NY Loc Fin L § 24.00 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 2 - Local Obligations: Types Thereof 24.00 - Tax Anticipation Notes.

§ 24.00 Tax anticipation notes.   a. 1. Tax anticipation notes may be issued by any municipality, school district or district corporation, other than a fire district,  (a) During a fiscal year in anticipation of the collection of taxes or assessments levied for such fiscal year,  (b)  Within  ten  days  prior to the commencement of a fiscal year or, where the fiscal year of the issuer is a calendar  year,  within  thirty days  prior to the commencement of a fiscal year, in anticipation of the collection of taxes or assessments levied for such fiscal year,  (c) During a fiscal year in anticipation of the collection of taxes or assessments to be levied in such fiscal year,  (d) Within ten days prior to the commencement of  a  fiscal  year  or, where  the  fiscal  year of the issuer is a calendar year, within thirty days prior to the commencement of a fiscal year, in anticipation of  the collection of taxes or assessments to be levied in such fiscal year, or  (e)  During any fiscal year in anticipation of the collection of taxes or assessments levied for any of the four preceding fiscal years. The term "assessments" as  used  in  this  paragraph  means  assessments levied or to be levied for operation, maintenance or debt service.   2. Prior to the adoption of its annual budget any municipality, school district or district corporation which adopts an annual budget after the commencement  of  its fiscal year shall not issue such notes pursuant to items (c) or (d) of subdivision one of this paragraph in excess  of  the combined amounts of:  (a)  The  amount  necessary  for  the  payment of the principal of and interest on any indebtedness to become due during the first four  months of its current fiscal year, and  (b) Thirty-five per centum of the difference between the amount of its annual  budget  for  the  preceding  fiscal year and the amount provided therein  for  the  payment  of  the  principal  of   and   interest   on indebtedness.   3.  In  no  event  shall any municipality, school district or district corporation reduce the amount to be raised by taxes  or  assessments  in its  annual  budget or other determination of taxes or assessments to be raised to an amount less than the amount of the outstanding notes  which have  been  issued  pursuant  to items (c) and (d) of subdivision one of this paragraph.   4. In the case of such notes issued pursuant to items (a), (b) and (e) of subdivision one of this paragraph, such notes shall not be issued  in an amount in excess of the amount of the taxes or assessments levied for a fiscal year which is uncollected at the time of such borrowing less:  (a)  The  amount  of  the outstanding tax anticipation notes issued in anticipation of the collection of such taxes or assessments, and  (b) The amount, if any, included in the annual budget for such  fiscal year  or  in  the  levy  of taxes or assessments for such fiscal year to offset, in whole or in part, an anticipated deficiency in the collection before the end of such fiscal year of the taxes  or  assessments  levied for such fiscal year.   5.  The  proceeds  of  notes  issued  pursuant to items (c) and (d) of subdivision one of this paragraph shall be used only  for  the  purposes for  which  the  taxes  or  assessments  are  to  be  levied  or for the redemption of notes in renewal of which they were issued.  The  proceeds of notes issued pursuant to items (a), (b) and (e) of subdivision one of this  paragraph  shall be used only for the purposes for which the taxes or assessments were levied or for the redemption of notes in renewal  of which  they  were  issued,  provided, however, that the proceeds of such notes may be used for other lawful purposes if the  purposes  for  which the  taxes  or assessments were levied have been satisfied and there are  no unpaid claims arising therefrom or appropriate provision has  already been made for the payment of such unpaid claims.   6.  Tax  anticipation  notes  issued  pursuant to this paragraph shall mature within one year from the  date  of  their  issuance  and  may  be renewed from time to time, but each renewal shall be for a period not to exceed  one  year.  Such  notes or the renewals thereof shall be retired within five years after their date of original issue and  in  any  event not  later  than five years after the close of the fiscal year for which were levied the taxes or assessments in anticipation of  the  collection of  which  such  notes  were  issued; provided, however, that such notes issued pursuant to  items  (b)  and  (d)  of  subdivision  one  of  this paragraph, or the renewals thereof, shall not extend beyond the close of the  fourth fiscal year succeeding that in which the original notes were issued.   b. A municipality may issue tax anticipation notes in anticipation  of the   collection   of   the  unpaid  taxes  or  assessments  of  another municipality, a school district or a district corporation  provided  (1) such  unpaid  taxes  or  assessments  are  returned  or certified to it, pursuant to law, and (2) such unpaid taxes  or  assessments  are  to  be collected  by  or  on behalf of the municipality to which such return or certification is made, and (3) such return or certification be  accepted by  such  municipality. If a municipality is required by law to pay over to another municipality, a school district or district  corporation  all or  part  of the taxes or assessments of such other municipality, school district or  district  corporation,  such  municipality  may  issue  tax anticipation  notes  in  anticipation  of  the collection of such unpaid taxes or assessments  in  order  to  make  such  payment.  Notes  issued pursuant  to  this  paragraph shall mature within a period not to exceed one year from the date of their issuance and may be renewed from time to time, but each renewal shall be for a period not to exceed one year  and in  no  event shall such notes or the renewals thereof extend beyond the close of the fourth fiscal year succeeding the  fiscal  year  for  which such  taxes or assessments were levied. The proceeds of such notes shall be used as required by law, or for the redemption of notes in renewal of which they were issued.   c. If any tax district which is required by law to  pay  over  to  the county treasurer on or before October fifteenth of any calendar year the full  amount  of  county or county district taxes or assessments due for such calendar year fails or neglects to pay to  the  treasurer  of  such county  on  or  before  such  date  the  full  amount  of  such taxes or assessments due for  such  calendar  year,  the  county  may  issue  tax anticipation  notes  in  its  own name to the amount of such deficiency. Such notes shall mature on or before June first  of  the  next  calendar year  after  such  default  and  may be renewed from time to time but no renewal shall extend beyond eighteen months from the date  of  issue  of the  original  note.  Provision  shall  be  made  for the payment of the principal of and interest on said tax anticipation notes in  the  manner provided  by  section  ninety-six  of  the tax law. The proceeds of such notes shall be used only for  the  purposes  for  which  such  taxes  or assessments  were  levied  or  for the redemption of notes in renewal of which they were issued.   c-1. Any fire district in a town in the county of Westchester in which real estate taxes and assessments become payable on April first in  each year  may  issue  tax anticipation notes during any fiscal year prior to June first in such year in anticipation of the collection  of  taxes  or assessments  levied  for  such fire district for such year. Notes issued pursuant to the provisions of this paragraph shall mature on  or  before June  first  next  following  the  date  of  their issuance and shall be  redeemed from the taxes or assessments in anticipation of the collection of which such notes were issued. Such notes shall not be  issued  in  an amount  in  excess  of  the  difference  between  the amount of the fire district  taxes or assessments remaining uncollected at the time of such borrowing  and  the  amount  of  tax  anticipation   notes   issued   in anticipation  of  the  collection of such taxes or assessments. Whenever the amount of tax anticipation notes issued pursuant to  this  paragraph shall   equal   the  amount  of  such  taxes  or  assessments  remaining uncollected, all of such taxes or assessments, as thereafter  collected, shall  be  set  aside  in a special bank account to be used only for the payment of such notes as they become due. The  proceeds  of  such  notes shall  be  used only for the purposes for which such taxes or assessment were levied.   c-2. Any fire district in any town other than a town in the county  of Westchester  may  issue  tax  anticipation  notes at any time during the first three months of its fiscal year in anticipation of the  collection of real estate taxes levied for such fire district for such fiscal year. Notes  issued  pursuant to the provisions of this paragraph shall mature on or before the fifteenth day of April next following the date of their issuance and shall be redeemed from the taxes  in  anticipation  of  the collection  of  which  such  notes  were issued. Such notes shall not be issued in an amount in excess of the difference between  the  amount  of the  fire  district  taxes  remaining  uncollected  at  the time of such borrowing  and  the  amount  of  tax  anticipation   notes   issued   in anticipation of the collection of such taxes. Whenever the amount of tax anticipation  notes  issued  pursuant  to this paragraph shall equal the amount of such taxes  remaining  uncollected,  all  of  such  taxes,  as thereafter collected, shall be set aside in a special bank account to be used only for the payment of such notes as they become due. The proceeds of  such  notes shall be used only for the purposes for which such taxes were levied. For the purpose of this paragraph such  real  estate  taxes shall  be deemed to be uncollected until the fire district receives cash therefor from the public officer required to pay such taxes to the  fire district.   d.  1. In the case of a newly created municipality, school district or district corporation, or in the case of  any  such  unit  of  government which  has  elected a finance board for the first time, tax anticipation notes may be issued, prior to the first levy of  taxes  or  assessments, for  the  necessary expenses incidental to its incorporation or creation and the other necessary expenses incurred or to  be  incurred  prior  to such  levy. In the case of a municipality or school district, such notes shall not be issued in an amount in excess of  two  per  centum  of  the assessed  valuation  of  the  taxable property therein as shown upon the last preceding assessment roll of any unit of government in  which  such property  was  evaluated.  If,  however,  any  part of such property was evaluated in the assessment roll of more than one unit of government its value, for the purposes of this  section,  shall  be  the  lowest  value assigned  to  it  by  any  such  assessment  roll. In the case of a fire district, such  notes  shall  not  be  issued  in  an  amount  exceeding one-twelfth  of  the  amount  of taxes which the fire district may raise annually without adopting a proposition pursuant to  the  provisions  of the town law for each calendar month intervening between the date of the creation  of  the  district  and the first day of the fiscal year of the district for which an annual budget can be adopted, plus an  amount  not exceeding  the actual and necessary expenses incidental to its creation. The phrase "the amount of  taxes  which  the  fire  district  may  raise annually  without  adopting  a proposition pursuant to the provisions of the town law," as used herein, shall mean two thousand  dollars,  except  that  in fire districts having a full valuation in excess of one million dollars it shall mean two thousand dollars plus one mill for each dollar of full valuation of the taxable real property of the fire  district  in excess  of  the  first million dollars of full valuation of such taxable real property. In the case of any district  corporation,  other  than  a fire  district, such notes shall not be issued in an amount in excess of one mill of the assessed valuation of the taxable  property  therein  as shown  upon the last preceding assessment roll of any unit of government in which such property  was  evaluated  in  addition  to  the  necessary expenses  incidental  to  incorporation.  If,  however, any part of such property was evaluated in the assessment roll of more than one  unit  of government,  its  value  for  the  purpose  of this section shall be the lowest value assigned to it by any such assessment roll.   2. In the case of the establishment of any improvement district  of  a county  or  of  a  town, which is to be financed by taxes or assessments levied upon an ad valorem or benefit  basis,  or  in  the  case  of  the consolidation  of special improvement districts, prior to the first levy in which such taxes or assessments are to be levied for such district or consolidated district the county or town, as the case may be, may  issue tax  anticipation  notes  for  the  necessary expenses incidental to the creation of such district or consolidation of such  districts,  and  the other necessary expenses incurred or to be incurred for such district or consolidated district prior to such levy.   3.  An  appropriation  for  the redemption of notes issued pursuant to this paragraph  shall  be  included  in  the  first  levy  of  taxes  or assessments  of  or  for  such  municipality,  school district, district corporation or improvement district. Such notes shall mature within  one year  from their date of issue and may be renewed from time to time, but each renewal shall be for a period not to exceed  one  year  and  in  no event  shall  such notes or the renewals thereof extend beyond the close of the second fiscal year succeeding the fiscal year in which such notes were issued.  The proceeds of such notes shall be used only to pay  such necessary expenses incidental to such incorporation or creation and such other  necessary  expenses  incurred or to be incurred prior to any such levy or for the redemption of  notes  in  renewal  of  which  they  were issued.   e.  Whenever  the  amount of tax anticipation notes issued pursuant to paragraphs a, b and d of this section in anticipation of the  collection of  the  taxes  or  assessments levied or to be levied for a fiscal year shall  equal  the  amount  of  such  taxes  or   assessments   remaining uncollected  less  the amount, if any, included in the annual budget for such fiscal year or in the levy of taxes or assessments for such  fiscal year  to  offset,  in whole or in part, an anticipated deficiency in the collection  before  the  end  of  such  fiscal  year  of  the  taxes  or assessments  levied  for such fiscal year, all of such uncollected taxes or assessments, as thereafter collected, shall be set aside in a special bank account to be used only for the  payment  of  such  notes  as  they become  due,  unless  other  provision  is  made pursuant to law for the redemption of such notes. Any municipality, school district or  district corporation may make budgetary appropriations for the redemption of such notes  whether  or not required or otherwise authorized by law to do so. In the event such an appropriation is made,  such  municipality,  school district  or  district corporation shall not be required to pay into the special account the proceeds of the taxes or assessments  against  which such  notes  were  issued  but  such  proceeds may be used in the manner provided by law or if there is no provision of law pertaining to the use of such proceeds, such proceeds shall be treated as surplus  moneys  for  the  fiscal  year  in which they are collected. This paragraph shall not apply to notes issued pursuant to paragraph c of this section.   f. 1. Where a tax anticipation note issued pursuant to paragraphs a, b or d of this section is to be renewed by the issuance of a renewal note, and the taxes or assessments in anticipation of which it was issued have been levied for a fiscal year, but remain uncollected, such renewal note shall  not be issued for an amount in excess of the amount of such taxes or assessments remaining uncollected at the time of such renewal, less:  (a) The amount of any other outstanding tax anticipation notes  issued in anticipation of the collection of such taxes or assessments, and  (b)  The amount, if any, included in the annual budget for such fiscal year or in the levy of taxes or assessments  for  such  fiscal  year  to offset, in whole or in part, an anticipated deficiency in the collection before  the  end  of such fiscal year of the taxes or assessments levied for such fiscal year. In no event shall such a renewal note be issued for an amount in  excess of  the  original  amount  of  the  note in renewal of which it is to be issued.   2. Where a tax anticipation note issued pursuant to paragraphs a or  d of  this  section  is  to  be  renewed,  and the taxes or assessments in anticipation of which it was issued have not been levied,  such  renewal note  shall not be issued for an amount in excess of the original amount of the note in renewal of which it is to be issued.   3. Where a tax anticipation note issued pursuant  to  paragraph  c  of this  section is to be renewed, such renewal note shall not be issued in an amount in excess of the difference between  the  original  amount  of such  note to be renewed, less the amount of moneys received and applied or to be applied to the payment of such note.   g. Tax anticipation notes may be issued by any municipality during any fiscal year thereof:   1. In anticipation of the collection of assessments  levied  for  such fiscal  year,  or  to  be levied in such fiscal year, to pay the cost of capital improvements, if such assessments are to  be  collected  in  one installment;  provided,  however,  that  if  such  assessments have been levied, such notes shall not be issued in an amount  in  excess  of  the difference  between the amount of such assessments remaining uncollected at the time  of  such  borrowing  and  the  amount  of  outstanding  tax anticipation  notes  issued  in  anticipation  of the collection of such assessments.   2. In anticipation of the collection of an installment of  assessments levied  for  a  capital  improvement,  if  such  assessments  are  to be collected in several annual installments and  such  installment  becomes due  and  payable  during such fiscal year; provided, however, that such notes shall not be issued in an  amount  in  excess  of  the  difference between the amount of such installment remaining uncollected at the time of  such  borrowing and the amount of outstanding tax anticipation notes issued in anticipation of the collection of such installment.   3. The proceeds of tax anticipation  notes  issued  pursuant  to  this paragraph shall be used only for the purposes for which such assessments were  levied  or  are  to  be  levied  or for the redemption of notes in renewal of which they were issued.   4. Tax anticipation notes issued  pursuant  to  this  paragraph  shall mature  within  one  year  from  the  date  of their issuance and may be renewed from time to time but each renewal shall be for a period not  to exceed one year and in no event shall such notes or the renewals thereof extend  beyond the close of the second fiscal year succeeding the fiscal year in which such notes were issued.    5. Whenever the amount of tax anticipation notes  issued  pursuant  to this  paragraph  in  anticipation of the collection of assessments or an installment thereof levied for a capital improvement equals  the  amount of  such  assessments  or such installment remaining uncollected, all of such  assessments or such installment, as thereafter collected, shall be set aside in a special bank account to be used only for the  payment  of such  notes as they become due, unless other provision is made, pursuant to law, for the redemption of such  notes.  Any  municipality  may  make budgetary appropriations for the redemption of such notes whether or not required  or  otherwise authorized by law to do so. In the event such an appropriation is made, such municipality shall not be  required  to  pay into  the  special  account  the  proceeds  of  the  assessments, or the installment thereof, against which  such  notes  were  issued  but  such proceeds  may  be  used  in the manner provided by law or if there is no provision of law pertaining to the use of such proceeds,  such  proceeds shall be treated as surplus moneys for the fiscal year in which they are collected.   6. (a) Where a tax anticipation note issued pursuant to this paragraph is  to be renewed by the issuance of a renewal note, and the assessments or installment thereof in anticipation of which it was issued have  been levied,  but  remain  uncollected, such renewal note shall not be issued for an amount in excess of the amount of such assessments or installment thereof remaining uncollected at the time  of  such  renewal,  less  the amount  of  any  other  outstanding  tax  anticipation  notes  issued in anticipation of  the  collection  of  such  assessments  or  installment thereof;  but  in  no  event  shall such a renewal note be issued for an amount in excess of the original amount of the note in renewal of  which it is to be issued.  (b) Where a tax anticipation note issued pursuant to this paragraph is to   be   renewed,   and  the  assessments  or  installment  thereof  in anticipation of which it was issued have not been levied,  such  renewal note  shall not be issued for an amount in excess of the original amount of the note in renewal of which it is to be issued.   h. Tax anticipation notes may be issued by any municipality during any fiscal year thereof in anticipation  of  the  levy  or  distribution  of assessments  for  work  or services if the expenditures for such work or services are financed from a fund into which are paid  the  proceeds  of such  notes  and if such assessments are required to be collected in one installment and included in the tax roll for the fiscal year  succeeding the  fiscal  year in which such notes were issued or in the tax roll for the second succeeding fiscal year. Any such municipality shall  pay  the proceeds  of  such assessments into any such fund. Notes issued pursuant to the provisions of this paragraph shall mature within  one  year  from the date of their issuance and may be renewed from time to time but each renewal  shall  be  for  a period not to exceed one year and in no event shall such notes or the renewals thereof extend beyond the close of  the second  fiscal  year succeeding the fiscal year in which such notes were issued. No such renewal note shall be issued for an amount in excess  of the original amount of the note in renewal of which it was issued.   i.  For  the  purpose  of  this section, taxes or assessments shall be deemed to be uncollected and not  received  by  a  municipality,  school district   or   district   corporation   until  cash  is  paid  to  such municipality, school district or district corporation for such taxes  or assessments  and such taxes or assessments are cancelled or the title to such taxes or assessments is transferred by  such  municipality,  school district  or  district corporation, or until real property has been sold for  such  taxes  or  assessments  and  has  been   acquired   by   such municipality,   school   district   or  district  corporation  and  such  municipality, school district or district corporation has realized  cash by  the  sale of such real property. For the purpose of this section the term "taxes" or the term "assessments" shall  not  include  interest  or penalties upon uncollected taxes or assessments.   j. Notwithstanding any provision of any other law, general or special, a  central  high  school  district  may  issue tax anticipation notes in accordance with and subject to the provisions of this section applicable to a school district; provided, however, that the  aggregate  amount  of taxes  in anticipation of which a central high school district may issue tax anticipation notes shall not exceed the sum of the taxes  levied  or to  be  levied  for central high school district purposes in each school district included within the central high school district and,  provided further,  that  no such school district included within the central high school district shall be authorized to issue tax anticipation  notes  in anticipation  of  taxes  levied or to be levied therein for central high school district purposes.