§ 20-b. Cities authorized to impose taxes on utilities.
Notwithstanding any other provisions of law to the contrary, any city of
this state, acting through its local legislative body, is hereby
authorized and empowered to adopt and amend local laws imposing in any
such city a tax such as was imposed by section one hundred eighty-six-a
of the tax law, in effect on January first, nineteen hundred fifty-nine,
except that the rate thereof shall not exceed one per centum of gross
income or of gross operating income, as the case may be, and may make
provision for the collection thereof by the chief fiscal officer of such
city; provided, however, that the rate of such tax imposed by the cities
of Rochester, Buffalo and Yonkers shall not exceed three per centum of
gross income or gross operating income, as the case may be; and provided
further that nothing herein contained shall be construed so as to
prevent any city from adopting local laws exempting from such tax
omnibus corporations subject to the supervision of the state department
of public service under article three-a of the public service law. A tax
imposed pursuant to this section shall have application only within the
territorial limits of any such city, and shall be in addition to any and
all other taxes. This section shall not authorize the imposition of a
tax on any transaction originating or consummated outside of the
territorial limits of any such city, notwithstanding that some act be
necessarily performed with respect to such transaction within such
limits.

Revenues resulting from the imposition of taxes authorized by this
section heretofore or hereafter imposed shall be paid into the treasury
of the city imposing the same, and shall be credited to and deposited in
the general fund of such city.

All of the provisions of section one hundred eighty-six-a of the tax
law, so far as the same are or can be made applicable, with such
limitations as are set forth in this section, and such modifications as
may be necessary in order to adapt such taxes to local conditions shall
apply to the taxes authorized by this section.

Any final determination of the amount of any tax payable hereunder
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 thirty days 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 unless the amount of any tax sought to be reviewed, with such
interest and penalties thereon as may be provided for by local law or
regulation, shall be first deposited and an undertaking filed, in such
amount and with such sureties as a justice of the supreme court shall
approve to the effect that if such proceeding be dismissed or the tax
confirmed the petitioner will pay all costs and charges which may accrue
in the prosecution of such proceeding.

Where any tax imposed hereunder shall have been erroneously, illegally
or unconstitutionally collected and application for the refund thereof
duly made to the proper fiscal officer or officers, and such officer or
officers shall have made a determination denying such refund, such
determination shall be reviewable by a proceeding under article
seventy-eight of the civil practice law and rules, provided, however,
that such proceeding is instituted within thirty days after the giving
of the notice of such denial, that a final determination of tax due was
not previously made, and that an undertaking is filed with the proper
fiscal officer or officers in such amount and with such sureties as a
justice of the supreme court shall approve to the effect that if such
proceeding be dismissed or the tax confirmed, the petitioner will pay
all costs and charges which may accrue in the prosecution of such
proceeding.