N.Y. Tax Law § 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\nmillion, counties and school districts. (a) Except as otherwise provided\nin this article, the local law, ordinance or resolution imposing any\ncounty tax pursuant to this article may set aside for county purposes or\neducational purposes all or any portion of the net collections\ntherefrom. In the event all or a portion of the net collections are so\nset aside for educational purposes, the amounts thereof shall be\ndistributed and paid quarterly to the several school districts in the\ncounty in accordance with the total average daily attendance for the\nlast preceding school year of pupils residing in each such district\n(without regard to the location of the school attended), provided,\nhowever, that in the case of school districts which are partially within\nand partially without the county, such county shall make a distribution\nto each such school district in accordance with the total average daily\nattendance of the pupils in such school district who reside in such\ncounty and in any such case, the amount to be raised by school taxes by\nthe district from the portion of such district within such county shall\nbe reduced by the amount so distributed.\n (b) In the county of Monroe amounts not set aside for county purposes\nshall be allocated quarterly to the city of Rochester and the area in\nthe county outside the city of Rochester in proportion to their\nrespective populations, determined in accordance with the latest federal\ncensus or special population census taken pursuant to section twenty of\nthe general municipal law, completed and published prior to the end of\nthe quarter for which the allocation is made, which special census must\ninclude the entire area of the county, provided, however, that a special\npopulation census shall not be taken more often than once in every two\nyears. The county legislature may, by resolution adopted annually,\nprovide that of the amount so allocated to the area outside the city of\nRochester a portion thereof be allocated and paid to the several school\ndistricts in such area in accordance with the number of public school\npupils residing in said districts and enrolled in kindergarten and\ngrades one to twelve inclusive at the close of the school year next\npreceding the date of the adoption of said resolution. An enrollment for\na regular half day session shall be counted as one-half enrollment. The\nlocation of the school attended shall not be considered except as\nhereinafter provided for pupils attending city schools without the\npayment of tuition. In the case of school districts which are partially\nwithin and partially without the county payment shall be made to each\nsuch school district in accordance with the enrollment of the pupils in\nsuch school district who reside in such county. In all cases the amount\nto be raised by school taxes by the school districts upon property\nwithin the district or that portion of the district within the county\nshall be reduced by the amount of tax revenue so received. Each school\ndistrict receiving said money shall indicate on each individual school\ntax bill the amount of tax proceeds received from the county of Monroe\nfor that fiscal year. In the case of pupils who reside in the area\noutside the city and who, by law, are attending public schools in the\ncity of Rochester without payment of tuition, the distribution of tax\nrevenue based on the enrollment of those pupils shall be paid to the\ncity of Rochester. The amount allocated to the area outside the city of\nRochester, less the amount, if any, so distributed to the school\ndistricts and paid to the city of Rochester as above provided, and the\namount allocated to the city of Rochester shall be applied as provided\nfor by subdivision (c) of this section except that the county\nlegislature may provide by resolution that where any village elects to\nhave the amount which would otherwise be applied to reduce county taxes\nand general town taxes upon real property in such village paid directly\nto such village in lieu of such tax reduction, the portion of the amount\nallocated, pursuant to subdivision (c) of this section, to the town in\nwhich such village is wholly or partly situated which is to be paid\ndirectly to such village shall be determined by the ratio which the\npopulation of such village, or portion thereof within the town, bears to\nthe population of the entire town, determined in accordance with the\nlatest federal census or special population census taken pursuant to\nsection twenty of the general municipal law, completed and published\nprior to the end of the quarter for which the allocation is made, which\nspecial census must include the entire area of the town. Provided,\nhowever, in determining such portion to be paid directly to such\nvillage, such population ratio may be applied to no more than one-half\nof the amount allocated to such town pursuant to subdivision (c) of this\nsection. Provided, further, that any resolution so enacted by the county\nlegislature shall only be effective for the calendar year or years\nsubsequent to its enactment and such resolution must be enacted before\nthe first day of October preceding the calendar year to which it\napplies. Such resolution shall remain in effect for subsequent calendar\nyears unless rescinded by a resolution, but the enactment which rescinds\nit must be enacted prior to the first day of October preceding the\ncalendar year for which the rescission is to apply.\n (c) Amounts not set aside for county purposes or educational purposes\nshall, except as otherwise provided in this section, be allocated\nquarterly to the cities and the area in the county outside the cities in\nproportion to their respective populations, determined in accordance\nwith the latest decennial federal census or special population census\ntaken pursuant to section twenty of the general municipal law completed\nand published prior to the end of the quarter for which the allocation\nis made, which special census must include the entire area of the\ncounty, or in such other proportion as may be agreed upon by the\nelective governing body of the county and of each of the cities in the\ncounty with the approval of the state comptroller, provided however,\nthat where a county does not contain a city, such amounts shall be so\nallocated to the entire area of the county. Any such agreement or\napproval thereof may be for a limited period. The amount so allocated to\nthe area outside the cities, or to the entire area of the county where\nthe county does not contain a city, shall be applied first to reduce\ncounty taxes levied upon real property in the several towns in such\narea. Any balance remaining shall then be applied to reduce general town\ntaxes levied upon real property in such area. In a county having a city\nwholly contained therein having more than four hundred thousand\ninhabitants according to the latest federal or special population census\nreferred to above, if any town, by local law, ordinance, or resolution\nshall so provide, all or part of such amount shall be paid directly to\nsuch town and shall be applied first to reduce general town taxes levied\nupon real property in the town. Any balance remaining shall then be used\nto reduce county taxes levied upon real property in the town. Any town,\nother than a town within a county having a population of one million or\nmore and containing not more than three towns, or other than a town\nwithin a county having a population of not less than seven hundred\nthousand or more than eight hundred thousand, by local law, ordinance or\nresolution, however, may provide that all or any specified part of the\namounts which would be so applied to reduce the county taxes and general\ntown taxes levied upon real property in such town shall be paid directly\nto such town to be used for any town purpose. If any village, other than\na village within a county having a population of one million or more and\ncontaining not more than three towns, by local law, ordinance or\nresolution shall so provide, the amounts which would be so applied to\nreduce the county and general town taxes levied upon real property in\nsuch village shall be paid directly to such village in lieu of such tax\nreduction. Where any village has elected to be paid directly as provided\nin this subdivision, the amount to be paid to such village shall be\ndetermined by the ratio that the full valuation of real property in the\nvillage or portion thereof within the town in which such village is\nlocated bears to the full valuation of real property in the entire town.\nIf a village wholly or partially within a town has so elected to be paid\ndirectly, but the town in which such village is located has not so\nelected, the amount allocated to the town in which such village is\nwholly or partially situated shall be applied to reduce county taxes and\ngeneral town taxes in the area of the town outside such village. If the\namount allocated to a town exceeds the amount of the county taxes and\ngeneral town taxes levied upon real property in the town, the excess\nshall be apportioned between the town and each village, if any, wholly\nor partially situated therein, in the ratios that the full valuation of\nreal property in each such village or portion thereof within the town,\nand the full valuation of real property in the portion of the town\noutside of such village or villages, respectively, bear to the aggregate\nfull valuation of the entire town. The share of each such village shall\nbe paid directly to such village. The share of the town shall be\napplied, first, to reduce taxes levied for part-town activities, and any\nbalance remaining shall be paid directly to the town, to be used only\nfor part-town activities. If a town and all the villages therein shall\nhave elected to be paid directly as provided in this subdivision, the\nshare of such town shall be applied to reduce taxes levied for part-town\nactivities, and any balance remaining or portion thereof, in the\ndiscretion of the town board, may be applied to reduce general town\ntaxes, county taxes levied in the area of the town outside of such\nvillages or may be used for part-town activities, or any combination\nthereof. If a town containing more than one village shall have elected\nto be paid directly and one or more but not all of the villages shall\nhave also elected to be paid directly, the share of the town shall be\napplied to reduce general town taxes levied in the area of the town\noutside of the village or villages that have so elected, and any balance\nremaining or portion thereof, in the discretion of the town board, may\nbe applied to reduce county taxes levied in the area of the town outside\nof such village or villages. The amount to be applied in reduction of\ncounty taxes and general town taxes in each town may be determined on\nthe basis of the ratio which the full valuation of real property in each\ntown bears to the aggregate full valuation of real property in all of\nthe towns in such county. The amount allocated to each city shall be\nsimilarly applied to reduce the county tax levied upon real property in\nsuch city, except that if any such city, except a city within a single\ncounty having a population of one million or more and containing not\nmore than three towns, by local law, ordinance or resolution shall so\nprovide, the amount which would be so applied to reduce the county tax\nlevied upon real property in such city shall be paid directly to the\ncity in lieu of such tax reduction. If the amount allocated to a city\nexceeds the amount of the county tax levied upon real property in such\ncity, such excess shall be paid to such city.\n Notwithstanding any provision of this section to the contrary, where a\nmunicipal assistance corporation has been created under article ten of\nthe public authorities law for a city located in a county, any amount\nwhich such county allocates to such city under this subdivision shall be\npayable directly to such city and shall not be provided by reduction of\nthe county tax levied upon real property in such city for so long as\nsuch municipal assistance corporation shall exist.\n In the alternative, the amount to be applied in reduction of county\ntaxes and general town taxes in each town may be determined on the basis\nof the respective populations of the several towns in such county,\ndetermined in accordance with the latest federal census or special\npopulation census taken pursuant to section twenty of the general\nmunicipal law, completed and published prior to the end of the quarter\nfor which the allocation is made, which special census must include the\nentire area of the county.\n Any local law, ordinance or resolution enacted by a city, town or\nvillage pursuant to this subdivision shall only be effective for the\ncalendar year or years subsequent to its enactment and, further, shall\nonly be effective if it is mailed by registered or certified mail to the\nchief fiscal officer of the county in which the city, town or village is\nlocated before the first day of September preceding the calendar year\nfor which the election is made by such local law, ordinance or\nresolution. Such local law, ordinance or resolution shall remain in\neffect for subsequent calendar years until rescinded by local law,\nordinance or resolution, but the enactment shall rescind the election\nonly if it is mailed, in the same manner already provided for in this\nsubdivision, to the chief fiscal officer of the county in which the\ncity, town or village is located before the first day of September\npreceding the calendar year for which the rescission is to apply. The\nforegoing provisions of this paragraph notwithstanding, where a county\nimposes a sales and use tax to be effective on a date after the adoption\nof its budget but within the fiscal year for which such budget has been\nadopted, and the estimated revenues from such tax include an amount not\nset aside for county purposes or educational purposes, and such amount\nhas not been included in budget revenues for such fiscal year for\nallocation in reduction of taxes on real property as provided in this\nsubdivision, a local law, ordinance or resolution enacted by a city,\ntown or village pursuant to this subdivision shall be effective as of\nthe effective date of such tax if mailed by registered or certified mail\nto the chief fiscal officer of the county in which the city, town or\nvillage is located within thirty days after the enactment by the county\nof the local law, ordinance or resolution imposing such tax.\n The foregoing provisions of this subdivision notwithstanding, in the\ncounty of Orange where any village within such county has elected to be\npaid directly as provided in this subdivision, the amount to be paid to\nsuch village shall be determined by the ratio that the population of\nsuch village or portion thereof within the town in which such village is\nlocated bears to the total population of the entire town, except that\nthis provision shall not apply to the village of Highland Falls for\nwhich the amount to be paid shall be determined by the foregoing\nprovisions of this subdivision. The population shall be determined in\naccordance with the latest federal census or special population census\ntaken pursuant to section twenty of the general municipal law, completed\nand published prior to the end of the quarter for which the allocation\nis made, which special census must include the entire area of such\ncounty.\n The foregoing provisions of this subdivision notwithstanding, in the\ncounty of Monroe, beginning in nineteen hundred ninety-six, towns\nlocated within the county shall be paid directly that part of the net\ncollections for the quarterly allocations which are determined to be\nallocable to such towns and are in excess of thirteen million seven\nhundred fifty thousand dollars (fifty-five million dollars annually, the\n"base amount"), if any, derived solely from the imposition of sales and\ncompensating use taxes by the county at the three percent rate\nauthorized by the opening paragraph of section twelve hundred ten of\nthis article, which would otherwise be so applied to reduce county taxes\nand general town taxes levied upon real property in such towns,\nprovided, however, if the annual allocation to such towns is less than\nthe base amount, a sum equal to the difference between the allocation\nand the base amount shall be deducted from the immediately following\npayment or payments to be made directly to such towns as required to\nsatisfy such sum in full, and provided further, however, that any\nadjustments necessary to reconcile the amounts applied to reduce the\ncounty taxes and general town taxes levied upon real property in the\ntowns for the years nineteen hundred ninety-four and nineteen hundred\nninety-five to the actual allocations to the towns for such years shall\nbe made against the amounts to be paid to the towns in the years\nnineteen hundred ninety-seven and thereafter. In the event that the\nannual allocation to such towns is less than the base amount for at\nleast two consecutive years, a sum equal to the difference between the\nallocation and the base amount shall be deducted from the amount applied\nto reduce county taxes and general town taxes levied upon real property\nin such towns in the year or years following such consecutive years\nuntil the annual allocation to such towns exceeds the base amount, the\nforegoing provisions of this subdivision or any other law\nnotwithstanding. If the state reduces the rate of taxation authorized\nfor Monroe county by section twelve hundred ten of this article or\nreduces the amount distributed by the state to Monroe county from the\ntaxes, penalties and interest imposed by Monroe county pursuant to this\narticle, the county shall have the right to adjust the amount applied to\nreduce county taxes and general town taxes levied upon real property in\nsubsequent years.\n (d) (1) Where a county and a city therein both impose the same taxes\ndescribed in sections twelve hundred two, twelve hundred three or twelve\nhundred ten, the county shall have power to impose or continue to impose\nsuch taxes on the area of the county outside such city up to the maximum\nrate authorized therefor. In such event, the portion of the net\ncollections received by the county by reason of its additional rate on\nsuch area, shall be allocated quarterly to the several cities and towns\nin such area on the basis of the ratio which the full valuation of real\nproperty in each city or town bears to the aggregate full valuation of\nreal property in all of the cities and towns in such area provided,\nhowever, that, in such event, in Niagara county, such portion of net\ncollections received by Niagara county shall be allocated quarterly to\nthe several cities and towns in such area on the basis of the ratio\nwhich the population of each city or town bears to the aggregate\npopulation of all of the cities and towns in such area, such populations\ndetermined in accordance with the latest decennial federal census or\nspecial population census taken pursuant to section twenty of the\ngeneral municipal law completed and published prior to the end of the\nquarter for which the allocation is made, which special census must\ninclude the entire area of the county. The amount allocated to each town\nshall be applied first to reduce county taxes levied upon real property\nin such town and any balance remaining shall be applied to reduce\ngeneral town taxes levied upon real estate; provided, however, that any\ntown or village other than any town or village within a county having a\npopulation of one million or more and containing not more than three\ntowns, shall have power, in the manner provided in subdivision (c) of\nthis section, to elect to receive a direct payment of the amounts which\nwould be so applied to reduce county taxes and general town taxes levied\nupon real property in such town or village. Where any village has\nelected to be paid directly as provided in this subdivision, the amount\nto be paid to such village shall be determined by the ratio that the\nfull valuation of real property in the village or portion thereof within\nthe town in which such village is located bears to the full valuation of\nreal property in the entire town. If a village wholly or partially\nwithin a town has so elected to be paid directly, but the town in which\nsuch village is located has not so elected, the amount allocated to the\ntown in which such village is wholly or partially situated shall be\napplied to reduce county taxes and general town taxes in the area of the\ntown outside such village or villages. If the amount allocated to a town\nexceeds the amount of the county taxes and general town taxes levied\nupon real property in the town, the excess shall be apportioned between\nthe town and each village, if any, wholly or partially situated therein,\nand paid over or applied in the manner provided in subdivision (c) of\nthis section. The amount allocated to each city in such area shall be\nsimilarly applied to reduce county taxes levied upon real property in\nsuch city, except that if any such city except any city within a single\ncounty having a population of one million or more and containing no more\nthan three towns, shall so provide in the manner provided in subdivision\n(c) of this section, the amount which would be so applied to reduce\ncounty taxes levied upon real property in such city shall be paid\ndirectly to the city in lieu of such tax reduction. If the amount\nallocated to the city exceeds the amount of the county tax levied upon\nreal property in the city, such excess shall be paid to the city.\n Notwithstanding any provision of this section to the contrary, where a\nmunicipal assistance corporation has been created under article ten of\nthe public authorities law for a city located in a county, any amount\nwhich such county allocates to such city under this subdivision shall be\npayable directly to such city and shall not be provided by reduction of\nthe county tax levied upon real property in such city for so long as\nsuch municipal assistance corporation shall exist.\n Any local law, ordinance or resolution enacted by a city, town or\nvillage pursuant to this subdivision shall only be effective for the\ncalendar year or years subsequent to its enactment and, further, shall\nonly be effective if it is mailed by registered or certified mail to the\nchief fiscal officer of the county in which the city, town or village is\nlocated before the first day of September preceding the calendar year\nfor which the election is made by such local law, ordinance or\nresolution. Such local law, ordinance or resolution shall remain in\neffect for subsequent calendar years until rescinded by local law,\nordinance or resolution, but the enactment shall rescind the election\nonly if it is mailed, in the same manner already provided for in this\nsubdivision, to the chief fiscal officer of the county in which the\ncity, town or village is located before the first day of September\npreceding the calendar year for which the rescission to apply. The\nforegoing provisions of this paragraph notwithstanding, where a county\nimposes a sales and use tax to be effective on a date after the adoption\nof its budget but within the fiscal year for which such budget has been\nadopted, and the estimated revenues from such tax include net\ncollections received by the county by reason of its additional rate on\nthe area of the county outside a city imposing the same taxes, and such\nnet collections have not been included in budget revenues for such\nfiscal year for allocation in reduction of taxes on real property as\nprovided in this subdivision, a local law, ordinance or resolution\nenacted by a city, town or village pursuant to this subdivision shall be\neffective as of the effective date of such tax if mailed by registered\nor certified mail to the chief fiscal officer of the county in which the\ncity, town or village is located within thirty days after the enactment\nby the county of the local law, ordinance or resolution imposing such\ntax.\n (2) Notwithstanding any provision of general, special or local law to\nthe contrary, if at any time from the effective date of the Buffalo\nfiscal stability authority act until June thirtieth, two thousand\nthirty-seven any city in the county of Erie imposes sales and\ncompensating use taxes described in section twelve hundred ten of this\narticle, then the county of Erie shall not be required to allocate under\nparagraph one of this subdivision, any net collections from its taxes\nimposed during such period; instead it shall continue to allocate net\ncollections from its taxes to any city in the county which does not\nimpose such taxes and to the area of the county outside the cities, in\naccordance with the terms of the most current agreement among such\ncounty and the cities in the county entered into pursuant to subdivision\n(c) of this section.\n (3) Notwithstanding any provision of general, special or local law to\nthe contrary, if at any time from the effective date of the Erie county\nfiscal stability authority act until December thirty-first, two thousand\nthirty-nine, any city in the county of Erie imposes sales and\ncompensating use taxes described in section twelve hundred ten of this\narticle, then the county of Erie shall not be required to allocate under\nparagraph one of this subdivision any net collections from its taxes\nimposed during such period; instead it shall continue to allocate net\ncollections from its taxes to any city in the county which does not\nimpose such taxes and to the area of the county outside the cities, in\naccordance with the terms of the most current agreement among such\ncounty and the cities in the county entered into pursuant to subdivision\n(c) of this section.\n (4) Notwithstanding any provision of law to the contrary, for purposes\nof this subdivision, a county and a city in such county shall not be\ndeemed to impose different taxes because one makes the election\ndescribed in subdivision (m) of section eleven hundred eleven of this\nchapter and the other does not make such election.\n (e) Where all or a portion of the net collections from a tax imposed\nby a county pursuant to this article is set aside for educational\npurposes or for allocation and distribution to the cities in the county\nand to the area outside the cities, or both, or where a tax or taxes are\nimposed pursuant to section twelve hundred four of this article for\neducational purposes, the portion of net collections so set aside by a\ncounty shall not be decreased or eliminated nor shall a tax so imposed\nby a city be eliminated unless the local law, ordinance or resolution\neffectuating such decrease or elimination is adopted by the county or\ncity and written notice of such adoption is given to the school\nauthorities of the school districts and the governing bodies of the\ncities, towns or villages affected thereby at least six months prior to\nthe commencement of their respective fiscal years. The school\nauthorities of such a school district or the governing body of such\ncity, town or village may waive the requirement that such local law,\nordinance or resolution be so adopted and such written notice given.\n (f) As used in this article the following terms shall mean or include:\n (1) Net collections. The moneys collected from a tax or taxes imposed\npursuant to this article, after deducting therefrom expenses of\nadministration and collection and amounts refunded or to be refunded.\n (2) General Town taxes. Taxes levied for any town purpose, including\nhighways, upon the entire area of a town.\n (3) Full valuation of real property. The assessed valuation of real\nproperty divided by the equalization rate as determined in accordance\nwith article eight of the real property tax law.\n (4) Part-town activities. Activities of town government, including\nhighway programs, which are chargeable to the area of the town outside\nof villages, exclusive of special district purposes, unless such special\ndistrict is a fire protection district coterminous with the area of a\ntown outside of villages.\n