N.Y. State Finance Law § 54-a: Withholding of payment of local assistance by the state to counties, cities and villages, in certain cases

§ 54-a. Withholding of payment of local assistance by the state to

counties, cities and villages, in certain cases. 1. In the event that

any county, city or village, subject to the provisions of section ten of

article eight of the constitution of this state, levies or causes to be

levied taxes upon real property in excess of the limitation prescribed

by or pursuant to such section, the state comptroller, upon a

determination of the amount thereof as herein provided, shall withhold

local assistance by the state as defined in section seventy-one of this

chapter to such county, city or village to the extent of such excess.

The state comptroller shall give notice in writing by registered mail

addressed to the chief fiscal officer and to the legislative body of any

such county, city or village of his determination of the amount of such

excess levy and of his intention to withhold such local assistance to

the extent of such excess, and further requiring such county, city or

village, within thirty days from the date of such notice, to show cause

why such withholding should not be made by filing a verified statement

with him setting forth the facts in relation thereto. The comptroller,

upon receipt of such verified statement, or if no verified statement is

filed within the time permitted, then at the expiration of such time,

shall review his determination and within thirty days thereafter make

and file in his office his final determination thereon and cause copies

thereof to be served by registered mail upon the chief fiscal officer

and upon the legislative body of such county, city or village. The

amount finally determined by the state comptroller to be withheld shall

be deducted only from the next four quarterly instalments due or to

become due thereafter to such county, city or village pursuant to the

provisions of section fifty-four of this chapter.

2. To the extent that any county, city or village from which moneys

shall have been withheld as provided by this section shall, in the next

succeeding fiscal year of such county, city or village, levy or cause to

be levied taxes upon real property to an amount less than the amount

permitted under or pursuant to the provisions of section ten of article

eight of the constitution of this state, such withheld local assistance

may be paid to such county, city or village, to the extent of such

decrease, provided, however, that not more than the amount withheld may

be so paid. The state comptroller shall make and file his determination

certifying the amount of such moneys so withheld to which the county,

city or village may be entitled under the provisions of this

subdivision. To the extent that such withheld moneys are not paid to

such county, city or village as herein provided, they shall be retained

in the general fund of the state treasury to the credit of the local

assistance fund therein, and such county, city or village shall have no

further claim to the payment thereof.

3. The chief fiscal officer of each county, city or village shall, not

less than ten days prior to the adoption of its budget, file with the

state comptroller on forms to be furnished by him, a statement showing

the amount which such county, city or village may raise by tax on real

estate under the provisions of sections ten and eleven of article eight

of the constitution of this state and the estimated amount of tax on

real estate proposed to be levied on account of such budget, and such

chief fiscal officer shall also within thirty days after the adoption of

such budget, file with the state comptroller a certified copy of such

budget, the amount of its tax levy upon real estate on account of such

budget, and such other information as the state comptroller may require.

Failure to comply with the provisions of this subdivision shall not

invalidate a tax levied by any such county, city or village.