N.Y. Tax Law § 1262

Current through 2024 NY Law Chapter 456
Section 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.

N.Y. Tax Law § 1262