2023 New York Laws › TAX - Tax › Article 29 - Taxes Authorized for Cities, Counties and School Districts › Part 2 - Limitations on Authority and Exemptions › Sub Part A - General › 1223 - Limitations on Rates.

§  1223.  Limitations  on  rates.
(a)  No transaction taxable under
sections twelve hundred two through twelve hundred four of this  article
shall  be  taxed  pursuant  to this article by any county or by any city
located therein, or by both, at an  aggregate  rate  in  excess  of  the
highest  rate  set forth in the applicable subdivision of section twelve
hundred one of this article  or,  in  the  case  of  any  taxes  imposed
pursuant  to  the  authority  of  section  twelve  hundred ten or twelve
hundred eleven of this article (other than taxes imposed by  the  county
of Nassau, Erie, Steuben, Cattaraugus, Suffolk, Oneida, Genesee, Greene,
Franklin,  Hamilton, Herkimer, Tioga, Orleans, Allegany, Ulster, Albany,
Rensselaer, Tompkins, Wyoming, Columbia, Schuyler,  Rockland,  Chenango,
Monroe,  Chemung,  Seneca,  Sullivan,  Wayne,  Livingston,  Schenectady,
Montgomery, Delaware, Clinton, Niagara, Yates, Lewis,  Essex,  Dutchess,
Schoharie,  Putnam,  Chautauqua, Orange, Oswego, Ontario, Jefferson, St.
Lawrence, Westchester or Onondaga and by the county of Cortland and  the
city  of Cortland and by the county of Broome and the city of Binghamton
and by the county of Cayuga and the city of Auburn and by the county  of
Otsego and the city of Oneonta and by the county of Madison and the city
of  Oneida  and  by the county of Fulton and the city of Gloversville or
the city of Johnstown as provided in section twelve hundred ten of  this
article)  at a rate in excess of three percent, except that, in the city
of Yonkers, in the city of Mount Vernon, in the city of New Rochelle, in
the city of Fulton, in the city of Oswego, and  in  the  city  of  White
Plains,  the  rate may not be in excess of four percent, and except that
in the city of Poughkeepsie in the county of Dutchess,  if  such  county
withdraws   from   the  metropolitan  commuter  transportation  district
pursuant  to  section  twelve  hundred  seventy-nine-b  of  the   public
authorities law and if the revenues from a three-eighths percent rate of
such  tax  imposed  by such county, pursuant to the authority of section
twelve hundred  ten  of  this  article,  are  required  by  local  laws,
ordinances  or  resolutions  to  be  set  aside  for mass transportation
purposes, the rate may not be  in  excess  of  three  and  three-eighths
percent.
(b) If a transaction is taxed by both a county and a city, the rate of
tax  on such transaction imposed by the county or city, not having prior
right thereto pursuant to section twelve hundred twenty-four,  shall  be
deemed to be reduced (or the entire tax eliminated, if necessary) to the
extent necessary to comply with the foregoing requirement. A tax imposed
by  a county upon any transaction, to the extent that it would require a
reduction in any tax rate imposed thereon by a city,  shall  not  become
effective  in  respect  to  any  transaction  taxed  by such city (or in
respect of other similar transactions outside  of  the  city  which,  if
occurring  in  such  city, would be subject to such city tax) before the
commencement of the city's next succeeding fiscal year and then only  if
the  county  shall have given notice to such city of its imposition of a
tax on such transaction at least six months prior to the commencement of
such fiscal year, provided however that the local  legislative  body  of
such  city may waive the requirement of such notice and the postponement
of the effective date of such tax. A city tax upon any  transaction,  to
the  extent that it would require a reduction in any tax rate imposed by
a  county  thereon,  shall  not  become  effective  in  respect  of  any
transaction taxed by such county before the commencement of the county's
next  succeeding  fiscal year and then only if the city shall have given
notice to such county of its imposition of a tax on such transaction  at
least  six  months  prior  to  the  commencement  of  such  fiscal year,
provided, however, that the local legislative body of  such  county  may
waive  the  requirement of such notice and postponement of the effective
date of such tax.  However,  whether  or  not  the  six  months'  notice

requirement  provided  in  this  section  has been waived, a tax imposed
pursuant to the authority  of  section  twelve  hundred  ten  or  twelve
hundred  eleven  shall still be subject to the requirements provided for
in  the first three sentences of subdivision (d) of such sections and in
subdivision (e) of such sections.