2023 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.