§ 3-b. Limitation on real estate tax in New York city. 1. The amount
to be raised by tax on real estate in any fiscal year commencing on or
after July first, nineteen hundred fifty-four by the city of New York
and the counties contained therein for city and county purposes, in
addition to providing for the interest on and the principal of all
indebtedness, shall not, except as otherwise provided herein, exceed an
amount equal to a combined total of two and one-half per centum of the
average full valuation of taxable real estate of such city less the
amount to be raised by tax on real estate in such year for the payment
of the interest on and redemption of certificates or other evidence of
indebtedness described in paragraphs A and D of section five of article
eight of the constitution, or renewals thereof; provided, however, that
for the fiscal year commencing July first, nineteen hundred fifty-three
the amount to be so raised by tax as provided in this section shall be
not in excess of a combined total of two per centum computed as provided
herein plus fifty million dollars. The average full valuation of taxable
real estate of such city shall be determined as provided by section ten
of article eight of the constitution.

2. Notwithstanding the provisions of subdivision one of this section,
if any railroad, as defined in the rapid transit law, is operated by the
board of transportation or any other agency, except the New York city
transit authority created pursuant to title fifteen of the public
authorities law, on or after July first in any year, the amount to be
raised by tax as provided in subdivision one of this section shall not
be in excess of a combined total percentage of two per centum for the
city's fiscal year commencing July first in such year and no more. In
addition, for the fiscal year commencing July first, nineteen hundred
fifty-three, this further limitation to two per centum with no
additional amount, as set forth in this subdivision, shall apply unless
the board of estimate shall have entered into an agreement pursuant to
the provisions of section eighteen hundred three of the public
authorities law, as amended, on or before June first, nineteen hundred
fifty-three with such authority to transfer to it transit facilities
owned by the city, and such transfer is completed prior to July first,
nineteen hundred fifty-three.