NY Tax L § 1262 (2021)
2021 New York Laws TAX - Tax Article 29 - Taxes Authorized for Cities, Counties and School Districts Part 4 - Disposition of Revenues 1262 - Disposition of Revenues From Taxes Imposed by Cities Under One Million, Counties and School Districts.

§ 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.