§ 1262. Disposition of revenues from taxes imposed by cities under one
million, counties and school districts. (a) Except as otherwise provided
in this article, the local law, ordinance or resolution imposing any
county tax pursuant to this article may set aside for county purposes or
educational purposes all or any portion of the net collections
therefrom. In the event all or a portion of the net collections are so
set aside for educational purposes, the amounts thereof shall be
distributed and paid quarterly to the several school districts in the
county in accordance with the total average daily attendance for the
last preceding school year of pupils residing in each such district
(without regard to the location of the school attended), provided,
however, that in the case of school districts which are partially within
and partially without the county, such county shall make a distribution
to each such school district in accordance with the total average daily
attendance of the pupils in such school district who reside in such
county and in any such case, the amount to be raised by school taxes by
the district from the portion of such district within such county shall
be reduced by the amount so distributed.

(b) In the county of Monroe amounts not set aside for county purposes
shall be allocated quarterly to the city of Rochester and the area in
the county outside the city of Rochester in proportion to their
respective populations, determined in accordance with the latest federal
census or special population census taken pursuant to section twenty of
the general municipal law, completed and published prior to the end of
the quarter for which the allocation is made, which special census must
include the entire area of the county, provided, however, that a special
population census shall not be taken more often than once in every two
years. The county legislature may, by resolution adopted annually,
provide that of the amount so allocated to the area outside the city of
Rochester a portion thereof be allocated and paid to the several school
districts in such area in accordance with the number of public school
pupils residing in said districts and enrolled in kindergarten and
grades one to twelve inclusive at the close of the school year next
preceding the date of the adoption of said resolution. An enrollment for
a regular half day session shall be counted as one-half enrollment. The
location of the school attended shall not be considered except as
hereinafter provided for pupils attending city schools without the
payment of tuition. In the case of school districts which are partially
within and partially without the county payment shall be made to each
such school district in accordance with the enrollment of the pupils in
such school district who reside in such county. In all cases the amount
to be raised by school taxes by the school districts upon property
within the district or that portion of the district within the county
shall be reduced by the amount of tax revenue so received. Each school
district receiving said money shall indicate on each individual school
tax bill the amount of tax proceeds received from the county of Monroe
for that fiscal year. In the case of pupils who reside in the area
outside the city and who, by law, are attending public schools in the
city of Rochester without payment of tuition, the distribution of tax
revenue based on the enrollment of those pupils shall be paid to the
city of Rochester. The amount allocated to the area outside the city of
Rochester, less the amount, if any, so distributed to the school
districts and paid to the city of Rochester as above provided, and the
amount allocated to the city of Rochester shall be applied as provided
for by subdivision (c) of this section except that the county
legislature may provide by resolution that where any village elects to
have the amount which would otherwise be applied to reduce county taxes
and general town taxes upon real property in such village paid directly
to such village in lieu of such tax reduction, the portion of the amount
allocated, pursuant to subdivision (c) of this section, to the town in
which such village is wholly or partly situated which is to be paid
directly to such village shall be determined by the ratio which the
population of such village, or portion thereof within the town, bears to
the population of the entire town, determined in accordance with the
latest federal census or special population census taken pursuant to
section twenty of the general municipal law, completed and published
prior to the end of the quarter for which the allocation is made, which
special census must include the entire area of the town. Provided,
however, in determining such portion to be paid directly to such
village, such population ratio may be applied to no more than one-half
of the amount allocated to such town pursuant to subdivision (c) of this
section. Provided, further, that any resolution so enacted by the county
legislature shall only be effective for the calendar year or years
subsequent to its enactment and such resolution must be enacted before
the first day of October preceding the calendar year to which it
applies. Such resolution shall remain in effect for subsequent calendar
years unless rescinded by a resolution, but the enactment which rescinds
it must be enacted prior to the first day of October preceding the
calendar year for which the rescission is to apply.

(c) Amounts not set aside for county purposes or educational purposes
shall, except as otherwise provided in this section, be allocated
quarterly to the cities and the area in the county outside the cities in
proportion to their respective populations, determined in accordance
with the latest decennial federal census or special population census
taken pursuant to section twenty of the general municipal law completed
and published prior to the end of the quarter for which the allocation
is made, which special census must include the entire area of the
county, or in such other proportion as may be agreed upon by the
elective governing body of the county and of each of the cities in the
county with the approval of the state comptroller, provided however,
that where a county does not contain a city, such amounts shall be so
allocated to the entire area of the county. Any such agreement or
approval thereof may be for a limited period. The amount so allocated to
the area outside the cities, or to the entire area of the county where
the county does not contain a city, shall be applied first to reduce
county taxes levied upon real property in the several towns in such
area. Any balance remaining shall then be applied to reduce general town
taxes levied upon real property in such area. In a county having a city
wholly contained therein having more than four hundred thousand
inhabitants according to the latest federal or special population census
referred to above, if any town, by local law, ordinance, or resolution
shall so provide, all or part of such amount shall be paid directly to
such town and shall be applied first to reduce general town taxes levied
upon real property in the town. Any balance remaining shall then be used
to reduce county taxes levied upon real property in the town. Any town,
other than a town within a county having a population of one million or
more and containing not more than three towns, or other than a town
within a county having a population of not less than seven hundred
thousand or more than eight hundred thousand, by local law, ordinance or
resolution, however, may provide that all or any specified part of the
amounts which would be so applied to reduce the county taxes and general
town taxes levied upon real property in such town shall be paid directly
to such town to be used for any town purpose. If any village, other than
a village within a county having a population of one million or more and
containing not more than three towns, by local law, ordinance or
resolution shall so provide, the amounts which would be so applied to
reduce the county and general town taxes levied upon real property in
such village shall be paid directly to such village in lieu of such tax
reduction. Where any village has elected to be paid directly as provided
in this subdivision, the amount to be paid to such village shall be
determined by the ratio that the full valuation of real property in the
village or portion thereof within the town in which such village is
located bears to the full valuation of real property in the entire town.
If a village wholly or partially within a town has so elected to be paid
directly, but the town in which such village is located has not so
elected, the amount allocated to the town in which such village is
wholly or partially situated shall be applied to reduce county taxes and
general town taxes in the area of the town outside such village. If the
amount allocated to a town exceeds the amount of the county taxes and
general town taxes levied upon real property in the town, the excess
shall be apportioned between the town and each village, if any, wholly
or partially situated therein, in the ratios that the full valuation of
real property in each such village or portion thereof within the town,
and the full valuation of real property in the portion of the town
outside of such village or villages, respectively, bear to the aggregate
full valuation of the entire town. The share of each such village shall
be paid directly to such village. The share of the town shall be
applied, first, to reduce taxes levied for part-town activities, and any
balance remaining shall be paid directly to the town, to be used only
for part-town activities. If a town and all the villages therein shall
have elected to be paid directly as provided in this subdivision, the
share of such town shall be applied to reduce taxes levied for part-town
activities, and any balance remaining or portion thereof, in the
discretion of the town board, may be applied to reduce general town
taxes, county taxes levied in the area of the town outside of such
villages or may be used for part-town activities, or any combination
thereof. If a town containing more than one village shall have elected
to be paid directly and one or more but not all of the villages shall
have also elected to be paid directly, the share of the town shall be
applied to reduce general town taxes levied in the area of the town
outside of the village or villages that have so elected, and any balance
remaining or portion thereof, in the discretion of the town board, may
be applied to reduce county taxes levied in the area of the town outside
of such village or villages. The amount to be applied in reduction of
county taxes and general town taxes in each town may be determined on
the basis of the ratio which the full valuation of real property in each
town bears to the aggregate full valuation of real property in all of
the towns in such county. The amount allocated to each city shall be
similarly applied to reduce the county tax levied upon real property in
such city, except that if any such city, except a city within a single
county having a population of one million or more and containing not
more than three towns, by local law, ordinance or resolution shall so
provide, the amount which would be so applied to reduce the county tax
levied upon real property in such city shall be paid directly to the
city in lieu of such tax reduction. If the amount allocated to a city
exceeds the amount of the county tax levied upon real property in such
city, such excess shall be paid to such city.

Notwithstanding any provision of this section to the contrary, where a
municipal assistance corporation has been created under article ten of
the public authorities law for a city located in a county, any amount
which such county allocates to such city under this subdivision shall be
payable directly to such city and shall not be provided by reduction of
the county tax levied upon real property in such city for so long as
such municipal assistance corporation shall exist.

In the alternative, the amount to be applied in reduction of county
taxes and general town taxes in each town may be determined on the basis
of the respective populations of the several towns in such county,
determined in accordance with the latest federal census or special
population census taken pursuant to section twenty of the general
municipal law, completed and published prior to the end of the quarter
for which the allocation is made, which special census must include the
entire area of the county.

Any local law, ordinance or resolution enacted by a city, town or
village pursuant to this subdivision shall only be effective for the
calendar year or years subsequent to its enactment and, further, shall
only be effective if it is mailed by registered or certified mail to the
chief fiscal officer of the county in which the city, town or village is
located before the first day of September preceding the calendar year
for which the election is made by such local law, ordinance or
resolution. Such local law, ordinance or resolution shall remain in
effect for subsequent calendar years until rescinded by local law,
ordinance or resolution, but the enactment shall rescind the election
only if it is mailed, in the same manner already provided for in this
subdivision, to the chief fiscal officer of the county in which the
city, town or village is located before the first day of September
preceding the calendar year for which the rescission is to apply. The
foregoing provisions of this paragraph notwithstanding, where a county
imposes a sales and use tax to be effective on a date after the adoption
of its budget but within the fiscal year for which such budget has been
adopted, and the estimated revenues from such tax include an amount not
set aside for county purposes or educational purposes, and such amount
has not been included in budget revenues for such fiscal year for
allocation in reduction of taxes on real property as provided in this
subdivision, a local law, ordinance or resolution enacted by a city,
town or village pursuant to this subdivision shall be effective as of
the effective date of such tax if mailed by registered or certified mail
to the chief fiscal officer of the county in which the city, town or
village is located within thirty days after the enactment by the county
of the local law, ordinance or resolution imposing such tax.

The foregoing provisions of this subdivision notwithstanding, in the
county of Orange where any village within such county has elected to be
paid directly as provided in this subdivision, the amount to be paid to
such village shall be determined by the ratio that the population of
such village or portion thereof within the town in which such village is
located bears to the total population of the entire town, except that
this provision shall not apply to the village of Highland Falls for
which the amount to be paid shall be determined by the foregoing
provisions of this subdivision. The population shall be determined in
accordance with the latest federal census or special population census
taken pursuant to section twenty of the general municipal law, completed
and published prior to the end of the quarter for which the allocation
is made, which special census must include the entire area of such
county.

The foregoing provisions of this subdivision notwithstanding, in the
county of Monroe, beginning in nineteen hundred ninety-six, towns
located within the county shall be paid directly that part of the net
collections for the quarterly allocations which are determined to be
allocable to such towns and are in excess of thirteen million seven
hundred fifty thousand dollars (fifty-five million dollars annually, the
"base amount"), if any, derived solely from the imposition of sales and
compensating use taxes by the county at the three percent rate
authorized by the opening paragraph of section twelve hundred ten of
this article, which would otherwise be so applied to reduce county taxes
and general town taxes levied upon real property in such towns,
provided, however, if the annual allocation to such towns is less than
the base amount, a sum equal to the difference between the allocation
and the base amount shall be deducted from the immediately following
payment or payments to be made directly to such towns as required to
satisfy such sum in full, and provided further, however, that any
adjustments necessary to reconcile the amounts applied to reduce the
county taxes and general town taxes levied upon real property in the
towns for the years nineteen hundred ninety-four and nineteen hundred
ninety-five to the actual allocations to the towns for such years shall
be made against the amounts to be paid to the towns in the years
nineteen hundred ninety-seven and thereafter. In the event that the
annual allocation to such towns is less than the base amount for at
least two consecutive years, a sum equal to the difference between the
allocation and the base amount shall be deducted from the amount applied
to reduce county taxes and general town taxes levied upon real property
in such towns in the year or years following such consecutive years
until the annual allocation to such towns exceeds the base amount, the
foregoing provisions of this subdivision or any other law
notwithstanding. If the state reduces the rate of taxation authorized
for Monroe county by section twelve hundred ten of this article or
reduces the amount distributed by the state to Monroe county from the
taxes, penalties and interest imposed by Monroe county pursuant to this
article, the county shall have the right to adjust the amount applied to
reduce county taxes and general town taxes levied upon real property in
subsequent years.

(d) (1) Where a county and a city therein both impose the same taxes
described in sections twelve hundred two, twelve hundred three or twelve
hundred ten, the county shall have power to impose or continue to impose
such taxes on the area of the county outside such city up to the maximum
rate authorized therefor. In such event, the portion of the net
collections received by the county by reason of its additional rate on
such area, shall be allocated quarterly to the several cities and towns
in such area on the basis of the ratio which the full valuation of real
property in each city or town bears to the aggregate full valuation of
real property in all of the cities and towns in such area provided,
however, that, in such event, in Niagara county, such portion of net
collections received by Niagara county shall be allocated quarterly to
the several cities and towns in such area on the basis of the ratio
which the population of each city or town bears to the aggregate
population of all of the cities and towns in such area, such populations
determined in accordance with the latest decennial federal census or
special population census taken pursuant to section twenty of the
general municipal law completed and published prior to the end of the
quarter for which the allocation is made, which special census must
include the entire area of the county. The amount allocated to each town
shall be applied first to reduce county taxes levied upon real property
in such town and any balance remaining shall be applied to reduce
general town taxes levied upon real estate; provided, however, that any
town or village other than any town or village within a county having a
population of one million or more and containing not more than three
towns, shall have power, in the manner provided in subdivision (c) of
this section, to elect to receive a direct payment of the amounts which
would be so applied to reduce county taxes and general town taxes levied
upon real property in such town or village. Where any village has
elected to be paid directly as provided in this subdivision, the amount
to be paid to such village shall be determined by the ratio that the
full valuation of real property in the village or portion thereof within
the town in which such village is located bears to the full valuation of
real property in the entire town. If a village wholly or partially
within a town has so elected to be paid directly, but the town in which
such village is located has not so elected, the amount allocated to the
town in which such village is wholly or partially situated shall be
applied to reduce county taxes and general town taxes in the area of the
town outside such village or villages. If the amount allocated to a town
exceeds the amount of the county taxes and general town taxes levied
upon real property in the town, the excess shall be apportioned between
the town and each village, if any, wholly or partially situated therein,
and paid over or applied in the manner provided in subdivision (c) of
this section. The amount allocated to each city in such area shall be
similarly applied to reduce county taxes levied upon real property in
such city, except that if any such city except any city within a single
county having a population of one million or more and containing no more
than three towns, shall so provide in the manner provided in subdivision
(c) of this section, the amount which would be so applied to reduce
county taxes levied upon real property in such city shall be paid
directly to the city in lieu of such tax reduction. If the amount
allocated to the city exceeds the amount of the county tax levied upon
real property in the city, such excess shall be paid to the city.

Notwithstanding any provision of this section to the contrary, where a
municipal assistance corporation has been created under article ten of
the public authorities law for a city located in a county, any amount
which such county allocates to such city under this subdivision shall be
payable directly to such city and shall not be provided by reduction of
the county tax levied upon real property in such city for so long as
such municipal assistance corporation shall exist.

Any local law, ordinance or resolution enacted by a city, town or
village pursuant to this subdivision shall only be effective for the
calendar year or years subsequent to its enactment and, further, shall
only be effective if it is mailed by registered or certified mail to the
chief fiscal officer of the county in which the city, town or village is
located before the first day of September preceding the calendar year
for which the election is made by such local law, ordinance or
resolution. Such local law, ordinance or resolution shall remain in
effect for subsequent calendar years until rescinded by local law,
ordinance or resolution, but the enactment shall rescind the election
only if it is mailed, in the same manner already provided for in this
subdivision, to the chief fiscal officer of the county in which the
city, town or village is located before the first day of September
preceding the calendar year for which the rescission to apply. The
foregoing provisions of this paragraph notwithstanding, where a county
imposes a sales and use tax to be effective on a date after the adoption
of its budget but within the fiscal year for which such budget has been
adopted, and the estimated revenues from such tax include net
collections received by the county by reason of its additional rate on
the area of the county outside a city imposing the same taxes, and such
net collections have not been included in budget revenues for such
fiscal year for allocation in reduction of taxes on real property as
provided in this subdivision, a local law, ordinance or resolution
enacted by a city, town or village pursuant to this subdivision shall be
effective as of the effective date of such tax if mailed by registered
or certified mail to the chief fiscal officer of the county in which the
city, town or village is located within thirty days after the enactment
by the county of the local law, ordinance or resolution imposing such
tax.

(2) Notwithstanding any provision of general, special or local law to
the contrary, if at any time from the effective date of the Buffalo
fiscal stability authority act until June thirtieth, two thousand
thirty-seven any city in the county of Erie imposes sales and
compensating use taxes described in section twelve hundred ten of this
article, then the county of Erie shall not be required to allocate under
paragraph one of this subdivision, any net collections from its taxes
imposed during such period; instead it shall continue to allocate net
collections from its taxes to any city in the county which does not
impose such taxes and to the area of the county outside the cities, in
accordance with the terms of the most current agreement among such
county and the cities in the county entered into pursuant to subdivision
(c) of this section.

(3) Notwithstanding any provision of general, special or local law to
the contrary, if at any time from the effective date of the Erie county
fiscal stability authority act until December thirty-first, two thousand
thirty-nine, any city in the county of Erie imposes sales and
compensating use taxes described in section twelve hundred ten of this
article, then the county of Erie shall not be required to allocate under
paragraph one of this subdivision any net collections from its taxes
imposed during such period; instead it shall continue to allocate net
collections from its taxes to any city in the county which does not
impose such taxes and to the area of the county outside the cities, in
accordance with the terms of the most current agreement among such
county and the cities in the county entered into pursuant to subdivision
(c) of this section.

(4) Notwithstanding any provision of law to the contrary, for purposes
of this subdivision, a county and a city in such county shall not be
deemed to impose different taxes because one makes the election
described in subdivision (m) of section eleven hundred eleven of this
chapter and the other does not make such election.

(e) Where all or a portion of the net collections from a tax imposed
by a county pursuant to this article is set aside for educational
purposes or for allocation and distribution to the cities in the county
and to the area outside the cities, or both, or where a tax or taxes are
imposed pursuant to section twelve hundred four of this article for
educational purposes, the portion of net collections so set aside by a
county shall not be decreased or eliminated nor shall a tax so imposed
by a city be eliminated unless the local law, ordinance or resolution
effectuating such decrease or elimination is adopted by the county or
city and written notice of such adoption is given to the school
authorities of the school districts and the governing bodies of the
cities, towns or villages affected thereby at least six months prior to
the commencement of their respective fiscal years. The school
authorities of such a school district or the governing body of such
city, town or village may waive the requirement that such local law,
ordinance or resolution be so adopted and such written notice given.

(f) As used in this article the following terms shall mean or include:

(1) Net collections. The moneys collected from a tax or taxes imposed
pursuant to this article, after deducting therefrom expenses of
administration and collection and amounts refunded or to be refunded.

(2) General Town taxes. Taxes levied for any town purpose, including
highways, upon the entire area of a town.

(3) Full valuation of real property. The assessed valuation of real
property divided by the equalization rate as determined in accordance
with article eight of the real property tax law.

(4) Part-town activities. Activities of town government, including
highway programs, which are chargeable to the area of the town outside
of villages, exclusive of special district purposes, unless such special
district is a fire protection district coterminous with the area of a
town outside of villages.