Bill Text: NY A00097 | 2021-2022 | General Assembly | Introduced
Bill Title: Makes provisions for the state to assume all costs of basic quality education and for the elimination of real property taxes for the support of education; requires board of regents to establish a schedule of mandatory basic services and costs thereof; provides that school districts shall submit an annual basic budget to the department of education for basic services; increases taxes on personal income and business; makes special provisions for reduction of tax in certain cities and for reduction in rent by tenants in such cities; provides for phased in methods of funding using a "Basic Quality Education" formula.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2022-01-05 - referred to education [A00097 Detail]
Download: New_York-2021-A00097-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 97 2021-2022 Regular Sessions IN ASSEMBLY (Prefiled) January 6, 2021 ___________ Introduced by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. EPSTEIN, PEOPLES-STOKES, PERRY, THIELE -- read once and referred to the Commit- tee 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 § 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. LBD01571-01-1A. 97 2 1 § 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-k 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 § 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 § 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 receivedA. 97 3 1 by such school district from taxes imposed on real property by or on 2 behalf of such school district. 3 § 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 § 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 § 2. Article 13 of the real property tax law is REPEALED. 20 § 3. The real property tax law is amended by adding a new section 21 467-l to read as follows: 22 § 467-l. 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 § 4. Subdivision 1 and paragraphs (b) and (c) of subdivision 3 of 33 section 972 of the real property tax law, as amended by section 12 of 34 part B of chapter 389 of the laws of 1997, are amended to read as 35 follows: 36 1. Adoption. Notwithstanding any provisions of this chapter, or any 37 other general, special or local law to the contrary, the legislative 38 body of a county may, by local law, provide that thereafter and until 39 such local law is repealed, the county shall become the tax collection 40 agency for the purpose of collecting taxes in installments as prescribed 41 by this title [and by sections thirteen hundred thirty-six through thir-42teen hundred forty-two of this chapter]. The term "taxes" as used in 43 this title shall include special assessments which are levied by the 44 county legislative body at the time and in the manner provided by law 45 for the levy of county and town taxes. 46 (b) If an installment is not paid on or before the date it is due, 47 additional interest shall be added as provided by section nine hundred 48 seventy-five [or section thirteen hundred forty] of this [chapter] 49 title. 50 (c) The amount of any interest which shall be added to any installment 51 pursuant to this section and section nine hundred seventy-five [or52section thirteen hundred forty] of this [chapter] title shall belong to 53 the county. 54 § 5. Subdivision 6 of section 975 of the real property tax law, as 55 added by chapter 953 of the laws of 1962, is amended to read as follows:A. 97 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 § 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 § 7. The tax law is amended by adding a new section 601-b to read as 17 follows: 18 § 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 twenty-one, 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 § 7-a. The real property tax law is amended by adding a new section 39 307-b to read as follows: 40 § 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 sameA. 97 5 1 subject to disbursement in accordance with the provisions of article 2 seventy-one of the education law. 3 § 8. Sections 1204, 1211 and 1212 of the tax law are REPEALED. 4 § 9. The tax law is amended by adding a new section 1200 to read as 5 follows: 6 § 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 § 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 § 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 [or18school 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 school23district] 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 § 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 § 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 § 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 § 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 authorizedA. 97 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 school3district] to impose any other tax which it is authorized to impose under 4 any other provision of law. 5 § 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 § 1256. Cooperation by localities. Every city[,] and county [and8school 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 [tax13commission] 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-17sion'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 authorized21under chapter eight hundred seventy-three of the laws of nineteen22hundred thirty-four, as amended, chapter three hundred forty-one of the23laws of nineteen hundred forty-six, as amended, article two-B of the24general city law and chapter two hundred seventy-eight of the laws of25nineteen 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-28ty-nine] or other relevant provisions of this chapter. 29 § 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. 97 7 1 § 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 twelve9hundred eleven] of this article. 10 § 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 § 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, twelve16hundred 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 § 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 by chapter 39 44 of the laws of 2019, is amended to read as follows: 40 § 1223. Limitations on rates. (a) No transaction taxable under 41 sections twelve hundred two [through] and twelve hundred [four] three of 42 this article shall be taxed pursuant to this article by any county or by 43 any city located therein, or by both, at an aggregate rate in excess of 44 the highest rate set forth in the applicable subdivision of section 45 twelve hundred one of this article or, in the case of any taxes imposed 46 pursuant to the authority of section twelve hundred ten [or twelve47hundred eleven] of this article (other than taxes imposed by the county 48 of Nassau, Erie, Steuben, Cattaraugus, Suffolk, Oneida, Genesee, Greene, 49 Franklin, Hamilton, Herkimer, Tioga, Orleans, Allegany, Ulster, Albany, 50 Rensselaer, Tompkins, Wyoming, Columbia, Schuyler, Rockland, Chenango, 51 Monroe, Chemung, Seneca, Sullivan, Wayne, Livingston, Schenectady, Mont- 52 gomery, Delaware, Clinton, Niagara, Yates, Lewis, Essex, Dutchess, Scho- 53 harie, Putnam, Chautauqua, Orange, Oswego, Ontario, Jefferson, St. 54 Lawrence, Westchester or Onondaga and by the county of Cortland and the 55 city of Cortland and by the county of Broome and the city of Binghamton 56 and by the county of Cayuga and the city of Auburn and by the county ofA. 97 8 1 Otsego and the city of Oneonta and by the county of Madison and the city 2 of Oneida and by the county of Fulton and the city of Gloversville or 3 the city of Johnstown as provided in section twelve hundred ten of this 4 article) at a rate in excess of three percent, except that, in the city 5 of Yonkers, in the city of Mount Vernon, in the city of New Rochelle, in 6 the city of Fulton, in the city of Oswego, and in the city of White 7 Plains, the rate may not be in excess of four percent, and except that 8 in the city of Poughkeepsie in the county of Dutchess, if such county 9 withdraws from the metropolitan commuter transportation district pursu- 10 ant to section twelve hundred seventy-nine-b of the public authorities 11 law and if the revenues from a three-eighths percent rate of such tax 12 imposed by such county, pursuant to the authority of section twelve 13 hundred ten of this article, are required by local laws, ordinances or 14 resolutions to be set aside for mass transportation purposes, the rate 15 may not be in excess of three and three-eighths percent. 16 (b) If a transaction is taxed by both a county and a city, the rate of 17 tax on such transaction imposed by the county or city, not having prior 18 right thereto pursuant to section twelve hundred twenty-four of this 19 subpart, shall be deemed to be reduced (or the entire tax eliminated, if 20 necessary) to the extent necessary to comply with the foregoing require- 21 ment. A tax imposed by a county upon any transaction, to the extent that 22 it would require a reduction in any tax rate imposed thereon by a city, 23 shall not become effective in respect to any transaction taxed by such 24 city (or in respect of other similar transactions outside of the city 25 which, if occurring in such city, would be subject to such city tax) 26 before the commencement of the city's next succeeding fiscal year and 27 then only if the county shall have given notice to such city of its 28 imposition of a tax on such transaction at least six months prior to the 29 commencement of such fiscal year, provided however that the local legis- 30 lative body of such city may waive the requirement of such notice and 31 the postponement of the effective date of such tax. A city tax upon any 32 transaction, to the extent that it would require a reduction in any tax 33 rate imposed by a county thereon, shall not become effective in respect 34 of any transaction taxed by such county before the commencement of the 35 county's next succeeding fiscal year and then only if the city shall 36 have given notice to such county of its imposition of a tax on such 37 transaction at least six months prior to the commencement of such fiscal 38 year, provided, however, that the local legislative body of such county 39 may waive the requirement of such notice and postponement of the effec- 40 tive date of such tax. However, whether or not the six months' notice 41 requirement provided in this section has been waived, a tax imposed 42 pursuant to the authority of section twelve hundred ten [or twelve43hundred eleven] of this article shall still be subject to the require- 44 ments provided for in the first three sentences of subdivision (d) of 45 such [sections] section and in subdivision (e) of such [sections] 46 section. 47 § 18. Paragraph 2 of subdivision (b) of section 1224 of the tax law, 48 as amended by chapter 506 of the laws of 1976, is amended to read as 49 follows: 50 (2) all of the taxes described in article twenty-eight as authorized 51 by subdivision (a) of section twelve hundred ten[, or by section twelve52hundred eleven,] of this article to the extent of one-half the maximum 53 aggregate rates authorized under such subdivision (a) [and such section54twelve hundred eleven], except as otherwise provided in this section. 55 § 19. Subdivision (k) of section 1224 of the tax law, as amended by 56 chapter 426 of the laws of 1968 and separately relettered by chaptersA. 97 9 1 531, 574, 617, 718 and 719 of the laws of 1992, is amended to read as 2 follows: 3 (k) For purposes of this section, the term "prior right" shall mean 4 the preferential right to impose any tax described in sections twelve 5 hundred two [and], twelve hundred three[,] and twelve hundred ten [and6twelve hundred eleven] of this article and thereby to pre-empt such tax 7 and to preclude another municipal corporation from imposing or continu- 8 ing the imposition of such tax to the extent that such right is exer- 9 cised. However, the right of pre-emption shall only apply within the 10 territorial limits of the taxing jurisdiction having the right of pre- 11 emption. 12 § 20. Subdivision (a) of section 1235 of the tax law, as amended by 13 chapter 459 of the laws of 1968, is amended to read as follows: 14 (a) With respect to taxes imposed pursuant to subdivision (a) of 15 section twelve hundred ten [and pursuant to section twelve hundred elev-16en] of this article, the use of tangible personal property purchased at 17 retail and of any of the services subject to the sales tax shall be 18 exempt from the compensating use tax authorized under subdivision (a) of 19 such section twelve hundred ten [and under section twelve hundred elev-20en,] to the extent that a retail sales tax or a compensating use tax was 21 legally due and paid thereon, without any right to a refund or credit 22 thereof, to (1) any municipal corporation in this state or (2) any other 23 state or jurisdiction within any other state, but only when it is shown 24 that such other state or jurisdiction allows a corresponding exemption 25 with respect to the sale or use of tangible personal property or of any 26 of the services upon which such a sale or compensating use tax was paid 27 to this state and any of its municipal corporations, except as provided 28 in subdivision (b) of this section. 29 § 21. Section 1240 of the tax law, as amended by chapter 356 of the 30 laws of 2014, is amended to read as follows: 31 § 1240. Administration and collection. The taxes authorized under 32 sections twelve hundred one through twelve hundred [four] three of this 33 article which are now imposed shall continue to be administered and 34 collected by the fiscal or other officers of the city, county or school 35 district in the same manner as such taxes have been administered and 36 collected by such officers immediately prior to the enactment of this 37 article, in accordance with the applicable provisions of the charter, 38 administrative code, local law, ordinance or resolution then in force, 39 with such amendments in respect to administration and collection as may 40 be enacted. Taxes authorized under sections twelve hundred one through 41 twelve hundred [four] three of this article which may hereafter be 42 imposed by a city, county or school district shall be administered and 43 collected in such manner as may be provided in its charter, administra- 44 tive code, local laws, ordinances or resolutions, with such amendments 45 in respect to administration and collection as may be enacted. Notwith- 46 standing any other provision of law to the contrary, the authorization 47 to impose tax upon the transfer of real property pursuant to subdivision 48 (b) of section twelve hundred one of this article, shall not, when the 49 conveyance consists of a transfer of property made as a result of an 50 order of the court in a foreclosure proceeding ordering the sale of such 51 property, include the authorization to impose civil or criminal penal- 52 ties, interest, or other liability upon the referee or sheriff effectu- 53 ating the transfer. 54 § 22. Subdivision (b) of section 1242 of the tax law, as added by 55 chapter 93 of the laws of 1965, is amended to read as follows:A. 97 10 1 (b) Cities under one million, counties and school districts. Except in 2 the case of a wilfully false or fraudulent return with intent to evade 3 the tax, no assessment of additional tax shall be made with respect to 4 taxes imposed under the authority of sections twelve hundred two 5 [through] and twelve hundred [four] three of this article, after the 6 expiration of more than three years from the date of the filing of a 7 return, provided, however, that where no return has been filed as 8 provided by local law, ordinance or resolution, the tax may be assessed 9 at any time. 10 § 23. Subdivision (a) of section 1243 of the tax law, as amended by 11 chapter 808 of the laws of 1992 and paragraph 1 as further amended by 12 section 104 of part A of chapter 62 of the laws of 2011, is amended to 13 read as follows: 14 (a) Any final determination of the amount of any tax payable under 15 sections twelve hundred one through twelve hundred [four] three of this 16 article shall be reviewable for error, illegality or unconstitutionality 17 or any other reason whatsoever by a proceeding under article seventy- 18 eight of the civil practice law and rules if application therefor is 19 made to the supreme court within four months after the giving of the 20 notice of such final determination, provided, however, that any such 21 proceeding under article seventy-eight of the civil practice law and 22 rules shall not be instituted by a taxpayer unless (1) the amount of any 23 tax sought to be reviewed, with such interest and penalties thereon as 24 may be provided for by local law, ordinance, resolution or regulation, 25 shall be first deposited and there is filed an undertaking, issued by a 26 surety company authorized to transact business in this state and 27 approved by the superintendent of financial services of this state as to 28 solvency and responsibility, in such amount as a justice of the supreme 29 court shall approve to the effect that if such proceeding be dismissed 30 or the tax confirmed the taxpayer will pay all costs and charges which 31 may accrue in the prosecution of such proceeding or (2) at the option of 32 the taxpayer, such undertaking may be in a sum sufficient to cover the 33 taxes, interest and penalties stated in such determination, plus the 34 costs and charges which may accrue against such taxpayer in the prose- 35 cution of the proceeding, in which event the taxpayer shall not be 36 required to pay such taxes, interest or penalties as a condition prece- 37 dent to the application. 38 § 24. Section 1250 of the tax law, as amended by chapter 169 of the 39 laws of 1970, is amended to read as follows: 40 § 1250. Administration and collection. The taxes imposed under the 41 authority of sections twelve hundred ten[, twelve hundred eleven, twelve42hundred twelve] and twelve hundred twelve-A of this article shall be 43 administered and collected by the [state tax commission] commissioner in 44 the same manner as the taxes imposed under article twenty-eight of this 45 chapter are administered and collected by such commission. All of the 46 provisions of such article relating to or applicable to the adminis- 47 tration and collection of the taxes imposed by that article shall apply 48 to the taxes imposed under the authority of section twelve hundred ten[,49twelve hundred eleven, twelve hundred twelve] or twelve hundred twelve-A 50 of this article, including sections eleven hundred one and eleven 51 hundred eleven and sections eleven hundred thirty-one through eleven 52 hundred forty-seven of this chapter, with the same force and effect as 53 if those provisions had been incorporated in full into this article and 54 had expressly referred to the taxes imposed under sections twelve 55 hundred ten [through] and twelve hundred twelve-A of this article, 56 except to the extent that any provisions of such article twenty-eightA. 97 11 1 are either inconsistent with a provision of this article or are not 2 relevant to this article. For purposes of this article, the term "tax" 3 in part IV of such article twenty-eight shall include any tax imposed 4 under the authority of section twelve hundred ten[, twelve hundred elev-5en, twelve hundred twelve] or twelve hundred twelve-A of this article. 6 Wherever there is joint collection of state and local taxes, it shall be 7 deemed that such collections shall represent proportionally the applica- 8 ble state and local taxes in determining the amount to be remitted to 9 local taxing jurisdictions. 10 § 25. Subdivision (a) of section 1251 of the tax law, as amended by 11 chapter 155 of the laws of 1982, is amended to read as follows: 12 (a) Every person required to collect any of the taxes imposed under 13 the authority of section twelve hundred ten[, twelve hundred eleven,14twelve hundred twelve] or twelve hundred twelve-A of this article shall 15 file a return as required by subdivision (a) of section eleven hundred 16 thirty-six of this chapter with the [tax commission] commissioner, 17 except that return for the quarterly period ending August thirty-first, 18 nineteen hundred sixty-five shall only cover the month of August, nine- 19 teen hundred sixty-five. The return of a vendor of tangible personal 20 property or services shall show his or her receipts from sales and also 21 the aggregate value of tangible personal property and services sold by 22 him or her, the use of which is subject to a tax imposed under the 23 authority of this article and the amount of taxes required to be 24 collected with respect to such sales and use. The return of a [recipi-25ent] receipt of amusement charges shall show all such charges and the 26 amount of tax thereon, and the return of an operator required to collect 27 tax on rents shall show all rents received or charged and the amount of 28 tax thereon. Every person required to file a part-quarterly return 29 pursuant to subdivision (a) of section eleven hundred thirty-six of this 30 chapter shall file a return for the same periods for the taxes imposed 31 pursuant to this article. Provided, however, where a part-quarterly 32 return described in paragraph [(i)] one or [(ii)] two of subdivision (a) 33 of section eleven hundred thirty-six is filed for purposes of complying 34 with this section and section eleven hundred thirty-six or subdivision 35 (a) or (b) of section eleven hundred thirty-seven-A of this chapter, on 36 such returns separate amounts due for the taxes imposed by each county, 37 city or school district, pursuant to the authority of section twelve 38 hundred ten[, twelve hundred eleven, twelve hundred twelve] or twelve 39 hundred twelve-A of this article, need not be shown. Rather, such 40 returns shall only show the aggregate amount of all such local taxes 41 calculated in the manner provided for in paragraph [(i)] one or [(ii)] 42 two of subdivision (a) of section eleven hundred thirty-six of this 43 chapter except that in the case of a short-form, part-quarterly return, 44 where a county, city or school district did not impose a tax in the 45 comparable quarter of the immediately preceding year, the tax for that 46 locality shall be calculated on such basis as the [tax commission] 47 commissioner shall by regulation prescribe. 48 § 26. Subdivision (b) of section 1252 of the tax law, as amended by 49 chapter 169 of the laws of 1970, is amended to read as follows: 50 (b) The [tax commission] commissioner, in [its] his or her discretion, 51 may require or permit any or all persons liable for any tax or required 52 to collect any tax authorized under section twelve hundred ten[, twelve53hundred eleven, twelve hundred twelve] or twelve hundred twelve-A of 54 this article to make payment to such banks, banking houses or trust 55 companies designated by the [tax commission] commissioner and to file 56 returns with such banks, banking houses or trust companies, as agent ofA. 97 12 1 the state tax commission, in lieu of paying the taxes imposed under the 2 authority of section twelve hundred ten[, twelve hundred eleven, twelve3hundred twelve] or twelve hundred twelve-A of this article directly to 4 the state tax commission. However, the [tax commission] commissioner can 5 only designate such banks, banking houses and trust companies which are 6 already designated by the comptroller as depositories pursuant to 7 section eleven hundred forty-eight of this chapter. 8 § 27. Section 1253 of the tax law, as amended by chapter 169 of the 9 laws of 1970, is amended to read as follows: 10 § 1253. Registration. Every person required to register pursuant to 11 section eleven hundred thirty-four of this chapter shall be required to 12 register for purposes of the taxes imposed under the authority of 13 sections twelve hundred ten[, twelve hundred eleven, twelve hundred14twelve] and twelve hundred twelve-A of this article. However, only one 15 certificate of authority need be issued. Persons who elect to register 16 under such section eleven hundred thirty-four pursuant to the election 17 provided therein shall also be required to make a similar election for 18 purposes of the taxes imposed under the authority of such sections 19 twelve hundred ten[, twelve hundred eleven, twelve hundred twelve] and 20 twelve hundred twelve-A of this article, but only one certificate of 21 authority need be issued. 22 § 28. Subdivisions (a) and (b) of section 1254 of the tax law, as 23 amended by chapter 169 of the laws of 1970, are amended to read as 24 follows: 25 (a) Every person required to collect tax, as defined in section eleven 26 hundred thirty-one of this chapter, who is required to collect any state 27 tax imposed under sections eleven hundred five, eleven hundred six or 28 eleven hundred ten of this chapter, shall at the same time collect any 29 applicable tax imposed by a city, county or school district under the 30 authority of [sections] section twelve hundred ten[, twelve hundred31eleven, twelve hundred twelve] or twelve hundred twelve-A of this arti- 32 cle, and where the state tax is a retail sales tax, shall also collect 33 any compensating use tax which may be applicable as provided in 34 [sections] section twelve hundred thirteen or twelve hundred fourteen of 35 this article. 36 (b) Where the state of New York, any of its agencies, instrumentali- 37 ties, public corporations (including a public corporation created pursu- 38 ant to agreement or compact with another state or Canada) or political 39 subdivisions sells services or property of a kind ordinarily sold by 40 private persons it shall be considered a vendor for purposes of the 41 taxes imposed under the authority of sections twelve hundred ten[,42twelve hundred eleven, twelve hundred twelve] and twelve hundred 43 twelve-A of this article and shall be required to collect the taxes 44 imposed by cities, counties and school districts under the authority of 45 such sections. 46 § 29. Subdivisions (a), (b) and paragraph 1 of subdivision (c) of 47 section 1261 of the tax law, as amended by chapter 84 of the laws of 48 2000, subdivision (a) as amended by chapter 182 of the laws of 2005, 49 paragraph 1 of subdivision (c) as amended by section 9 of part SS-1 of 50 chapter 57 of the laws of 2008, are amended to read as follows: 51 (a) All taxes, penalties and interest imposed by cities, counties or 52 school districts under the authority of section twelve hundred ten[,53twelve hundred eleven, twelve hundred twelve] or twelve hundred twelve-A 54 of this article, which are collected by the commissioner, shall be 55 deposited daily with such responsible banks, banking houses or trust 56 companies, as may be designated by the state comptroller, to the creditA. 97 13 1 of the comptroller, in trust for the cities, counties or school 2 districts imposing the tax or for (i) the Nassau county interim finance 3 authority or (ii) the Buffalo fiscal stability authority or (iii) the 4 Erie county fiscal stability authority, created by the public authori- 5 ties law, (i) to the extent that net collections from taxes imposed by 6 Nassau county are payable to the Nassau county interim finance authority 7 or (ii) to the extent that net collections from taxes imposed by Erie 8 county or by the city of Buffalo are payable to the Buffalo fiscal 9 stability authority or (iii) to the extent that net collections from 10 taxes imposed by Erie county are payable to the Erie county fiscal 11 stability authority, or for any public benefit corporation to which the 12 tax may be payable pursuant to law. Such deposits and deposits received 13 pursuant to subdivision (b) of section twelve hundred fifty-two of this 14 article shall be kept in trust and separate and apart from all other 15 monies in the possession of the comptroller. The comptroller shall 16 require adequate security from all such depositories of such revenue 17 collected by the commissioner, including the deposits received pursuant 18 to subdivision (b) of section twelve hundred fifty-two of this article. 19 Any amount payable to such authorities pursuant to the public authori- 20 ties law shall, at the time it is otherwise payable to (i) Nassau coun- 21 ty, (ii) Erie county or the city of Buffalo, or (iii) Erie county, 22 respectively, as specified in this section, be paid instead to such 23 respective authority. Any amount payable to a public benefit corporation 24 pursuant to law shall, at the time it is otherwise payable to the taxing 25 jurisdiction as specified in this section, be paid instead to such 26 public benefit corporation. 27 (b) The comptroller shall retain in the comptroller's hands such 28 amount as the commissioner may determine to be necessary for refunds in 29 respect to the taxes imposed by cities, counties and school districts, 30 under the authority of section twelve hundred ten[, twelve hundred elev-31en, twelve hundred twelve] or twelve hundred twelve-A of this article, 32 and for reasonable costs of the commissioner in administering, collect- 33 ing and distributing such taxes, out of which the comptroller shall pay 34 any refunds of such taxes to which taxpayers shall be entitled under the 35 provisions of this article. 36 (1) The comptroller, after reserving such refund fund and such costs 37 shall, on or before the twelfth day of each month pay to the appropriate 38 fiscal officers of the foregoing taxing jurisdictions the taxes, penal- 39 ties and interest imposed by such jurisdictions under the authority of 40 sections twelve hundred ten [through] and twelve hundred twelve-A of 41 this article, collected by the commissioner pursuant to this article 42 during the next preceding calendar month, provided, however, that the 43 comptroller shall on or before the last day of June and December make a 44 partial payment consisting of the collections made during and including 45 the first twenty-five days of said months to said fiscal officers of the 46 foregoing taxing jurisdictions. 47 § 30. Subdivision (e) of section 1261 of the tax law is REPEALED. 48 § 31. Subdivision (e) of section 1262 of the tax law is REPEALED. 49 § 32. Subdivision 2 of section 302 of the real property tax law, as 50 amended by chapter 755 of the laws of 1962, is amended to read as 51 follows: 52 2. The taxable status date of real property assessed for school 53 district and village purposes shall be determined in accordance with 54 [sections thirteen hundred two and] article seventy-one of the education 55 law and section fourteen hundred of this chapter, respectively. The date 56 of taxable status of the real property contained on any village assess-A. 97 14 1 ment roll shall be imprinted or otherwise indicated at the top of the 2 first page of each volume of such roll. 3 § 33. Subdivision 2 of section 1909 of the education law, as added by 4 section 3 of part C of chapter 58 of the laws of 1998, is amended to 5 read as follows: 6 2. Any state aid representing tax savings duly provided by a component 7 school district of the central high school district [pursuant to section8thirteen hundred six-a of the real property tax law] for taxes levied to 9 fund expenditures of the central high school district shall be claimed 10 by such component school district [pursuant to subdivision three of11section thirteen hundred six-a of the real property tax law,] and any 12 resulting payment of state aid to the component school district based on 13 such tax savings shall be paid by the component school district, within 14 ten days after receipt of such payment, over to the treasurer of such 15 central high school district in an amount equal to the product of the 16 total payment received by such component school district for all tax 17 savings [provided pursuant to section thirteen hundred six-a of the real18property tax law] multiplied by the quotient of the tax savings provided 19 for taxes levied to fund expenditures of the central high school 20 district divided by the total tax savings duly provided by such compo- 21 nent school district [pursuant to section thirteen hundred six-a of the22real property law]. 23 § 34. Section 3601 of the education law, as amended by section 4-a of 24 part CCC of chapter 59 of the laws of 2018, is amended to read as 25 follows: 26 § 3601. When apportioned and how applied. The amount annually appro- 27 priated by the legislature for general support for public schools, net 28 of disallowances, refunds, reimbursements and credits, shall be appor- 29 tioned by the commissioner each year prior to the dates of the respec- 30 tive final payments provided by law and all moneys so apportioned shall 31 be applied exclusively to school purposes authorized by law. General 32 state aid claims, on forms prescribed by the commissioner, shall be 33 submitted to the commissioner by September second of each school year, 34 except that the audit report required by subdivision three of section 35 twenty-one hundred sixteen-a of this chapter shall be submitted to the 36 commissioner by October fifteenth following the close of the school year 37 audited for all districts other than the city school districts of the 38 cities of Buffalo, Rochester, Syracuse, Yonkers and New York and by 39 January first following the close of the school year audited for such 40 city school districts. No aid shall be paid to a school district or 41 board of cooperative educational services prior to the submission of 42 claims as required by the commissioner, except that no aid certified as 43 payable to a school district by the commissioner of taxation and finance 44 [pursuant to paragraph (c) of subdivision three of section thirteen45hundred six-a of the real property tax law] shall be withheld due to the 46 failure of the school district to submit general state aid claims 47 required by the commissioner, except that no aids shall be withheld due 48 to the failure of a school district to submit the audit report required 49 by subdivision three of section twenty-one hundred sixteen-a of this 50 chapter until the thirtieth day following the due date specified in this 51 section for such report, and except that apportionment for general 52 support of public schools from the funds apportioned to a school 53 district for the current year in excess of the amount apportioned to 54 such school district in the base year shall be withheld until issuance 55 of a determination of compliance in writing of such school district's 56 statement of total funding allocation by the commissioner and the direc-A. 97 15 1 tor of the budget as required by section thirty-six hundred fourteen of 2 this part, whenever such shall occur, provided that for purposes of this 3 section, "current year" shall mean the current year as defined in para- 4 graph a of subdivision one of section thirty-six hundred two of this 5 part and "base year" shall mean the base year as defined in paragraph b 6 of subdivision one of section thirty-six hundred two of this part. 7 § 34-a. Section 3601 of the education law, as amended by section 4-a 8 of part A-1 of chapter 58 of the laws of 2006 and as further amended by 9 subdivision (d) of section 1 of part W of chapter 56 of the laws of 10 2010, is amended to read as follows: 11 § 3601. When apportioned and how applied. The amount annually appro- 12 priated by the legislature for general support for public schools, net 13 of disallowances, refunds, reimbursements and credits, shall be appor- 14 tioned by the commissioner each year prior to the dates of the respec- 15 tive final payments provided by law and all moneys so apportioned shall 16 be applied exclusively to school purposes authorized by law. General 17 state aid claims, on forms prescribed by the commissioner, shall be 18 submitted to the commissioner by September second of each school year, 19 except that the audit report required by subdivision three of section 20 twenty-one hundred sixteen-a of this chapter shall be submitted to the 21 commissioner by October fifteenth following the close of the school year 22 audited for all districts other than the city school districts of the 23 cities of Buffalo, Rochester, Syracuse, Yonkers and New York and by 24 January first following the close of the school year audited for such 25 city school districts. No aid shall be paid to a school district or 26 board of cooperative educational services prior to the submission of 27 claims as required by the commissioner, except that no aid certified as 28 payable to a school district by the commissioner of taxation and finance 29 [pursuant to paragraph (c) of subdivision three of section thirteen30hundred six-a of the real property tax law] shall be withheld due to the 31 failure of the school district to submit general state aid claims 32 required by the commissioner, and except that no aids shall be withheld 33 due to the failure of a school district to submit the audit report 34 required by subdivision three of section twenty-one hundred sixteen-a of 35 this chapter until the thirtieth day following the due date specified in 36 this section for such report. 37 § 35. Paragraph y of subdivision 1 of section 3602 of the education 38 law, as amended by section 11 of part B of chapter 57 of the laws of 39 2007 and as further amended by subdivision (d) of section 1 of part W of 40 chapter 56 of the laws of 2010, is amended to read as follows: 41 y. "School tax relief aid" shall mean state aid payable to a school 42 district representing tax savings duly provided by the school district 43 [pursuant to section thirteen hundred six-a of the real property tax44law] that is claimed by the school district and certified by the commis- 45 sioner of taxation and finance [pursuant to subdivision three of section46thirteen hundred six-a of the real property tax law]. 47 § 36. Paragraph (j) and subparagraph (iv) of paragraph (k) of subdivi- 48 sion 2 of section 425 of the real property tax law, paragraph (j) as 49 amended by section 1 of part A of chapter 405 of the laws of 1999 and as 50 further amended by subdivision (b) of section 1 of part W of chapter 56 51 of the laws of 2010 and subparagraph (iv) of paragraph (k) as added by 52 section 1-a of part E of chapter 83 of the laws of 2002 and redesignated 53 by chapter 355 of the laws of 2003, are amended to read as follows: 54 (j) Certain city school districts. The commissioner shall adjust the 55 exempt amount for each city containing a school district which is 56 subject to article fifty-two of the education law, to account for theA. 97 16 1 fact that the school district is fiscally dependent upon the city. This 2 adjustment shall be made by multiplying the exempt amount that would 3 otherwise be determined for the city by sixty-seven percent, or, in the 4 case of a city with a population of one million or more, by fifty 5 percent. The exempt amount resulting from this calculation shall be 6 applied both to the assessed value for city school district purposes and 7 to the assessed value for general city purposes, and state aid shall be 8 payable on the combined tax savings [in the manner provided by section9thirteen hundred six-a of this chapter]. 10 (iv) Notwithstanding the provisions of subparagraph (ii) of this para- 11 graph, when a cooperative apartment corporation is incorporated as a 12 mutual company pursuant to the private housing finance law, and the 13 granting of an exemption pursuant to this section would not inure to the 14 benefit of eligible tenant-stockholders because the real property of 15 such corporation is subject to an exemption from taxation pursuant to 16 section thirty-three, ninety-three, one hundred twenty-five or five 17 hundred fifty-six of the private housing finance law, an alternative 18 benefit shall be provided to such corporation and passed through to 19 eligible tenant-stockholders in the manner provided by this subdivision. 20 Such alternative benefit shall consist of a reduction in the real prop- 21 erty taxes or payments in lieu of taxes that would otherwise be payable 22 on account of such real property. The total amount of such reduction 23 shall be the sum of the "STAR savings" for all of the cooperative apart- 24 ment units that are occupied by one or more eligible tenant-stockhold- 25 ers. The STAR savings for each such unit shall be equal to one-third of 26 the exempt amount determined pursuant to paragraph (a) of this subdivi- 27 sion for purposes of the basic or enhanced exemption, as the case may 28 be, multiplied by the applicable school tax rate, or in the case of a 29 school district described in paragraph (j) of this subdivision, by the 30 applicable city tax rate. Provided, however, in no case shall the STAR 31 savings for any individual unit exceed the amount payable by or chargea- 32 ble to the unit on account of real property taxes or payments in lieu of 33 taxes. The STAR savings so determined for each unit shall be credited by 34 the cooperative apartment corporation against the real property taxes or 35 payments in lieu of taxes otherwise payable by or chargeable to the 36 eligible tenant-stockholders. The total of the alternative benefits 37 provided pursuant to this subparagraph shall be a state charge which 38 shall be payable in the same manner that school districts are compen- 39 sated [pursuant to section thirteen hundred six-a of this chapter] for 40 tax savings attributable to exemptions granted pursuant to this section. 41 § 37. Subdivisions 1 and 2 of section 1216 of the real property tax 42 law, as added by chapter 800 of the laws of 1967 and subdivision 1 as 43 further amended by subdivision (b) of section 1 of part W of chapter 56 44 of the laws of 2010, are amended to read as follows: 45 1. Where a supplemental assessment roll has been completed, verified 46 and filed [pursuant to section thirteen hundred thirty-five of this47chapter] as per the request of the school authorities of a school 48 district, the commissioner shall determine an equalization rate for such 49 supplemental assessment roll in the manner provided in this article for 50 determining equalization rates for towns. The equalization rate so 51 determined for the supplemental assessment roll shall be used in comput- 52 ing the taxable full valuation of real property on the supplemental 53 assessment roll for all school district purposes except as otherwise 54 provided [in section thirteen hundred fourteen] by other provisions of 55 this chapter.A. 97 17 1 2. The full valuation of taxable property for school district purposes 2 for a fiscal year of a school district in which such supplemental 3 assessment rolls were completed, verified and filed [pursuant to section4thirteen hundred thirty-five of this chapter] for such fiscal year, 5 shall be the simple average of the full valuation of taxable property on 6 the regular and supplemental assessment rolls of such school district 7 for such fiscal year, provided however, that such supplemental assess- 8 ment rolls shall not be used in determining limitations on indebtedness 9 pursuant to the local finance law. Such full valuation shall be computed 10 for each roll by dividing the taxable assessed valuation on each such 11 roll by the state equalization rate established for each such roll. 12 § 38. Subdivision 1 of section 1226 of the real property tax law, as 13 added by chapter 280 of the laws of 1985 and as further amended by 14 subdivision (b) of section 1 of part W of chapter 56 of the laws of 15 2010, is amended to read as follows: 16 1. If the commissioner finds that there has been a material change in 17 level of assessment in a town or city since the last state equalization 18 rate was established, it shall determine and certify a special equaliza- 19 tion rate for tax apportionment purposes to the district superintendent 20 of schools for use in the apportionment of school taxes [as provided in21section thirteen hundred fourteen of this chapter]. 22 § 39. Paragraph (a) of subdivision 2 of section 1227 of the real prop- 23 erty tax law, as added by chapter 87 of the laws of 2001 and as further 24 amended by subdivision (b) of section 1 of part W of chapter 56 of the 25 laws of 2010, is amended to read as follows: 26 (a) When a nuclear powered electric generating facility is exempt from 27 taxation for school district purposes pursuant to section four hundred 28 eighty-five of this chapter, but it is not exempt for all purposes, the 29 commissioner shall establish a special apportionment rate for the 30 assessing unit containing the facility, which rate shall be used for 31 purposes of apportioning school district taxes to that assessing unit 32 [pursuant to section thirteen hundred fourteen of this chapter,] subject 33 to the provisions of paragraph (b) of this subdivision. Provided, 34 however, that no such rate shall be established unless it would result 35 in a change of two percent or more in the share of the school district 36 levy allocated to at least one school district segment, or where appli- 37 cable in the share of the non-homestead class levy allocated to at least 38 one portion. 39 § 40. Subdivision 1 and paragraph (a) and the opening paragraph of 40 paragraph (d) of subdivision 7 of section 1316 of the real property tax 41 law, as added by chapter 556 of the laws of 2002, subdivision 1 as 42 further amended by subdivision (b) of section 1 of part W of chapter 56 43 of the laws of 2010, are amended to read as follows: 44 1. Notwithstanding the provisions of [section thirteen hundred four-45teen of this] article seventy-one of the education law, a school 46 district located in more than one city or town, which includes a desig- 47 nated large property, as determined by the commissioner of taxation and 48 finance, may provide by annual resolution, adopted no later than ten 49 days prior to the last day provided by law for the levy of school taxes, 50 that school taxes to be levied for the fiscal year commencing July first 51 of the same year shall be apportioned to each city or town or part ther- 52 eof in accordance with the provisions set forth in this section. 53 (a) The tax shall be apportioned in accordance with the provisions of 54 [section thirteen hundred fourteen of this] article seventy-one of the 55 education law.A. 97 18 1 The resulting tax levy from paragraph (c) of this subdivision shall be 2 reapportioned among all other property within the taxing jurisdiction, 3 exclusive of the designated large property. This reapportionment shall 4 be done in accordance with [section thirteen hundred fourteen of this] 5 the provisions of article seventy-one of the education law, except that: 6 § 41. Paragraphs (a) and (f) of subdivision 4 of section 1903-a of the 7 real property tax law, as amended by chapter 47 of the laws of 1991, are 8 amended to read as follows: 9 (a) Equalization by class. The tax authorities shall determine for the 10 homestead and non-homestead classes, respectively, the total full valu- 11 ation and total taxable full valuation of the real property subject to 12 taxation for district purposes in each city or town or part thereof 13 included within the tax district. The total full valuation of a class in 14 a city or town or part thereof shall be computed by dividing the total 15 assessed value of the property in the class by the state equalization 16 rate or special equalization rate [prescribed in section thirteen17hundred fourteen of this chapter]. The total taxable full valuation of a 18 class in a city or town or part thereof shall be computed by dividing 19 the total taxable assessed value of the property in the class by the 20 state equalization rate or special equalization rate [prescribed in21section thirteen hundred fourteen of this chapter]. 22 (f) Correction and review. The equalization and apportionment required 23 by this subdivision shall be subject to correction and review to the 24 extent practicable [as provided in section thirteen hundred fourteen of25this chapter]. 26 § 42. Subdivision 2 of section 954 of the real property tax law, as 27 added by chapter 440 of the laws of 1989, is amended to read as follows: 28 2. Notwithstanding the provisions of section nine hundred twenty-two[,29thirteen hundred twenty-two, thirteen hundred twenty-four] or fourteen 30 hundred thirty of this chapter, upon agreement between a collecting 31 officer and a mortgage investing institution, the mortgage investing 32 institution or its agent shall, no later than thirty days prior to the 33 last date established by law for the annexation of the warrant to the 34 assessment roll, present to the collecting officer a list in any mutual- 35 ly agreeable format of the real property tax escrow accounts with 36 respect to which the mortgage investing institution or its agent has 37 been authorized by the mortgagor to receive tax bills. If the collecting 38 officer and mortgage investing institution agree, a list of additions 39 and deletions to the last such list so delivered may be presented 40 instead. 41 § 43. Subdivision 2 of section 544 of the real property tax law is 42 amended to read as follows: 43 2. No penalties, interest or fees of any kind, except fees payable to 44 school district collecting officers [pursuant to subdivision one of45section thirteen hundred twenty-eight of this chapter] on school taxes 46 on lands outside the forest preserve, shall be added to taxes payable by 47 the state pursuant to the provisions of this section. 48 § 44. Subdivision 2 of section 558 of the real property tax law, as 49 amended by chapter 529 of the laws of 1990, is amended to read as 50 follows: 51 2. The county legislature of any county shall direct the cancellation 52 of any unpaid school tax relevied by such county [pursuant to subdivi-53sion five of section thirteen hundred thirty or subdivision five of54section thirteen hundred thirty-two of this chapter,] or any unpaid 55 village tax relevied by such county pursuant to subdivision four of 56 section fourteen hundred forty-two of this chapter, against property ofA. 97 19 1 the state or the United States where it is determined that the lien of 2 such tax cannot be enforced, or where the lien of such tax is rendered 3 permanently unenforceable by operation of the provisions of any statute. 4 The amount of any tax so cancelled shall be charged against the school 5 district or village which levied such tax. The amount so charged against 6 a school district or village shall be withheld by the county treasurer 7 from any moneys which shall become payable by him to such school 8 district or village by reason of taxes which shall thereafter be 9 returned to him as uncollected by such school district or village. No 10 such cancellation of any unpaid school taxes or no such charge shall be 11 made by the county legislature against any such school district or 12 village unless ten days' notice thereof by mail shall be given to the 13 school authorities thereof. 14 § 45. Subdivision 1-b of section 3651 of the education law, as added 15 by section 73 of part A of chapter 436 of the laws of 1997, is amended 16 to read as follows: 17 1-b. Notwithstanding the provisions of subdivision one of this 18 section, where the city or county is not required to pay to the treasur- 19 er of a city school district unpaid taxes during the fiscal year for 20 which such real property taxes are levied, the board of education of 21 such city school district may establish a reserve for uncollected taxes 22 without approval of the qualified voters of the school district, 23 provided that the ratio of the amount of such reserve to the total prin- 24 cipal amount of the district's tax levy for such fiscal year shall not 25 be less than the ratio of the principal amount of the school district 26 taxes as levied by the school district for the last completed fiscal 27 year but not received by the district before the end of such fiscal year 28 to the total principal amount of the tax levy for such last completed 29 fiscal year. If the city or county is not required to pay to the treas- 30 urer of a city school district unpaid taxes [pursuant to section thir-31teen hundred thirty-two of the real property tax law], the board of 32 education of the city school district shall establish a reserve pursuant 33 to this subdivision, provided that such reserve shall not be less than 34 the amount of taxes for the fiscal year for which such budget is being 35 prepared which are estimated to be unpaid during such fiscal year [under36the aforesaid provisions of the real property tax law]. 37 § 46. Paragraph e of subdivision 7 of section 545 of the real property 38 tax law, as amended by chapter 800 of the laws of 1967, is amended to 39 read as follows: 40 e. "Latest preceding assessment roll" means the last preceding assess- 41 ment roll finally completed, verified and filed prior to the final 42 completion of the assessment roll for which the transition assessment is 43 being established, but shall not mean or include a supplemental assess- 44 ment roll completed, verified and filed as [provided in section thirteen45hundred thirty-five of this chapter] per the request of the school 46 authorities of a school district. 47 § 47. Subdivisions 1 and 3 of section 972 of the real property tax 48 law, as amended by section 12 of part B of chapter 389 of the laws of 49 1997, are amended to read as follows: 50 1. Adoption. Notwithstanding any provisions of this chapter, or any 51 other general, special or local law to the contrary, the legislative 52 body of a county may, by local law, provide that thereafter and until 53 such local law is repealed, the county shall become the tax collection 54 agency for the purpose of collecting taxes in installments as prescribed 55 by this title [and by sections thirteen hundred thirty-six through thir-56teen hundred forty-two of this chapter]. The term "taxes" as used inA. 97 20 1 this title shall include special assessments which are levied by the 2 county legislative body at the time and in the manner provided by law 3 for the levy of county and town taxes. 4 3. Interest. (a) Each installment other than the first shall be 5 subject to interest at the rate determined pursuant to section nine 6 hundred twenty-four-a of this article, or such other law as may be 7 locally applicable, up to and including the date on which it is to be 8 paid. Such interest shall be amortized over all scheduled payments, 9 unless the local law provides for unequal installments, in which case 10 interest shall be calculated and imposed separately upon each install- 11 ment. 12 (b) If an installment is not paid on or before the date it is due, 13 additional interest shall be added as provided by section nine hundred 14 seventy-five [or section thirteen hundred forty] of this [chapter] arti- 15 cle. 16 (c) The amount of any interest which shall be added to any installment 17 pursuant to this section and section nine hundred seventy-five [or18section thirteen hundred forty] of this [chapter] article shall belong 19 to the county. 20 § 48. In order to provide for continuity of funding to school 21 districts, fifty percent of the school taxes due on July first in the 22 year preceding the effective date of this act shall be paid as hereto- 23 fore required by law. 24 § 49. This act shall take effect on the first of January next succeed- 25 ing the date on which it shall have become a law, provided, however, 26 that sections two, four, five, six, eight and ten through forty-seven of 27 this act shall take effect on the first of January in the fifth year 28 next succeeding such effective date; and provided, further, that the 29 provisions of section 3601 of the education law made by section thirty- 30 four of this act shall be subject to the expiration and reversion of 31 such section pursuant to subdivision 2 of section 44 of part CCC of 32 chapter 59 of the laws of 2018, as amended, when upon such date the 33 provisions of section thirty-four-a of this act shall take effect.
