[ ] is old law to be omitted.
LBD01571-01-1
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§ 3502. BASIC QUALITY EDUCATION. 1. THE STATE SHALL ASSUME ALL COSTS
OF BASIC QUALITY EDUCATION, IN ACCORDANCE WITH SECTION THIRTY-FIVE
HUNDRED FOUR OF THIS ARTICLE, INCLUDING ALL GENERAL AND SPECIAL EDUCA-
TIONAL SERVICES WHICH THE COMMISSIONER, UNDER GUIDELINES ESTABLISHED BY
THE LEGISLATURE, SHALL DEFINE AS NECESSARY. BASIC QUALITY EDUCATION, AS
DEFINED BY THE COMMISSIONER, SHALL ALLOW SUFFICIENT LATITUDE SO THAT
CHOICES MAY BE MADE BY LOCAL SCHOOL DISTRICTS WITH RESPECT TO THEIR
INDIVIDUAL NEEDS. AS USED IN THIS ARTICLE "BASIC" SHALL MEAN EQUAL
SERVICES TO ALL PUPILS REGARDLESS OF DIFFERENCES IN COST IN DIFFERENT
DISTRICTS FOR SUCH SERVICES.
2. SUCH COSTS SHALL BE FUNDED AS PROVIDED FOR BY THE LEGISLATURE, IN
CONJUNCTION WITH THE ELIMINATION OF REAL ESTATE TAXES FOR THE SUPPORT OF
EDUCATION. WITHIN THE CITIES OF NEW YORK, BUFFALO, ROCHESTER, SYRACUSE
AND YONKERS, THE TAX ON REAL PROPERTY SHALL BE REDUCED BY THE DOLLAR
AMOUNT OF SUCH CITY'S SHARE OF THE COST OF PUBLIC SCHOOL EDUCATION. SUCH
REDUCTION SHALL BE APPORTIONED TO ALL REAL PROPERTY TAXPAYERS ON A PRO-
RATA BASIS, AND TENANTS SHALL RECEIVE TAX CREDITS, TAX REBATES, OR
REDUCTIONS IN RENT AS PROVIDED IN SECTION FOUR HUNDRED SIXTY-SEVEN-K OF
THE REAL PROPERTY TAX LAW.
3. EACH SCHOOL DISTRICT SHALL SUBMIT A BASIC BUDGET TO THE DEPARTMENT
FOR PURPOSES OF DETERMINING REIMBURSABLE SERVICES.
4. THE DEPARTMENT, UNDER DIRECTION OF THE BOARD OF REGENTS, SHALL
ESTABLISH A SCHEDULE OF MANDATORY BASIC SERVICES AND AUTHORIZED COSTS
THEREFOR RELATED TO DIFFERING COSTS THROUGHOUT THE STATE. SUCH BASIC
SCHEDULE SHALL REFLECT GUIDELINES ESTABLISHED FOR THIS PURPOSE BY THE
LEGISLATURE.
§ 3503. MINIMUM APPORTIONMENT. IN ANY SCHOOL YEAR A DISTRICT MAY ELECT
TO RECEIVE AS ITS BASIC BUDGET THE HIGHEST OF:
1. THE DISTRICT BUDGET OF THE SCHOOL YEAR DURING WHICH THIS ARTICLE
SHALL TAKE EFFECT, EXCEPT THAT THIS APPORTIONMENT OPTION SHALL EXIST
ONLY FOR THE PERIOD NOT EXCEEDING THE FIVE SCHOOL YEARS IMMEDIATELY
AFTER THIS ARTICLE SHALL TAKE EFFECT.
2. THE PRODUCT OF (A) THE DISTRICT BUDGET OF THE SCHOOL YEAR DURING
WHICH THIS ARTICLE SHALL TAKE EFFECT DIVIDED BY THE ENROLLMENT AT THE
START OF SUCH YEAR AND (B) THE ENROLLMENT AT THE START OF THE SCHOOL
YEAR FOR WHICH THE BUDGET IS BEING DETERMINED. THIS APPORTIONMENT OPTION
SHALL EXIST ONLY FOR THE PERIOD NOT EXCEEDING THE FIVE SCHOOL YEARS
IMMEDIATELY AFTER THE EFFECTIVE DATE OF THIS ARTICLE.
3. THE BASIC BUDGET SUBMITTED IN ACCORDANCE WITH SUBDIVISION THREE OF
SECTION THIRTY-FIVE HUNDRED TWO OF THIS ARTICLE, EXCEPT THAT IN NO CASE
SHALL THE PER PUPIL APPORTIONMENT EXCEED THE PER PUPIL APPORTIONMENT OF
THE PREVIOUS YEAR BY MORE THAN THE AVERAGE STATEWIDE INCREASE OF PER
PUPIL BUDGETS PLUS TEN PER CENTUM OF THE PER PUPIL APPORTIONMENT OF THE
PREVIOUS YEAR.
§ 3504. COLLECTION AND DISTRIBUTION. NOTWITHSTANDING THE PROVISIONS OF
ANY OTHER LAW, CODE, RULE OR REGULATION, THE STATE SHALL, WITHIN FIVE
YEARS FROM THE EFFECTIVE DATE OF THIS ARTICLE, COLLECT AND DISTRIBUTE TO
SCHOOL DISTRICTS ALL MONEYS RELATING TO THE FINANCING OF PUBLIC EDUCA-
TION, EXCLUSIVE OF HIGHER EDUCATION, WITHIN THIS STATE, AS PROVIDED BY
THE LEGISLATURE. THIS ASSUMPTION BY THE STATE OF ALL COSTS OF BASIC
QUALITY EDUCATION SHALL BE ACCOMPLISHED IN APPROXIMATELY EQUAL INCRE-
MENTS OVER A FIVE YEAR PERIOD FROM THE EFFECTIVE DATE OF THIS ARTICLE.
DURING THIS PERIOD, THE AMOUNT OF MONEY DERIVED BY EACH SCHOOL DISTRICT
FROM REAL PROPERTY TAXES SHALL BE REDUCED ACCORDINGLY. AFTER FIVE YEARS
FROM THE EFFECTIVE DATE OF THIS ARTICLE, MONEYS DISTRIBUTED TO ANY
SCHOOL DISTRICT SHALL BE REDUCED BY THE AMOUNT OF ANY REVENUES RECEIVED
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BY SUCH SCHOOL DISTRICT FROM TAXES IMPOSED ON REAL PROPERTY BY OR ON
BEHALF OF SUCH SCHOOL DISTRICT.
§ 3505. CONSTRUCTION WITH OTHER LAWS. THE PROVISIONS OF THIS ARTICLE
SHALL BE CONTROLLING, NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW,
CODE, RULE OR REGULATION TO THE CONTRARY. HOWEVER, NO EXISTING RIGHT OR
REMEDY OF ANY CHARACTER SHALL BE LOST, IMPAIRED OR AFFECTED BY REASON OF
THIS ARTICLE, NOR SHALL THE VALIDITY OF ANY ACTION TAKEN BY ANY PUBLIC
OFFICIAL UNDER THE LAW IN FORCE IMMEDIATELY PRIOR TO THE TIME THIS ARTI-
CLE SHALL TAKE EFFECT BE AFFECTED BY THE ENACTMENT OF THIS ARTICLE.
COLLECTION OF ALL OUTSTANDING TAX LIENS SHALL BE PURSUANT TO THE
PROVISIONS OF THE REAL PROPERTY TAX LAW.
§ 3506. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION OR
PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
DICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN ITS OPERATION TO
THE CLAUSE, SENTENCE, PARAGRAPH, SECTION OR PART THEREOF DIRECTLY
INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDGMENT SHALL HAVE BEEN
RENDERED.
§ 2. Article 13 of the real property tax law is REPEALED.
§ 3. The real property tax law is amended by adding a new section
467-l to read as follows:
§ 467-L. PROVISIONS FOR TENANTS. IN EVERY CASE WHERE TAXES ON REAL
PROPERTY ARE REDUCED DUE TO THE REDUCTION OF SCHOOL TAXES ON SUCH PROP-
ERTY, THE AMOUNT OF SUCH REDUCTION SHALL BE PRO-RATED AMONG THE TENANTS,
IF ANY, OF SUCH REAL PROPERTY, AND THE TOTAL RENTS REDUCED IN AN AMOUNT
EQUAL TO SUCH REAL PROPERTY TAX REDUCTION. WHERE SUCH RENT REDUCTION IS
PRECLUDED BY A LEASE OR OTHER AGREEMENT, SUCH REAL PROPERTY TAX
REDUCTION SHALL ENTITLE SUCH TENANTS TO A TAX CREDIT IN THAT AMOUNT
AGAINST INCOME TAXES DUE, OR TO A REBATE FOR ANY AMOUNT IN EXCESS OF
INCOME TAXES DUE, UNTIL THE EXPIRATION OF SUCH LEASE OR AGREEMENT, AT
WHICH TIME THE RENT SHALL BE REDUCED ACCORDINGLY.
§ 4. Subdivision 1 and paragraphs (b) and (c) of subdivision 3 of
section 972 of the real property tax law, as amended by section 12 of
part B of chapter 389 of the laws of 1997, are amended to read as
follows:
1. Adoption. Notwithstanding any provisions of this chapter, or any
other general, special or local law to the contrary, the legislative
body of a county may, by local law, provide that thereafter and until
such local law is repealed, the county shall become the tax collection
agency for the purpose of collecting taxes in installments as prescribed
by this title [and by sections thirteen hundred thirty-six through thir-
teen hundred forty-two of this chapter]. The term "taxes" as used in
this title shall include special assessments which are levied by the
county legislative body at the time and in the manner provided by law
for the levy of county and town taxes.
(b) If an installment is not paid on or before the date it is due,
additional interest shall be added as provided by section nine hundred
seventy-five [or section thirteen hundred forty] of this [chapter]
TITLE.
(c) The amount of any interest which shall be added to any installment
pursuant to this section and section nine hundred seventy-five [or
section thirteen hundred forty] of this [chapter] TITLE shall belong to
the county.
§ 5. Subdivision 6 of section 975 of the real property tax law, as
added by chapter 953 of the laws of 1962, is amended to read as follows:
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6. The county treasurer of a county which has enacted a local law
pursuant to section nine hundred seventy-two of this [chapter] TITLE may
promulgate and amend suitable rules and regulations prescribing the
necessary forms for carrying into effect the provisions of this title
[and of article thirteen of this chapter] relating to the installment
payment of taxes.
§ 6. Subdivision 5 of section 1618 of the real property tax law, as
added by chapter 512 of the laws of 1993 and as further amended by
subdivision (b) of section 1 of part W of chapter 56 of the laws of
2010, is amended to read as follows:
5. When the commissioner has established a final equalization rate for
a consolidated assessing unit as a whole, school district and county
taxes within the consolidated assessing unit shall be apportioned with-
out the use of equalization rates, notwithstanding the provisions of
[articles] ARTICLE eight [and thirteen] of this chapter.
§ 7. The tax law is amended by adding a new section 601-b to read as
follows:
§ 601-B. ADDITIONAL TAXES FOR EDUCATION. (A) IN ADDITION TO THE TAXES
ON INCOME IMPOSED BY THIS CHAPTER FOR TAXABLE YEARS OR PERIODS ENDING ON
OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE, THERE SHALL BE
IMPOSED A TAX EQUAL TO A PERCENT OF THE TAXES IMPOSED BY SUCH SECTIONS
AND ARTICLES AS IS NECESSARY TO FULFILL THE REQUIREMENTS OF SECTION
THIRTY-FIVE HUNDRED TWO OF THE EDUCATION LAW. SUCH A TAX MAY BE LEVIED
EITHER AS A SURTAX, OR BY READJUSTMENT OF THE APPROPRIATE TAX SCHEDULES.
(B) EACH SCHOOL DISTRICT MAY ALSO INCREASE THE ADDITIONAL TAXES FOR
EDUCATION, IMPOSED PURSUANT TO SUBSECTION (A) OF THIS SECTION, BY RESOL-
UTION ADOPTED BY A TWO-THIRDS VOTE PRIOR TO THE LEVY OF TAXES IN ANY
YEAR. SUCH RESOLUTION SHALL PROVIDE FOR THE INCREASE TO BE IMPOSED
EITHER IN THE FORM OF A HIGHER SURTAX RATE OR A STANDARD LUMP SUM
AMOUNT; PROVIDED, THAT ALL SUCH PROCEEDS FROM THE INCREASE ON THE ADDI-
TIONAL TAX FOR EDUCATION BE COLLECTED AND ACCRUED TO THE SCHOOL DISTRICT
IN WHICH SUCH TAX WAS COLLECTED.
(C) THE COMMISSIONER SHALL ESTABLISH A SEPARATE ACCOUNT OR ACCOUNTS TO
RECEIVE THE ADDITIONAL TAX IMPOSED BY SUBSECTIONS (A) AND (B) OF THIS
SECTION AND SHALL PAY INTO SUCH ACCOUNT OR ACCOUNTS THE TOTAL OF ALL
SUCH TAXES WHEN RECEIVED AND RETAIN THE SAME SUBJECT TO DISBURSEMENT IN
ACCORDANCE WITH THE PROVISIONS OF THE EDUCATION LAW.
§ 7-a. The real property tax law is amended by adding a new section
307-b to read as follows:
§ 307-B. ADDITIONAL TAX ON NON-RESIDENTIAL PROPERTY. 1. THE COMMIS-
SIONER OF TAXATION AND FINANCE SHALL ESTABLISH AN ADDITIONAL TAX ON
NON-RESIDENTIAL PROPERTY TO BE IMPOSED IN ADDITION TO OTHER LOCALLY
LEVIED PROPERTY TAXES. SUCH TAX SHALL BE LEVIED BY THE STATE THROUGH THE
COUNTY, CITY, TOWN OR VILLAGE GOVERNING BODY AND SHALL BE A LOW-RATE,
UNIFORM TAX. FOR THE PURPOSES OF THIS SUBDIVISION, "NON-RESIDENTIAL
PROPERTY" SHALL MEAN ANY (A) NON-RESIDENTIAL COMMERCIAL PROPERTY, (B)
INDUSTRIAL PROPERTY, (C) AGRICULTURAL PROPERTY AND (D) VACANT LAND WHICH
IS EITHER COMMERCIAL PROPERTY OR INDUSTRIAL PROPERTY.
2. THE COMMISSIONER OF TAXATION AND FINANCE SHALL SET THE RATE FOR THE
ADDITIONAL TAX ON NON-RESIDENTIAL PROPERTY, AS REQUIRED BY SUBDIVISION
ONE OF THIS SECTION, AT AN ADEQUATE RATE TO PROVIDE FUNDING FOR MEETING
THE REQUIREMENTS OF SECTIONS THIRTY-FIVE HUNDRED ONE AND THIRTY-FIVE
HUNDRED TWO OF THE EDUCATION LAW. THE COMMISSIONER OF TAXATION AND
FINANCE SHALL ESTABLISH A SEPARATE ACCOUNT TO RECEIVE THE ADDITIONAL TAX
IMPOSED BY SUBDIVISION ONE OF THIS SECTION AND SHALL PAY INTO SUCH
ACCOUNT THE TOTAL OF ALL SUCH TAXES WHEN RECEIVED AND RETAIN THE SAME
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SUBJECT TO DISBURSEMENT IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE
SEVENTY-ONE OF THE EDUCATION LAW.
§ 8. Sections 1204, 1211 and 1212 of the tax law are REPEALED.
§ 9. The tax law is amended by adding a new section 1200 to read as
follows:
§ 1200. CERTAIN TAXES REDUCED. NOTWITHSTANDING THE PROVISIONS OF ANY
OTHER SECTION OF THIS ARTICLE, ON AND AFTER THE EFFECTIVE DATE OF THIS
SECTION, THE PROVISIONS OF THIS ARTICLE RELATING TO TAXES FOR THE BENE-
FIT OF SCHOOL DISTRICTS OR SCHOOL PURPOSES SHALL BE DEEMED REDUCED IN
ACCORDANCE WITH SECTION THIRTY-FIVE HUNDRED FOUR OF THE EDUCATION LAW.
§ 10. Section 1213 of the tax law, as amended by section 2 of part WW
of chapter 57 of the laws of 2010, is amended to read as follows:
§ 1213. Deliveries outside the jurisdiction where sale is made. Where
a sale of tangible personal property or services, including prepaid
telephone calling services, but not including other services described
in subdivision (b) of section eleven hundred five of this chapter,
including an agreement therefor, is made in any city[,] OR county [or
school district], but the property sold, the property upon which the
services were performed or prepaid telephone calling or other service is
or will be delivered to the purchaser elsewhere, such sale shall not be
subject to tax by such city[,] OR county [or school district]. However,
if delivery occurs or will occur in a city[,] OR county [or school
district] imposing a tax on the sale or use of such property, prepaid
telephone calling or other services, the vendor shall be required to
collect from the purchaser, as provided in section twelve hundred
fifty-four of this article, the aggregate sales or compensating use
taxes imposed by the city, if any, AND county [and school district] in
which delivery occurs or will occur, for distribution by the commission-
er to such taxing jurisdiction or jurisdictions. For the purposes of
this section delivery shall be deemed to include transfer of possession
to the purchaser and the receiving of the property or of the service,
including prepaid telephone calling service, by the purchaser. Notwith-
standing the foregoing, where a transportation service described in
paragraph ten of subdivision (c) of section eleven hundred five of this
chapter begins in one jurisdiction but ends in another jurisdiction, any
tax imposed pursuant to the authority of this article shall be due the
jurisdiction or jurisdictions where the service commenced.
§ 11. Section 1220 of the tax law, as amended by section 39 of part Y
of chapter 63 of the laws of 2000, is amended to read as follows:
§ 1220. Territorial limitations. Any tax imposed under the authority
of this article shall apply only within the territorial limits of the
city[,] OR county [or school district] imposing the tax, except that
where the taxes described in subdivision (b) of section eleven hundred
five and clauses (E), (G) and (H) of subdivision (a) of section eleven
hundred ten OF THIS CHAPTER or the tax described in subdivision (e) of
section eleven hundred five OF THIS CHAPTER is imposed by a city, as
provided in section twelve hundred ten [or twelve hundred eleven] of
this [chapter] ARTICLE, any establishment located partially within such
city and partially within a town or towns and receiving or using any
services or utilities provided by the city shall be deemed to be wholly
within such city for the purposes of such taxes.
§ 12. Section 1222 of the tax law, as added by chapter 93 of the laws
of 1965, is amended to read as follows:
§ 1222. Taxes to be in addition to others. Except as expressly other-
wise provided in this article, any tax imposed under the authority of
this article shall be in addition to any and all other taxes authorized
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or imposed under any other provision of law. This article shall not be
construed as limiting the power of any city[,] OR county [or school
district] to impose any other tax which it is authorized to impose under
any other provision of law.
§ 13. Section 1256 of the tax law, as amended by chapter 575 of the
laws of 1965, is amended to read as follows:
§ 1256. Cooperation by localities. Every city[,] AND county [and
school district] shall cooperate with the [state tax commission] COMMIS-
SIONER to enable [it] HIM OR HER to carry out [its] HIS OR HER duties
under [articles] THIS ARTICLE AND ARTICLE twenty-eight [and twenty-nine]
of this chapter. Every such locality shall furnish to such [commission]
COMMISSIONER those returns, reports and other information which the [tax
commission] COMMISSIONER deems necessary to carry out such duties,
except that cities having a population of one million or more, may, in
their discretion, furnish instead copies of such returns, reports and
other information. Such copies shall be furnished at the [tax commis-
sion's] COMMISSIONER'S expense, such expenses to be charged to the cost
of administration. Notwithstanding any other law to the contrary, the
duty to furnish returns, reports and other information or copies thereof
shall apply to [those returns and reports filed under taxes authorized
under chapter eight hundred seventy-three of the laws of nineteen
hundred thirty-four, as amended, chapter three hundred forty-one of the
laws of nineteen hundred forty-six, as amended, article two-B of the
general city law and chapter two hundred seventy-eight of the laws of
nineteen hundred forty-seven, as amended, and to such other] information
which is relevant to the duties of the [tax commission] COMMISSIONER
under THIS ARTICLE AND such [articles] ARTICLE twenty-eight [and twen-
ty-nine] OR OTHER RELEVANT PROVISIONS OF THIS CHAPTER.
§ 14. Paragraph 1 of subdivision (g) of section 1132 of the tax law,
as amended by chapter 402 of the laws of 1986, is amended to read as
follows:
(1) The clerk of each county when performing the function of registra-
tion of a motor vehicle, snowmobile, vessel or all terrain vehicle or
accepting an application for a certificate of title of a motor vehicle
or vessel, pursuant to the authority of the vehicle and traffic law, or
the commissioner of motor vehicles, when such commissioner performs such
functions, prior to performing such functions, shall act as the agent of
the [state tax commission] COMMISSIONER to collect any retail sales tax
due under this article and under a sales tax imposed pursuant to section
twelve hundred ten [or twelve hundred eleven] OF THIS CHAPTER upon sales
of such motor vehicles, snowmobiles, vessels or all terrain vehicles by
persons other than dealers registered under sections four hundred
fifteen, twenty-two hundred twenty-two, twenty-two hundred fifty-seven
and twenty-two hundred eighty-two of the vehicle and traffic law. Such
county clerks and such commissioner shall also act as such agents to
collect any compensating use tax due under section eleven hundred ten OF
THIS ARTICLE and under a compensating use tax imposed pursuant to
section twelve hundred ten [or twelve hundred eleven] OF THIS CHAPTER
for the use of a motor vehicle, snowmobile, vessel or all terrain vehi-
cle within this state. The commissioner of motor vehicles shall act as
such agent without fee. Each such county clerk shall, after deducting
his OR HER fee as provided in paragraph two of this subdivision, and
such commissioner shall remit to the tax commission all funds collected
pursuant to this subdivision and shall follow such procedures and keep
such records as shall be prescribed by the [tax commission]
COMMISSIONER.
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§ 15. Subparagraph (iii) of paragraph 1 of subdivision (a) of section
1214 of the tax law, as amended by chapter 481 of the laws of 2000, is
amended to read as follows:
(iii) is not engaged in carrying on in such jurisdiction any employ-
ment, trade, business or profession in which the motor vehicle or vessel
will be used in such jurisdiction, and such other proof as the commis-
sioner may require to ensure proper administration of the taxes imposed
under the authority of [sections] SECTION twelve hundred ten [and twelve
hundred eleven] of this article.
§ 16. Section 1217 of the tax law, as added by chapter 962 of the laws
of 1966, subdivision (a) as amended by chapter 169 of the laws of 1970,
is amended to read as follows:
§ 1217. General transitional provisions. (a) For the purposes of any
local law, ordinance or resolution imposing a local tax pursuant to the
authority of section twelve hundred ten[, twelve hundred eleven, twelve
hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE or increasing
the rate of such tax, all references in section eleven hundred six OF
THIS CHAPTER to August first, nineteen hundred sixty-five shall be read
as referring to the effective date of such local law, ordinance or
resolution, all references in said section to April first, nineteen
hundred sixty-five shall be read as referring to a date four months
prior to the effective date of such local law, ordinance or resolution
and the reference in subdivision (b) of section eleven hundred six OF
THIS CHAPTER to July thirty-first, nineteen hundred sixty-five shall be
read as referring to the day immediately before the effective date of
such local law, ordinance or resolution.
(b) In applying the provisions of section eleven hundred nineteen OF
THIS CHAPTER with respect to pre-existing lump sum or unit price
construction contracts to a tax on retail sales of tangible personal
property or a compensating use tax imposed pursuant to the authority of
section twelve hundred ten [or twelve hundred eleven] OF THIS ARTICLE,
all references in said section to the date of the enactment of article
twenty-eight OF THIS CHAPTER or the enactment of a law increasing the
rate of tax imposed under said article shall be read as referring to the
date of the enactment of the local law, ordinance or resolution imposing
such local tax or increasing the rate thereof.
§ 17. Section 1223 of the tax law, as separately amended by chapters
4, 8 and 9 of the laws of 2003 and subdivision (a) as amended by chapter
44 of the laws of 2019, is amended to read as follows:
§ 1223. Limitations on rates. (a) No transaction taxable under
sections twelve hundred two [through] AND twelve hundred [four] THREE of
this article shall be taxed pursuant to this article by any county or by
any city located therein, or by both, at an aggregate rate in excess of
the highest rate set forth in the applicable subdivision of section
twelve hundred one of this article or, in the case of any taxes imposed
pursuant to the authority of section twelve hundred ten [or twelve
hundred eleven] of this article (other than taxes imposed by the county
of Nassau, Erie, Steuben, Cattaraugus, Suffolk, Oneida, Genesee, Greene,
Franklin, Hamilton, Herkimer, Tioga, Orleans, Allegany, Ulster, Albany,
Rensselaer, Tompkins, Wyoming, Columbia, Schuyler, Rockland, Chenango,
Monroe, Chemung, Seneca, Sullivan, Wayne, Livingston, Schenectady, Mont-
gomery, Delaware, Clinton, Niagara, Yates, Lewis, Essex, Dutchess, Scho-
harie, Putnam, Chautauqua, Orange, Oswego, Ontario, Jefferson, St.
Lawrence, Westchester or Onondaga and by the county of Cortland and the
city of Cortland and by the county of Broome and the city of Binghamton
and by the county of Cayuga and the city of Auburn and by the county of
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Otsego and the city of Oneonta and by the county of Madison and the city
of Oneida and by the county of Fulton and the city of Gloversville or
the city of Johnstown as provided in section twelve hundred ten of this
article) at a rate in excess of three percent, except that, in the city
of Yonkers, in the city of Mount Vernon, in the city of New Rochelle, in
the city of Fulton, in the city of Oswego, and in the city of White
Plains, the rate may not be in excess of four percent, and except that
in the city of Poughkeepsie in the county of Dutchess, if such county
withdraws from the metropolitan commuter transportation district pursu-
ant to section twelve hundred seventy-nine-b of the public authorities
law and if the revenues from a three-eighths percent rate of such tax
imposed by such county, pursuant to the authority of section twelve
hundred ten of this article, are required by local laws, ordinances or
resolutions to be set aside for mass transportation purposes, the rate
may not be in excess of three and three-eighths percent.
(b) If a transaction is taxed by both a county and a city, the rate of
tax on such transaction imposed by the county or city, not having prior
right thereto pursuant to section twelve hundred twenty-four OF THIS
SUBPART, shall be deemed to be reduced (or the entire tax eliminated, if
necessary) to the extent necessary to comply with the foregoing require-
ment. A tax imposed by a county upon any transaction, to the extent that
it would require a reduction in any tax rate imposed thereon by a city,
shall not become effective in respect to any transaction taxed by such
city (or in respect of other similar transactions outside of the city
which, if occurring in such city, would be subject to such city tax)
before the commencement of the city's next succeeding fiscal year and
then only if the county shall have given notice to such city of its
imposition of a tax on such transaction at least six months prior to the
commencement of such fiscal year, provided however that the local legis-
lative body of such city may waive the requirement of such notice and
the postponement of the effective date of such tax. A city tax upon any
transaction, to the extent that it would require a reduction in any tax
rate imposed by a county thereon, shall not become effective in respect
of any transaction taxed by such county before the commencement of the
county's next succeeding fiscal year and then only if the city shall
have given notice to such county of its imposition of a tax on such
transaction at least six months prior to the commencement of such fiscal
year, provided, however, that the local legislative body of such county
may waive the requirement of such notice and postponement of the effec-
tive date of such tax. However, whether or not the six months' notice
requirement provided in this section has been waived, a tax imposed
pursuant to the authority of section twelve hundred ten [or twelve
hundred eleven] OF THIS ARTICLE shall still be subject to the require-
ments provided for in the first three sentences of subdivision (d) of
such [sections] SECTION and in subdivision (e) of such [sections]
SECTION.
§ 18. Paragraph 2 of subdivision (b) of section 1224 of the tax law,
as amended by chapter 506 of the laws of 1976, is amended to read as
follows:
(2) all of the taxes described in article twenty-eight as authorized
by subdivision (a) of section twelve hundred ten[, or by section twelve
hundred eleven,] OF THIS ARTICLE to the extent of one-half the maximum
aggregate rates authorized under such subdivision (a) [and such section
twelve hundred eleven], except as otherwise provided in this section.
§ 19. Subdivision (k) of section 1224 of the tax law, as amended by
chapter 426 of the laws of 1968 and separately relettered by chapters
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531, 574, 617, 718 and 719 of the laws of 1992, is amended to read as
follows:
(k) For purposes of this section, the term "prior right" shall mean
the preferential right to impose any tax described in sections twelve
hundred two [and], twelve hundred three[,] AND twelve hundred ten [and
twelve hundred eleven] OF THIS ARTICLE and thereby to pre-empt such tax
and to preclude another municipal corporation from imposing or continu-
ing the imposition of such tax to the extent that such right is exer-
cised. However, the right of pre-emption shall only apply within the
territorial limits of the taxing jurisdiction having the right of pre-
emption.
§ 20. Subdivision (a) of section 1235 of the tax law, as amended by
chapter 459 of the laws of 1968, is amended to read as follows:
(a) With respect to taxes imposed pursuant to subdivision (a) of
section twelve hundred ten [and pursuant to section twelve hundred elev-
en] OF THIS ARTICLE, the use of tangible personal property purchased at
retail and of any of the services subject to the sales tax shall be
exempt from the compensating use tax authorized under subdivision (a) of
such section twelve hundred ten [and under section twelve hundred elev-
en,] to the extent that a retail sales tax or a compensating use tax was
legally due and paid thereon, without any right to a refund or credit
thereof, to (1) any municipal corporation in this state or (2) any other
state or jurisdiction within any other state, but only when it is shown
that such other state or jurisdiction allows a corresponding exemption
with respect to the sale or use of tangible personal property or of any
of the services upon which such a sale or compensating use tax was paid
to this state and any of its municipal corporations, except as provided
in subdivision (b) of this section.
§ 21. Section 1240 of the tax law, as amended by chapter 356 of the
laws of 2014, is amended to read as follows:
§ 1240. Administration and collection. The taxes authorized under
sections twelve hundred one through twelve hundred [four] THREE of this
article which are now imposed shall continue to be administered and
collected by the fiscal or other officers of the city, county or school
district in the same manner as such taxes have been administered and
collected by such officers immediately prior to the enactment of this
article, in accordance with the applicable provisions of the charter,
administrative code, local law, ordinance or resolution then in force,
with such amendments in respect to administration and collection as may
be enacted. Taxes authorized under sections twelve hundred one through
twelve hundred [four] THREE of this article which may hereafter be
imposed by a city, county or school district shall be administered and
collected in such manner as may be provided in its charter, administra-
tive code, local laws, ordinances or resolutions, with such amendments
in respect to administration and collection as may be enacted. Notwith-
standing any other provision of law to the contrary, the authorization
to impose tax upon the transfer of real property pursuant to subdivision
(b) of section twelve hundred one of this article, shall not, when the
conveyance consists of a transfer of property made as a result of an
order of the court in a foreclosure proceeding ordering the sale of such
property, include the authorization to impose civil or criminal penal-
ties, interest, or other liability upon the referee or sheriff effectu-
ating the transfer.
§ 22. Subdivision (b) of section 1242 of the tax law, as added by
chapter 93 of the laws of 1965, is amended to read as follows:
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(b) Cities under one million, counties and school districts. Except in
the case of a wilfully false or fraudulent return with intent to evade
the tax, no assessment of additional tax shall be made with respect to
taxes imposed under the authority of sections twelve hundred two
[through] AND twelve hundred [four] THREE OF THIS ARTICLE, after the
expiration of more than three years from the date of the filing of a
return, provided, however, that where no return has been filed as
provided by local law, ordinance or resolution, the tax may be assessed
at any time.
§ 23. Subdivision (a) of section 1243 of the tax law, as amended by
chapter 808 of the laws of 1992 and paragraph 1 as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is amended to
read as follows:
(a) Any final determination of the amount of any tax payable under
sections twelve hundred one through twelve hundred [four] THREE OF THIS
ARTICLE shall be reviewable for error, illegality or unconstitutionality
or any other reason whatsoever by a proceeding under article seventy-
eight of the civil practice law and rules if application therefor is
made to the supreme court within four months after the giving of the
notice of such final determination, provided, however, that any such
proceeding under article seventy-eight of the civil practice law and
rules shall not be instituted by a taxpayer unless (1) the amount of any
tax sought to be reviewed, with such interest and penalties thereon as
may be provided for by local law, ordinance, resolution or regulation,
shall be first deposited and there is filed an undertaking, issued by a
surety company authorized to transact business in this state and
approved by the superintendent of financial services of this state as to
solvency and responsibility, in such amount as a justice of the supreme
court shall approve to the effect that if such proceeding be dismissed
or the tax confirmed the taxpayer will pay all costs and charges which
may accrue in the prosecution of such proceeding or (2) at the option of
the taxpayer, such undertaking may be in a sum sufficient to cover the
taxes, interest and penalties stated in such determination, plus the
costs and charges which may accrue against such taxpayer in the prose-
cution of the proceeding, in which event the taxpayer shall not be
required to pay such taxes, interest or penalties as a condition prece-
dent to the application.
§ 24. Section 1250 of the tax law, as amended by chapter 169 of the
laws of 1970, is amended to read as follows:
§ 1250. Administration and collection. The taxes imposed under the
authority of sections twelve hundred ten[, twelve hundred eleven, twelve
hundred twelve] and twelve hundred twelve-A OF THIS ARTICLE shall be
administered and collected by the [state tax commission] COMMISSIONER in
the same manner as the taxes imposed under article twenty-eight of this
chapter are administered and collected by such commission. All of the
provisions of such article relating to or applicable to the adminis-
tration and collection of the taxes imposed by that article shall apply
to the taxes imposed under the authority of section twelve hundred ten[,
twelve hundred eleven, twelve hundred twelve] or twelve hundred twelve-A
OF THIS ARTICLE, including sections eleven hundred one and eleven
hundred eleven and sections eleven hundred thirty-one through eleven
hundred forty-seven OF THIS CHAPTER, with the same force and effect as
if those provisions had been incorporated in full into this article and
had expressly referred to the taxes imposed under sections twelve
hundred ten [through] AND twelve hundred twelve-A OF THIS ARTICLE,
except to the extent that any provisions of such article twenty-eight
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are either inconsistent with a provision of this article or are not
relevant to this article. For purposes of this article, the term "tax"
in part IV of such article twenty-eight shall include any tax imposed
under the authority of section twelve hundred ten[, twelve hundred elev-
en, twelve hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE.
Wherever there is joint collection of state and local taxes, it shall be
deemed that such collections shall represent proportionally the applica-
ble state and local taxes in determining the amount to be remitted to
local taxing jurisdictions.
§ 25. Subdivision (a) of section 1251 of the tax law, as amended by
chapter 155 of the laws of 1982, is amended to read as follows:
(a) Every person required to collect any of the taxes imposed under
the authority of section twelve hundred ten[, twelve hundred eleven,
twelve hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE shall
file a return as required by subdivision (a) of section eleven hundred
thirty-six OF THIS CHAPTER with the [tax commission] COMMISSIONER,
except that return for the quarterly period ending August thirty-first,
nineteen hundred sixty-five shall only cover the month of August, nine-
teen hundred sixty-five. The return of a vendor of tangible personal
property or services shall show his OR HER receipts from sales and also
the aggregate value of tangible personal property and services sold by
him OR HER, the use of which is subject to a tax imposed under the
authority of this article and the amount of taxes required to be
collected with respect to such sales and use. The return of a [recipi-
ent] RECEIPT of amusement charges shall show all such charges and the
amount of tax thereon, and the return of an operator required to collect
tax on rents shall show all rents received or charged and the amount of
tax thereon. Every person required to file a part-quarterly return
pursuant to subdivision (a) of section eleven hundred thirty-six OF THIS
CHAPTER shall file a return for the same periods for the taxes imposed
pursuant to this article. Provided, however, where a part-quarterly
return described in paragraph [(i)] ONE or [(ii)] TWO of subdivision (a)
of section eleven hundred thirty-six is filed for purposes of complying
with this section and section eleven hundred thirty-six or subdivision
(a) or (b) of section eleven hundred thirty-seven-A OF THIS CHAPTER, on
such returns separate amounts due for the taxes imposed by each county,
city or school district, pursuant to the authority of section twelve
hundred ten[, twelve hundred eleven, twelve hundred twelve] or twelve
hundred twelve-A OF THIS ARTICLE, need not be shown. Rather, such
returns shall only show the aggregate amount of all such local taxes
calculated in the manner provided for in paragraph [(i)] ONE or [(ii)]
TWO of subdivision (a) of section eleven hundred thirty-six OF THIS
CHAPTER except that in the case of a short-form, part-quarterly return,
where a county, city or school district did not impose a tax in the
comparable quarter of the immediately preceding year, the tax for that
locality shall be calculated on such basis as the [tax commission]
COMMISSIONER shall by regulation prescribe.
§ 26. Subdivision (b) of section 1252 of the tax law, as amended by
chapter 169 of the laws of 1970, is amended to read as follows:
(b) The [tax commission] COMMISSIONER, in [its] HIS OR HER discretion,
may require or permit any or all persons liable for any tax or required
to collect any tax authorized under section twelve hundred ten[, twelve
hundred eleven, twelve hundred twelve] or twelve hundred twelve-A OF
THIS ARTICLE to make payment to such banks, banking houses or trust
companies designated by the [tax commission] COMMISSIONER and to file
returns with such banks, banking houses or trust companies, as agent of
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the state tax commission, in lieu of paying the taxes imposed under the
authority of section twelve hundred ten[, twelve hundred eleven, twelve
hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE directly to
the state tax commission. However, the [tax commission] COMMISSIONER can
only designate such banks, banking houses and trust companies which are
already designated by the comptroller as depositories pursuant to
section eleven hundred forty-eight of this chapter.
§ 27. Section 1253 of the tax law, as amended by chapter 169 of the
laws of 1970, is amended to read as follows:
§ 1253. Registration. Every person required to register pursuant to
section eleven hundred thirty-four OF THIS CHAPTER shall be required to
register for purposes of the taxes imposed under the authority of
sections twelve hundred ten[, twelve hundred eleven, twelve hundred
twelve] and twelve hundred twelve-A OF THIS ARTICLE. However, only one
certificate of authority need be issued. Persons who elect to register
under such section eleven hundred thirty-four pursuant to the election
provided therein shall also be required to make a similar election for
purposes of the taxes imposed under the authority of such sections
twelve hundred ten[, twelve hundred eleven, twelve hundred twelve] and
twelve hundred twelve-A OF THIS ARTICLE, but only one certificate of
authority need be issued.
§ 28. Subdivisions (a) and (b) of section 1254 of the tax law, as
amended by chapter 169 of the laws of 1970, are amended to read as
follows:
(a) Every person required to collect tax, as defined in section eleven
hundred thirty-one OF THIS CHAPTER, who is required to collect any state
tax imposed under sections eleven hundred five, eleven hundred six or
eleven hundred ten OF THIS CHAPTER, shall at the same time collect any
applicable tax imposed by a city, county or school district under the
authority of [sections] SECTION twelve hundred ten[, twelve hundred
eleven, twelve hundred twelve] or twelve hundred twelve-A OF THIS ARTI-
CLE, and where the state tax is a retail sales tax, shall also collect
any compensating use tax which may be applicable as provided in
[sections] SECTION twelve hundred thirteen or twelve hundred fourteen OF
THIS ARTICLE.
(b) Where the state of New York, any of its agencies, instrumentali-
ties, public corporations (including a public corporation created pursu-
ant to agreement or compact with another state or Canada) or political
subdivisions sells services or property of a kind ordinarily sold by
private persons it shall be considered a vendor for purposes of the
taxes imposed under the authority of sections twelve hundred ten[,
twelve hundred eleven, twelve hundred twelve] and twelve hundred
twelve-A OF THIS ARTICLE and shall be required to collect the taxes
imposed by cities, counties and school districts under the authority of
such sections.
§ 29. Subdivisions (a), (b) and paragraph 1 of subdivision (c) of
section 1261 of the tax law, as amended by chapter 84 of the laws of
2000, subdivision (a) as amended by chapter 182 of the laws of 2005,
paragraph 1 of subdivision (c) as amended by section 9 of part SS-1 of
chapter 57 of the laws of 2008, are amended to read as follows:
(a) All taxes, penalties and interest imposed by cities, counties or
school districts under the authority of section twelve hundred ten[,
twelve hundred eleven, twelve hundred twelve] or twelve hundred twelve-A
of this article, which are collected by the commissioner, shall be
deposited daily with such responsible banks, banking houses or trust
companies, as may be designated by the state comptroller, to the credit
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of the comptroller, in trust for the cities, counties or school
districts imposing the tax or for (i) the Nassau county interim finance
authority or (ii) the Buffalo fiscal stability authority or (iii) the
Erie county fiscal stability authority, created by the public authori-
ties law, (i) to the extent that net collections from taxes imposed by
Nassau county are payable to the Nassau county interim finance authority
or (ii) to the extent that net collections from taxes imposed by Erie
county or by the city of Buffalo are payable to the Buffalo fiscal
stability authority or (iii) to the extent that net collections from
taxes imposed by Erie county are payable to the Erie county fiscal
stability authority, or for any public benefit corporation to which the
tax may be payable pursuant to law. Such deposits and deposits received
pursuant to subdivision (b) of section twelve hundred fifty-two of this
article shall be kept in trust and separate and apart from all other
monies in the possession of the comptroller. The comptroller shall
require adequate security from all such depositories of such revenue
collected by the commissioner, including the deposits received pursuant
to subdivision (b) of section twelve hundred fifty-two of this article.
Any amount payable to such authorities pursuant to the public authori-
ties law shall, at the time it is otherwise payable to (i) Nassau coun-
ty, (ii) Erie county or the city of Buffalo, or (iii) Erie county,
respectively, as specified in this section, be paid instead to such
respective authority. Any amount payable to a public benefit corporation
pursuant to law shall, at the time it is otherwise payable to the taxing
jurisdiction as specified in this section, be paid instead to such
public benefit corporation.
(b) The comptroller shall retain in the comptroller's hands such
amount as the commissioner may determine to be necessary for refunds in
respect to the taxes imposed by cities, counties and school districts,
under the authority of section twelve hundred ten[, twelve hundred elev-
en, twelve hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE,
and for reasonable costs of the commissioner in administering, collect-
ing and distributing such taxes, out of which the comptroller shall pay
any refunds of such taxes to which taxpayers shall be entitled under the
provisions of this article.
(1) The comptroller, after reserving such refund fund and such costs
shall, on or before the twelfth day of each month pay to the appropriate
fiscal officers of the foregoing taxing jurisdictions the taxes, penal-
ties and interest imposed by such jurisdictions under the authority of
sections twelve hundred ten [through] AND twelve hundred twelve-A of
this article, collected by the commissioner pursuant to this article
during the next preceding calendar month, provided, however, that the
comptroller shall on or before the last day of June and December make a
partial payment consisting of the collections made during and including
the first twenty-five days of said months to said fiscal officers of the
foregoing taxing jurisdictions.
§ 30. Subdivision (e) of section 1261 of the tax law is REPEALED.
§ 31. Subdivision (e) of section 1262 of the tax law is REPEALED.
§ 32. Subdivision 2 of section 302 of the real property tax law, as
amended by chapter 755 of the laws of 1962, is amended to read as
follows:
2. The taxable status date of real property assessed for school
district and village purposes shall be determined in accordance with
[sections thirteen hundred two and] ARTICLE SEVENTY-ONE OF THE EDUCATION
LAW AND SECTION fourteen hundred of this chapter, respectively. The date
of taxable status of the real property contained on any village assess-
A. 97 14
ment roll shall be imprinted or otherwise indicated at the top of the
first page of each volume of such roll.
§ 33. Subdivision 2 of section 1909 of the education law, as added by
section 3 of part C of chapter 58 of the laws of 1998, is amended to
read as follows:
2. Any state aid representing tax savings duly provided by a component
school district of the central high school district [pursuant to section
thirteen hundred six-a of the real property tax law] for taxes levied to
fund expenditures of the central high school district shall be claimed
by such component school district [pursuant to subdivision three of
section thirteen hundred six-a of the real property tax law,] and any
resulting payment of state aid to the component school district based on
such tax savings shall be paid by the component school district, within
ten days after receipt of such payment, over to the treasurer of such
central high school district in an amount equal to the product of the
total payment received by such component school district for all tax
savings [provided pursuant to section thirteen hundred six-a of the real
property tax law] multiplied by the quotient of the tax savings provided
for taxes levied to fund expenditures of the central high school
district divided by the total tax savings duly provided by such compo-
nent school district [pursuant to section thirteen hundred six-a of the
real property law].
§ 34. Section 3601 of the education law, as amended by section 4-a of
part CCC of chapter 59 of the laws of 2018, is amended to read as
follows:
§ 3601. When apportioned and how applied. The amount annually appro-
priated by the legislature for general support for public schools, net
of disallowances, refunds, reimbursements and credits, shall be appor-
tioned by the commissioner each year prior to the dates of the respec-
tive final payments provided by law and all moneys so apportioned shall
be applied exclusively to school purposes authorized by law. General
state aid claims, on forms prescribed by the commissioner, shall be
submitted to the commissioner by September second of each school year,
except that the audit report required by subdivision three of section
twenty-one hundred sixteen-a of this chapter shall be submitted to the
commissioner by October fifteenth following the close of the school year
audited for all districts other than the city school districts of the
cities of Buffalo, Rochester, Syracuse, Yonkers and New York and by
January first following the close of the school year audited for such
city school districts. No aid shall be paid to a school district or
board of cooperative educational services prior to the submission of
claims as required by the commissioner, except that no aid certified as
payable to a school district by the commissioner of taxation and finance
[pursuant to paragraph (c) of subdivision three of section thirteen
hundred six-a of the real property tax law] shall be withheld due to the
failure of the school district to submit general state aid claims
required by the commissioner, except that no aids shall be withheld due
to the failure of a school district to submit the audit report required
by subdivision three of section twenty-one hundred sixteen-a of this
chapter until the thirtieth day following the due date specified in this
section for such report, and except that apportionment for general
support of public schools from the funds apportioned to a school
district for the current year in excess of the amount apportioned to
such school district in the base year shall be withheld until issuance
of a determination of compliance in writing of such school district's
statement of total funding allocation by the commissioner and the direc-
A. 97 15
tor of the budget as required by section thirty-six hundred fourteen of
this part, whenever such shall occur, provided that for purposes of this
section, "current year" shall mean the current year as defined in para-
graph a of subdivision one of section thirty-six hundred two of this
part and "base year" shall mean the base year as defined in paragraph b
of subdivision one of section thirty-six hundred two of this part.
§ 34-a. Section 3601 of the education law, as amended by section 4-a
of part A-1 of chapter 58 of the laws of 2006 and as further amended by
subdivision (d) of section 1 of part W of chapter 56 of the laws of
2010, is amended to read as follows:
§ 3601. When apportioned and how applied. The amount annually appro-
priated by the legislature for general support for public schools, net
of disallowances, refunds, reimbursements and credits, shall be appor-
tioned by the commissioner each year prior to the dates of the respec-
tive final payments provided by law and all moneys so apportioned shall
be applied exclusively to school purposes authorized by law. General
state aid claims, on forms prescribed by the commissioner, shall be
submitted to the commissioner by September second of each school year,
except that the audit report required by subdivision three of section
twenty-one hundred sixteen-a of this chapter shall be submitted to the
commissioner by October fifteenth following the close of the school year
audited for all districts other than the city school districts of the
cities of Buffalo, Rochester, Syracuse, Yonkers and New York and by
January first following the close of the school year audited for such
city school districts. No aid shall be paid to a school district or
board of cooperative educational services prior to the submission of
claims as required by the commissioner, except that no aid certified as
payable to a school district by the commissioner of taxation and finance
[pursuant to paragraph (c) of subdivision three of section thirteen
hundred six-a of the real property tax law] shall be withheld due to the
failure of the school district to submit general state aid claims
required by the commissioner, and except that no aids shall be withheld
due to the failure of a school district to submit the audit report
required by subdivision three of section twenty-one hundred sixteen-a of
this chapter until the thirtieth day following the due date specified in
this section for such report.
§ 35. Paragraph y of subdivision 1 of section 3602 of the education
law, as amended by section 11 of part B of chapter 57 of the laws of
2007 and as further amended by subdivision (d) of section 1 of part W of
chapter 56 of the laws of 2010, is amended to read as follows:
y. "School tax relief aid" shall mean state aid payable to a school
district representing tax savings duly provided by the school district
[pursuant to section thirteen hundred six-a of the real property tax
law] that is claimed by the school district and certified by the commis-
sioner of taxation and finance [pursuant to subdivision three of section
thirteen hundred six-a of the real property tax law].
§ 36. Paragraph (j) and subparagraph (iv) of paragraph (k) of subdivi-
sion 2 of section 425 of the real property tax law, paragraph (j) as
amended by section 1 of part A of chapter 405 of the laws of 1999 and as
further amended by subdivision (b) of section 1 of part W of chapter 56
of the laws of 2010 and subparagraph (iv) of paragraph (k) as added by
section 1-a of part E of chapter 83 of the laws of 2002 and redesignated
by chapter 355 of the laws of 2003, are amended to read as follows:
(j) Certain city school districts. The commissioner shall adjust the
exempt amount for each city containing a school district which is
subject to article fifty-two of the education law, to account for the
A. 97 16
fact that the school district is fiscally dependent upon the city. This
adjustment shall be made by multiplying the exempt amount that would
otherwise be determined for the city by sixty-seven percent, or, in the
case of a city with a population of one million or more, by fifty
percent. The exempt amount resulting from this calculation shall be
applied both to the assessed value for city school district purposes and
to the assessed value for general city purposes, and state aid shall be
payable on the combined tax savings [in the manner provided by section
thirteen hundred six-a of this chapter].
(iv) Notwithstanding the provisions of subparagraph (ii) of this para-
graph, when a cooperative apartment corporation is incorporated as a
mutual company pursuant to the private housing finance law, and the
granting of an exemption pursuant to this section would not inure to the
benefit of eligible tenant-stockholders because the real property of
such corporation is subject to an exemption from taxation pursuant to
section thirty-three, ninety-three, one hundred twenty-five or five
hundred fifty-six of the private housing finance law, an alternative
benefit shall be provided to such corporation and passed through to
eligible tenant-stockholders in the manner provided by this subdivision.
Such alternative benefit shall consist of a reduction in the real prop-
erty taxes or payments in lieu of taxes that would otherwise be payable
on account of such real property. The total amount of such reduction
shall be the sum of the "STAR savings" for all of the cooperative apart-
ment units that are occupied by one or more eligible tenant-stockhold-
ers. The STAR savings for each such unit shall be equal to one-third of
the exempt amount determined pursuant to paragraph (a) of this subdivi-
sion for purposes of the basic or enhanced exemption, as the case may
be, multiplied by the applicable school tax rate, or in the case of a
school district described in paragraph (j) of this subdivision, by the
applicable city tax rate. Provided, however, in no case shall the STAR
savings for any individual unit exceed the amount payable by or chargea-
ble to the unit on account of real property taxes or payments in lieu of
taxes. The STAR savings so determined for each unit shall be credited by
the cooperative apartment corporation against the real property taxes or
payments in lieu of taxes otherwise payable by or chargeable to the
eligible tenant-stockholders. The total of the alternative benefits
provided pursuant to this subparagraph shall be a state charge which
shall be payable in the same manner that school districts are compen-
sated [pursuant to section thirteen hundred six-a of this chapter] for
tax savings attributable to exemptions granted pursuant to this section.
§ 37. Subdivisions 1 and 2 of section 1216 of the real property tax
law, as added by chapter 800 of the laws of 1967 and subdivision 1 as
further amended by subdivision (b) of section 1 of part W of chapter 56
of the laws of 2010, are amended to read as follows:
1. Where a supplemental assessment roll has been completed, verified
and filed [pursuant to section thirteen hundred thirty-five of this
chapter] AS PER THE REQUEST OF THE SCHOOL AUTHORITIES OF A SCHOOL
DISTRICT, the commissioner shall determine an equalization rate for such
supplemental assessment roll in the manner provided in this article for
determining equalization rates for towns. The equalization rate so
determined for the supplemental assessment roll shall be used in comput-
ing the taxable full valuation of real property on the supplemental
assessment roll for all school district purposes except as otherwise
provided [in section thirteen hundred fourteen] BY OTHER PROVISIONS of
this chapter.
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2. The full valuation of taxable property for school district purposes
for a fiscal year of a school district in which SUCH supplemental
assessment rolls were completed, verified and filed [pursuant to section
thirteen hundred thirty-five of this chapter] for such fiscal year,
shall be the simple average of the full valuation of taxable property on
the regular and supplemental assessment rolls of such school district
for such fiscal year, provided however, that such supplemental assess-
ment rolls shall not be used in determining limitations on indebtedness
pursuant to the local finance law. Such full valuation shall be computed
for each roll by dividing the taxable assessed valuation on each such
roll by the state equalization rate established for each such roll.
§ 38. Subdivision 1 of section 1226 of the real property tax law, as
added by chapter 280 of the laws of 1985 and as further amended by
subdivision (b) of section 1 of part W of chapter 56 of the laws of
2010, is amended to read as follows:
1. If the commissioner finds that there has been a material change in
level of assessment in a town or city since the last state equalization
rate was established, it shall determine and certify a special equaliza-
tion rate for tax apportionment purposes to the district superintendent
of schools for use in the apportionment of school taxes [as provided in
section thirteen hundred fourteen of this chapter].
§ 39. Paragraph (a) of subdivision 2 of section 1227 of the real prop-
erty tax law, as added by chapter 87 of the laws of 2001 and as further
amended by subdivision (b) of section 1 of part W of chapter 56 of the
laws of 2010, is amended to read as follows:
(a) When a nuclear powered electric generating facility is exempt from
taxation for school district purposes pursuant to section four hundred
eighty-five of this chapter, but it is not exempt for all purposes, the
commissioner shall establish a special apportionment rate for the
assessing unit containing the facility, which rate shall be used for
purposes of apportioning school district taxes to that assessing unit
[pursuant to section thirteen hundred fourteen of this chapter,] subject
to the provisions of paragraph (b) of this subdivision. Provided,
however, that no such rate shall be established unless it would result
in a change of two percent or more in the share of the school district
levy allocated to at least one school district segment, or where appli-
cable in the share of the non-homestead class levy allocated to at least
one portion.
§ 40. Subdivision 1 and paragraph (a) and the opening paragraph of
paragraph (d) of subdivision 7 of section 1316 of the real property tax
law, as added by chapter 556 of the laws of 2002, subdivision 1 as
further amended by subdivision (b) of section 1 of part W of chapter 56
of the laws of 2010, are amended to read as follows:
1. Notwithstanding the provisions of [section thirteen hundred four-
teen of this] article SEVENTY-ONE OF THE EDUCATION LAW, a school
district located in more than one city or town, which includes a desig-
nated large property, as determined by the commissioner of taxation and
finance, may provide by annual resolution, adopted no later than ten
days prior to the last day provided by law for the levy of school taxes,
that school taxes to be levied for the fiscal year commencing July first
of the same year shall be apportioned to each city or town or part ther-
eof in accordance with the provisions set forth in this section.
(a) The tax shall be apportioned in accordance with the provisions of
[section thirteen hundred fourteen of this] article SEVENTY-ONE OF THE
EDUCATION LAW.
A. 97 18
The resulting tax levy from paragraph (c) of this subdivision shall be
reapportioned among all other property within the taxing jurisdiction,
exclusive of the designated large property. This reapportionment shall
be done in accordance with [section thirteen hundred fourteen of this]
THE PROVISIONS OF article SEVENTY-ONE OF THE EDUCATION LAW, except that:
§ 41. Paragraphs (a) and (f) of subdivision 4 of section 1903-a of the
real property tax law, as amended by chapter 47 of the laws of 1991, are
amended to read as follows:
(a) Equalization by class. The tax authorities shall determine for the
homestead and non-homestead classes, respectively, the total full valu-
ation and total taxable full valuation of the real property subject to
taxation for district purposes in each city or town or part thereof
included within the tax district. The total full valuation of a class in
a city or town or part thereof shall be computed by dividing the total
assessed value of the property in the class by the state equalization
rate or special equalization rate [prescribed in section thirteen
hundred fourteen of this chapter]. The total taxable full valuation of a
class in a city or town or part thereof shall be computed by dividing
the total taxable assessed value of the property in the class by the
state equalization rate or special equalization rate [prescribed in
section thirteen hundred fourteen of this chapter].
(f) Correction and review. The equalization and apportionment required
by this subdivision shall be subject to correction and review to the
extent practicable [as provided in section thirteen hundred fourteen of
this chapter].
§ 42. Subdivision 2 of section 954 of the real property tax law, as
added by chapter 440 of the laws of 1989, is amended to read as follows:
2. Notwithstanding the provisions of section nine hundred twenty-two[,
thirteen hundred twenty-two, thirteen hundred twenty-four] or fourteen
hundred thirty of this chapter, upon agreement between a collecting
officer and a mortgage investing institution, the mortgage investing
institution or its agent shall, no later than thirty days prior to the
last date established by law for the annexation of the warrant to the
assessment roll, present to the collecting officer a list in any mutual-
ly agreeable format of the real property tax escrow accounts with
respect to which the mortgage investing institution or its agent has
been authorized by the mortgagor to receive tax bills. If the collecting
officer and mortgage investing institution agree, a list of additions
and deletions to the last such list so delivered may be presented
instead.
§ 43. Subdivision 2 of section 544 of the real property tax law is
amended to read as follows:
2. No penalties, interest or fees of any kind, except fees payable to
school district collecting officers [pursuant to subdivision one of
section thirteen hundred twenty-eight of this chapter] on school taxes
on lands outside the forest preserve, shall be added to taxes payable by
the state pursuant to the provisions of this section.
§ 44. Subdivision 2 of section 558 of the real property tax law, as
amended by chapter 529 of the laws of 1990, is amended to read as
follows:
2. The county legislature of any county shall direct the cancellation
of any unpaid school tax relevied by such county [pursuant to subdivi-
sion five of section thirteen hundred thirty or subdivision five of
section thirteen hundred thirty-two of this chapter,] or any unpaid
village tax relevied by such county pursuant to subdivision four of
section fourteen hundred forty-two of this chapter, against property of
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the state or the United States where it is determined that the lien of
such tax cannot be enforced, or where the lien of such tax is rendered
permanently unenforceable by operation of the provisions of any statute.
The amount of any tax so cancelled shall be charged against the school
district or village which levied such tax. The amount so charged against
a school district or village shall be withheld by the county treasurer
from any moneys which shall become payable by him to such school
district or village by reason of taxes which shall thereafter be
returned to him as uncollected by such school district or village. No
such cancellation of any unpaid school taxes or no such charge shall be
made by the county legislature against any such school district or
village unless ten days' notice thereof by mail shall be given to the
school authorities thereof.
§ 45. Subdivision 1-b of section 3651 of the education law, as added
by section 73 of part A of chapter 436 of the laws of 1997, is amended
to read as follows:
1-b. Notwithstanding the provisions of subdivision one of this
section, where the city or county is not required to pay to the treasur-
er of a city school district unpaid taxes during the fiscal year for
which such real property taxes are levied, the board of education of
such city school district may establish a reserve for uncollected taxes
without approval of the qualified voters of the school district,
provided that the ratio of the amount of such reserve to the total prin-
cipal amount of the district's tax levy for such fiscal year shall not
be less than the ratio of the principal amount of the school district
taxes as levied by the school district for the last completed fiscal
year but not received by the district before the end of such fiscal year
to the total principal amount of the tax levy for such last completed
fiscal year. If the city or county is not required to pay to the treas-
urer of a city school district unpaid taxes [pursuant to section thir-
teen hundred thirty-two of the real property tax law], the board of
education of the city school district shall establish a reserve pursuant
to this subdivision, provided that such reserve shall not be less than
the amount of taxes for the fiscal year for which such budget is being
prepared which are estimated to be unpaid during such fiscal year [under
the aforesaid provisions of the real property tax law].
§ 46. Paragraph e of subdivision 7 of section 545 of the real property
tax law, as amended by chapter 800 of the laws of 1967, is amended to
read as follows:
e. "Latest preceding assessment roll" means the last preceding assess-
ment roll finally completed, verified and filed prior to the final
completion of the assessment roll for which the transition assessment is
being established, but shall not mean or include a supplemental assess-
ment roll completed, verified and filed as [provided in section thirteen
hundred thirty-five of this chapter] PER THE REQUEST OF THE SCHOOL
AUTHORITIES OF A SCHOOL DISTRICT.
§ 47. Subdivisions 1 and 3 of section 972 of the real property tax
law, as amended by section 12 of part B of chapter 389 of the laws of
1997, are amended to read as follows:
1. Adoption. Notwithstanding any provisions of this chapter, or any
other general, special or local law to the contrary, the legislative
body of a county may, by local law, provide that thereafter and until
such local law is repealed, the county shall become the tax collection
agency for the purpose of collecting taxes in installments as prescribed
by this title [and by sections thirteen hundred thirty-six through thir-
teen hundred forty-two of this chapter]. The term "taxes" as used in
A. 97 20
this title shall include special assessments which are levied by the
county legislative body at the time and in the manner provided by law
for the levy of county and town taxes.
3. Interest. (a) Each installment other than the first shall be
subject to interest at the rate determined pursuant to section nine
hundred twenty-four-a of this article, or such other law as may be
locally applicable, up to and including the date on which it is to be
paid. Such interest shall be amortized over all scheduled payments,
unless the local law provides for unequal installments, in which case
interest shall be calculated and imposed separately upon each install-
ment.
(b) If an installment is not paid on or before the date it is due,
additional interest shall be added as provided by section nine hundred
seventy-five [or section thirteen hundred forty] of this [chapter] ARTI-
CLE.
(c) The amount of any interest which shall be added to any installment
pursuant to this section and section nine hundred seventy-five [or
section thirteen hundred forty] of this [chapter] ARTICLE shall belong
to the county.
§ 48. In order to provide for continuity of funding to school
districts, fifty percent of the school taxes due on July first in the
year preceding the effective date of this act shall be paid as hereto-
fore required by law.
§ 49. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law, provided, however,
that sections two, four, five, six, eight and ten through forty-seven of
this act shall take effect on the first of January in the fifth year
next succeeding such effective date; and provided, further, that the
provisions of section 3601 of the education law made by section thirty-
four of this act shall be subject to the expiration and reversion of
such section pursuant to subdivision 2 of section 44 of part CCC of
chapter 59 of the laws of 2018, as amended, when upon such date the
provisions of section thirty-four-a of this act shall take effect.