N.Y. Tax Law § 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.