N.Y. Tax Law § 1223 — Limitations on rates

§ 1223. Limitations on rates. (a) No transaction taxable under\nsections twelve hundred two through twelve hundred four of this article\nshall be taxed pursuant to this article by any county or by any city\nlocated therein, or by both, at an aggregate rate in excess of the\nhighest rate set forth in the applicable subdivision of section twelve\nhundred one of this article or, in the case of any taxes imposed\npursuant to the authority of section twelve hundred ten or twelve\nhundred eleven of this article (other than taxes imposed by the county\nof Nassau, Erie, Steuben, Cattaraugus, Suffolk, Oneida, Genesee, Greene,\nFranklin, Hamilton, Herkimer, Tioga, Orleans, Allegany, Ulster, Albany,\nRensselaer, Tompkins, Wyoming, Columbia, Schuyler, Rockland, Chenango,\nMonroe, Chemung, Seneca, Sullivan, Wayne, Livingston, Schenectady,\nMontgomery, Delaware, Clinton, Niagara, Yates, Lewis, Essex, Dutchess,\nSchoharie, Putnam, Chautauqua, Orange, Oswego, Ontario, Jefferson, St.\nLawrence, Westchester or Onondaga and by the county of Cortland and the\ncity of Cortland and by the county of Broome and the city of Binghamton\nand by the county of Cayuga and the city of Auburn and by the county of\nOtsego and the city of Oneonta and by the county of Madison and the city\nof Oneida and by the county of Fulton and the city of Gloversville or\nthe city of Johnstown as provided in section twelve hundred ten of this\narticle) at a rate in excess of three percent, except that, in the city\nof Yonkers, in the city of Mount Vernon, in the city of New Rochelle, in\nthe city of Fulton, in the city of Oswego, and in the city of White\nPlains, the rate may not be in excess of four percent, and except that\nin the city of Poughkeepsie in the county of Dutchess, if such county\nwithdraws from the metropolitan commuter transportation district\npursuant to section twelve hundred seventy-nine-b of the public\nauthorities law and if the revenues from a three-eighths percent rate of\nsuch tax imposed by such county, pursuant to the authority of section\ntwelve hundred ten of this article, are required by local laws,\nordinances or resolutions to be set aside for mass transportation\npurposes, the rate may not be in excess of three and three-eighths\npercent.\n (b) If a transaction is taxed by both a county and a city, the rate of\ntax on such transaction imposed by the county or city, not having prior\nright thereto pursuant to section twelve hundred twenty-four, shall be\ndeemed to be reduced (or the entire tax eliminated, if necessary) to the\nextent necessary to comply with the foregoing requirement. A tax imposed\nby a county upon any transaction, to the extent that it would require a\nreduction in any tax rate imposed thereon by a city, shall not become\neffective in respect to any transaction taxed by such city (or in\nrespect of other similar transactions outside of the city which, if\noccurring in such city, would be subject to such city tax) before the\ncommencement of the city's next succeeding fiscal year and then only if\nthe county shall have given notice to such city of its imposition of a\ntax on such transaction at least six months prior to the commencement of\nsuch fiscal year, provided however that the local legislative body of\nsuch city may waive the requirement of such notice and the postponement\nof the effective date of such tax. A city tax upon any transaction, to\nthe extent that it would require a reduction in any tax rate imposed by\na county thereon, shall not become effective in respect of any\ntransaction taxed by such county before the commencement of the county's\nnext succeeding fiscal year and then only if the city shall have given\nnotice to such county of its imposition of a tax on such transaction at\nleast six months prior to the commencement of such fiscal year,\nprovided, however, that the local legislative body of such county may\nwaive the requirement of such notice and postponement of the effective\ndate of such tax. However, whether or not the six months' notice\nrequirement provided in this section has been waived, a tax imposed\npursuant to the authority of section twelve hundred ten or twelve\nhundred eleven shall still be subject to the requirements provided for\nin the first three sentences of subdivision (d) of such sections and in\nsubdivision (e) of such sections.\n