S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1104
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                    January 8, 2015
                                      ___________
       Introduced by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. BRENNAN,
         KATZ,  LAVINE,  PEOPLES-STOKES, ROBINSON, RUSSELL, THIELE -- read once
         and referred to the Committee on Education
       AN ACT to amend the education law, the real property tax law and the tax
         law, in relation to abolishing certain  school  taxes,  providing  for
         alternative  taxes  and  state  distribution  to school districts; and
         repealing certain provisions of the real property tax law and the  tax
         law relating to certain taxes
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Title V of the education law is amended  by  adding  a  new
    2  article 71 to read as follows:
    3                                 ARTICLE 71
    4                        FINANCING OF SCHOOL DISTRICTS
    5  SECTION 3501. LEGISLATIVE INTENT.
    6          3502. BASIC QUALITY EDUCATION.
    7          3503. MINIMUM APPORTIONMENT.
    8          3504. COLLECTION AND DISTRIBUTION.
    9          3505. CONSTRUCTION WITH OTHER LAWS.
   10          3506. SEVERABILITY.
   11    S  3501.  LEGISLATIVE  INTENT.  IT IS THE INTENT OF THE LEGISLATURE TO
   12  FULFILL ITS OBLIGATIONS UNDER ARTICLE ELEVEN OF THE  STATE  CONSTITUTION
   13  WITH  RESPECT  TO THE FINANCING OF PUBLIC SCHOOLS WITHIN THIS STATE AND,
   14  AT THE SAME TIME, ELIMINATE THE INEQUITABLE AND REGRESSIVE  REAL  ESTATE
   15  TAX  AS  THE  SUPPORT  OF  SUCH  SCHOOLS. THE LEGISLATURE HEREBY FURTHER
   16  INTENDS TO GUARANTEE THE QUALITY AND EQUALITY OF EDUCATION FOR  ALL  OUR
   17  CHILDREN, WHILE LEAVING WITH THE INDIVIDUAL SCHOOL DISTRICTS THE PRESENT
   18  LEVEL OF LOCAL CONTROL INCLUDING THE AUTHORITY TO PERMIT OR PROHIBIT THE
   19  TRANSFER  OF  STUDENTS  INTO OR OUT OF SUCH DISTRICTS IN ACCORDANCE WITH
   20  THE PROVISIONS OF THIS CHAPTER.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06246-02-5
       A. 1104                             2
    1    S 3502. BASIC QUALITY EDUCATION. 1. THE STATE SHALL ASSUME  ALL  COSTS
    2  OF  BASIC  QUALITY  EDUCATION,  IN  ACCORDANCE  WITH SECTION THIRTY-FIVE
    3  HUNDRED FOUR OF THIS ARTICLE, INCLUDING ALL GENERAL AND  SPECIAL  EDUCA-
    4  TIONAL  SERVICES WHICH THE COMMISSIONER, UNDER GUIDELINES ESTABLISHED BY
    5  THE  LEGISLATURE, SHALL DEFINE AS NECESSARY. BASIC QUALITY EDUCATION, AS
    6  DEFINED BY THE COMMISSIONER, SHALL ALLOW  SUFFICIENT  LATITUDE  SO  THAT
    7  CHOICES  MAY  BE  MADE  BY  LOCAL SCHOOL DISTRICTS WITH RESPECT TO THEIR
    8  INDIVIDUAL NEEDS. AS USED IN  THIS  ARTICLE  "BASIC"  SHALL  MEAN  EQUAL
    9  SERVICES  TO  ALL  PUPILS REGARDLESS OF DIFFERENCES IN COST IN DIFFERENT
   10  DISTRICTS FOR SUCH SERVICES.
   11    2. SUCH COSTS SHALL BE FUNDED AS PROVIDED FOR BY THE  LEGISLATURE,  IN
   12  CONJUNCTION WITH THE ELIMINATION OF REAL ESTATE TAXES FOR THE SUPPORT OF
   13  EDUCATION.  WITHIN  THE CITIES OF NEW YORK, BUFFALO, ROCHESTER, SYRACUSE
   14  AND YONKERS, THE TAX ON REAL PROPERTY SHALL BE  REDUCED  BY  THE  DOLLAR
   15  AMOUNT OF SUCH CITY'S SHARE OF THE COST OF PUBLIC SCHOOL EDUCATION. SUCH
   16  REDUCTION  SHALL BE APPORTIONED TO ALL REAL PROPERTY TAXPAYERS ON A PRO-
   17  RATA BASIS, AND TENANTS SHALL  RECEIVE  TAX  CREDITS,  TAX  REBATES,  OR
   18  REDUCTIONS  IN RENT AS PROVIDED IN SECTION FOUR HUNDRED SIXTY-SEVEN-I OF
   19  THE REAL PROPERTY TAX LAW.
   20    3. EACH SCHOOL DISTRICT SHALL SUBMIT A BASIC BUDGET TO THE  DEPARTMENT
   21  FOR PURPOSES OF DETERMINING REIMBURSABLE SERVICES.
   22    4.  THE  DEPARTMENT,  UNDER  DIRECTION  OF THE BOARD OF REGENTS, SHALL
   23  ESTABLISH A SCHEDULE OF MANDATORY BASIC SERVICES  AND  AUTHORIZED  COSTS
   24  THEREFOR  RELATED  TO  DIFFERING  COSTS THROUGHOUT THE STATE. SUCH BASIC
   25  SCHEDULE SHALL REFLECT GUIDELINES ESTABLISHED FOR THIS  PURPOSE  BY  THE
   26  LEGISLATURE.
   27    S 3503. MINIMUM APPORTIONMENT. IN ANY SCHOOL YEAR A DISTRICT MAY ELECT
   28  TO RECEIVE AS ITS BASIC BUDGET THE HIGHEST OF:
   29    1.  THE  DISTRICT  BUDGET OF THE SCHOOL YEAR DURING WHICH THIS ARTICLE
   30  SHALL TAKE EFFECT, EXCEPT THAT THIS  APPORTIONMENT  OPTION  SHALL  EXIST
   31  ONLY  FOR  THE  PERIOD  NOT  EXCEEDING THE FIVE SCHOOL YEARS IMMEDIATELY
   32  AFTER THIS ARTICLE SHALL TAKE EFFECT.
   33    2. THE PRODUCT OF (A) THE DISTRICT BUDGET OF THE  SCHOOL  YEAR  DURING
   34  WHICH  THIS  ARTICLE  SHALL TAKE EFFECT DIVIDED BY THE ENROLLMENT AT THE
   35  START OF SUCH YEAR AND (B) THE ENROLLMENT AT THE  START  OF  THE  SCHOOL
   36  YEAR FOR WHICH THE BUDGET IS BEING DETERMINED. THIS APPORTIONMENT OPTION
   37  SHALL  EXIST  ONLY  FOR  THE  PERIOD NOT EXCEEDING THE FIVE SCHOOL YEARS
   38  IMMEDIATELY AFTER THE EFFECTIVE DATE OF THIS ARTICLE.
   39    3. THE BASIC BUDGET SUBMITTED IN ACCORDANCE WITH SUBDIVISION THREE  OF
   40  SECTION  THIRTY-FIVE HUNDRED TWO OF THIS ARTICLE, EXCEPT THAT IN NO CASE
   41  SHALL THE PER PUPIL APPORTIONMENT EXCEED THE PER PUPIL APPORTIONMENT  OF
   42  THE  PREVIOUS  YEAR  BY  MORE THAN THE AVERAGE STATEWIDE INCREASE OF PER
   43  PUPIL BUDGETS PLUS TEN PER CENTUM OF THE PER PUPIL APPORTIONMENT OF  THE
   44  PREVIOUS YEAR.
   45    S 3504. COLLECTION AND DISTRIBUTION. NOTWITHSTANDING THE PROVISIONS OF
   46  ANY  OTHER  LAW,  CODE, RULE OR REGULATION, THE STATE SHALL, WITHIN FIVE
   47  YEARS FROM THE EFFECTIVE DATE OF THIS ARTICLE, COLLECT AND DISTRIBUTE TO
   48  SCHOOL DISTRICTS ALL MONEYS RELATING TO THE FINANCING OF  PUBLIC  EDUCA-
   49  TION,  EXCLUSIVE  OF HIGHER EDUCATION, WITHIN THIS STATE, AS PROVIDED BY
   50  THE LEGISLATURE. THIS ASSUMPTION BY THE STATE  OF  ALL  COSTS  OF  BASIC
   51  QUALITY  EDUCATION  SHALL  BE ACCOMPLISHED IN APPROXIMATELY EQUAL INCRE-
   52  MENTS OVER A FIVE YEAR PERIOD FROM THE EFFECTIVE DATE OF  THIS  ARTICLE.
   53  DURING  THIS PERIOD, THE AMOUNT OF MONEY DERIVED BY EACH SCHOOL DISTRICT
   54  FROM REAL PROPERTY TAXES SHALL BE REDUCED ACCORDINGLY. AFTER FIVE  YEARS
   55  FROM  THE  EFFECTIVE  DATE  OF  THIS  ARTICLE, MONEYS DISTRIBUTED TO ANY
   56  SCHOOL DISTRICT SHALL BE REDUCED BY THE AMOUNT OF ANY REVENUES  RECEIVED
       A. 1104                             3
    1  BY  SUCH  SCHOOL  DISTRICT  FROM TAXES IMPOSED ON REAL PROPERTY BY OR ON
    2  BEHALF OF SUCH SCHOOL DISTRICT.
    3    S  3505.  CONSTRUCTION WITH OTHER LAWS. THE PROVISIONS OF THIS ARTICLE
    4  SHALL BE CONTROLLING, NOTWITHSTANDING THE PROVISIONS OF ANY  OTHER  LAW,
    5  CODE,  RULE OR REGULATION TO THE CONTRARY. HOWEVER, NO EXISTING RIGHT OR
    6  REMEDY OF ANY CHARACTER SHALL BE LOST, IMPAIRED OR AFFECTED BY REASON OF
    7  THIS ARTICLE, NOR SHALL THE VALIDITY OF ANY ACTION TAKEN BY  ANY  PUBLIC
    8  OFFICIAL UNDER THE LAW IN FORCE IMMEDIATELY PRIOR TO THE TIME THIS ARTI-
    9  CLE  SHALL  TAKE  EFFECT  BE  AFFECTED BY THE ENACTMENT OF THIS ARTICLE.
   10  COLLECTION OF ALL  OUTSTANDING  TAX  LIENS  SHALL  BE  PURSUANT  TO  THE
   11  PROVISIONS OF THE REAL PROPERTY TAX LAW.
   12    S  3506.  SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION OR
   13  PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT  JURIS-
   14  DICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
   15  DATE  THE  REMAINDER  THEREOF, BUT SHALL BE CONFINED IN ITS OPERATION TO
   16  THE CLAUSE,  SENTENCE,  PARAGRAPH,  SECTION  OR  PART  THEREOF  DIRECTLY
   17  INVOLVED  IN  THE  CONTROVERSY  IN  WHICH  SUCH JUDGMENT SHALL HAVE BEEN
   18  RENDERED.
   19    S 2. Article 13 of the real property tax law is REPEALED.
   20    S 3. The real property tax law is amended  by  adding  a  new  section
   21  467-i to read as follows:
   22    S  467-I.  PROVISIONS  FOR  TENANTS. IN EVERY CASE WHERE TAXES ON REAL
   23  PROPERTY ARE REDUCED DUE TO THE REDUCTION OF SCHOOL TAXES ON SUCH  PROP-
   24  ERTY, THE AMOUNT OF SUCH REDUCTION SHALL BE PRO-RATED AMONG THE TENANTS,
   25  IF  ANY, OF SUCH REAL PROPERTY, AND THE TOTAL RENTS REDUCED IN AN AMOUNT
   26  EQUAL TO SUCH REAL PROPERTY TAX REDUCTION. WHERE SUCH RENT REDUCTION  IS
   27  PRECLUDED  BY  A  LEASE  OR  OTHER  AGREEMENT,  SUCH  REAL  PROPERTY TAX
   28  REDUCTION SHALL ENTITLE SUCH TENANTS TO A  TAX  CREDIT  IN  THAT  AMOUNT
   29  AGAINST  INCOME  TAXES  DUE,  OR TO A REBATE FOR ANY AMOUNT IN EXCESS OF
   30  INCOME TAXES DUE, UNTIL THE EXPIRATION OF SUCH LEASE  OR  AGREEMENT,  AT
   31  WHICH TIME THE RENT SHALL BE REDUCED ACCORDINGLY.
   32    S  4.  Subdivision  1  and  paragraphs (b) and (c) of subdivision 3 of
   33  section 972 of the real property tax law, subdivision  1  and  paragraph
   34  (c)  of  subdivision  3 as amended and paragraph (b) of subdivision 3 as
   35  added by section 12 of part B of chapter 389 of the laws  of  1997,  are
   36  amended to read as follows:
   37    1.  Adoption.   Notwithstanding any provisions of this chapter, or any
   38  other general, special or local law to  the  contrary,  the  legislative
   39  body  of  a  county may, by local law, provide that thereafter and until
   40  such local law is repealed, the county shall become the  tax  collection
   41  agency for the purpose of collecting taxes in installments as prescribed
   42  by this title [and by sections thirteen hundred thirty-six through thir-
   43  teen  hundred  forty-two  of this chapter].  The term "taxes" as used in
   44  this title shall include special assessments which  are  levied  by  the
   45  county  legislative  body  at the time and in the manner provided by law
   46  for the levy of county and town taxes.
   47    (b) If an installment is not paid on or before the  date  it  is  due,
   48  additional  interest  shall be added as provided by section nine hundred
   49  seventy-five [or section  thirteen  hundred  forty]  of  this  [chapter]
   50  TITLE.
   51    (c) The amount of any interest which shall be added to any installment
   52  pursuant  to  this  section  and  section  nine hundred seventy-five [or
   53  section thirteen hundred forty] of this [chapter] TITLE shall belong  to
   54  the county.
   55    S  5.  Subdivision  6  of section 975 of the real property tax law, as
   56  added by chapter 953 of the laws of 1962, is amended to read as follows:
       A. 1104                             4
    1    6. The county treasurer of a county which  has  enacted  a  local  law
    2  pursuant to section nine hundred seventy-two of this [chapter] TITLE may
    3  promulgate  and  amend  suitable  rules  and regulations prescribing the
    4  necessary forms for carrying into effect the provisions  of  this  title
    5  [and  of  article  thirteen of this chapter] relating to the installment
    6  payment of taxes.
    7    S 6. Subdivision 5 of section 1618 of the real property  tax  law,  as
    8  added  by  chapter  512  of  the  laws of 1993 and as further amended by
    9  subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
   10  2010, is amended to read as follows:
   11    5. When the commissioner has established a final equalization rate for
   12  a  consolidated  assessing  unit  as a whole, school district and county
   13  taxes within the consolidated assessing unit shall be apportioned  with-
   14  out  the  use  of  equalization rates, notwithstanding the provisions of
   15  [articles] ARTICLE eight [and thirteen] of this chapter.
   16    S 7. The tax law is amended by adding a new section 601-b to  read  as
   17  follows:
   18    S  601-B. ADDITIONAL TAXES FOR EDUCATION. (A) IN ADDITION TO THE TAXES
   19  ON INCOME IMPOSED BY THIS CHAPTER FOR TAXABLE YEARS OR PERIODS ENDING ON
   20  OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND  FIFTEEN,  THERE  SHALL  BE
   21  IMPOSED  A  TAX EQUAL TO A PERCENT OF THE TAXES IMPOSED BY SUCH SECTIONS
   22  AND ARTICLES AS IS NECESSARY TO  FULFILL  THE  REQUIREMENTS  OF  SECTION
   23  THIRTY-FIVE  HUNDRED  TWO OF THE EDUCATION LAW. SUCH A TAX MAY BE LEVIED
   24  EITHER AS A SURTAX, OR BY READJUSTMENT OF THE APPROPRIATE TAX SCHEDULES.
   25    (B) EACH SCHOOL DISTRICT MAY ALSO INCREASE THE  ADDITIONAL  TAXES  FOR
   26  EDUCATION, IMPOSED PURSUANT TO SUBSECTION (A) OF THIS SECTION, BY RESOL-
   27  UTION  ADOPTED  BY  A  TWO-THIRDS VOTE PRIOR TO THE LEVY OF TAXES IN ANY
   28  YEAR. SUCH RESOLUTION SHALL PROVIDE  FOR  THE  INCREASE  TO  BE  IMPOSED
   29  EITHER  IN  THE  FORM  OF  A  HIGHER  SURTAX RATE OR A STANDARD LUMP SUM
   30  AMOUNT; PROVIDED, THAT ALL SUCH PROCEEDS FROM THE INCREASE ON THE  ADDI-
   31  TIONAL TAX FOR EDUCATION BE COLLECTED AND ACCRUED TO THE SCHOOL DISTRICT
   32  IN WHICH SUCH TAX WAS COLLECTED.
   33    (C) THE COMMISSIONER SHALL ESTABLISH A SEPARATE ACCOUNT OR ACCOUNTS TO
   34  RECEIVE  THE  ADDITIONAL  TAX IMPOSED BY SUBSECTIONS (A) AND (B) OF THIS
   35  SECTION AND SHALL PAY INTO SUCH ACCOUNT OR ACCOUNTS  THE  TOTAL  OF  ALL
   36  SUCH  TAXES WHEN RECEIVED AND RETAIN THE SAME SUBJECT TO DISBURSEMENT IN
   37  ACCORDANCE WITH THE PROVISIONS OF THE EDUCATION LAW.
   38    S 7-a. The real property tax law is amended by adding  a  new  section
   39  307-b to read as follows:
   40    S  307-B.  ADDITIONAL  TAX ON NON-RESIDENTIAL PROPERTY. 1. THE COMMIS-
   41  SIONER OF TAXATION AND FINANCE SHALL  ESTABLISH  AN  ADDITIONAL  TAX  ON
   42  NON-RESIDENTIAL  PROPERTY  TO  BE  IMPOSED  IN ADDITION TO OTHER LOCALLY
   43  LEVIED PROPERTY TAXES. SUCH TAX SHALL BE LEVIED BY THE STATE THROUGH THE
   44  COUNTY, CITY, TOWN OR VILLAGE GOVERNING BODY AND SHALL  BE  A  LOW-RATE,
   45  UNIFORM  TAX.  FOR  THE  PURPOSES  OF THIS SUBDIVISION, "NON-RESIDENTIAL
   46  PROPERTY" SHALL MEAN ANY (A) NON-RESIDENTIAL  COMMERCIAL  PROPERTY,  (B)
   47  INDUSTRIAL PROPERTY, (C) AGRICULTURAL PROPERTY AND (D) VACANT LAND WHICH
   48  IS EITHER COMMERCIAL PROPERTY OR INDUSTRIAL PROPERTY.
   49    2. THE COMMISSIONER OF TAXATION AND FINANCE SHALL SET THE RATE FOR THE
   50  ADDITIONAL  TAX  ON NON-RESIDENTIAL PROPERTY, AS REQUIRED BY SUBDIVISION
   51  ONE OF THIS SECTION, AT AN ADEQUATE RATE TO PROVIDE FUNDING FOR  MEETING
   52  THE  REQUIREMENTS  OF  SECTIONS  THIRTY-FIVE HUNDRED ONE AND THIRTY-FIVE
   53  HUNDRED TWO OF THE EDUCATION  LAW.  THE  COMMISSIONER  OF  TAXATION  AND
   54  FINANCE SHALL ESTABLISH A SEPARATE ACCOUNT TO RECEIVE THE ADDITIONAL TAX
   55  IMPOSED  BY  SUBDIVISION  ONE  OF  THIS  SECTION AND SHALL PAY INTO SUCH
   56  ACCOUNT THE TOTAL OF ALL SUCH TAXES WHEN RECEIVED AND  RETAIN  THE  SAME
       A. 1104                             5
    1  SUBJECT  TO  DISBURSEMENT  IN  ACCORDANCE WITH THE PROVISIONS OF ARTICLE
    2  SEVENTY-ONE OF THE EDUCATION LAW.
    3    S 8. Sections 1204, 1211 and 1212 of the tax law are REPEALED.
    4    S  9.  The  tax law is amended by adding a new section 1200 to read as
    5  follows:
    6    S 1200. CERTAIN TAXES REDUCED. NOTWITHSTANDING THE PROVISIONS  OF  ANY
    7  OTHER  SECTION  OF THIS ARTICLE, ON AND AFTER THE EFFECTIVE DATE OF THIS
    8  SECTION, THE PROVISIONS OF THIS ARTICLE RELATING TO TAXES FOR THE  BENE-
    9  FIT  OF  SCHOOL  DISTRICTS OR SCHOOL PURPOSES SHALL BE DEEMED REDUCED IN
   10  ACCORDANCE WITH SECTION THIRTY-FIVE HUNDRED FOUR OF THE EDUCATION LAW.
   11    S 10. Section 1213 of the tax law, as amended by section 2 of part  WW
   12  of chapter 57 of the laws of 2010, is amended to read as follows:
   13    S  1213. Deliveries outside the jurisdiction where sale is made. Where
   14  a sale of tangible personal  property  or  services,  including  prepaid
   15  telephone  calling  services, but not including other services described
   16  in subdivision (b) of section  eleven  hundred  five  of  this  chapter,
   17  including  an  agreement  therefor, is made in any city[,] OR county [or
   18  school district], but the property sold, the  property  upon  which  the
   19  services were performed or prepaid telephone calling or other service is
   20  or  will be delivered to the purchaser elsewhere, such sale shall not be
   21  subject to tax by such city[,] OR county [or school district].  However,
   22  if  delivery  occurs  or  will  occur  in a city[,] OR county [or school
   23  district] imposing a tax on the sale or use of  such  property,  prepaid
   24  telephone  calling  or  other  services, the vendor shall be required to
   25  collect from the  purchaser,  as  provided  in  section  twelve  hundred
   26  fifty-four  of  this  article,  the  aggregate sales or compensating use
   27  taxes imposed by the city, if any, AND county [and school  district]  in
   28  which delivery occurs or will occur, for distribution by the commission-
   29  er  to  such  taxing  jurisdiction or jurisdictions. For the purposes of
   30  this section delivery shall be deemed to include transfer of  possession
   31  to  the  purchaser  and the receiving of the property or of the service,
   32  including prepaid telephone calling service, by the purchaser.  Notwith-
   33  standing  the  foregoing,  where  a  transportation service described in
   34  paragraph ten of subdivision (c) of section eleven hundred five of  this
   35  chapter begins in one jurisdiction but ends in another jurisdiction, any
   36  tax  imposed  pursuant to the authority of this article shall be due the
   37  jurisdiction or jurisdictions where the service commenced.
   38    S 11. Section 1220 of the tax law, as amended by section 39 of part  Y
   39  of chapter 63 of the laws of 2000, is amended to read as follows:
   40    S  1220.  Territorial limitations. Any tax imposed under the authority
   41  of this article shall apply only within the territorial  limits  of  the
   42  city[,]  OR  county  [or  school district] imposing the tax, except that
   43  where the taxes described in subdivision (b) of section  eleven  hundred
   44  five  and  clauses (E), (G) and (H) of subdivision (a) of section eleven
   45  hundred ten OF THIS CHAPTER or the tax described in subdivision  (e)  of
   46  section  eleven  hundred  five  OF THIS CHAPTER is imposed by a city, as
   47  provided in section twelve hundred ten [or  twelve  hundred  eleven]  of
   48  this  [chapter] ARTICLE, any establishment located partially within such
   49  city and partially within a town or towns and  receiving  or  using  any
   50  services  or utilities provided by the city shall be deemed to be wholly
   51  within such city for the purposes of such taxes.
   52    S 12. Section 1222 of the tax law, as added by chapter 93 of the  laws
   53  of 1965, is amended to read as follows:
   54    S  1222. Taxes to be in addition to others. Except as expressly other-
   55  wise provided in this article, any tax imposed under  the  authority  of
   56  this  article shall be in addition to any and all other taxes authorized
       A. 1104                             6
    1  or imposed under any other provision of law. This article shall  not  be
    2  construed  as  limiting  the  power  of any city[,] OR county [or school
    3  district] to impose any other tax which it is authorized to impose under
    4  any other provision of law.
    5    S  13.  Section  1256 of the tax law, as amended by chapter 575 of the
    6  laws of 1965, is amended to read as follows:
    7    S 1256. Cooperation by  localities.  Every  city[,]  AND  county  [and
    8  school district] shall cooperate with the [state tax commission] COMMIS-
    9  SIONER  to  enable  [it] HIM OR HER to carry out [its] HIS OR HER duties
   10  under [articles] THIS ARTICLE AND ARTICLE twenty-eight [and twenty-nine]
   11  of this chapter. Every such locality shall furnish to such  [commission]
   12  COMMISSIONER those returns, reports and other information which the [tax
   13  commission]  COMMISSIONER  deems  necessary  to  carry  out such duties,
   14  except that cities having a population of one million or more,  may,  in
   15  their  discretion,  furnish  instead copies of such returns, reports and
   16  other information. Such copies shall be furnished at  the  [tax  commis-
   17  sion's]  COMMISSIONER'S expense, such expenses to be charged to the cost
   18  of administration.  Notwithstanding any other law to the  contrary,  the
   19  duty to furnish returns, reports and other information or copies thereof
   20  shall  apply  to [those returns and reports filed under taxes authorized
   21  under chapter eight  hundred  seventy-three  of  the  laws  of  nineteen
   22  hundred  thirty-four, as amended, chapter three hundred forty-one of the
   23  laws of nineteen hundred forty-six, as amended,  article  two-B  of  the
   24  general  city  law  and chapter two hundred seventy-eight of the laws of
   25  nineteen hundred forty-seven, as amended, and to such other] information
   26  which is relevant to the duties of  the  [tax  commission]  COMMISSIONER
   27  under  THIS  ARTICLE AND such [articles] ARTICLE twenty-eight [and twen-
   28  ty-nine] OR OTHER RELEVANT PROVISIONS OF THIS CHAPTER.
   29    S 14. Paragraph 1 of subdivision (g) of section 1132 of the  tax  law,
   30  as  amended  by  chapter  402 of the laws of 1986, is amended to read as
   31  follows:
   32    (1) The clerk of each county when performing the function of registra-
   33  tion of a motor vehicle, snowmobile, vessel or all  terrain  vehicle  or
   34  accepting  an  application for a certificate of title of a motor vehicle
   35  or vessel, pursuant to the authority of the vehicle and traffic law,  or
   36  the commissioner of motor vehicles, when such commissioner performs such
   37  functions, prior to performing such functions, shall act as the agent of
   38  the  [state tax commission] COMMISSIONER to collect any retail sales tax
   39  due under this article and under a sales tax imposed pursuant to section
   40  twelve hundred ten [or twelve hundred eleven] OF THIS CHAPTER upon sales
   41  of such motor vehicles, snowmobiles, vessels or all terrain vehicles  by
   42  persons  other  than  dealers  registered  under  sections  four hundred
   43  fifteen, twenty-two hundred twenty-two, twenty-two  hundred  fifty-seven
   44  and  twenty-two  hundred eighty-two of the vehicle and traffic law. Such
   45  county clerks and such commissioner shall also act  as  such  agents  to
   46  collect any compensating use tax due under section eleven hundred ten OF
   47  THIS  ARTICLE  and  under  a  compensating  use  tax imposed pursuant to
   48  section twelve hundred ten [or twelve hundred eleven]  OF  THIS  CHAPTER
   49  for  the use of a motor vehicle, snowmobile, vessel or all terrain vehi-
   50  cle within this state.  The commissioner of motor vehicles shall act  as
   51  such  agent  without  fee. Each such county clerk shall, after deducting
   52  his OR HER fee as provided in paragraph two  of  this  subdivision,  and
   53  such  commissioner shall remit to the tax commission all funds collected
   54  pursuant to this subdivision and shall follow such procedures  and  keep
   55  such   records   as   shall   be  prescribed  by  the  [tax  commission]
   56  COMMISSIONER.
       A. 1104                             7
    1    S 15. Subparagraph (iii) of paragraph 1 of subdivision (a) of  section
    2  1214  of  the tax law, as amended by chapter 481 of the laws of 2000, is
    3  amended to read as follows:
    4    (iii)  is  not engaged in carrying on in such jurisdiction any employ-
    5  ment, trade, business or profession in which the motor vehicle or vessel
    6  will be used in such jurisdiction, and such other proof as  the  commis-
    7  sioner  may require to ensure proper administration of the taxes imposed
    8  under the authority of [sections] SECTION twelve hundred ten [and twelve
    9  hundred eleven] of this article.
   10    S 16. Section 1217 of the tax law, as added by chapter 962 of the laws
   11  of 1966, subdivision (a) as amended by chapter 169 of the laws of  1970,
   12  is amended to read as follows:
   13    S  1217.  General transitional provisions. (a) For the purposes of any
   14  local law, ordinance or resolution imposing a local tax pursuant to  the
   15  authority  of section twelve hundred ten[, twelve hundred eleven, twelve
   16  hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE or increasing
   17  the rate of such tax, all references in section eleven  hundred  six  OF
   18  THIS  CHAPTER to August first, nineteen hundred sixty-five shall be read
   19  as referring to the effective date  of  such  local  law,  ordinance  or
   20  resolution,  all  references  in  said  section to April first, nineteen
   21  hundred sixty-five shall be read as referring  to  a  date  four  months
   22  prior  to  the effective date of such local law, ordinance or resolution
   23  and the reference in subdivision (b) of section eleven  hundred  six  OF
   24  THIS  CHAPTER to July thirty-first, nineteen hundred sixty-five shall be
   25  read as referring to the day immediately before the  effective  date  of
   26  such local law, ordinance or resolution.
   27    (b)  In  applying the provisions of section eleven hundred nineteen OF
   28  THIS CHAPTER with  respect  to  pre-existing  lump  sum  or  unit  price
   29  construction  contracts  to  a  tax on retail sales of tangible personal
   30  property or a compensating use tax imposed pursuant to the authority  of
   31  section  twelve  hundred ten [or twelve hundred eleven] OF THIS ARTICLE,
   32  all references in said section to the date of the enactment  of  article
   33  twenty-eight  OF  THIS  CHAPTER or the enactment of a law increasing the
   34  rate of tax imposed under said article shall be read as referring to the
   35  date of the enactment of the local law, ordinance or resolution imposing
   36  such local tax or increasing the rate thereof.
   37    S 17. Section 1223 of the tax law, as separately amended  by  chapters
   38  4, 8 and 9 of the laws of 2003 and subdivision (a) as amended separately
   39  by  chapters  191  and  217  of  the laws of 2013, is amended to read as
   40  follows:
   41    S 1223.  Limitations  on  rates.  (a)  No  transaction  taxable  under
   42  sections twelve hundred two [through] AND twelve hundred [four] THREE of
   43  this article shall be taxed pursuant to this article by any county or by
   44  any  city located therein, or by both, at an aggregate rate in excess of
   45  the highest rate set forth in  the  applicable  subdivision  of  section
   46  twelve  hundred one of this article or, in the case of any taxes imposed
   47  pursuant to the authority  of  section  twelve  hundred  ten  or  twelve
   48  hundred  eleven  of this article (other than taxes imposed by the county
   49  of Nassau, Erie, Steuben, Cattaraugus, Suffolk, Oneida, Genesee, Greene,
   50  Franklin, Hamilton, Herkimer, Tioga, Orleans, Allegany, Ulster,  Albany,
   51  Rensselaer,  Tompkins,  Wyoming, Columbia, Schuyler, Rockland, Chenango,
   52  Monroe, Chemung, Seneca, Sullivan, Wayne, Livingston, Schenectady, Mont-
   53  gomery, Delaware, Clinton, Niagara, Yates, Lewis, Essex, Dutchess, Scho-
   54  harie, Putnam,  Chautauqua,  Orange,  Oswego,  Ontario,  Jefferson,  St.
   55  Lawrence or Onondaga and by the county of Cortland and the city of Cort-
   56  land  and  by the county of Broome and the city of Binghamton and by the
       A. 1104                             8
    1  county of Cayuga and the city of Auburn and by the county of Otsego  and
    2  the  city of Oneonta and by the county of Madison and the city of Oneida
    3  and by the county of Fulton and the city of Gloversville or the city  of
    4  Johnstown  as provided in section twelve hundred ten of this article) at
    5  a rate in excess of three percent, except that, in the city of  Yonkers,
    6  in the city of Mount Vernon, in the city of New Rochelle, in the city of
    7  Fulton  and in the city of Oswego, the rate may not be in excess of four
    8  percent and in the city of White Plains, the rate may not be  in  excess
    9  of four percent and except that in the city of Poughkeepsie in the coun-
   10  ty  of Dutchess, if such county withdraws from the metropolitan commuter
   11  transportation   district   pursuant   to   section    twelve    hundred
   12  seventy-nine-b  of the public authorities law and if the revenues from a
   13  three-eighths percent rate of such tax imposed by such county,  pursuant
   14  to  the  authority  of  section  twelve hundred ten of this article, are
   15  required by local laws, ordinances or resolutions to be  set  aside  for
   16  mass transportation purposes, the rate may not be in excess of three and
   17  three-eighths percent.
   18    (b) If a transaction is taxed by both a county and a city, the rate of
   19  tax  on such transaction imposed by the county or city, not having prior
   20  right thereto pursuant to section twelve  hundred  twenty-four  OF  THIS
   21  SUBPART, shall be deemed to be reduced (or the entire tax eliminated, if
   22  necessary) to the extent necessary to comply with the foregoing require-
   23  ment. A tax imposed by a county upon any transaction, to the extent that
   24  it  would require a reduction in any tax rate imposed thereon by a city,
   25  shall not become effective in respect to any transaction taxed  by  such
   26  city  (or  in  respect of other similar transactions outside of the city
   27  which, if occurring in such city, would be subject  to  such  city  tax)
   28  before  the  commencement  of the city's next succeeding fiscal year and
   29  then only if the county shall have given notice  to  such  city  of  its
   30  imposition of a tax on such transaction at least six months prior to the
   31  commencement of such fiscal year, provided however that the local legis-
   32  lative  body  of  such city may waive the requirement of such notice and
   33  the postponement of the effective date of such tax. A city tax upon  any
   34  transaction,  to the extent that it would require a reduction in any tax
   35  rate imposed by a county thereon, shall not become effective in  respect
   36  of  any  transaction taxed by such county before the commencement of the
   37  county's next succeeding fiscal year and then only  if  the  city  shall
   38  have  given  notice  to  such  county of its imposition of a tax on such
   39  transaction at least six months prior to the commencement of such fiscal
   40  year, provided, however, that the local legislative body of such  county
   41  may  waive the requirement of such notice and postponement of the effec-
   42  tive date of such tax. However, whether or not the  six  months'  notice
   43  requirement  provided  in  this  section  has been waived, a tax imposed
   44  pursuant to the authority of  section  twelve  hundred  ten  [or  twelve
   45  hundred  eleven]  OF THIS ARTICLE shall still be subject to the require-
   46  ments provided for in the first three sentences of  subdivision  (d)  of
   47  such  [sections]  SECTION  and  in  subdivision  (e)  of such [sections]
   48  SECTION.
   49    S 18. Paragraph 2 of subdivision (b) of section 1224 of the  tax  law,
   50  as  amended  by  chapter  506 of the laws of 1976, is amended to read as
   51  follows:
   52    (2) all of the taxes described in article twenty-eight  as  authorized
   53  by  subdivision (a) of section twelve hundred ten[, or by section twelve
   54  hundred eleven,] OF THIS ARTICLE to the extent of one-half  the  maximum
   55  aggregate  rates authorized under such subdivision (a) [and such section
   56  twelve hundred eleven], except as otherwise provided in this section.
       A. 1104                             9
    1    S 19. Subdivision (k) of section 1224 of the tax law,  as  amended  by
    2  chapter  426  of  the laws of 1968 and separately relettered by chapters
    3  531, 574, 617, 718 and 719 of the laws of 1992, is amended  to  read  as
    4  follows:
    5    (k)  For  purposes  of this section, the term "prior right" shall mean
    6  the preferential right to impose any tax described  in  sections  twelve
    7  hundred  two  [and], twelve hundred three[,] AND twelve hundred ten [and
    8  twelve hundred eleven] OF THIS ARTICLE and thereby to pre-empt such  tax
    9  and  to preclude another municipal corporation from imposing or continu-
   10  ing the imposition of such tax to the extent that such  right  is  exer-
   11  cised.    However,  the right of pre-emption shall only apply within the
   12  territorial limits of the taxing jurisdiction having the right  of  pre-
   13  emption.
   14    S  20.  Subdivision  (a) of section 1235 of the tax law, as amended by
   15  chapter 459 of the laws of 1968, is amended to read as follows:
   16    (a) With respect to taxes  imposed  pursuant  to  subdivision  (a)  of
   17  section twelve hundred ten [and pursuant to section twelve hundred elev-
   18  en] OF THIS ARTICLE, the  use of tangible personal property purchased at
   19  retail  and  of  any  of  the services subject to the sales tax shall be
   20  exempt from the compensating use tax authorized under subdivision (a) of
   21  such section twelve hundred ten [and under section twelve hundred  elev-
   22  en,] to the extent that a retail sales tax or a compensating use tax was
   23  legally  due  and  paid thereon, without any right to a refund or credit
   24  thereof, to (1) any municipal corporation in this state or (2) any other
   25  state or jurisdiction within any other state, but only when it is  shown
   26  that  such  other state or jurisdiction allows a corresponding exemption
   27  with respect to the sale or use of tangible personal property or of  any
   28  of  the services upon which such a sale or compensating use tax was paid
   29  to this state and any of its municipal corporations, except as  provided
   30  in subdivision (b) of this section.
   31    S  21.  Section  1240 of the tax law, as amended by chapter 356 of the
   32  laws of 2014, is amended to read as follows:
   33    S 1240. Administration and  collection.  The  taxes  authorized  under
   34  sections  twelve hundred one through twelve hundred [four] THREE of this
   35  article which are now imposed shall  continue  to  be  administered  and
   36  collected  by the fiscal or other officers of the city, county or school
   37  district in the same manner as such taxes  have  been  administered  and
   38  collected  by  such  officers immediately prior to the enactment of this
   39  article, in accordance with the applicable provisions  of  the  charter,
   40  administrative  code,  local law, ordinance or resolution then in force,
   41  with such amendments in respect to administration and collection as  may
   42  be  enacted.  Taxes authorized under sections twelve hundred one through
   43  twelve hundred [four] THREE of  this  article  which  may  hereafter  be
   44  imposed  by  a city, county or school district shall be administered and
   45  collected in such manner as may be provided in its charter,  administra-
   46  tive  code,  local laws, ordinances or resolutions, with such amendments
   47  in respect to administration and collection as may be enacted.  Notwith-
   48  standing  any  other provision of law to the contrary, the authorization
   49  to impose tax upon the transfer of real property pursuant to subdivision
   50  (b) of section twelve hundred one of this article, shall not,  when  the
   51  conveyance  consists  of  a  transfer of property made as a result of an
   52  order of the court in a foreclosure proceeding ordering the sale of such
   53  property, include the authorization to impose civil or  criminal  penal-
   54  ties,  interest, or other liability upon the referee or sheriff effectu-
   55  ating the transfer.
       A. 1104                            10
    1    S 22. Subdivision (b) of section 1242 of the  tax  law,  as  added  by
    2  chapter 93 of the laws of 1965, is amended to read as follows:
    3    (b) Cities under one million, counties and school districts. Except in
    4  the  case  of a wilfully false or fraudulent return with intent to evade
    5  the tax, no assessment of additional tax shall be made with  respect  to
    6  taxes  imposed  under  the  authority  of  sections  twelve  hundred two
    7  [through] AND twelve hundred [four] THREE OF  THIS  ARTICLE,  after  the
    8  expiration  of  more  than  three years from the date of the filing of a
    9  return, provided, however, that  where  no  return  has  been  filed  as
   10  provided  by local law, ordinance or resolution, the tax may be assessed
   11  at any time.
   12    S 23. Subdivision (a) of section 1243 of the tax law,  as  amended  by
   13  chapter  808  of  the laws of 1992 and paragraph 1 as further amended by
   14  section 104 of part A of chapter 62 of the laws of 2011, is  amended  to
   15  read as follows:
   16    (a)  Any  final  determination  of the amount of any tax payable under
   17  sections twelve hundred one through twelve hundred [four] THREE OF  THIS
   18  ARTICLE shall be reviewable for error, illegality or unconstitutionality
   19  or  any  other  reason whatsoever by a proceeding under article seventy-
   20  eight of the civil practice law and rules  if  application  therefor  is
   21  made  to  the  supreme  court within four months after the giving of the
   22  notice of such final determination, provided,  however,  that  any  such
   23  proceeding  under  article  seventy-eight  of the civil practice law and
   24  rules shall not be instituted by a taxpayer unless (1) the amount of any
   25  tax sought to be reviewed, with such interest and penalties  thereon  as
   26  may  be  provided for by local law, ordinance, resolution or regulation,
   27  shall be first deposited and there is filed an undertaking, issued by  a
   28  surety  company  authorized  to  transact  business  in  this  state and
   29  approved by the superintendent of financial services of this state as to
   30  solvency and responsibility, in such amount as a justice of the  supreme
   31  court  shall  approve to the effect that if such proceeding be dismissed
   32  or the tax confirmed the taxpayer will pay all costs and  charges  which
   33  may accrue in the prosecution of such proceeding or (2) at the option of
   34  the  taxpayer,  such undertaking may be in a sum sufficient to cover the
   35  taxes, interest and penalties stated in  such  determination,  plus  the
   36  costs  and  charges which may accrue against such taxpayer in the prose-
   37  cution of the proceeding, in which  event  the  taxpayer  shall  not  be
   38  required  to pay such taxes, interest or penalties as a condition prece-
   39  dent to the application.
   40    S 24. Section 1250 of the tax law, as amended by chapter  169  of  the
   41  laws of 1970, is amended to read as follows:
   42    S  1250.  Administration  and  collection. The taxes imposed under the
   43  authority of sections twelve hundred ten[, twelve hundred eleven, twelve
   44  hundred twelve] and twelve hundred twelve-A OF  THIS  ARTICLE  shall  be
   45  administered and collected by the [state tax commission] COMMISSIONER in
   46  the  same manner as the taxes imposed under article twenty-eight of this
   47  chapter are administered and collected by such commission.   All of  the
   48  provisions  of  such  article  relating to or applicable to the adminis-
   49  tration and collection of the taxes imposed by that article shall  apply
   50  to the taxes imposed under the authority of section twelve hundred ten[,
   51  twelve hundred eleven, twelve hundred twelve] or twelve hundred twelve-A
   52  OF  THIS  ARTICLE,  including  sections  eleven  hundred  one and eleven
   53  hundred eleven and sections eleven  hundred  thirty-one  through  eleven
   54  hundred  forty-seven  OF THIS CHAPTER, with the same force and effect as
   55  if those provisions had been incorporated in full into this article  and
   56  had  expressly  referred  to  the  taxes  imposed  under sections twelve
       A. 1104                            11
    1  hundred ten [through] AND  twelve  hundred  twelve-A  OF  THIS  ARTICLE,
    2  except  to  the  extent that any provisions of such article twenty-eight
    3  are either inconsistent with a provision of  this  article  or  are  not
    4  relevant  to this article.  For purposes of this article, the term "tax"
    5  in part IV of such article twenty-eight shall include  any  tax  imposed
    6  under the authority of section twelve hundred ten[, twelve hundred elev-
    7  en,  twelve  hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE.
    8  Wherever there is joint collection of state and local taxes, it shall be
    9  deemed that such collections shall represent proportionally the applica-
   10  ble state and local taxes in determining the amount to  be  remitted  to
   11  local taxing jurisdictions.
   12    S  25.  Subdivision  (a) of section 1251 of the tax law, as amended by
   13  chapter 155 of the laws of 1982, is amended to read as follows:
   14    (a) Every person required to collect any of the  taxes  imposed  under
   15  the  authority  of  section  twelve hundred ten[, twelve hundred eleven,
   16  twelve hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE  shall
   17  file  a  return as required by subdivision (a) of section eleven hundred
   18  thirty-six OF THIS  CHAPTER  with  the  [tax  commission]  COMMISSIONER,
   19  except  that return for the quarterly period ending August thirty-first,
   20  nineteen hundred sixty-five shall only cover the month of August,  nine-
   21  teen  hundred  sixty-five.  The  return of a vendor of tangible personal
   22  property or services shall show his OR HER receipts from sales and  also
   23  the  aggregate  value of tangible personal property and services sold by
   24  him OR HER, the use of which is subject  to  a  tax  imposed  under  the
   25  authority  of  this  article  and  the  amount  of  taxes required to be
   26  collected with respect to such sales and use. The return of  a  [recipi-
   27  ent]  RECEIPT  of  amusement charges shall show all such charges and the
   28  amount of tax thereon, and the return of an operator required to collect
   29  tax on rents shall show all rents received or charged and the amount  of
   30  tax  thereon.  Every  person  required  to  file a part-quarterly return
   31  pursuant to subdivision (a) of section eleven hundred thirty-six OF THIS
   32  CHAPTER shall file a return for the same periods for the  taxes  imposed
   33  pursuant  to  this  article.  Provided,  however, where a part-quarterly
   34  return described in paragraph [(i)] ONE or [(ii)] TWO of subdivision (a)
   35  of section eleven hundred thirty-six is filed for purposes of  complying
   36  with  this  section and section eleven hundred thirty-six or subdivision
   37  (a) or (b) of section eleven hundred thirty-seven-A OF THIS CHAPTER,  on
   38  such  returns separate amounts due for the taxes imposed by each county,
   39  city or school district, pursuant to the  authority  of  section  twelve
   40  hundred  ten[,  twelve  hundred eleven, twelve hundred twelve] or twelve
   41  hundred twelve-A OF THIS ARTICLE, need  not  be  shown.    Rather,  such
   42  returns  shall  only  show  the aggregate amount of all such local taxes
   43  calculated in the manner provided for in paragraph [(i)] ONE  or  [(ii)]
   44  TWO  of  subdivision  (a)  of  section eleven hundred thirty-six OF THIS
   45  CHAPTER except that in the case of a short-form, part-quarterly  return,
   46  where  a  county,  city  or  school district did not impose a tax in the
   47  comparable quarter of the immediately preceding year, the tax  for  that
   48  locality  shall  be  calculated  on  such  basis as the [tax commission]
   49  COMMISSIONER shall by regulation prescribe.
   50    S 26. Subdivision (b) of section 1252 of the tax law,  as  amended  by
   51  chapter 169 of the laws of 1970, is amended to read as follows:
   52    (b) The [tax commission] COMMISSIONER, in [its] HIS OR HER discretion,
   53  may  require or permit any or all persons liable for any tax or required
   54  to collect any tax authorized under section twelve hundred ten[,  twelve
   55  hundred  eleven,  twelve  hundred  twelve] or twelve hundred twelve-A OF
   56  THIS ARTICLE to make payment to such  banks,  banking  houses  or  trust
       A. 1104                            12
    1  companies  designated  by  the [tax commission] COMMISSIONER and to file
    2  returns with such banks, banking houses or trust companies, as agent  of
    3  the  state tax commission, in lieu of paying the taxes imposed under the
    4  authority  of section twelve hundred ten[, twelve hundred eleven, twelve
    5  hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE  directly  to
    6  the state tax commission. However, the [tax commission] COMMISSIONER can
    7  only  designate such banks, banking houses and trust companies which are
    8  already designated  by  the  comptroller  as  depositories  pursuant  to
    9  section eleven hundred forty-eight of this chapter.
   10    S  27.  Section  1253 of the tax law, as amended by chapter 169 of the
   11  laws of 1970, is amended to read as follows:
   12    S 1253. Registration. Every person required to  register  pursuant  to
   13  section  eleven hundred thirty-four OF THIS CHAPTER shall be required to
   14  register for purposes of  the  taxes  imposed  under  the  authority  of
   15  sections  twelve  hundred  ten[,  twelve  hundred eleven, twelve hundred
   16  twelve] and twelve hundred twelve-A OF THIS ARTICLE. However,  only  one
   17  certificate  of  authority need be issued. Persons who elect to register
   18  under such section eleven hundred thirty-four pursuant to  the  election
   19  provided  therein  shall also be required to make a similar election for
   20  purposes of the taxes imposed  under  the  authority  of  such  sections
   21  twelve  hundred  ten[, twelve hundred eleven, twelve hundred twelve] and
   22  twelve hundred twelve-A OF THIS ARTICLE, but  only  one  certificate  of
   23  authority need be issued.
   24    S  28.  Subdivisions  (a)  and  (b) of section 1254 of the tax law, as
   25  amended by chapter 169 of the laws of  1970,  are  amended  to  read  as
   26  follows:
   27    (a) Every person required to collect tax, as defined in section eleven
   28  hundred thirty-one OF THIS CHAPTER, who is required to collect any state
   29  tax  imposed  under  sections eleven hundred five, eleven hundred six or
   30  eleven hundred ten OF THIS CHAPTER, shall at the same time  collect  any
   31  applicable  tax  imposed  by a city, county or school district under the
   32  authority of [sections] SECTION  twelve  hundred  ten[,  twelve  hundred
   33  eleven,  twelve hundred twelve] or twelve hundred twelve-A OF THIS ARTI-
   34  CLE, and where the state tax is a retail sales tax, shall  also  collect
   35  any  compensating  use  tax  which  may  be  applicable  as  provided in
   36  [sections] SECTION twelve hundred thirteen or twelve hundred fourteen OF
   37  THIS ARTICLE.
   38    (b) Where the state of New York, any of its  agencies,  instrumentali-
   39  ties, public corporations (including a public corporation created pursu-
   40  ant  to  agreement or compact with another state or Canada) or political
   41  subdivisions sells services or property of a  kind  ordinarily  sold  by
   42  private  persons  it  shall  be  considered a vendor for purposes of the
   43  taxes imposed under the  authority  of  sections  twelve  hundred  ten[,
   44  twelve  hundred  eleven,  twelve  hundred  twelve]  and  twelve  hundred
   45  twelve-A OF THIS ARTICLE and shall be  required  to  collect  the  taxes
   46  imposed  by cities, counties and school districts under the authority of
   47  such sections.
   48    S 29. Subdivisions (a), (b) and (c) of section 1261 of the tax law, as
   49  amended by chapter 84 of the laws of 2000, subdivision (a) as amended by
   50  chapter 182 of the laws of 2005,  and  subdivision  (c)  as  amended  by
   51  section 9 of part SS-1 of chapter 57 of the laws of 2008, are amended to
   52  read as follows:
   53    (a)  All  taxes, penalties and interest imposed by cities, counties or
   54  school districts under the authority of  section  twelve  hundred  ten[,
   55  twelve hundred eleven, twelve hundred twelve] or twelve hundred twelve-A
   56  of  this  article,  which  are  collected  by the commissioner, shall be
       A. 1104                            13
    1  deposited daily with such responsible banks,  banking  houses  or  trust
    2  companies,  as may be designated by the state comptroller, to the credit
    3  of the  comptroller,  in  trust  for  the  cities,  counties  or  school
    4  districts  imposing the tax or for (i) the Nassau county interim finance
    5  authority or (ii) the Buffalo fiscal stability authority  or  (iii)  the
    6  Erie  county  fiscal stability authority, created by the public authori-
    7  ties law, (i) to the extent that net collections from taxes  imposed  by
    8  Nassau county are payable to the Nassau county interim finance authority
    9  or  (ii)  to  the extent that net collections from taxes imposed by Erie
   10  county or by the city of Buffalo  are  payable  to  the  Buffalo  fiscal
   11  stability  authority  or  (iii)  to the extent that net collections from
   12  taxes imposed by Erie county are  payable  to  the  Erie  county  fiscal
   13  stability  authority, or for any public benefit corporation to which the
   14  tax may be payable pursuant to law. Such deposits and deposits  received
   15  pursuant  to subdivision (b) of section twelve hundred fifty-two of this
   16  article shall be kept in trust and separate and  apart  from  all  other
   17  monies  in  the  possession  of  the  comptroller. The comptroller shall
   18  require adequate security from all such  depositories  of  such  revenue
   19  collected  by the commissioner, including the deposits received pursuant
   20  to subdivision (b) of section twelve hundred fifty-two of this  article.
   21  Any  amount  payable to such authorities pursuant to the public authori-
   22  ties law shall, at the time it is otherwise payable to (i) Nassau  coun-
   23  ty,  (ii)  Erie  county  or  the  city of Buffalo, or (iii) Erie county,
   24  respectively, as specified in this section,  be  paid  instead  to  such
   25  respective authority. Any amount payable to a public benefit corporation
   26  pursuant to law shall, at the time it is otherwise payable to the taxing
   27  jurisdiction  as  specified  in  this  section,  be paid instead to such
   28  public benefit corporation.
   29    (b) The comptroller shall  retain  in  the  comptroller's  hands  such
   30  amount  as the commissioner may determine to be necessary for refunds in
   31  respect to the taxes imposed by cities, counties and  school  districts,
   32  under the authority of section twelve hundred ten[, twelve hundred elev-
   33  en,  twelve  hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE,
   34  and for reasonable costs of the commissioner in administering,  collect-
   35  ing  and distributing such taxes, out of which the comptroller shall pay
   36  any refunds of such taxes to which taxpayers shall be entitled under the
   37  provisions of this article.
   38    (c) (1) The comptroller, after reserving such  refund  fund  and  such
   39  costs  shall,  on  or  before  the  twelfth day of each month pay to the
   40  appropriate fiscal officers of the foregoing  taxing  jurisdictions  the
   41  taxes,  penalties  and  interest imposed by such jurisdictions under the
   42  authority of sections twelve hundred ten [through]  AND  twelve  hundred
   43  twelve-A of this article, collected by the commissioner pursuant to this
   44  article  during  the  next  preceding calendar month, provided, however,
   45  that the comptroller shall on or before the last day of June and  Decem-
   46  ber make a partial payment consisting of the collections made during and
   47  including the first twenty-five days of said months to said fiscal offi-
   48  cers of the foregoing taxing jurisdictions.
   49    (2) However, the taxes, penalties and interest from the additional one
   50  percent  rate which the city of Yonkers is authorized to impose pursuant
   51  to section twelve hundred ten of this article, after the comptroller has
   52  reserved such refund fund and such cost shall be  paid  to  the  special
   53  sales  and compensating use tax fund for the city of Yonkers established
   54  by section ninety-two-f of the state finance law at the times set  forth
   55  in the preceding sentence.
       A. 1104                            14
    1    (3) However, the taxes, penalties and interest which (i) the county of
    2  Nassau,  (ii)  the  county  of Erie, to the extent the county of Erie is
    3  contractually or statutorily obligated to allocate and apply or pay  net
    4  collections  to  the  city of Buffalo and to the extent that such county
    5  has  set  aside net collections for educational purposes attributable to
    6  the Buffalo school district, or the city of Buffalo or (iii) the  county
    7  of  Erie  is authorized to impose pursuant to section twelve hundred ten
    8  of this article, other than such taxes in the amounts described, respec-
    9  tively, in subdivisions one and two of section [one thousand two] TWELVE
   10  hundred sixty-two-e of this part, during the period  that  such  section
   11  authorizes  Nassau  county  to  establish  special  or  local assistance
   12  programs thereunder, together with any penalties  and  interest  related
   13  thereto,  and  after  the  comptroller has reserved such refund fund and
   14  such costs, shall, commencing on the next payment date after the  effec-
   15  tive date of this sentence and of each month thereafter, until such date
   16  as  (i)  the Nassau county interim finance authority shall have no obli-
   17  gations outstanding, or (ii)  the  Buffalo  fiscal  stability  authority
   18  shall cease to exist, or (iii) the Erie county fiscal stability authori-
   19  ty  shall  cease  to exist, be paid by the comptroller, respectively, to
   20  (i) the Nassau county interim finance authority to  be  applied  by  the
   21  Nassau  county  interim finance authority, or (ii) to the Buffalo fiscal
   22  stability authority to  be  applied  by  the  Buffalo  fiscal  stability
   23  authority,  or (iii) to the Erie county fiscal stability authority to be
   24  applied by the Erie county fiscal stability authority, as the  case  may
   25  be,  in  the  following  order of priority: first pursuant to the Nassau
   26  county interim finance authority's contracts  with  bondholders  or  the
   27  Buffalo  fiscal  stability authority's contracts with bondholders or the
   28  Erie county fiscal stability  authority's  contracts  with  bondholders,
   29  respectively,  then to pay the Nassau county interim finance authority's
   30  operating expenses not otherwise provided  for  or  the  Buffalo  fiscal
   31  stability  authority's  operating expenses not otherwise provided for or
   32  the Erie county fiscal  stability  authority's  operating  expenses  not
   33  otherwise  provided  for,  respectively,  and  then  (i) pursuant to the
   34  Nassau county interim finance authority's agreements with the county  of
   35  Nassau, which agreements shall require the Nassau county interim finance
   36  authority to transfer such taxes, penalties and interest remaining after
   37  providing  for  contractual  or  other  obligations of the Nassau county
   38  interim finance authority, and subject to  any  agreement  between  such
   39  authority and the county of Nassau, to the county of Nassau as frequent-
   40  ly  as  practicable;  or  (ii)  pursuant to the Buffalo fiscal stability
   41  authority's agreements with the city of Buffalo, which agreements  shall
   42  require  the  Buffalo fiscal stability authority to transfer such taxes,
   43  penalties and interest remaining  after  providing  for  contractual  or
   44  other obligations of the Buffalo fiscal stability authority, and subject
   45  to  any agreement between such authority and the city of Buffalo, to the
   46  city of Buffalo or the city of Buffalo school district, as the case  may
   47  be,  as  frequently as practicable; or (iii) pursuant to the Erie county
   48  fiscal stability authority's agreements with the county of  Erie,  which
   49  agreements  shall  require the Erie county fiscal stability authority to
   50  transfer such taxes, penalties and interest  remaining  after  providing
   51  for contractual or other obligations of the Erie county fiscal stability
   52  authority,  and  subject to any agreement between such authority and the
   53  county of Erie, to the county of  Erie  as  frequently  as  practicable.
   54  During  the  period that the comptroller is required to make payments to
   55  the Nassau county interim finance authority described  in  the  previous
   56  sentence, the county of Nassau shall have no right, title or interest in
       A. 1104                            15
    1  or  to  such  taxes,  penalties  and interest required to be paid to the
    2  Nassau county interim finance authority,  except  as  provided  in  such
    3  authority's agreements with the county of Nassau. During the period that
    4  the  comptroller  is  required  to  make  payments to the Buffalo fiscal
    5  stability authority described in the second previous sentence, the  city
    6  of Buffalo and such school district shall have no right, title or inter-
    7  est  in  or to such taxes, penalties and interest required to be paid to
    8  the Buffalo fiscal stability  authority,  except  as  provided  in  such
    9  authority's  agreements with the city of Buffalo. During the period that
   10  the comptroller is required to make payments to the Erie  county  fiscal
   11  stability authority described in the third previous sentence, the county
   12  of  Erie  shall  have  no  right, title or interest in or to such taxes,
   13  penalties and interest required to be paid to  the  Erie  county  fiscal
   14  stability  authority,  except as provided in such authority's agreements
   15  with the county of Erie.
   16    (4) The amount so payable shall be certified to the comptroller by the
   17  commissioner or the commissioner's  delegate,  who  shall  not  be  held
   18  liable  for  any  inaccuracy in such certificate. Provided, however, any
   19  such certification may be based on such information as may be  available
   20  to the commissioner at the time such certificate must be made under this
   21  section  and  may  be  estimated  on  the  basis of percentages or other
   22  indices calculated from distributions for prior periods.
   23    (5) However, the comptroller shall withhold from the taxes,  penalties
   24  and  interest imposed by the city of New York on and after August first,
   25  two thousand eight, and deposit such amounts to the  state  treasury  as
   26  reimbursement  for appropriated disbursements made by the New York state
   27  financial control board established by  the  New  York  state  financial
   28  emergency  act  for  the  city of New York and by the state deputy comp-
   29  troller for the city of New York established by section  forty-one-a  of
   30  the  executive  law, as the actual, reasonable expenses of that board or
   31  that deputy comptroller, incurred on behalf of the city,  for  quarterly
   32  periods  commencing  July  first,  two thousand eight, and ending on the
   33  date when those expenses are no longer incurred by that board or  deputy
   34  comptroller;  and the comptroller shall pay those withheld amounts imme-
   35  diately into the miscellaneous special revenue  fund  financial  control
   36  board  account  339-15 and the miscellaneous special revenue fund finan-
   37  cial oversight account 339-DI of the state. During the period  that  the
   38  comptroller  is required to withhold amounts and make payments described
   39  in this paragraph, the city of New York has no right, title or  interest
   40  in  or  to  those taxes, penalties and interest required to be paid into
   41  the above referenced miscellaneous special revenue funds.
   42    (6) Where the amount so paid over to any city, county, school district
   43  or the special sales and compensating use tax fund for the city of Yonk-
   44  ers in any such distribution or to any such authority is  more  or  less
   45  than  the  amount then due to such city, county, school district or such
   46  fund or to such authority, the amount of the overpayment or underpayment
   47  shall be certified to the comptroller by the commissioner or the commis-
   48  sioner's delegate, who shall not be held liable for  any  inaccuracy  in
   49  such certificate. The amount of the overpayment or underpayment shall be
   50  so certified to the comptroller as soon after the discovery of the over-
   51  payment  or  underpayment as reasonably possible and subsequent payments
   52  and distributions by  the  comptroller  to  such  city,  county,  school
   53  district or the special sales and compensating use tax fund for the city
   54  of  Yonkers  or  to  such authority shall be adjusted by subtracting the
   55  amount of any such overpayment from or by adding the amount of any  such
   56  underpayment  to such number of subsequent payments and distributions as
       A. 1104                            16
    1  the comptroller and the commissioner shall consider reasonable  in  view
    2  of the amount of the overpayment or underpayment and all other facts and
    3  circumstances.
    4    S 30. Subdivision (e) of section 1261 of the tax law is REPEALED.
    5    S 31. Subdivision (e) of section 1262 of the tax law is REPEALED.
    6    S  32.  Subdivision  2 of section 302 of the real property tax law, as
    7  amended by chapter 755 of the laws  of  1962,  is  amended  to  read  as
    8  follows:
    9    2.  The  taxable  status  date  of  real  property assessed for school
   10  district and village purposes shall be  determined  in  accordance  with
   11  [sections thirteen hundred two and] ARTICLE SEVENTY-ONE OF THE EDUCATION
   12  LAW AND SECTION fourteen hundred of this chapter, respectively. The date
   13  of  taxable status of the real property contained on any village assess-
   14  ment roll shall be imprinted or otherwise indicated at the  top  of  the
   15  first page of each volume of such roll.
   16    S  33. Subdivision 2 of section 1909 of the education law, as added by
   17  section 3 of part C of chapter 58 of the laws of  1998,  is  amended  to
   18  read as follows:
   19    2. Any state aid representing tax savings duly provided by a component
   20  school district of the central high school district [pursuant to section
   21  thirteen hundred six-a of the real property tax law] for taxes levied to
   22  fund  expenditures  of the central high school district shall be claimed
   23  by such component school district  [pursuant  to  subdivision  three  of
   24  section  thirteen  hundred  six-a of the real property tax law,] and any
   25  resulting payment of state aid to the component school district based on
   26  such tax savings shall be paid by the component school district,  within
   27  ten  days  after  receipt of such payment, over to the treasurer of such
   28  central high school district in an amount equal to the  product  of  the
   29  total  payment  received  by  such component school district for all tax
   30  savings [provided pursuant to section thirteen hundred six-a of the real
   31  property tax law] multiplied by the quotient of the tax savings provided
   32  for taxes levied  to  fund  expenditures  of  the  central  high  school
   33  district  divided  by the total tax savings duly provided by such compo-
   34  nent school district [pursuant to section thirteen hundred six-a of  the
   35  real property law].
   36    S  34. Section 3601 of the education law, as amended by section 4-a of
   37  part A-1 of chapter 58 of the laws of 2006 and  as  further  amended  by
   38  subdivision  (d)  of  section  1  of part W of chapter 56 of the laws of
   39  2010, is amended to read as follows:
   40    S 3601. When apportioned and how applied. The amount  annually  appro-
   41  priated  by  the legislature for general support for public schools, net
   42  of disallowances, refunds, reimbursements and credits, shall  be  appor-
   43  tioned  by  the commissioner each year prior to the dates of the respec-
   44  tive final payments provided by law and all moneys so apportioned  shall
   45  be  applied  exclusively  to school purposes authorized by law.  General
   46  state aid claims, on forms prescribed  by  the  commissioner,  shall  be
   47  submitted  to  the commissioner by September second of each school year,
   48  except that the audit report required by subdivision  three  of  section
   49  twenty-one  hundred  sixteen-a of this chapter shall be submitted to the
   50  commissioner by October fifteenth following the close of the school year
   51  audited for all districts other than the city school  districts  of  the
   52  cities  of  Buffalo,  Rochester,  Syracuse,  Yonkers and New York and by
   53  January first following the close of the school year  audited  for  such
   54  city  school  districts.  No  aid  shall be paid to a school district or
   55  board of cooperative educational services prior  to  the  submission  of
   56  claims  as required by the commissioner, except that no aid certified as
       A. 1104                            17
    1  payable to a school district by the commissioner of taxation and finance
    2  [pursuant to paragraph (c) of  subdivision  three  of  section  thirteen
    3  hundred six-a of the real property tax law] shall be withheld due to the
    4  failure  of  the  school  district  to  submit  general state aid claims
    5  required by the commissioner, and except that no aids shall be  withheld
    6  due  to  the  failure  of  a  school district to submit the audit report
    7  required by subdivision three of section twenty-one hundred sixteen-a of
    8  this chapter until the thirtieth day following the due date specified in
    9  this section for such report.
   10    S 35. Paragraph y of subdivision 1 of section 3602  of  the  education
   11  law,  as  amended  by  section 11 of part B of chapter 57 of the laws of
   12  2007 and as further amended by subdivision (d) of section 1 of part W of
   13  chapter 56 of the laws of 2010, is amended to read as follows:
   14    y. "School tax relief aid" shall mean state aid payable  to  a  school
   15  district  representing  tax savings duly provided by the school district
   16  [pursuant to section thirteen hundred six-a of  the  real  property  tax
   17  law] that is claimed by the school district and certified by the commis-
   18  sioner of taxation and finance [pursuant to subdivision three of section
   19  thirteen hundred six-a of the real property tax law].
   20    S 36. Paragraph (j) and subparagraph (iv) of paragraph (k) of subdivi-
   21  sion  2  of  section  425 of the real property tax law, paragraph (j) as
   22  amended by section 1 of part A of chapter 405 of the laws of 1999 and as
   23  further amended by subdivision (b) of section 1 of part W of chapter  56
   24  of  the  laws of 2010 and subparagraph (iv) of paragraph (k) as added by
   25  section 1-a of part E of chapter 83 of the laws of 2002 and redesignated
   26  by chapter 355 of the laws of 2003, are amended to read as follows:
   27    (j) Certain city school districts. The commissioner shall  adjust  the
   28  exempt  amount  for  each  city  containing  a  school district which is
   29  subject to article fifty-two of the education law, to  account  for  the
   30  fact  that the school district is fiscally dependent upon the city. This
   31  adjustment shall be made by multiplying the  exempt  amount  that  would
   32  otherwise  be determined for the city by sixty-seven percent, or, in the
   33  case of a city with a population  of  one  million  or  more,  by  fifty
   34  percent.  The  exempt  amount  resulting  from this calculation shall be
   35  applied both to the assessed value for city school district purposes and
   36  to the assessed value for general city purposes, and state aid shall  be
   37  payable  on  the combined tax savings [in the manner provided by section
   38  thirteen hundred six-a of this chapter].
   39    (iv) Notwithstanding the provisions of subparagraph (ii) of this para-
   40  graph, when a cooperative apartment corporation  is  incorporated  as  a
   41  mutual  company  pursuant  to  the  private housing finance law, and the
   42  granting of an exemption pursuant to this section would not inure to the
   43  benefit of eligible tenant-stockholders because  the  real  property  of
   44  such  corporation  is  subject to an exemption from taxation pursuant to
   45  section thirty-three, ninety-three,  one  hundred  twenty-five  or  five
   46  hundred  fifty-six  of  the  private housing finance law, an alternative
   47  benefit shall be provided to such  corporation  and  passed  through  to
   48  eligible tenant-stockholders in the manner provided by this subdivision.
   49  Such  alternative benefit shall consist of a reduction in the real prop-
   50  erty taxes or payments in lieu of taxes that would otherwise be  payable
   51  on  account  of  such  real property. The total amount of such reduction
   52  shall be the sum of the "STAR savings" for all of the cooperative apart-
   53  ment units that are occupied by one or more  eligible  tenant-stockhold-
   54  ers.  The STAR savings for each such unit shall be equal to one-third of
   55  the exempt amount determined pursuant to paragraph (a) of this  subdivi-
   56  sion  for  purposes  of the basic or enhanced exemption, as the case may
       A. 1104                            18
    1  be, multiplied by the applicable school tax rate, or in the  case  of  a
    2  school  district  described in paragraph (j) of this subdivision, by the
    3  applicable city tax rate. Provided, however, in no case shall  the  STAR
    4  savings for any individual unit exceed the amount payable by or chargea-
    5  ble to the unit on account of real property taxes or payments in lieu of
    6  taxes. The STAR savings so determined for each unit shall be credited by
    7  the cooperative apartment corporation against the real property taxes or
    8  payments  in  lieu  of  taxes  otherwise payable by or chargeable to the
    9  eligible tenant-stockholders. The  total  of  the  alternative  benefits
   10  provided  pursuant  to  this  subparagraph shall be a state charge which
   11  shall be payable in the same manner that school  districts  are  compen-
   12  sated  [pursuant  to section thirteen hundred six-a of this chapter] for
   13  tax savings attributable to exemptions granted pursuant to this section.
   14    S 37. Subdivisions 1 and 2 of section 1216 of the  real  property  tax
   15  law,  as  added  by chapter 800 of the laws of 1967 and subdivision 1 as
   16  further amended by subdivision (b) of section 1 of part W of chapter  56
   17  of the laws of 2010, are amended to read as follows:
   18    1.  Where  a supplemental assessment roll has been completed, verified
   19  and filed [pursuant to section  thirteen  hundred  thirty-five  of  this
   20  chapter]  AS  PER  THE  REQUEST  OF  THE  SCHOOL AUTHORITIES OF A SCHOOL
   21  DISTRICT, the commissioner shall determine an equalization rate for such
   22  supplemental assessment roll in the manner provided in this article  for
   23  determining  equalization  rates  for  towns.  The  equalization rate so
   24  determined for the supplemental assessment roll shall be used in comput-
   25  ing the taxable full valuation of  real  property  on  the  supplemental
   26  assessment  roll  for  all  school district purposes except as otherwise
   27  provided [in section thirteen hundred fourteen] BY OTHER  PROVISIONS  of
   28  this chapter.
   29    2. The full valuation of taxable property for school district purposes
   30  for  a  fiscal  year  of  a  school  district in which SUCH supplemental
   31  assessment rolls were completed, verified and filed [pursuant to section
   32  thirteen hundred thirty-five of this  chapter]  for  such  fiscal  year,
   33  shall be the simple average of the full valuation of taxable property on
   34  the  regular  and  supplemental assessment rolls of such school district
   35  for such fiscal year, provided however, that such  supplemental  assess-
   36  ment  rolls shall not be used in determining limitations on indebtedness
   37  pursuant to the local finance law. Such full valuation shall be computed
   38  for each roll by dividing the taxable assessed valuation  on  each  such
   39  roll by the state equalization rate established for each such roll.
   40    S  38.  Subdivision 1 of section 1226 of the real property tax law, as
   41  added by chapter 280 of the laws of  1985  and  as  further  amended  by
   42  subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
   43  2010, is amended to read as follows:
   44    1. If the commissioner finds that there has been a material change  in
   45  level  of assessment in a town or city since the last state equalization
   46  rate was established, it shall determine and certify a special equaliza-
   47  tion rate for tax apportionment purposes to the district  superintendent
   48  of  schools for use in the apportionment of school taxes [as provided in
   49  section thirteen hundred fourteen of this chapter].
   50    S 39. Paragraph (a) of subdivision 2 of section 1227 of the real prop-
   51  erty tax law, as added by chapter 87 of the laws of 2001 and as  further
   52  amended  by  subdivision (b) of section 1 of part W of chapter 56 of the
   53  laws of 2010, is amended to read as follows:
   54    (a) When a nuclear powered electric generating facility is exempt from
   55  taxation for school district purposes pursuant to section  four  hundred
   56  eighty-five  of this chapter, but it is not exempt for all purposes, the
       A. 1104                            19
    1  commissioner shall  establish  a  special  apportionment  rate  for  the
    2  assessing  unit  containing  the  facility, which rate shall be used for
    3  purposes of apportioning school district taxes to  that  assessing  unit
    4  [pursuant to section thirteen hundred fourteen of this chapter,] subject
    5  to  the  provisions  of  paragraph  (b) of this subdivision.   Provided,
    6  however, that no such rate shall be established unless it  would  result
    7  in  a  change of two percent or more in the share of the school district
    8  levy allocated to at least one school district segment, or where  appli-
    9  cable in the share of the non-homestead class levy allocated to at least
   10  one portion.
   11    S  40.  Subdivision  1  and paragraph (a) and the opening paragraph of
   12  paragraph (d) of subdivision 7 of section 1316 of the real property  tax
   13  law,  as  added  by  chapter  556  of the laws of 2002, subdivision 1 as
   14  further amended by subdivision (b) of section 1 of part W of chapter  56
   15  of the laws of 2010 are amended to read as follows:
   16    1.  Notwithstanding  the provisions of [section thirteen hundred four-
   17  teen of this]  article  SEVENTY-ONE  OF  THE  EDUCATION  LAW,  a  school
   18  district  located in more than one city or town, which includes a desig-
   19  nated large property, as determined by the commissioner of taxation  and
   20  finance,  may  provide  by  annual resolution, adopted no later than ten
   21  days prior to the last day provided by law for the levy of school taxes,
   22  that school taxes to be levied for the fiscal year commencing July first
   23  of the same year shall be apportioned to each city or town or part ther-
   24  eof in accordance with the provisions set forth in this section.
   25    (a) The tax shall be apportioned in accordance with the provisions  of
   26  [section  thirteen  hundred fourteen of this] article SEVENTY-ONE OF THE
   27  EDUCATION LAW.
   28    The resulting tax levy from paragraph (c) of this subdivision shall be
   29  reapportioned among all other property within the  taxing  jurisdiction,
   30  exclusive  of  the designated large property. This reapportionment shall
   31  be done in accordance with [section thirteen hundred fourteen  of  this]
   32  THE PROVISIONS OF article SEVENTY-ONE OF THE EDUCATION LAW, except that:
   33    S 41. Paragraphs (a) and (f) of subdivision 4 of section 1903-a of the
   34  real property tax law, as amended by chapter 47 of the laws of 1991, are
   35  amended to read as follows:
   36    (a) Equalization by class. The tax authorities shall determine for the
   37  homestead  and non-homestead classes, respectively, the total full valu-
   38  ation and total taxable full valuation of the real property  subject  to
   39  taxation  for  district  purposes  in  each city or town or part thereof
   40  included within the tax district. The total full valuation of a class in
   41  a city or town or part thereof shall be computed by dividing  the  total
   42  assessed  value  of  the property in the class by the state equalization
   43  rate or  special  equalization  rate  [prescribed  in  section  thirteen
   44  hundred fourteen of this chapter]. The total taxable full valuation of a
   45  class  in  a  city or town or part thereof shall be computed by dividing
   46  the total taxable assessed value of the property in  the  class  by  the
   47  state  equalization  rate  or  special  equalization rate [prescribed in
   48  section thirteen hundred fourteen of this chapter].
   49    (f) Correction and review. The equalization and apportionment required
   50  by this subdivision shall be subject to correction  and  review  to  the
   51  extent  practicable [as provided in section thirteen hundred fourteen of
   52  this chapter].
   53    S 42. Subdivision 2 of section 954 of the real property  tax  law,  as
   54  added by chapter 440 of the laws of 1989, is amended to read as follows:
   55    2. Notwithstanding the provisions of section nine hundred twenty-two[,
   56  thirteen  hundred  twenty-two, thirteen hundred twenty-four] or fourteen
       A. 1104                            20
    1  hundred thirty of this chapter,  upon  agreement  between  a  collecting
    2  officer  and  a  mortgage  investing institution, the mortgage investing
    3  institution or its agent shall, no later than thirty days prior  to  the
    4  last  date  established  by law for the annexation of the warrant to the
    5  assessment roll, present to the collecting officer a list in any mutual-
    6  ly agreeable format of  the  real  property  tax  escrow  accounts  with
    7  respect  to  which  the  mortgage investing institution or its agent has
    8  been authorized by the mortgagor to receive tax bills. If the collecting
    9  officer and mortgage investing institution agree, a  list  of  additions
   10  and  deletions  to  the  last  such  list  so delivered may be presented
   11  instead.
   12    S 43. Subdivision 2 of section 544 of the real  property  tax  law  is
   13  amended to read as follows:
   14    2.  No penalties, interest or fees of any kind, except fees payable to
   15  school district collecting officers  [pursuant  to  subdivision  one  of
   16  section  thirteen  hundred twenty-eight of this chapter] on school taxes
   17  on lands outside the forest preserve, shall be added to taxes payable by
   18  the state pursuant to the provisions of this section.
   19    S 44. Subdivision 2 of section 558 of the real property  tax  law,  as
   20  amended  by  chapter  529  of  the  laws  of 1990, is amended to read as
   21  follows:
   22    2. The county legislature of any county shall direct the  cancellation
   23  of  any  unpaid school tax relevied by such county [pursuant to subdivi-
   24  sion five of section thirteen hundred  thirty  or  subdivision  five  of
   25  section  thirteen  hundred  thirty-two  of  this chapter,] or any unpaid
   26  village tax relevied by such county  pursuant  to  subdivision  four  of
   27  section  fourteen hundred forty-two of this chapter, against property of
   28  the state or the United States where it is determined that the  lien  of
   29  such  tax  cannot be enforced, or where the lien of such tax is rendered
   30  permanently unenforceable by operation of the provisions of any statute.
   31  The amount of any tax so cancelled shall be charged against  the  school
   32  district or village which levied such tax. The amount so charged against
   33  a  school  district or village shall be withheld by the county treasurer
   34  from any moneys which  shall  become  payable  by  him  to  such  school
   35  district  or  village  by  reason  of  taxes  which  shall thereafter be
   36  returned to him as uncollected by such school district  or  village.  No
   37  such  cancellation of any unpaid school taxes or no such charge shall be
   38  made by the county legislature  against  any  such  school  district  or
   39  village  unless  ten  days' notice thereof by mail shall be given to the
   40  school authorities thereof.
   41    S 45. Subdivision 1-b of section 3651 of the education law,  as  added
   42  by  section  73 of part A of chapter 436 of the laws of 1997, is amended
   43  to read as follows:
   44    1-b.  Notwithstanding  the  provisions  of  subdivision  one  of  this
   45  section, where the city or county is not required to pay to the treasur-
   46  er  of  a  city  school district unpaid taxes during the fiscal year for
   47  which such real property taxes are levied, the  board  of  education  of
   48  such  city school district may establish a reserve for uncollected taxes
   49  without approval  of  the  qualified  voters  of  the  school  district,
   50  provided that the ratio of the amount of such reserve to the total prin-
   51  cipal  amount  of the district's tax levy for such fiscal year shall not
   52  be less than the ratio of the principal amount of  the  school  district
   53  taxes  as  levied  by  the school district for the last completed fiscal
   54  year but not received by the district before the end of such fiscal year
   55  to the total principal amount of the tax levy for  such  last  completed
   56  fiscal year.  If the city or county is not required to pay to the treas-
       A. 1104                            21
    1  urer  of  a city school district unpaid taxes [pursuant to section thir-
    2  teen hundred thirty-two of the real property  tax  law],  the  board  of
    3  education of the city school district shall establish a reserve pursuant
    4  to  this  subdivision, provided that such reserve shall not be less than
    5  the amount of taxes for the fiscal year for which such budget  is  being
    6  prepared which are estimated to be unpaid during such fiscal year [under
    7  the aforesaid provisions of the real property tax law].
    8    S 46. Paragraph e of subdivision 7 of section 545 of the real property
    9  tax  law,  as  amended by chapter 800 of the laws of 1967, is amended to
   10  read as follows:
   11    e. "Latest preceding assessment roll" means the last preceding assess-
   12  ment roll finally completed, verified  and  filed  prior  to  the  final
   13  completion of the assessment roll for which the transition assessment is
   14  being  established, but shall not mean or include a supplemental assess-
   15  ment roll completed, verified and filed as [provided in section thirteen
   16  hundred thirty-five of this chapter]  PER  THE  REQUEST  OF  THE  SCHOOL
   17  AUTHORITIES OF A SCHOOL DISTRICT.
   18    S  47.  Subdivisions  1  and 3 of section 972 of the real property tax
   19  law, as amended by section 12 of part B of chapter 389 of  the  laws  of
   20  1997, are amended to read as follows:
   21    1.  Adoption.   Notwithstanding any provisions of this chapter, or any
   22  other general, special or local law to  the  contrary,  the  legislative
   23  body  of  a  county may, by local law, provide that thereafter and until
   24  such local law is repealed, the county shall become the  tax  collection
   25  agency for the purpose of collecting taxes in installments as prescribed
   26  by this title [and by sections thirteen hundred thirty-six through thir-
   27  teen  hundred  forty-two  of this chapter].  The term "taxes" as used in
   28  this title shall include special assessments which  are  levied  by  the
   29  county  legislative  body  at the time and in the manner provided by law
   30  for the levy of county and town taxes.
   31    3.   Interest. (a) Each installment other  than  the  first  shall  be
   32  subject  to  interest  at  the  rate determined pursuant to section nine
   33  hundred twenty-four-a of this article, or  such  other  law  as  may  be
   34  locally  applicable,  up  to and including the date on which it is to be
   35  paid.  Such interest shall be amortized  over  all  scheduled  payments,
   36  unless  the  local  law provides for unequal installments, in which case
   37  interest shall be calculated and imposed separately upon  each  install-
   38  ment.
   39    (b)  If  an  installment  is not paid on or before the date it is due,
   40  additional interest shall be added as provided by section  nine  hundred
   41  seventy-five [or section thirteen hundred forty] of this [chapter] ARTI-
   42  CLE.
   43    (c) The amount of any interest which shall be added to any installment
   44  pursuant  to  this  section  and  section  nine hundred seventy-five [or
   45  section thirteen hundred forty] of this [chapter] ARTICLE  shall  belong
   46  to the county.
   47    S  48.  In  order  to  provide  for  continuity  of  funding to school
   48  districts, fifty percent of the school taxes due on July  first  in  the
   49  year  preceding  the effective date of this act shall be paid as hereto-
   50  fore required by law.
   51    S 49. This act shall take effect on the first of January next succeed-
   52  ing the date on which it shall have become  a  law,  provided,  however,
   53  that sections two, four, five, six, eight and ten through forty-seven of
   54  this  act  shall  take  effect on the first of January in the fifth year
   55  next succeeding such effective date.