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

million, counties and school districts. (a) Except as otherwise provided

in this article, the local law, ordinance or resolution imposing any

county tax pursuant to this article may set aside for county purposes or

educational purposes all or any portion of the net collections

therefrom. In the event all or a portion of the net collections are so

set aside for educational purposes, the amounts thereof shall be

distributed and paid quarterly to the several school districts in the

county in accordance with the total average daily attendance for the

last preceding school year of pupils residing in each such district

(without regard to the location of the school attended), provided,

however, that in the case of school districts which are partially within

and partially without the county, such county shall make a distribution

to each such school district in accordance with the total average daily

attendance of the pupils in such school district who reside in such

county and in any such case, the amount to be raised by school taxes by

the district from the portion of such district within such county shall

be reduced by the amount so distributed.

(b) In the county of Monroe amounts not set aside for county purposes

shall be allocated quarterly to the city of Rochester and the area in

the county outside the city of Rochester in proportion to their

respective populations, determined in accordance with the latest federal

census or special population census taken pursuant to section twenty of

the general municipal law, completed and published prior to the end of

the quarter for which the allocation is made, which special census must

include the entire area of the county, provided, however, that a special

population census shall not be taken more often than once in every two

years. The county legislature may, by resolution adopted annually,

provide that of the amount so allocated to the area outside the city of

Rochester a portion thereof be allocated and paid to the several school

districts in such area in accordance with the number of public school

pupils residing in said districts and enrolled in kindergarten and

grades one to twelve inclusive at the close of the school year next

preceding the date of the adoption of said resolution. An enrollment for

a regular half day session shall be counted as one-half enrollment. The

location of the school attended shall not be considered except as

hereinafter provided for pupils attending city schools without the

payment of tuition. In the case of school districts which are partially

within and partially without the county payment shall be made to each

such school district in accordance with the enrollment of the pupils in

such school district who reside in such county. In all cases the amount

to be raised by school taxes by the school districts upon property

within the district or that portion of the district within the county

shall be reduced by the amount of tax revenue so received. Each school

district receiving said money shall indicate on each individual school

tax bill the amount of tax proceeds received from the county of Monroe

for that fiscal year. In the case of pupils who reside in the area

outside the city and who, by law, are attending public schools in the

city of Rochester without payment of tuition, the distribution of tax

revenue based on the enrollment of those pupils shall be paid to the

city of Rochester. The amount allocated to the area outside the city of

Rochester, less the amount, if any, so distributed to the school

districts and paid to the city of Rochester as above provided, and the

amount allocated to the city of Rochester shall be applied as provided

for by subdivision (c) of this section except that the county

legislature may provide by resolution that where any village elects to

have the amount which would otherwise be applied to reduce county taxes

and general town taxes upon real property in such village paid directly

to such village in lieu of such tax reduction, the portion of the amount

allocated, pursuant to subdivision (c) of this section, to the town in

which such village is wholly or partly situated which is to be paid

directly to such village shall be determined by the ratio which the

population of such village, or portion thereof within the town, bears to

the population of the entire town, determined in accordance with the

latest federal census or special population census taken pursuant to

section twenty of the general municipal law, completed and published

prior to the end of the quarter for which the allocation is made, which

special census must include the entire area of the town. Provided,

however, in determining such portion to be paid directly to such

village, such population ratio may be applied to no more than one-half

of the amount allocated to such town pursuant to subdivision (c) of this

section. Provided, further, that any resolution so enacted by the county

legislature shall only be effective for the calendar year or years

subsequent to its enactment and such resolution must be enacted before

the first day of October preceding the calendar year to which it

applies. Such resolution shall remain in effect for subsequent calendar

years unless rescinded by a resolution, but the enactment which rescinds

it must be enacted prior to the first day of October preceding the

calendar year for which the rescission is to apply.

(c) Amounts not set aside for county purposes or educational purposes

shall, except as otherwise provided in this section, be allocated

quarterly to the cities and the area in the county outside the cities in

proportion to their respective populations, determined in accordance

with the latest decennial federal census or special population census

taken pursuant to section twenty of the general municipal law completed

and published prior to the end of the quarter for which the allocation

is made, which special census must include the entire area of the

county, or in such other proportion as may be agreed upon by the

elective governing body of the county and of each of the cities in the

county with the approval of the state comptroller, provided however,

that where a county does not contain a city, such amounts shall be so

allocated to the entire area of the county. Any such agreement or

approval thereof may be for a limited period. The amount so allocated to

the area outside the cities, or to the entire area of the county where

the county does not contain a city, shall be applied first to reduce

county taxes levied upon real property in the several towns in such

area. Any balance remaining shall then be applied to reduce general town

taxes levied upon real property in such area. In a county having a city

wholly contained therein having more than four hundred thousand

inhabitants according to the latest federal or special population census

referred to above, if any town, by local law, ordinance, or resolution

shall so provide, all or part of such amount shall be paid directly to

such town and shall be applied first to reduce general town taxes levied

upon real property in the town. Any balance remaining shall then be used

to reduce county taxes levied upon real property in the town. Any town,

other than a town within a county having a population of one million or

more and containing not more than three towns, or other than a town

within a county having a population of not less than seven hundred

thousand or more than eight hundred thousand, by local law, ordinance or

resolution, however, may provide that all or any specified part of the

amounts which would be so applied to reduce the county taxes and general

town taxes levied upon real property in such town shall be paid directly

to such town to be used for any town purpose. If any village, other than

a village within a county having a population of one million or more and

containing not more than three towns, by local law, ordinance or

resolution shall so provide, the amounts which would be so applied to

reduce the county and general town taxes levied upon real property in

such village shall be paid directly to such village in lieu of such tax

reduction. Where any village has elected to be paid directly as provided

in this subdivision, the amount to be paid to such village shall be

determined by the ratio that the full valuation of real property in the

village or portion thereof within the town in which such village is

located bears to the full valuation of real property in the entire town.

If a village wholly or partially within a town has so elected to be paid

directly, but the town in which such village is located has not so

elected, the amount allocated to the town in which such village is

wholly or partially situated shall be applied to reduce county taxes and

general town taxes in the area of the town outside such village. If the

amount allocated to a town exceeds the amount of the county taxes and

general town taxes levied upon real property in the town, the excess

shall be apportioned between the town and each village, if any, wholly

or partially situated therein, in the ratios that the full valuation of

real property in each such village or portion thereof within the town,

and the full valuation of real property in the portion of the town

outside of such village or villages, respectively, bear to the aggregate

full valuation of the entire town. The share of each such village shall

be paid directly to such village. The share of the town shall be

applied, first, to reduce taxes levied for part-town activities, and any

balance remaining shall be paid directly to the town, to be used only

for part-town activities. If a town and all the villages therein shall

have elected to be paid directly as provided in this subdivision, the

share of such town shall be applied to reduce taxes levied for part-town

activities, and any balance remaining or portion thereof, in the

discretion of the town board, may be applied to reduce general town

taxes, county taxes levied in the area of the town outside of such

villages or may be used for part-town activities, or any combination

thereof. If a town containing more than one village shall have elected

to be paid directly and one or more but not all of the villages shall

have also elected to be paid directly, the share of the town shall be

applied to reduce general town taxes levied in the area of the town

outside of the village or villages that have so elected, and any balance

remaining or portion thereof, in the discretion of the town board, may

be applied to reduce county taxes levied in the area of the town outside

of such village or villages. The amount to be applied in reduction of

county taxes and general town taxes in each town may be determined on

the basis of the ratio which the full valuation of real property in each

town bears to the aggregate full valuation of real property in all of

the towns in such county. The amount allocated to each city shall be

similarly applied to reduce the county tax levied upon real property in

such city, except that if any such city, except a city within a single

county having a population of one million or more and containing not

more than three towns, by local law, ordinance or resolution shall so

provide, the amount which would be so applied to reduce the county tax

levied upon real property in such city shall be paid directly to the

city in lieu of such tax reduction. If the amount allocated to a city

exceeds the amount of the county tax levied upon real property in such

city, such excess shall be paid to such city.

Notwithstanding any provision of this section to the contrary, where a

municipal assistance corporation has been created under article ten of

the public authorities law for a city located in a county, any amount

which such county allocates to such city under this subdivision shall be

payable directly to such city and shall not be provided by reduction of

the county tax levied upon real property in such city for so long as

such municipal assistance corporation shall exist.

In the alternative, the amount to be applied in reduction of county

taxes and general town taxes in each town may be determined on the basis

of the respective populations of the several towns in such county,

determined in accordance with the latest federal census or special

population census taken pursuant to section twenty of the general

municipal law, completed and published prior to the end of the quarter

for which the allocation is made, which special census must include the

entire area of the county.

Any local law, ordinance or resolution enacted by a city, town or

village pursuant to this subdivision shall only be effective for the

calendar year or years subsequent to its enactment and, further, shall

only be effective if it is mailed by registered or certified mail to the

chief fiscal officer of the county in which the city, town or village is

located before the first day of September preceding the calendar year

for which the election is made by such local law, ordinance or

resolution. Such local law, ordinance or resolution shall remain in

effect for subsequent calendar years until rescinded by local law,

ordinance or resolution, but the enactment shall rescind the election

only if it is mailed, in the same manner already provided for in this

subdivision, to the chief fiscal officer of the county in which the

city, town or village is located before the first day of September

preceding the calendar year for which the rescission is to apply. The

foregoing provisions of this paragraph notwithstanding, where a county

imposes a sales and use tax to be effective on a date after the adoption

of its budget but within the fiscal year for which such budget has been

adopted, and the estimated revenues from such tax include an amount not

set aside for county purposes or educational purposes, and such amount

has not been included in budget revenues for such fiscal year for

allocation in reduction of taxes on real property as provided in this

subdivision, a local law, ordinance or resolution enacted by a city,

town or village pursuant to this subdivision shall be effective as of

the effective date of such tax if mailed by registered or certified mail

to the chief fiscal officer of the county in which the city, town or

village is located within thirty days after the enactment by the county

of the local law, ordinance or resolution imposing such tax.

The foregoing provisions of this subdivision notwithstanding, in the

county of Orange where any village within such county has elected to be

paid directly as provided in this subdivision, the amount to be paid to

such village shall be determined by the ratio that the population of

such village or portion thereof within the town in which such village is

located bears to the total population of the entire town, except that

this provision shall not apply to the village of Highland Falls for

which the amount to be paid shall be determined by the foregoing

provisions of this subdivision. The population shall be determined in

accordance with the latest federal census or special population census

taken pursuant to section twenty of the general municipal law, completed

and published prior to the end of the quarter for which the allocation

is made, which special census must include the entire area of such

county.

The foregoing provisions of this subdivision notwithstanding, in the

county of Monroe, beginning in nineteen hundred ninety-six, towns

located within the county shall be paid directly that part of the net

collections for the quarterly allocations which are determined to be

allocable to such towns and are in excess of thirteen million seven

hundred fifty thousand dollars (fifty-five million dollars annually, the

"base amount"), if any, derived solely from the imposition of sales and

compensating use taxes by the county at the three percent rate

authorized by the opening paragraph of section twelve hundred ten of

this article, which would otherwise be so applied to reduce county taxes

and general town taxes levied upon real property in such towns,

provided, however, if the annual allocation to such towns is less than

the base amount, a sum equal to the difference between the allocation

and the base amount shall be deducted from the immediately following

payment or payments to be made directly to such towns as required to

satisfy such sum in full, and provided further, however, that any

adjustments necessary to reconcile the amounts applied to reduce the

county taxes and general town taxes levied upon real property in the

towns for the years nineteen hundred ninety-four and nineteen hundred

ninety-five to the actual allocations to the towns for such years shall

be made against the amounts to be paid to the towns in the years

nineteen hundred ninety-seven and thereafter. In the event that the

annual allocation to such towns is less than the base amount for at

least two consecutive years, a sum equal to the difference between the

allocation and the base amount shall be deducted from the amount applied

to reduce county taxes and general town taxes levied upon real property

in such towns in the year or years following such consecutive years

until the annual allocation to such towns exceeds the base amount, the

foregoing provisions of this subdivision or any other law

notwithstanding. If the state reduces the rate of taxation authorized

for Monroe county by section twelve hundred ten of this article or

reduces the amount distributed by the state to Monroe county from the

taxes, penalties and interest imposed by Monroe county pursuant to this

article, the county shall have the right to adjust the amount applied to

reduce county taxes and general town taxes levied upon real property in

subsequent years.

(d) (1) Where a county and a city therein both impose the same taxes

described in sections twelve hundred two, twelve hundred three or twelve

hundred ten, the county shall have power to impose or continue to impose

such taxes on the area of the county outside such city up to the maximum

rate authorized therefor. In such event, the portion of the net

collections received by the county by reason of its additional rate on

such area, shall be allocated quarterly to the several cities and towns

in such area on the basis of the ratio which the full valuation of real

property in each city or town bears to the aggregate full valuation of

real property in all of the cities and towns in such area provided,

however, that, in such event, in Niagara county, such portion of net

collections received by Niagara county shall be allocated quarterly to

the several cities and towns in such area on the basis of the ratio

which the population of each city or town bears to the aggregate

population of all of the cities and towns in such area, such populations

determined in accordance with the latest decennial federal census or

special population census taken pursuant to section twenty of the

general municipal law completed and published prior to the end of the

quarter for which the allocation is made, which special census must

include the entire area of the county. The amount allocated to each town

shall be applied first to reduce county taxes levied upon real property

in such town and any balance remaining shall be applied to reduce

general town taxes levied upon real estate; provided, however, that any

town or village other than any town or village within a county having a

population of one million or more and containing not more than three

towns, shall have power, in the manner provided in subdivision (c) of

this section, to elect to receive a direct payment of the amounts which

would be so applied to reduce county taxes and general town taxes levied

upon real property in such town or village. Where any village has

elected to be paid directly as provided in this subdivision, the amount

to be paid to such village shall be determined by the ratio that the

full valuation of real property in the village or portion thereof within

the town in which such village is located bears to the full valuation of

real property in the entire town. If a village wholly or partially

within a town has so elected to be paid directly, but the town in which

such village is located has not so elected, the amount allocated to the

town in which such village is wholly or partially situated shall be

applied to reduce county taxes and general town taxes in the area of the

town outside such village or villages. If the amount allocated to a town

exceeds the amount of the county taxes and general town taxes levied

upon real property in the town, the excess shall be apportioned between

the town and each village, if any, wholly or partially situated therein,

and paid over or applied in the manner provided in subdivision (c) of

this section. The amount allocated to each city in such area shall be

similarly applied to reduce county taxes levied upon real property in

such city, except that if any such city except any city within a single

county having a population of one million or more and containing no more

than three towns, shall so provide in the manner provided in subdivision

(c) of this section, the amount which would be so applied to reduce

county taxes levied upon real property in such city shall be paid

directly to the city in lieu of such tax reduction. If the amount

allocated to the city exceeds the amount of the county tax levied upon

real property in the city, such excess shall be paid to the city.

Notwithstanding any provision of this section to the contrary, where a

municipal assistance corporation has been created under article ten of

the public authorities law for a city located in a county, any amount

which such county allocates to such city under this subdivision shall be

payable directly to such city and shall not be provided by reduction of

the county tax levied upon real property in such city for so long as

such municipal assistance corporation shall exist.

Any local law, ordinance or resolution enacted by a city, town or

village pursuant to this subdivision shall only be effective for the

calendar year or years subsequent to its enactment and, further, shall

only be effective if it is mailed by registered or certified mail to the

chief fiscal officer of the county in which the city, town or village is

located before the first day of September preceding the calendar year

for which the election is made by such local law, ordinance or

resolution. Such local law, ordinance or resolution shall remain in

effect for subsequent calendar years until rescinded by local law,

ordinance or resolution, but the enactment shall rescind the election

only if it is mailed, in the same manner already provided for in this

subdivision, to the chief fiscal officer of the county in which the

city, town or village is located before the first day of September

preceding the calendar year for which the rescission to apply. The

foregoing provisions of this paragraph notwithstanding, where a county

imposes a sales and use tax to be effective on a date after the adoption

of its budget but within the fiscal year for which such budget has been

adopted, and the estimated revenues from such tax include net

collections received by the county by reason of its additional rate on

the area of the county outside a city imposing the same taxes, and such

net collections have not been included in budget revenues for such

fiscal year for allocation in reduction of taxes on real property as

provided in this subdivision, a local law, ordinance or resolution

enacted by a city, town or village pursuant to this subdivision shall be

effective as of the effective date of such tax if mailed by registered

or certified mail to the chief fiscal officer of the county in which the

city, town or village is located within thirty days after the enactment

by the county of the local law, ordinance or resolution imposing such

tax.

(2) Notwithstanding any provision of general, special or local law to

the contrary, if at any time from the effective date of the Buffalo

fiscal stability authority act until June thirtieth, two thousand

thirty-seven any city in the county of Erie imposes sales and

compensating use taxes described in section twelve hundred ten of this

article, then the county of Erie shall not be required to allocate under

paragraph one of this subdivision, any net collections from its taxes

imposed during such period; instead it shall continue to allocate net

collections from its taxes to any city in the county which does not

impose such taxes and to the area of the county outside the cities, in

accordance with the terms of the most current agreement among such

county and the cities in the county entered into pursuant to subdivision

(c) of this section.

(3) Notwithstanding any provision of general, special or local law to

the contrary, if at any time from the effective date of the Erie county

fiscal stability authority act until December thirty-first, two thousand

thirty-nine, any city in the county of Erie imposes sales and

compensating use taxes described in section twelve hundred ten of this

article, then the county of Erie shall not be required to allocate under

paragraph one of this subdivision any net collections from its taxes

imposed during such period; instead it shall continue to allocate net

collections from its taxes to any city in the county which does not

impose such taxes and to the area of the county outside the cities, in

accordance with the terms of the most current agreement among such

county and the cities in the county entered into pursuant to subdivision

(c) of this section.

(4) Notwithstanding any provision of law to the contrary, for purposes

of this subdivision, a county and a city in such county shall not be

deemed to impose different taxes because one makes the election

described in subdivision (m) of section eleven hundred eleven of this

chapter and the other does not make such election.

(e) Where all or a portion of the net collections from a tax imposed

by a county pursuant to this article is set aside for educational

purposes or for allocation and distribution to the cities in the county

and to the area outside the cities, or both, or where a tax or taxes are

imposed pursuant to section twelve hundred four of this article for

educational purposes, the portion of net collections so set aside by a

county shall not be decreased or eliminated nor shall a tax so imposed

by a city be eliminated unless the local law, ordinance or resolution

effectuating such decrease or elimination is adopted by the county or

city and written notice of such adoption is given to the school

authorities of the school districts and the governing bodies of the

cities, towns or villages affected thereby at least six months prior to

the commencement of their respective fiscal years. The school

authorities of such a school district or the governing body of such

city, town or village may waive the requirement that such local law,

ordinance or resolution be so adopted and such written notice given.

(f) As used in this article the following terms shall mean or include:

(1) Net collections. The moneys collected from a tax or taxes imposed

pursuant to this article, after deducting therefrom expenses of

administration and collection and amounts refunded or to be refunded.

(2) General Town taxes. Taxes levied for any town purpose, including

highways, upon the entire area of a town.

(3) Full valuation of real property. The assessed valuation of real

property divided by the equalization rate as determined in accordance

with article eight of the real property tax law.

(4) Part-town activities. Activities of town government, including

highway programs, which are chargeable to the area of the town outside

of villages, exclusive of special district purposes, unless such special

district is a fire protection district coterminous with the area of a

town outside of villages.