  unit
    47  [pursuant to section thirteen hundred fourteen of this chapter,] subject
    48  to  the  provisions  of  paragraph  (b) of this subdivision.   Provided,
    49  however, that no such rate shall be established unless it  would  result
    50  in  a  change of two percent or more in the share of the school district
    51  levy allocated to at least one school district segment, or where  appli-
    52  cable in the share of the non-homestead class levy allocated to at least
    53  one portion.
    54    §  40.  Subdivision  1  and paragraph (a) and the opening paragraph of
    55  paragraph (d) of subdivision 7 of section 1316 of the real property  tax
    56  law,  as  added  by  chapter  556  of the laws of 2002, subdivision 1 as

        A. 403                             20
 
     1  further amended by subdivision (b) of section 1 of part W of chapter  56
     2  of the laws of 2010, are amended to read as follows:
     3    1.  Notwithstanding  the provisions of [section thirteen hundred four-
     4  teen of this]  article  seventy-one  of  the  education  law,  a  school
     5  district  located in more than one city or town, which includes a desig-
     6  nated large property, as determined by the commissioner of taxation  and
     7  finance,  may  provide  by  annual resolution, adopted no later than ten
     8  days prior to the last day provided by law for the levy of school taxes,
     9  that school taxes to be levied for the fiscal year commencing July first
    10  of the same year shall be apportioned to each city or town or part ther-
    11  eof in accordance with the provisions set forth in this section.
    12    (a) The tax shall be apportioned in accordance with the provisions  of
    13  [section  thirteen  hundred fourteen of this] article seventy-one of the
    14  education law.
    15    The resulting tax levy from paragraph (c) of this subdivision shall be
    16  reapportioned among all other property within the  taxing  jurisdiction,
    17  exclusive  of  the designated large property. This reapportionment shall
    18  be done in accordance with [section thirteen hundred fourteen  of  this]
    19  the provisions of article seventy-one of the education law, except that:
    20    § 41. Paragraphs (a) and (f) of subdivision 4 of section 1903-a of the
    21  real property tax law, as amended by chapter 47 of the laws of 1991, are
    22  amended to read as follows:
    23    (a) Equalization by class. The tax authorities shall determine for the
    24  homestead  and non-homestead classes, respectively, the total full valu-
    25  ation and total taxable full valuation of the real property  subject  to
    26  taxation  for  district  purposes  in  each city or town or part thereof
    27  included within the tax district. The total full valuation of a class in
    28  a city or town or part thereof shall be computed by dividing  the  total
    29  assessed  value  of  the property in the class by the state equalization
    30  rate or  special  equalization  rate  [prescribed  in  section  thirteen
    31  hundred fourteen of this chapter]. The total taxable full valuation of a
    32  class  in  a  city or town or part thereof shall be computed by dividing
    33  the total taxable assessed value of the property in  the  class  by  the
    34  state  equalization  rate  or  special  equalization rate [prescribed in
    35  section thirteen hundred fourteen of this chapter].
    36    (f) Correction and review. The equalization and apportionment required
    37  by this subdivision shall be subject to correction  and  review  to  the
    38  extent  practicable [as provided in section thirteen hundred fourteen of
    39  this chapter].
    40    § 42. Subdivision 2 of section 954 of the real property  tax  law,  as
    41  added by chapter 440 of the laws of 1989, is amended to read as follows:
    42    2. Notwithstanding the provisions of section nine hundred twenty-two[,
    43  thirteen  hundred  twenty-two, thirteen hundred twenty-four] or fourteen
    44  hundred thirty of this chapter,  upon  agreement  between  a  collecting
    45  officer  and  a  mortgage  investing institution, the mortgage investing
    46  institution or its agent shall, no later than thirty days prior  to  the
    47  last  date  established  by law for the annexation of the warrant to the
    48  assessment roll, present to the collecting officer a list in any mutual-
    49  ly agreeable format of  the  real  property  tax  escrow  accounts  with
    50  respect  to  which  the  mortgage investing institution or its agent has
    51  been authorized by the mortgagor to receive tax bills. If the collecting
    52  officer and mortgage investing institution agree, a  list  of  additions
    53  and  deletions  to  the  last  such  list  so delivered may be presented
    54  instead.
    55    § 43. Subdivision 2 of section 544 of the real  property  tax  law  is
    56  amended to read as follows:

        A. 403                             21
 
     1    2.  No penalties, interest or fees of any kind, except fees payable to
     2  school district collecting officers  [pursuant  to  subdivision  one  of
     3  section  thirteen  hundred twenty-eight of this chapter] on school taxes
     4  on lands outside the forest preserve, shall be added to taxes payable by
     5  the state pursuant to the provisions of this section.
     6    §  44.  Subdivision  2 of section 558 of the real property tax law, as
     7  amended by chapter 529 of the laws  of  1990,  is  amended  to  read  as
     8  follows:
     9    2.  The county legislature of any county shall direct the cancellation
    10  of any unpaid school tax relevied by such county [pursuant  to  subdivi-
    11  sion  five  of  section  thirteen  hundred thirty or subdivision five of
    12  section thirteen hundred thirty-two of  this  chapter,]  or  any  unpaid
    13  village  tax  relevied  by  such  county pursuant to subdivision four of
    14  section fourteen hundred forty-two of this chapter, against property  of
    15  the  state  or the United States where it is determined that the lien of
    16  such tax cannot be enforced, or where the lien of such tax  is  rendered
    17  permanently unenforceable by operation of the provisions of any statute.
    18  The  amount  of any tax so cancelled shall be charged against the school
    19  district or village which levied such tax. The amount so charged against
    20  a school district or village shall be withheld by the  county  treasurer
    21  from  any  moneys  which  shall  become  payable  by  him to such school
    22  district or village  by  reason  of  taxes  which  shall  thereafter  be
    23  returned  to  him  as uncollected by such school district or village. No
    24  such cancellation of any unpaid school taxes or no such charge shall  be
    25  made  by  the  county  legislature  against  any such school district or
    26  village unless ten days' notice thereof by mail shall be  given  to  the
    27  school authorities thereof.
    28    §  45.  Subdivision 1-b of section 3651 of the education law, as added
    29  by section 73 of part A of chapter 436 of the laws of 1997,  is  amended
    30  to read as follows:
    31    1-b.  Notwithstanding  the  provisions  of  subdivision  one  of  this
    32  section, where the city or county is not required to pay to the treasur-
    33  er of a city school district unpaid taxes during  the  fiscal  year  for
    34  which  such  real  property  taxes are levied, the board of education of
    35  such city school district may establish a reserve for uncollected  taxes
    36  without  approval  of  the  qualified  voters  of  the  school district,
    37  provided that the ratio of the amount of such reserve to the total prin-
    38  cipal amount of the district's tax levy for such fiscal year  shall  not
    39  be  less  than  the ratio of the principal amount of the school district
    40  taxes as levied by the school district for  the  last  completed  fiscal
    41  year but not received by the district before the end of such fiscal year
    42  to  the  total  principal amount of the tax levy for such last completed
    43  fiscal year.  If the city or county is not required to pay to the treas-
    44  urer of a city school district unpaid taxes [pursuant to  section  thir-
    45  teen  hundred  thirty-two  of  the  real property tax law], the board of
    46  education of the city school district shall establish a reserve pursuant
    47  to this subdivision, provided that such reserve shall not be  less  than
    48  the  amount  of taxes for the fiscal year for which such budget is being
    49  prepared which are estimated to be unpaid during such fiscal year [under
    50  the aforesaid provisions of the real property tax law].
    51    § 46. Paragraph e of subdivision 7 of section 545 of the real property
    52  tax law, as amended by chapter 800 of the laws of 1967,  is  amended  to
    53  read as follows:
    54    e. "Latest preceding assessment roll" means the last preceding assess-
    55  ment  roll  finally  completed,  verified  and  filed prior to the final
    56  completion of the assessment roll for which the transition assessment is

        A. 403                             22
 
     1  being established, but shall not mean or include a supplemental  assess-
     2  ment roll completed, verified and filed as [provided in section thirteen
     3  hundred  thirty-five  of  this  chapter]  per  the request of the school
     4  authorities of a school district.
     5    §  47.  Subdivisions  1  and 3 of section 972 of the real property tax
     6  law, as amended by section 12 of part B of chapter 389 of  the  laws  of
     7  1997, are amended to read as follows:
     8    1.  Adoption.   Notwithstanding any provisions of this chapter, or any
     9  other general, special or local law to  the  contrary,  the  legislative
    10  body  of  a  county may, by local law, provide that thereafter and until
    11  such local law is repealed, the county shall become the  tax  collection
    12  agency for the purpose of collecting taxes in installments as prescribed
    13  by this title [and by sections thirteen hundred thirty-six through thir-
    14  teen  hundred  forty-two  of this chapter].  The term "taxes" as used in
    15  this title shall include special assessments which  are  levied  by  the
    16  county  legislative  body  at the time and in the manner provided by law
    17  for the levy of county and town taxes.
    18    3.   Interest. (a) Each installment other  than  the  first  shall  be
    19  subject  to  interest  at  the  rate determined pursuant to section nine
    20  hundred twenty-four-a of this article, or  such  other  law  as  may  be
    21  locally  applicable,  up  to and including the date on which it is to be
    22  paid.  Such interest shall be amortized  over  all  scheduled  payments,
    23  unless  the  local  law provides for unequal installments, in which case
    24  interest shall be calculated and imposed separately upon  each  install-
    25  ment.
    26    (b)  If  an  installment  is not paid on or before the date it is due,
    27  additional interest shall be added as provided by section  nine  hundred
    28  seventy-five [or section thirteen hundred forty] of this [chapter] arti-
    29  cle.
    30    (c) The amount of any interest which shall be added to any installment
    31  pursuant  to  this  section  and  section  nine hundred seventy-five [or
    32  section thirteen hundred forty] of this [chapter] article  shall  belong
    33  to the county.
    34    §  48.  In  order  to  provide  for  continuity  of  funding to school
    35  districts, fifty percent of the school taxes due on July  first  in  the
    36  year  preceding  the effective date of this act shall be paid as hereto-
    37  fore required by law.
    38    § 49. This act shall take effect on the first of January next succeed-
    39  ing the date on which it shall have become  a  law,  provided,  however,
    40  that sections two, four, five, six, eight and ten through forty-seven of
    41  this  act  shall  take  effect on the first of January in the fifth year
    42  next  succeeding  such  effective  date;  provided,  further  that   the
    43  provisions  of paragraph 2 of subdivision (c) of section 1261 of the tax
    44  law made by section twenty-nine of this act shall not affect the expira-
    45  tion of such paragraph and shall be  deemed  to  expire  therewith;  and
    46  provided,  further, that the provisions of section 3601 of the education
    47  law made by section thirty-four of this act  shall  be  subject  to  the
    48  expiration  and  reversion  of such section pursuant to subdivision 2 of
    49  section 44 of part CCC of chapter 59 of the laws of  2018,  as  amended,
    50  when  upon such date the provisions of section thirty-four-a of this act
    51  shall take effect.
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