N.Y. Tax Law § 1261-a: Revenues from certain taxes imposed by Washington and Warren counties

§ 1261-a. Revenues from certain taxes imposed by Washington and Warren

counties. (a) In the event that the Warren and Washington county

industrial development agency established under article eighteen-A of

the general municipal law issues bonds, notes or other obligations

secured by the service fee obligations of the counties which, in turn,

are secured by a pledge by Warren and Washington counties of payments of

net collections from taxes imposed by such counties pursuant to the

authority of subdivision (a) of section twelve hundred ten of this

article, as authorized by the act which enacted this section, such

industrial development agency shall provide a certified written notice

to the state comptroller that it has issued, or is about to issue, such

notes, bonds or other obligations. Such notice shall set forth in detail

the term, amount, interest rate and payment schedule of such bonds,

notes or other obligations, and the amounts due from each county

attributable to net collections from the respective counties, as

described in subdivision (b) of this section, together with such other

information as the comptroller shall require. Such agency shall provide

a copy of such notice to the chief fiscal officer of each such county.

Such agency shall provide the first of such notices to the comptroller

at least ninety days prior to the date that the comptroller is expected

to pay net collections, as described in subdivision (b) of this section,

and then at least ninety days prior to the beginning of each county's

fiscal year thereafter, until the comptroller is no longer expected to

make such payments of such net collections, provided that the first

notice to the comptroller under this section may contain estimates of

the term, amount, interest rate and payment schedules before the bonds,

notes or other obligations are issued in which case such agency shall

give a corrected notice to the comptroller within ten days after such

bonds, notes or other obligations are issued. If such agency gives such

an estimated notice and such bonds, notes or other obligations are not

issued, such agency shall give further notice to the comptroller that

net collections shall not be withheld from the counties.

(b) Upon the comptroller receiving (i) such complete, certified

written notice from such agency, and (ii) certified copies of

resolutions adopted by majority vote of the board of supervisors of each

such county (both and each of such boards concurring) authorizing and

requesting the comptroller to make such payments from such net

collections due such counties as the counties have agreed upon with such

agency, at least ninety days prior to the date that the comptroller is

expected to make the first payment under this section, the comptroller

shall, notwithstanding any provision of section twelve hundred sixty-one

of this article to the contrary, pay, on or before the fifteenth day of

each month, all or a portion of the net collections due Warren county,

but only out of net collections attributable to taxes imposed by such

county at the rate of one and one half percent pursuant to the authority

of subdivision (a) of section twelve hundred ten of this article (or, in

the event that Warren county's pledge is substituted, then only out of

net collections available to such county as a result of such substituted

pledge, as such substituted pledge and net collections are described in

subdivision i of section one of chapter five hundred one of the laws of

nineteen hundred ninety-nine, as added by the chapter of the laws of two

thousand which added this subdivision) and all or a portion of the net

collections due Washington county, but only out of the net collections

attributable to taxes imposed by such county at the rate of three

percent pursuant to the authority of subdivision (a) of such section

twelve hundred ten, as authorized by such counties' resolutions, to such

agency, on account of, and for the benefit of, such counties to meet

such counties' responsibilities under agreements amongst such counties

and such agency and the holders of such bonds, notes or other

obligations which are subject to such a pledge, or to the trustee of

such bonds, notes or other obligations. If so requested by both the

agency, as indicated in its notice to the comptroller, and by the

counties, as indicated in their concurring resolutions filed with the

comptroller, the comptroller shall make such payments to a trustee

pursuant to an indenture for bondholders or holders of notes or other

obligations, issued by such agency with respect to the Adirondack

resource recovery facility pursuant to the authority of the law which

enacted this section. Such payments by the comptroller on behalf of such

counties shall be applied monthly by such agency or, if paid directly to

the trustee, by such trustee, to pay the portion of service fees

measured by debt service costs or such other or additional portions of

the service fees that the counties shall authorize by resolution of each

of their respective boards of supervisors for solid waste disposal for

the counties pursuant to agreements entered into or to be entered into

concerning solid waste disposal fees, which agreements shall require

such agency or such trustee to electronically transfer the balances of

such payments not required to meet contractual obligations to the

respective county on or before the first day of the next succeeding

month.

(c) The comptroller shall not be responsible for any inaccuracy in the

amount of such payments based upon the schedule in the notice furnished

by such agency. The comptroller shall not be required to make payments

under this subdivision which are greater than the amounts of net

collections due Warren county from its tax imposed at the rate of one

and one half percent (or, in the event that Warren county's pledge is

substituted, due such county from its tax as available in the event of

such substituted pledge, as such substituted pledge and net collections

are described in subdivision i of section one of chapter five hundred

one of the laws of nineteen hundred ninety-nine, as added by the chapter

of the laws of two thousand which added this subdivision) or due

Washington county from its tax imposed at the rate of three percent and

available in the account described in subdivision (c) of section twelve

hundred sixty-one of this article, as certified to the comptroller by

the commissioner as provided in such subdivision (c) of section twelve

hundred sixty-one. Any balance of net collections due such counties

after the comptroller makes any payments required under this section

shall be paid to such counties in the manner provided in such

subdivision (c) of section twelve hundred sixty-one. The comptroller

shall be required to make payments under this section for only so long

as the counties are required to make payments of such net collections

under the payment schedule set forth in such agency's notice to the

comptroller.

(d) The comptroller may rely, without further inquiry, that Washington

county has incurred obligations to the agency, and Warren county

similarly has incurred obligations of Warren county to Washington county

and/or the agency, and that agreements have been duly approved by the

board of supervisors for each county and executed by the chairman of the

board of supervisors for each county authorizing use of net collections

as authorized in this section, payable by them, for all or a portion of

service fees measured by debt service and payments to reserve funds in

connection with any outstanding bonds, notes or other obligations now,

or hereafter issued by the agency for such purposes or such other

portions or additional portions of the service fees that the counties

shall authorize by resolution of each of their respective boards of

supervisors, and arising out of financing or refinancing of the

Adirondack resource recovery facility including the financing of the

purchase of any rights of private parties to acquire such facility

through an installment sale.