senate Bill S2967

Provides for the state to assume all costs of basic quality education; repealer

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 28 / Jan / 2013
    • REFERRED TO EDUCATION
  • 19 / Mar / 2013
    • NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • 30 / Apr / 2013
    • HELD IN COMMITTEE
  • 08 / Jan / 2014
    • REFERRED TO EDUCATION

Summary

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; repeals certain provisions of the tax law and real property tax law relating thereto.

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Bill Details

See Assembly Version of this Bill:
A1598
Versions:
S2967
Legislative Cycle:
2013-2014
Current Committee:
Senate Education
Law Section:
Education Law
Laws Affected:
Add Title V Art 71 §§3501 - 3506, amd §§1909, 3601, 3602 & 3651, Ed L; rpld Art 13, amd RPT L, generally; rpld §§1204, 1211 & 1212, §1261 sub (e), §1262 sub (e), amd Tax L, generally
Versions Introduced in Previous Legislative Cycles:
2011-2012: A447, A447
2009-2010: A6009, A6009
2007-2008: A4746, A4746

Sponsor Memo

BILL NUMBER:S2967

TITLE OF BILL: 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

PURPOSE: The purpose of this plan is to permit the financing of public
schools in New York State within the context of the following objec-
tives:

1. the elimination of the inequitable and regressive real estate tax as
the support of public schools;

2. the retention of present levels of local control by school districts;
and

3. the guarantee of quality and equality of educational opportunity for
all children of the state.

SUMMARY OF PROVISIONS: The plan consists of the following basic princi-
ples: 1) The state shall assume all the costs of Basic Quality Education
(BOB), including all general and special education services which the
commissioner, under guidelines established by the legislature, shall
define as necessary. Basic quality education as defined by the commis-
sioner, shall allow sufficient latitude so that choices may be made by
local districts with respect to their individual needs. "BASIC" shall
be defined in terms of equal services to all pupils regardless of
differences in cost in different districts for those services.

2) The "BASIC" costs shall be borne by increases in statewide business
and individual income taxes in conjunction with the elimination of
school district real estate taxes. New York City, which does not identi-
fy the school portion of its real estate taxes, and also collects an
income tax, shall apply the full amount of the school portion of its
budget toward a reduction in the real estate tax. The same formula shall
apply to the cities of Buffalo, Rochester, Syracuse and Yonkers. Proper-
ty tax reductions would be passed through to tenants on a pro-rate basis
where lease permits. Where this is precluded by a lease, tenants will be
entitled to tax credits or rebates on their state income taxes for the
duration of the lease.

3) BASIC budgets shall be submitted by local boards of education to the
State Education Department for approval.

4) All monies for BASIC budgets shall be collected by the state through
the business and personal income tax. The "BASIC Education Tax" shall be
levied as a percentage of the business or individual income tax.

5) Transition period: During the first (seven) years after enactment, a
district may opt to receive as its BASIC BUDGET one of following: a)
budget amount of the school year during which this law shall take effect
(dollar save harmless); b) the district budget of the school year during
which this law shall take effect increased or decreased by changes in
enrollment (pupil save harmless); or c) the amount resulting from the
application of the BQE formula, but not to exceed the average statewide
increase over the prior year, plus 10% growth ceiling. After five years
only option (c) will apply.

JUSTIFICATION: This legislation would eliminate the use of regressive
real estate taxes for the purposes of funding education. The bill first
and foremost ensures that every child has access to the same quality
education regardless of where they live or the level of their family's
income. By eliminating the school real property tax and shifting to a
more progressive statewide income tax, we will be able to fund our
schools equitably, fairly and more affordably for all New Yorkers.

Grassroots movements in every region of the state, have pushed education
funding reform to the forefront. There are groups fighting for property
tax relief, the Campaign for Fiscal Equity fighting for more funding for
New York City schools and small cities and towns all across upstate New
York struggling to balance their school budgets.

Since 1995, local property tax levies have grown by 60 percent, more
than twice the rate of inflation during that period (28 percent). Most
of this growth occurred in the last 5 years -- when property tax levies
increased by 42 percent, compared to inflation of 13 percent. The cost
of education has been the driving force behind these destabilizing
increases.

The bill requires the definition of a basic quality education be devel-
oped in such a way that school districts retain sufficient latitude to
devise their budgets based on individual needs. In creating a schedule
of mandatory services and authorized costs, the State Education Depart-
ment will be directed to take regional cost differences into account.

Perhaps the most critical aspect of this proposal, as it relates to
local control, is that the initiatives and expenditures that give each
individual school district its own identity -- programs that might not
be deemed required to ensure a basic quality education but are certainly
necessary to give our children the experience of a fully enriched educa-
tion - - can still be funded through a locally raised income tax subject
to the approval of the district voters.

The only way we are going to achieve meaningful school financing reform
is to proceed with the core societal value of this being about our chil-
dren. Ensuring that each and every child has access to the same basic
quality education regardless of where they live, how high their family's
income is or how much their property is valued, should be our top prior-
ity. The state has a moral and legal obligation to ensure equity in our
education system statewide.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: Transfer of taxes.

LOCAL FISCAL IMPLICATIONS: Reduce property taxes.

EFFECTIVE DATE: This act shall take effect on the first day of January
next succeeding the date on which it shall have become a law, provided,
however, that sections two, five, seven, eight and ten through thirty-
one of this act shall take effect on the first day of January in the 5th
year next succeeding such date.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2967

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 28, 2013
                               ___________

Introduced  by  Sen.  GIPSON -- read twice and ordered printed, and when
  printed to be committed 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:

  Section 1. Title V of the education law is amended  by  adding  a  new
article 71 to read as follows:
                               ARTICLE 71
                      FINANCING OF SCHOOL DISTRICTS
SECTION 3501. LEGISLATIVE INTENT.
        3502. BASIC QUALITY EDUCATION.
        3503. MINIMUM APPORTIONMENT.
        3504. COLLECTION AND DISTRIBUTION.
        3505. CONSTRUCTION WITH OTHER LAWS.
        3506. SEVERABILITY.
  S  3501.  LEGISLATIVE  INTENT.  IT IS THE INTENT OF THE LEGISLATURE TO
FULFILL ITS OBLIGATIONS UNDER ARTICLE ELEVEN OF THE  STATE  CONSTITUTION
WITH  RESPECT  TO THE FINANCING OF PUBLIC SCHOOLS WITHIN THIS STATE AND,
AT THE SAME TIME, ELIMINATE THE INEQUITABLE AND REGRESSIVE  REAL  ESTATE
TAX  AS  THE  SUPPORT  OF  SUCH  SCHOOLS. THE LEGISLATURE HEREBY FURTHER
INTENDS TO GUARANTEE THE QUALITY AND EQUALITY OF EDUCATION FOR  ALL  OUR
CHILDREN, WHILE LEAVING WITH THE INDIVIDUAL SCHOOL DISTRICTS THE PRESENT
LEVEL OF LOCAL CONTROL INCLUDING THE AUTHORITY TO PERMIT OR PROHIBIT THE
TRANSFER  OF  STUDENTS  INTO OR OUT OF SUCH DISTRICTS IN ACCORDANCE WITH
THE PROVISIONS OF THIS CHAPTER.
  S 3502. BASIC QUALITY EDUCATION. 1. THE STATE SHALL ASSUME  ALL  COSTS
OF  BASIC  QUALITY  EDUCATION,  IN  ACCORDANCE  WITH SECTION THIRTY-FIVE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03776-01-3

S. 2967                             2

HUNDRED FOUR OF THIS ARTICLE, INCLUDING ALL GENERAL AND  SPECIAL  EDUCA-
TIONAL  SERVICES WHICH THE COMMISSIONER, UNDER GUIDELINES ESTABLISHED BY
THE LEGISLATURE, SHALL DEFINE AS NECESSARY. BASIC QUALITY EDUCATION,  AS
DEFINED  BY  THE  COMMISSIONER,  SHALL ALLOW SUFFICIENT LATITUDE SO THAT
CHOICES MAY BE MADE BY LOCAL SCHOOL  DISTRICTS  WITH  RESPECT  TO  THEIR
INDIVIDUAL  NEEDS.  AS  USED  IN  THIS  ARTICLE "BASIC" SHALL MEAN EQUAL
SERVICES TO ALL PUPILS REGARDLESS OF DIFFERENCES IN  COST  IN  DIFFERENT
DISTRICTS FOR SUCH SERVICES.
  2.  SUCH  COSTS SHALL BE FUNDED AS PROVIDED FOR BY THE LEGISLATURE, IN
CONJUNCTION WITH THE ELIMINATION OF REAL ESTATE TAXES FOR THE SUPPORT OF
EDUCATION. WITHIN THE CITIES OF NEW YORK, BUFFALO,  ROCHESTER,  SYRACUSE
AND  YONKERS,  THE  TAX  ON REAL PROPERTY SHALL BE REDUCED BY THE DOLLAR
AMOUNT OF SUCH CITY'S SHARE OF THE COST OF PUBLIC SCHOOL EDUCATION. SUCH
REDUCTION SHALL BE APPORTIONED TO ALL REAL PROPERTY TAXPAYERS ON A  PRO-
RATA  BASIS,  AND  TENANTS  SHALL  RECEIVE  TAX CREDITS, TAX REBATES, OR
REDUCTIONS IN RENT AS PROVIDED IN SECTION FOUR HUNDRED SIXTY-SEVEN-G  OF
THE REAL PROPERTY TAX LAW.
  3.  EACH SCHOOL DISTRICT SHALL SUBMIT A BASIC BUDGET TO THE DEPARTMENT
FOR PURPOSES OF DETERMINING REIMBURSABLE SERVICES.
  4. THE DEPARTMENT, UNDER DIRECTION OF  THE  BOARD  OF  REGENTS,  SHALL
ESTABLISH  A  SCHEDULE  OF MANDATORY BASIC SERVICES AND AUTHORIZED COSTS
THEREFOR RELATED TO DIFFERING COSTS THROUGHOUT  THE  STATE.  SUCH  BASIC
SCHEDULE  SHALL  REFLECT  GUIDELINES ESTABLISHED FOR THIS PURPOSE BY THE
LEGISLATURE.
  S 3503. MINIMUM APPORTIONMENT. IN ANY SCHOOL YEAR A DISTRICT MAY ELECT
TO RECEIVE AS ITS BASIC BUDGET THE HIGHEST OF:
  1. THE DISTRICT BUDGET OF THE SCHOOL YEAR DURING  WHICH  THIS  ARTICLE
SHALL  TAKE  EFFECT,  EXCEPT  THAT THIS APPORTIONMENT OPTION SHALL EXIST
ONLY FOR THE PERIOD NOT EXCEEDING  THE  FIVE  SCHOOL  YEARS  IMMEDIATELY
AFTER THIS ARTICLE SHALL TAKE EFFECT.
  2.  THE  PRODUCT  OF (A) THE DISTRICT BUDGET OF THE SCHOOL YEAR DURING
WHICH THIS ARTICLE SHALL TAKE EFFECT DIVIDED BY THE  ENROLLMENT  AT  THE
START  OF  SUCH  YEAR  AND (B) THE ENROLLMENT AT THE START OF THE SCHOOL
YEAR FOR WHICH THE BUDGET IS BEING DETERMINED. THIS APPORTIONMENT OPTION
SHALL EXIST ONLY FOR THE PERIOD NOT  EXCEEDING  THE  FIVE  SCHOOL  YEARS
IMMEDIATELY AFTER THE EFFECTIVE DATE OF THIS ARTICLE.
  3.  THE BASIC BUDGET SUBMITTED IN ACCORDANCE WITH SUBDIVISION THREE OF
SECTION THIRTY-FIVE HUNDRED TWO OF THIS ARTICLE, EXCEPT THAT IN NO  CASE
SHALL  THE PER PUPIL APPORTIONMENT EXCEED THE PER PUPIL APPORTIONMENT OF
THE PREVIOUS YEAR BY MORE THAN THE AVERAGE  STATEWIDE  INCREASE  OF  PER
PUPIL  BUDGETS PLUS TEN PER CENTUM OF THE PER PUPIL APPORTIONMENT OF THE
PREVIOUS YEAR.
  S 3504. COLLECTION AND DISTRIBUTION. NOTWITHSTANDING THE PROVISIONS OF
ANY OTHER LAW, CODE, RULE OR REGULATION, THE STATE  SHALL,  WITHIN  FIVE
YEARS FROM THE EFFECTIVE DATE OF THIS ARTICLE, COLLECT AND DISTRIBUTE TO
SCHOOL  DISTRICTS  ALL MONEYS RELATING TO THE FINANCING OF PUBLIC EDUCA-
TION, EXCLUSIVE OF HIGHER EDUCATION, WITHIN THIS STATE, AS  PROVIDED  BY
THE  LEGISLATURE.  THIS  ASSUMPTION  BY  THE STATE OF ALL COSTS OF BASIC
QUALITY EDUCATION SHALL BE ACCOMPLISHED IN  APPROXIMATELY  EQUAL  INCRE-
MENTS  OVER  A FIVE YEAR PERIOD FROM THE EFFECTIVE DATE OF THIS ARTICLE.
DURING THIS PERIOD, THE AMOUNT OF MONEY DERIVED BY EACH SCHOOL  DISTRICT
FROM  REAL PROPERTY TAXES SHALL BE REDUCED ACCORDINGLY. AFTER FIVE YEARS
FROM THE EFFECTIVE DATE OF  THIS  ARTICLE,  MONEYS  DISTRIBUTED  TO  ANY
SCHOOL  DISTRICT SHALL BE REDUCED BY THE AMOUNT OF ANY REVENUES RECEIVED
BY SUCH SCHOOL DISTRICT FROM TAXES IMPOSED ON REAL  PROPERTY  BY  OR  ON
BEHALF OF SUCH SCHOOL DISTRICT.

S. 2967                             3

  S  3505.  CONSTRUCTION WITH OTHER LAWS. THE PROVISIONS OF THIS ARTICLE
SHALL BE CONTROLLING, NOTWITHSTANDING THE PROVISIONS OF ANY  OTHER  LAW,
CODE,  RULE OR REGULATION TO THE CONTRARY. HOWEVER, NO EXISTING RIGHT OR
REMEDY OF ANY CHARACTER SHALL BE LOST, IMPAIRED OR AFFECTED BY REASON OF
THIS  ARTICLE,  NOR SHALL THE VALIDITY OF ANY ACTION TAKEN BY ANY PUBLIC
OFFICIAL UNDER THE LAW IN FORCE IMMEDIATELY PRIOR TO THE TIME THIS ARTI-
CLE SHALL TAKE EFFECT BE AFFECTED BY  THE  ENACTMENT  OF  THIS  ARTICLE.
COLLECTION  OF  ALL  OUTSTANDING  TAX  LIENS  SHALL  BE  PURSUANT TO THE
PROVISIONS OF THE REAL PROPERTY TAX LAW.
  S 3506. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH,  SECTION  OR
PART  OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
DICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN  ITS  OPERATION  TO
THE  CLAUSE,  SENTENCE,  PARAGRAPH,  SECTION  OR  PART  THEREOF DIRECTLY
INVOLVED IN THE CONTROVERSY IN  WHICH  SUCH  JUDGMENT  SHALL  HAVE  BEEN
RENDERED.
  S 2. Article 13 of the real property tax law is REPEALED.
  S  3.  The  real  property  tax law is amended by adding a new section
467-g to read as follows:
  S 467-G. PROVISIONS FOR TENANTS. IN EVERY CASE  WHERE  TAXES  ON  REAL
PROPERTY  ARE REDUCED DUE TO THE REDUCTION OF SCHOOL TAXES ON SUCH PROP-
ERTY, THE AMOUNT OF SUCH REDUCTION SHALL BE PRO-RATED AMONG THE TENANTS,
IF ANY, OF SUCH REAL PROPERTY, AND THE TOTAL RENTS REDUCED IN AN  AMOUNT
EQUAL  TO SUCH REAL PROPERTY TAX REDUCTION. WHERE SUCH RENT REDUCTION IS
PRECLUDED BY  A  LEASE  OR  OTHER  AGREEMENT,  SUCH  REAL  PROPERTY  TAX
REDUCTION  SHALL  ENTITLE  SUCH  TENANTS  TO A TAX CREDIT IN THAT AMOUNT
AGAINST INCOME TAXES DUE, OR TO A REBATE FOR ANY  AMOUNT  IN  EXCESS  OF
INCOME  TAXES  DUE,  UNTIL THE EXPIRATION OF SUCH LEASE OR AGREEMENT, AT
WHICH TIME THE RENT SHALL BE REDUCED ACCORDINGLY.
  S 4. Subdivision 1 and paragraphs (b) and  (c)  of  subdivision  3  of
section  972  of  the real property tax law, subdivision 1 and paragraph
(c) of subdivision 3 as amended and paragraph (b) of  subdivision  3  as
added  by  section  12 of part B of chapter 389 of the laws of 1997, are
amended to read as follows:
  1. Adoption.  Notwithstanding any provisions of this chapter,  or  any
other  general,  special  or  local law to the contrary, the legislative
body of a county may, by local law, provide that  thereafter  and  until
such  local  law is repealed, the county shall become the tax collection
agency for the purpose of collecting taxes in installments as prescribed
by this title [and by sections thirteen hundred thirty-six through thir-
teen hundred forty-two of this chapter].  The term "taxes"  as  used  in
this  title  shall  include  special assessments which are levied by the
county legislative body at the time and in the manner  provided  by  law
for the levy of county and town taxes.
  (b)  If  an  installment  is not paid on or before the date it is due,
additional interest shall be added as provided by section  nine  hundred
seventy-five  [or  section  thirteen  hundred  forty]  of this [chapter]
TITLE.
  (c) The amount of any interest which shall be added to any installment
pursuant to this section  and  section  nine  hundred  seventy-five  [or
section  thirteen hundred forty] of this [chapter] TITLE shall belong to
the county.
  S 5. Subdivision 6 of section 975 of the real  property  tax  law,  as
added by chapter 953 of the laws of 1962, is amended to read as follows:
  6.  The  county  treasurer  of  a county which has enacted a local law
pursuant to section nine hundred seventy-two of this [chapter] TITLE may

S. 2967                             4

promulgate and amend suitable  rules  and  regulations  prescribing  the
necessary  forms  for  carrying into effect the provisions of this title
[and of article thirteen of this chapter] relating  to  the  installment
payment of taxes.
  S  6.  Subdivision  5 of section 1618 of the real property tax law, as
added by chapter 512 of the laws of  1993  and  as  further  amended  by
subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
2010, is amended to read as follows:
  5. When the commissioner has established a final equalization rate for
a consolidated assessing unit as a whole,  school  district  and  county
taxes  within the consolidated assessing unit shall be apportioned with-
out the use of equalization rates,  notwithstanding  the  provisions  of
[articles] ARTICLE eight [and thirteen] of this chapter.
  S  7.  The tax law is amended by adding a new section 601-b to read as
follows:
  S 601-B. ADDITIONAL TAXES FOR EDUCATION. (A) IN ADDITION TO THE  TAXES
ON INCOME IMPOSED BY THIS CHAPTER FOR TAXABLE YEARS OR PERIODS ENDING ON
OR  AFTER  DECEMBER  THIRTY-FIRST, TWO THOUSAND THIRTEEN, THERE SHALL BE
IMPOSED A TAX EQUAL TO A PERCENT OF THE TAXES IMPOSED BY  SUCH  SECTIONS
AND  ARTICLES  AS  IS  NECESSARY  TO FULFILL THE REQUIREMENTS OF SECTION
THIRTY-FIVE HUNDRED TWO OF THE EDUCATION LAW. SUCH A TAX MAY  BE  LEVIED
EITHER AS A SURTAX, OR BY READJUSTMENT OF THE APPROPRIATE TAX SCHEDULES.
  (B)  EACH  SCHOOL  DISTRICT MAY ALSO INCREASE THE ADDITIONAL TAXES FOR
EDUCATION, IMPOSED PURSUANT TO SUBSECTION (A) OF THIS SECTION, BY RESOL-
UTION ADOPTED BY A TWO-THIRDS VOTE PRIOR TO THE LEVY  OF  TAXES  IN  ANY
YEAR.  SUCH  RESOLUTION  SHALL  PROVIDE  FOR  THE INCREASE TO BE IMPOSED
EITHER IN THE FORM OF A HIGHER  SURTAX  RATE  OR  A  STANDARD  LUMP  SUM
AMOUNT;  PROVIDED, THAT ALL SUCH PROCEEDS FROM THE INCREASE ON THE ADDI-
TIONAL TAX FOR EDUCATION BE COLLECTED AND ACCRUED TO THE SCHOOL DISTRICT
IN WHICH SUCH TAX WAS COLLECTED.
  (C) THE COMMISSIONER SHALL ESTABLISH A SEPARATE ACCOUNT OR ACCOUNTS TO
RECEIVE THE ADDITIONAL TAX IMPOSED BY SUBSECTIONS (A) AND  (B)  OF  THIS
SECTION  AND  SHALL  PAY  INTO SUCH ACCOUNT OR ACCOUNTS THE TOTAL OF ALL
SUCH TAXES WHEN RECEIVED AND RETAIN THE SAME SUBJECT TO DISBURSEMENT  IN
ACCORDANCE WITH THE PROVISIONS OF THE EDUCATION LAW.
  S  7-a.  The  real property tax law is amended by adding a new section
307-b to read as follows:
  S 307-B. ADDITIONAL TAX ON NON-RESIDENTIAL PROPERTY.  1.  THE  COMMIS-
SIONER  OF  TAXATION  AND  FINANCE  SHALL ESTABLISH AN ADDITIONAL TAX ON
NON-RESIDENTIAL PROPERTY TO BE IMPOSED  IN  ADDITION  TO  OTHER  LOCALLY
LEVIED PROPERTY TAXES. SUCH TAX SHALL BE LEVIED BY THE STATE THROUGH THE
COUNTY,  CITY,  TOWN  OR VILLAGE GOVERNING BODY AND SHALL BE A LOW-RATE,
UNIFORM TAX. FOR THE  PURPOSES  OF  THIS  SUBDIVISION,  "NON-RESIDENTIAL
PROPERTY"  SHALL  MEAN  ANY (A) NON-RESIDENTIAL COMMERCIAL PROPERTY, (B)
INDUSTRIAL PROPERTY, (C) AGRICULTURAL PROPERTY AND (D) VACANT LAND WHICH
IS EITHER COMMERCIAL PROPERTY OR INDUSTRIAL PROPERTY.
  2. THE COMMISSIONER OF TAXATION AND FINANCE SHALL SET THE RATE FOR THE
ADDITIONAL TAX ON NON-RESIDENTIAL PROPERTY, AS REQUIRED  BY  SUBDIVISION
ONE  OF THIS SECTION, AT AN ADEQUATE RATE TO PROVIDE FUNDING FOR MEETING
THE REQUIREMENTS OF SECTIONS THIRTY-FIVE  HUNDRED  ONE  AND  THIRTY-FIVE
HUNDRED  TWO  OF  THE  EDUCATION  LAW.  THE COMMISSIONER OF TAXATION AND
FINANCE SHALL ESTABLISH A SEPARATE ACCOUNT TO RECEIVE THE ADDITIONAL TAX
IMPOSED BY SUBDIVISION ONE OF THIS  SECTION  AND  SHALL  PAY  INTO  SUCH
ACCOUNT  THE  TOTAL  OF ALL SUCH TAXES WHEN RECEIVED AND RETAIN THE SAME
SUBJECT TO DISBURSEMENT IN ACCORDANCE WITH  THE  PROVISIONS  OF  ARTICLE
SEVENTY-ONE OF THE EDUCATION LAW.

S. 2967                             5

  S 8. Sections 1204, 1211 and 1212 of the tax law are REPEALED.
  S  9.  The  tax law is amended by adding a new section 1200 to read as
follows:
  S 1200. CERTAIN TAXES REDUCED. NOTWITHSTANDING THE PROVISIONS  OF  ANY
OTHER  SECTION  OF THIS ARTICLE, ON AND AFTER THE EFFECTIVE DATE OF THIS
SECTION, THE PROVISIONS OF THIS ARTICLE RELATING TO TAXES FOR THE  BENE-
FIT  OF  SCHOOL  DISTRICTS OR SCHOOL PURPOSES SHALL BE DEEMED REDUCED IN
ACCORDANCE WITH SECTION THIRTY-FIVE HUNDRED FOUR OF THE EDUCATION LAW.
  S 10. Section 1213 of the tax law, as amended by section 2 of part  WW
of chapter 57 of the laws of 2010, is amended to read as follows:
  S  1213. Deliveries outside the jurisdiction where sale is made. Where
a sale of tangible personal  property  or  services,  including  prepaid
telephone  calling  services, but not including other services described
in subdivision (b) of section  eleven  hundred  five  of  this  chapter,
including  an  agreement  therefor, is made in any city[,] OR county [or
school district], but the property sold, the  property  upon  which  the
services were performed or prepaid telephone calling or other service is
or  will be delivered to the purchaser elsewhere, such sale shall not be
subject to tax by such city[,] OR county [or school district].  However,
if  delivery  occurs  or  will  occur  in a city[,] OR county [or school
district] imposing a tax on the sale or use of  such  property,  prepaid
telephone  calling  or  other  services, the vendor shall be required to
collect from the  purchaser,  as  provided  in  section  twelve  hundred
fifty-four  of  this  article,  the  aggregate sales or compensating use
taxes imposed by the city, if any, AND county [and school  district]  in
which delivery occurs or will occur, for distribution by the commission-
er  to  such  taxing  jurisdiction or jurisdictions. For the purposes of
this section delivery shall be deemed to include transfer of  possession
to  the  purchaser  and the receiving of the property or of the service,
including prepaid telephone calling service, by the purchaser.  Notwith-
standing  the  foregoing,  where  a  transportation service described in
paragraph ten of subdivision (c) of section eleven hundred five of  this
chapter begins in one jurisdiction but ends in another jurisdiction, any
tax  imposed  pursuant to the authority of this article shall be due the
jurisdiction or jurisdictions where the service commenced.
  S 11. Section 1220 of the tax law, as amended by section 39 of part  Y
of chapter 63 of the laws of 2000, is amended to read as follows:
  S  1220.  Territorial limitations. Any tax imposed under the authority
of this article shall apply only within the territorial  limits  of  the
city[,]  OR  county  [or  school district] imposing the tax, except that
where the taxes described in subdivision (b) of section  eleven  hundred
five  and  clauses (E), (G) and (H) of subdivision (a) of section eleven
hundred ten OF THIS CHAPTER or the tax described in subdivision  (e)  of
section  eleven  hundred  five  OF THIS CHAPTER is imposed by a city, as
provided in section twelve hundred ten [or  twelve  hundred  eleven]  of
this  [chapter] ARTICLE, any establishment located partially within such
city and partially within a town or towns and  receiving  or  using  any
services  or utilities provided by the city shall be deemed to be wholly
within such city for the purposes of such taxes.
  S 12. Section 1222 of the tax law, as added by chapter 93 of the  laws
of 1965, is amended to read as follows:
  S  1222. Taxes to be in addition to others. Except as expressly other-
wise provided in this article, any tax imposed under  the  authority  of
this  article shall be in addition to any and all other taxes authorized
or imposed under any other provision of law. This article shall  not  be
construed  as  limiting  the  power  of any city[,] OR county [or school

S. 2967                             6

district] to impose any other tax which it is authorized to impose under
any other provision of law.
  S  13.  Section  1256 of the tax law, as amended by chapter 575 of the
laws of 1965, is amended to read as follows:
  S 1256. Cooperation by  localities.  Every  city[,]  AND  county  [and
school district] shall cooperate with the [state tax commission] COMMIS-
SIONER  to  enable  [it] HIM OR HER to carry out [its] HIS OR HER duties
under [articles] THIS ARTICLE AND ARTICLE twenty-eight [and twenty-nine]
of this chapter. Every such locality shall furnish to such  [commission]
COMMISSIONER those returns, reports and other information which the [tax
commission]  COMMISSIONER  deems  necessary  to  carry  out such duties,
except that cities having a population of one million or more,  may,  in
their  discretion,  furnish  instead copies of such returns, reports and
other information. Such copies shall be furnished at  the  [tax  commis-
sion's]  COMMISSIONER'S expense, such expenses to be charged to the cost
of administration.  Notwithstanding any other law to the  contrary,  the
duty to furnish returns, reports and other information or copies thereof
shall  apply  to [those returns and reports filed under taxes authorized
under chapter eight  hundred  seventy-three  of  the  laws  of  nineteen
hundred  thirty-four, as amended, chapter three hundred forty-one of the
laws of nineteen hundred forty-six, as amended,  article  two-B  of  the
general  city  law  and chapter two hundred seventy-eight of the laws of
nineteen hundred forty-seven, as amended, and to such other] information
which is relevant to the duties of  the  [tax  commission]  COMMISSIONER
under  THIS  ARTICLE AND such [articles] ARTICLE twenty-eight [and twen-
ty-nine] OR OTHER RELEVANT PROVISIONS OF THIS CHAPTER.
  S 14. Paragraph 1 of subdivision (g) of section 1132 of the  tax  law,
as  amended  by  chapter  402 of the laws of 1986, is amended to read as
follows:
  (1) The clerk of each county when performing the function of registra-
tion of a motor vehicle, snowmobile, vessel or all  terrain  vehicle  or
accepting  an  application for a certificate of title of a motor vehicle
or vessel, pursuant to the authority of the vehicle and traffic law,  or
the commissioner of motor vehicles, when such commissioner performs such
functions, prior to performing such functions, shall act as the agent of
the  [state tax commission] COMMISSIONER to collect any retail sales tax
due under this article and under a sales tax imposed pursuant to section
twelve hundred ten [or twelve hundred eleven] OF THIS CHAPTER upon sales
of such motor vehicles, snowmobiles, vessels or all terrain vehicles  by
persons  other  than  dealers  registered  under  sections  four hundred
fifteen, twenty-two hundred twenty-two, twenty-two  hundred  fifty-seven
and  twenty-two  hundred eighty-two of the vehicle and traffic law. Such
county clerks and such commissioner shall also act  as  such  agents  to
collect any compensating use tax due under section eleven hundred ten OF
THIS  ARTICLE  and  under  a  compensating  use  tax imposed pursuant to
section twelve hundred ten [or twelve hundred eleven]  OF  THIS  CHAPTER
for  the use of a motor vehicle, snowmobile, vessel or all terrain vehi-
cle within this state.  The commissioner of motor vehicles shall act  as
such  agent  without  fee. Each such county clerk shall, after deducting
his OR HER fee as provided in paragraph two  of  this  subdivision,  and
such  commissioner shall remit to the tax commission all funds collected
pursuant to this subdivision and shall follow such procedures  and  keep
such   records   as   shall   be  prescribed  by  the  [tax  commission]
COMMISSIONER.

S. 2967                             7

  S 15. Subparagraph (iii) of paragraph 1 of subdivision (a) of  section
1214  of  the tax law, as amended by chapter 481 of the laws of 2000, is
amended to read as follows:
  (iii)  is  not engaged in carrying on in such jurisdiction any employ-
ment, trade, business or profession in which the motor vehicle or vessel
will be used in such jurisdiction, and such other proof as  the  commis-
sioner  may require to ensure proper administration of the taxes imposed
under the authority of [sections] SECTION twelve hundred ten [and twelve
hundred eleven] of this article.
  S 16. Section 1217 of the tax law, as added by chapter 962 of the laws
of 1966, subdivision (a) as amended by chapter 169 of the laws of  1970,
is amended to read as follows:
  S  1217.  General transitional provisions. (a) For the purposes of any
local law, ordinance or resolution imposing a local tax pursuant to  the
authority  of section twelve hundred ten[, twelve hundred eleven, twelve
hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE or increasing
the rate of such tax, all references in section eleven  hundred  six  OF
THIS  CHAPTER to August first, nineteen hundred sixty-five shall be read
as referring to the effective date  of  such  local  law,  ordinance  or
resolution,  all  references  in  said  section to April first, nineteen
hundred sixty-five shall be read as referring  to  a  date  four  months
prior  to  the effective date of such local law, ordinance or resolution
and the reference in subdivision (b) of section eleven  hundred  six  OF
THIS  CHAPTER to July thirty-first, nineteen hundred sixty-five shall be
read as referring to the day immediately before the  effective  date  of
such local law, ordinance or resolution.
  (b)  In  applying the provisions of section eleven hundred nineteen OF
THIS CHAPTER with  respect  to  pre-existing  lump  sum  or  unit  price
construction  contracts  to  a  tax on retail sales of tangible personal
property or a compensating use tax imposed pursuant to the authority  of
section  twelve  hundred ten [or twelve hundred eleven] OF THIS ARTICLE,
all references in said section to the date of the enactment  of  article
twenty-eight  OF  THIS  CHAPTER or the enactment of a law increasing the
rate of tax imposed under said article shall be read as referring to the
date of the enactment of the local law, ordinance or resolution imposing
such local tax or increasing the rate thereof.
  S 17. Section 1223 of the tax law, as separately amended  by  chapters
4, 8 and 9 of the laws of 2003 and subdivision (a) as amended by chapter
74 of the laws of 2010, is amended to read as follows:
  S  1223.  Limitations  on  rates.    (a)  No transaction taxable under
sections twelve hundred two [through] AND twelve hundred [four] THREE of
this article shall be taxed pursuant to this article by any county or by
any city located therein, or by both, at an aggregate rate in excess  of
the  highest  rate  set  forth  in the applicable subdivision of section
twelve hundred one of this article or, in the case of any taxes  imposed
pursuant  to  the  authority  of  section  twelve  hundred ten or twelve
hundred eleven of this article (other than taxes imposed by  the  county
of Nassau, Erie, Steuben, Cattaraugus, Suffolk, Oneida, Genesee, Greene,
Franklin,  Herkimer,  Tioga,  Orleans, Allegany, Ulster, Albany, Rensse-
laer, Tompkins, Wyoming, Columbia, Schuyler, Rockland, Chenango, Monroe,
Chemung, Seneca, Sullivan, Wayne, Livingston,  Schenectady,  Montgomery,
Delaware,  Clinton,  Niagara,  Yates, Lewis, Essex, Dutchess, Schoharie,
Putnam, Chautauqua, Orange, Oswego, Ontario, Jefferson or  Onondaga  and
by  the county of Cortland and the city of Cortland and by the county of
Broome and the city of Binghamton and by the county of  Cayuga  and  the
city  of  Auburn and by the county of Otsego and the city of Oneonta and

S. 2967                             8

by the county of Madison and the city of Oneida and  by  the  county  of
Fulton and the city of Gloversville or the city of Johnstown as provided
in  section  twelve  hundred ten of this article) at a rate in excess of
three percent, except that, in the city of Yonkers, in the city of Mount
Vernon,  in  the  city of New Rochelle, in the city of Fulton and in the
city of Oswego, the rate may not be in excess of four percent and in the
city of White Plains, the rate may not be in excess of four percent  and
except  that  in  the city of Poughkeepsie in the county of Dutchess, if
such county withdraws  from  the  metropolitan  commuter  transportation
district pursuant to section twelve hundred seventy-nine-b of the public
authorities law and if the revenues from a three-eighths percent rate of
such  tax  imposed  by such county, pursuant to the authority of section
twelve hundred ten of this article, are required by  local  laws,  ordi-
nances  or resolutions to be set aside for mass transportation purposes,
the rate may not be in excess of three and three-eighths percent.
  (b) If a transaction is taxed by both a county and a city, the rate of
tax on such transaction imposed by the county or city, not having  prior
right  thereto  pursuant  to  section twelve hundred twenty-four OF THIS
SUBPART, shall be deemed to be reduced (or the entire tax eliminated, if
necessary) to the extent necessary to comply with the foregoing require-
ment. A tax imposed by a county upon any transaction, to the extent that
it would require a reduction in any tax rate imposed thereon by a  city,
shall  not  become effective in respect to any transaction taxed by such
city (or in respect of other similar transactions outside  of  the  city
which,  if  occurring  in  such city, would be subject to such city tax)
before the commencement of the city's next succeeding  fiscal  year  and
then  only  if  the  county  shall have given notice to such city of its
imposition of a tax on such transaction at least six months prior to the
commencement of such fiscal year, provided however that the local legis-
lative body of such city may waive the requirement of  such  notice  and
the  postponement of the effective date of such tax. A city tax upon any
transaction, to the extent that it would require a reduction in any  tax
rate  imposed by a county thereon, shall not become effective in respect
of any transaction taxed by such county before the commencement  of  the
county's  next  succeeding  fiscal  year and then only if the city shall
have given notice to such county of its imposition  of  a  tax  on  such
transaction at least six months prior to the commencement of such fiscal
year,  provided, however, that the local legislative body of such county
may waive the requirement of such notice and postponement of the  effec-
tive  date  of  such tax. However, whether or not the six months' notice
requirement provided in this section has  been  waived,  a  tax  imposed
pursuant  to  the  authority  of  section  twelve hundred ten [or twelve
hundred eleven] OF THIS ARTICLE shall still be subject to  the  require-
ments  provided  for  in the first three sentences of subdivision (d) of
such [sections] SECTION  and  in  subdivision  (e)  of  such  [sections]
SECTION.
  S  18.  Paragraph 2 of subdivision (b) of section 1224 of the tax law,
as amended by chapter 506 of the laws of 1976, is  amended  to  read  as
follows:
  (2)  all  of the taxes described in article twenty-eight as authorized
by subdivision (a) of section twelve hundred ten[, or by section  twelve
hundred  eleven,]  OF THIS ARTICLE to the extent of one-half the maximum
aggregate rates authorized under such subdivision (a) [and such  section
twelve hundred eleven], except as otherwise provided in this section.
  S  19.  Subdivision  (k) of section 1224 of the tax law, as amended by
chapter 426 of the laws of 1968 and separately  relettered  by  chapters

S. 2967                             9

531,  574,  617,  718 and 719 of the laws of 1992, is amended to read as
follows:
  (k)  For  purposes  of this section, the term "prior right" shall mean
the preferential right to impose any tax described  in  sections  twelve
hundred  two  [and], twelve hundred three[,] AND twelve hundred ten [and
twelve hundred eleven] OF THIS ARTICLE and thereby to pre-empt such  tax
and  to preclude another municipal corporation from imposing or continu-
ing the imposition of such tax to the extent that such  right  is  exer-
cised.    However,  the right of pre-emption shall only apply within the
territorial limits of the taxing jurisdiction having the right  of  pre-
emption.
  S  20.  Subdivision  (a) of section 1235 of the tax law, as amended by
chapter 459 of the laws of 1968, is amended to read as follows:
  (a) With respect to taxes  imposed  pursuant  to  subdivision  (a)  of
section twelve hundred ten [and pursuant to section twelve hundred elev-
en] OF THIS ARTICLE, the  use of tangible personal property purchased at
retail  and  of  any  of  the services subject to the sales tax shall be
exempt from the compensating use tax authorized under subdivision (a) of
such section twelve hundred ten [and under section twelve hundred  elev-
en,] to the extent that a retail sales tax or a compensating use tax was
legally  due  and  paid thereon, without any right to a refund or credit
thereof, to (1) any municipal corporation in this state or (2) any other
state or jurisdiction within any other state, but only when it is  shown
that  such  other state or jurisdiction allows a corresponding exemption
with respect to the sale or use of tangible personal property or of  any
of  the services upon which such a sale or compensating use tax was paid
to this state and any of its municipal corporations, except as  provided
in subdivision (b) of this section.
  S  21. Section 1240 of the tax law, as added by chapter 93 of the laws
of 1965, is amended to read as follows:
  S 1240. Administration and  collection.  The  taxes  authorized  under
sections  twelve hundred one through twelve hundred [four] THREE OF THIS
ARTICLE which are now imposed shall  continue  to  be  administered  and
collected  by the fiscal or other officers of the city, county or school
district in the same manner as such taxes  have  been  administered  and
collected  by  such  officers immediately prior to the enactment of this
article, in accordance with the applicable provisions  of  the  charter,
administrative  code,  local law, ordinance or resolution then in force,
with such amendments in respect to administration and collection as  may
be  enacted.  Taxes authorized under sections twelve hundred one through
twelve hundred [four] THREE OF  THIS  ARTICLE  which  may  hereafter  be
imposed  by  a city, county or school district shall be administered and
collected in such manner as may be provided in its charter,  administra-
tive  code,  local laws, ordinances or resolutions, with such amendments
in respect to administration and collection as may be enacted.
  S 22. Subdivision (b) of section 1242 of the  tax  law,  as  added  by
chapter 93 of the laws of 1965, is amended to read as follows:
  (b) Cities under one million, counties and school districts. Except in
the  case  of a wilfully false or fraudulent return with intent to evade
the tax, no assessment of additional tax shall be made with  respect  to
taxes  imposed  under  the  authority  of  sections  twelve  hundred two
[through] AND twelve hundred [four] THREE OF  THIS  ARTICLE,  after  the
expiration  of  more  than  three years from the date of the filing of a
return, provided, however, that  where  no  return  has  been  filed  as
provided  by local law, ordinance or resolution, the tax may be assessed
at any time.

S. 2967                            10

  S 23. Subdivision (a) of section 1243 of the tax law,  as  amended  by
chapter  808  of  the laws of 1992 and paragraph 1 as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is  amended  to
read as follows:
  (a)  Any  final  determination  of the amount of any tax payable under
sections twelve hundred one through twelve hundred [four] THREE OF  THIS
ARTICLE shall be reviewable for error, illegality or unconstitutionality
or  any  other  reason whatsoever by a proceeding under article seventy-
eight of the civil practice law and rules  if  application  therefor  is
made  to  the  supreme  court within four months after the giving of the
notice of such final determination, provided,  however,  that  any  such
proceeding  under  article  seventy-eight  of the civil practice law and
rules shall not be instituted by a taxpayer unless (1) the amount of any
tax sought to be reviewed, with such interest and penalties  thereon  as
may  be  provided for by local law, ordinance, resolution or regulation,
shall be first deposited and there is filed an undertaking, issued by  a
surety  company  authorized  to  transact  business  in  this  state and
approved by the superintendent of financial services of this state as to
solvency and responsibility, in such amount as a justice of the  supreme
court  shall  approve to the effect that if such proceeding be dismissed
or the tax confirmed the taxpayer will pay all costs and  charges  which
may accrue in the prosecution of such proceeding or (2) at the option of
the  taxpayer,  such undertaking may be in a sum sufficient to cover the
taxes, interest and penalties stated in  such  determination,  plus  the
costs  and  charges which may accrue against such taxpayer in the prose-
cution of the proceeding, in which  event  the  taxpayer  shall  not  be
required  to pay such taxes, interest or penalties as a condition prece-
dent to the application.
  S 24. Section 1250 of the tax law, as amended by chapter  169  of  the
laws of 1970, is amended to read as follows:
  S  1250.  Administration  and  collection. The taxes imposed under the
authority of sections twelve hundred ten[, twelve hundred eleven, twelve
hundred twelve] and twelve hundred twelve-A OF  THIS  ARTICLE  shall  be
administered and collected by the [state tax commission] COMMISSIONER in
the  same manner as the taxes imposed under article twenty-eight of this
chapter are administered and collected by such commission.   All of  the
provisions  of  such  article  relating to or applicable to the adminis-
tration and collection of the taxes imposed by that article shall  apply
to the taxes imposed under the authority of section twelve hundred ten[,
twelve hundred eleven, twelve hundred twelve] or twelve hundred twelve-A
OF  THIS  ARTICLE,  including  sections  eleven  hundred  one and eleven
hundred eleven and sections eleven  hundred  thirty-one  through  eleven
hundred  forty-seven  OF THIS CHAPTER, with the same force and effect as
if those provisions had been incorporated in full into this article  and
had  expressly  referred  to  the  taxes  imposed  under sections twelve
hundred ten [through] AND  twelve  hundred  twelve-A  OF  THIS  ARTICLE,
except  to  the  extent that any provisions of such article twenty-eight
are either inconsistent with a provision of  this  article  or  are  not
relevant  to this article.  For purposes of this article, the term "tax"
in part IV of such article twenty-eight shall include  any  tax  imposed
under the authority of section twelve hundred ten[, twelve hundred elev-
en,  twelve  hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE.
Wherever there is joint collection of state and local taxes, it shall be
deemed that such collections shall represent proportionally the applica-
ble state and local taxes in determining the amount to  be  remitted  to
local taxing jurisdictions.

S. 2967                            11

  S  25.  Subdivision  (a) of section 1251 of the tax law, as amended by
chapter 155 of the laws of 1982, is amended to read as follows:
  (a)  Every  person  required to collect any of the taxes imposed under
the authority of section twelve hundred  ten[,  twelve  hundred  eleven,
twelve  hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE shall
file a return as required by subdivision (a) of section  eleven  hundred
thirty-six  OF  THIS  CHAPTER  with  the  [tax commission] COMMISSIONER,
except that return for the quarterly period ending August  thirty-first,
nineteen  hundred sixty-five shall only cover the month of August, nine-
teen hundred sixty-five. The return of a  vendor  of  tangible  personal
property  or services shall show his OR HER receipts from sales and also
the aggregate value of tangible personal property and services  sold  by
him, the use of which is subject to a tax imposed under the authority of
this  article  and  the  amount  of  taxes required to be collected with
respect to such sales and use. The return of a  [recipient]  RECEIPT  of
amusement  charges  shall  show  all  such charges and the amount of tax
thereon, and the return of an operator required to collect tax on  rents
shall  show all rents received or charged and the amount of tax thereon.
Every person required to file a part-quarterly return pursuant to subdi-
vision (a) of section eleven hundred thirty-six OF  THIS  CHAPTER  shall
file  a  return  for  the same periods for the taxes imposed pursuant to
this article. Provided, however, where a part-quarterly return described
in paragraph [(i)] ONE or [(ii)] TWO of subdivision (a) of section elev-
en hundred thirty-six is filed  for  purposes  of  complying  with  this
section  and section eleven hundred thirty-six or subdivision (a) or (b)
of section eleven  hundred  thirty-seven-A  OF  THIS  CHAPTER,  on  such
returns  separate amounts due for the taxes imposed by each county, city
or school district, pursuant to the authority of section twelve  hundred
ten[,  twelve  hundred  eleven, twelve hundred twelve] or twelve hundred
twelve-A OF THIS ARTICLE, need not be shown.  Rather, such returns shall
only show the aggregate amount of all such local taxes calculated in the
manner provided for in paragraph [(i)] ONE or [(ii)] TWO of  subdivision
(a)  of section eleven hundred thirty-six OF THIS CHAPTER except that in
the case of a short-form, part-quarterly return, where a county, city or
school district did not impose a tax in the comparable  quarter  of  the
immediately  preceding  year,  the tax for that locality shall be calcu-
lated on such basis as the [tax commission] COMMISSIONER shall by  regu-
lation prescribe.
  S  26.  Subdivision  (b) of section 1252 of the tax law, as amended by
chapter 169 of the laws of 1970, is amended to read as follows:
  (b) The [tax commission] COMMISSIONER, in [its] HIS OR HER discretion,
may require or permit any or all persons liable for any tax or  required
to  collect any tax authorized under section twelve hundred ten[, twelve
hundred eleven, twelve hundred twelve] or  twelve  hundred  twelve-A  OF
THIS  ARTICLE  to  make  payment  to such banks, banking houses or trust
companies designated by the [tax commission] COMMISSIONER  and  to  file
returns  with such banks, banking houses or trust companies, as agent of
the state tax commission, in lieu of paying the taxes imposed under  the
authority  of section twelve hundred ten[, twelve hundred eleven, twelve
hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE  directly  to
the state tax commission. However, the [tax commission] COMMISSIONER can
only  designate such banks, banking houses and trust companies which are
already designated  by  the  comptroller  as  depositories  pursuant  to
section eleven hundred forty-eight of this chapter.
  S  27.  Section  1253 of the tax law, as amended by chapter 169 of the
laws of 1970, is amended to read as follows:

S. 2967                            12

  S 1253. Registration. Every person required to  register  pursuant  to
section  eleven hundred thirty-four OF THIS CHAPTER shall be required to
register for purposes of  the  taxes  imposed  under  the  authority  of
sections  twelve  hundred  ten[,  twelve  hundred eleven, twelve hundred
twelve]  and  twelve hundred twelve-A OF THIS ARTICLE. However, only one
certificate of authority need be issued. Persons who elect  to  register
under  such  section eleven hundred thirty-four pursuant to the election
provided therein shall also be required to make a similar  election  for
purposes  of  the  taxes  imposed  under  the authority of such sections
twelve hundred ten[, twelve hundred eleven, twelve hundred  twelve]  and
twelve  hundred  twelve-A, but only one certificate of authority need be
issued.
  S 28. Subdivisions (a) and (b) of section 1254  of  the  tax  law,  as
amended  by  chapter  169  of  the  laws of 1970, are amended to read as
follows:
  (a) Every person required to collect tax, as defined in section eleven
hundred thirty-one OF THIS CHAPTER, who is required to collect any state
tax imposed under sections eleven hundred five, eleven  hundred  six  or
eleven  hundred  ten OF THIS CHAPTER, shall at the same time collect any
applicable tax imposed by a city, county or school  district  under  the
authority  of  [sections]  SECTION  twelve  hundred ten[, twelve hundred
eleven, twelve hundred twelve] or twelve hundred twelve-A OF THIS  ARTI-
CLE,  and  where the state tax is a retail sales tax, shall also collect
any compensating  use  tax  which  may  be  applicable  as  provided  in
[sections] SECTION twelve hundred thirteen or twelve hundred fourteen OF
THIS ARTICLE.
  (b)  Where  the state of New York, any of its agencies, instrumentali-
ties, public corporations (including a public corporation created pursu-
ant to agreement or compact with another state or Canada)  or  political
subdivisions  sells  services  or  property of a kind ordinarily sold by
private persons it shall be considered a  vendor  for  purposes  of  the
taxes  imposed  under  the  authority  of  sections twelve hundred ten[,
twelve  hundred  eleven,  twelve  hundred  twelve]  and  twelve  hundred
twelve-A  OF  THIS  ARTICLE  and  shall be required to collect the taxes
imposed by cities, counties and school districts under the authority  of
such sections.
  S 29. Subdivisions (a), (b) and (c) of section 1261 of the tax law, as
amended by chapter 84 of the laws of 2000, subdivision (a) as amended by
chapter  182  of  the  laws  of  2005, and subdivision (c) as amended by
section 9 of part SS-1 of chapter 57 of the laws of 2008, are amended to
read as follows:
  (a) All taxes, penalties and interest imposed by cities,  counties  or
school  districts  under  the  authority of section twelve hundred ten[,
twelve hundred eleven, twelve hundred twelve] or twelve hundred twelve-A
of this article, which are  collected  by  the  commissioner,  shall  be
deposited  daily  with  such  responsible banks, banking houses or trust
companies, as may be designated by the state comptroller, to the  credit
of  the  comptroller,  in  trust  for  the  cities,  counties  or school
districts imposing the tax or for (i) the Nassau county interim  finance
authority  or  (ii)  the Buffalo fiscal stability authority or (iii) the
Erie county fiscal stability authority, created by the  public  authori-
ties  law,  (i) to the extent that net collections from taxes imposed by
Nassau county are payable to the Nassau county interim finance authority
or (ii) to the extent that net collections from taxes  imposed  by  Erie
county  or  by  the  city  of  Buffalo are payable to the Buffalo fiscal
stability authority or (iii) to the extent  that  net  collections  from

S. 2967                            13

taxes  imposed  by  Erie  county  are  payable to the Erie county fiscal
stability authority, or for any public benefit corporation to which  the
tax  may be payable pursuant to law. Such deposits and deposits received
pursuant  to subdivision (b) of section twelve hundred fifty-two of this
article shall be kept in trust and separate and  apart  from  all  other
monies  in  the  possession  of  the  comptroller. The comptroller shall
require adequate security from all such  depositories  of  such  revenue
collected  by the commissioner, including the deposits received pursuant
to subdivision (b) of section twelve hundred fifty-two of this  article.
Any  amount  payable to such authorities pursuant to the public authori-
ties law shall, at the time it is otherwise payable to (i) Nassau  coun-
ty,  (ii)  Erie  county  or  the  city of Buffalo, or (iii) Erie county,
respectively, as specified in this section,  be  paid  instead  to  such
respective authority. Any amount payable to a public benefit corporation
pursuant to law shall, at the time it is otherwise payable to the taxing
jurisdiction  as  specified  in  this  section,  be paid instead to such
public benefit corporation.
  (b) The comptroller shall  retain  in  the  comptroller's  hands  such
amount  as the commissioner may determine to be necessary for refunds in
respect to the taxes imposed by cities, counties and  school  districts,
under the authority of section twelve hundred ten[, twelve hundred elev-
en,  twelve  hundred twelve] or twelve hundred twelve-A OF THIS ARTICLE,
and for reasonable costs of the commissioner in administering,  collect-
ing  and distributing such taxes, out of which the comptroller shall pay
any refunds of such taxes to which taxpayers shall be entitled under the
provisions of this article.
  (c) (1) The comptroller, after reserving such  refund  fund  and  such
costs  shall,  on  or  before  the  twelfth day of each month pay to the
appropriate fiscal officers of the foregoing  taxing  jurisdictions  the
taxes,  penalties  and  interest imposed by such jurisdictions under the
authority of sections twelve hundred ten [through]  AND  twelve  hundred
twelve-A of this article, collected by the commissioner pursuant to this
article  during  the  next  preceding calendar month, provided, however,
that the comptroller shall on or before the last day of June and  Decem-
ber make a partial payment consisting of the collections made during and
including the first twenty-five days of said months to said fiscal offi-
cers of the foregoing taxing jurisdictions.
  (2) However, the taxes, penalties and interest from the additional one
percent  rate which the city of Yonkers is authorized to impose pursuant
to section twelve hundred ten of this article, after the comptroller has
reserved such refund fund and such cost shall be  paid  to  the  special
sales  and compensating use tax fund for the city of Yonkers established
by section ninety-two-f of the state finance law at the times set  forth
in the preceding sentence.
  (3) However, the taxes, penalties and interest which (i) the county of
Nassau,  (ii)  the  county  of Erie, to the extent the county of Erie is
contractually or statutorily obligated to allocate and apply or pay  net
collections  to  the  city of Buffalo and to the extent that such county
has set aside net collections for educational purposes  attributable  to
the  Buffalo school district, or the city of Buffalo or (iii) the county
of Erie is authorized to impose pursuant to section twelve  hundred  ten
of this article, other than such taxes in the amounts described, respec-
tively, in subdivisions one and two of section [one thousand two] TWELVE
hundred  sixty-two-e  of  this part, during the period that such section
authorizes Nassau  county  to  establish  special  or  local  assistance
programs  thereunder,  together  with any penalties and interest related

S. 2967                            14

thereto, and after the comptroller has reserved  such  refund  fund  and
such  costs, shall, commencing on the next payment date after the effec-
tive date of this sentence and of each month thereafter, until such date
as  (i)  the Nassau county interim finance authority shall have no obli-
gations outstanding, or (ii)  the  Buffalo  fiscal  stability  authority
shall cease to exist, or (iii) the Erie county fiscal stability authori-
ty  shall  cease  to exist, be paid by the comptroller, respectively, to
(i) the Nassau county interim finance authority to  be  applied  by  the
Nassau  county  interim finance authority, or (ii) to the Buffalo fiscal
stability authority to  be  applied  by  the  Buffalo  fiscal  stability
authority,  or (iii) to the Erie county fiscal stability authority to be
applied by the Erie county fiscal stability authority, as the  case  may
be,  in  the  following  order of priority: first pursuant to the Nassau
county interim finance authority's contracts  with  bondholders  or  the
Buffalo  fiscal  stability authority's contracts with bondholders or the
Erie county fiscal stability  authority's  contracts  with  bondholders,
respectively,  then to pay the Nassau county interim finance authority's
operating expenses not otherwise provided  for  or  the  Buffalo  fiscal
stability  authority's  operating expenses not otherwise provided for or
the Erie county fiscal  stability  authority's  operating  expenses  not
otherwise  provided  for,  respectively,  and  then  (i) pursuant to the
Nassau county interim finance authority's agreements with the county  of
Nassau, which agreements shall require the Nassau county interim finance
authority to transfer such taxes, penalties and interest remaining after
providing  for  contractual  or  other  obligations of the Nassau county
interim finance authority, and subject to  any  agreement  between  such
authority and the county of Nassau, to the county of Nassau as frequent-
ly  as  practicable;  or  (ii)  pursuant to the Buffalo fiscal stability
authority's agreements with the city of Buffalo, which agreements  shall
require  the  Buffalo fiscal stability authority to transfer such taxes,
penalties and interest remaining  after  providing  for  contractual  or
other obligations of the Buffalo fiscal stability authority, and subject
to  any agreement between such authority and the city of Buffalo, to the
city of Buffalo or the city of Buffalo school district, as the case  may
be,  as  frequently as practicable; or (iii) pursuant to the Erie county
fiscal stability authority's agreements with the county of  Erie,  which
agreements  shall  require the Erie county fiscal stability authority to
transfer such taxes, penalties and interest  remaining  after  providing
for contractual or other obligations of the Erie county fiscal stability
authority,  and  subject to any agreement between such authority and the
county of Erie, to the county of  Erie  as  frequently  as  practicable.
During  the  period that the comptroller is required to make payments to
the Nassau county interim finance authority described  in  the  previous
sentence, the county of Nassau shall have no right, title or interest in
or  to  such  taxes,  penalties  and interest required to be paid to the
Nassau county interim finance authority,  except  as  provided  in  such
authority's agreements with the county of Nassau. During the period that
the  comptroller  is  required  to  make  payments to the Buffalo fiscal
stability authority described in the second previous sentence, the  city
of Buffalo and such school district shall have no right, title or inter-
est  in  or to such taxes, penalties and interest required to be paid to
the Buffalo fiscal stability  authority,  except  as  provided  in  such
authority's  agreements with the city of Buffalo. During the period that
the comptroller is required to make payments to the Erie  county  fiscal
stability authority described in the third previous sentence, the county
of  Erie  shall  have  no  right, title or interest in or to such taxes,

S. 2967                            15

penalties and interest required to be paid to  the  Erie  county  fiscal
stability  authority,  except as provided in such authority's agreements
with the county of Erie.
  (4) The amount so payable shall be certified to the comptroller by the
commissioner  or  the  commissioner's  delegate,  who  shall not be held
liable for any inaccuracy in such certificate.  Provided,  however,  any
such  certification may be based on such information as may be available
to the commissioner at the time such certificate must be made under this
section and may be estimated  on  the  basis  of  percentages  or  other
indices calculated from distributions for prior periods.
  (5)  However, the comptroller shall withhold from the taxes, penalties
and interest imposed by the city of New York on and after August  first,
two  thousand  eight,  and deposit such amounts to the state treasury as
reimbursement for appropriated disbursements made by the New York  state
financial  control  board  established  by  the New York state financial
emergency act for the city of New York and by  the  state  deputy  comp-
troller  for  the city of New York established by section forty-one-a of
the executive law, as the actual, reasonable expenses of that  board  or
that  deputy  comptroller, incurred on behalf of the city, for quarterly
periods commencing July first, two thousand eight,  and  ending  on  the
date  when those expenses are no longer incurred by that board or deputy
comptroller; and the comptroller shall pay those withheld amounts  imme-
diately  into  the  miscellaneous special revenue fund financial control
board account 339-15 and the miscellaneous special revenue  fund  finan-
cial  oversight  account 339-DI of the state. During the period that the
comptroller is required to withhold amounts and make payments  described
in  this paragraph, the city of New York has no right, title or interest
in or to those taxes, penalties and interest required to  be  paid  into
the above referenced miscellaneous special revenue funds.
  (6) Where the amount so paid over to any city, county, school district
or the special sales and compensating use tax fund for the city of Yonk-
ers  in  any  such distribution or to any such authority is more or less
than the amount then due to such city, county, school district  or  such
fund or to such authority, the amount of the overpayment or underpayment
shall be certified to the comptroller by the commissioner or the commis-
sioner's  delegate,  who  shall not be held liable for any inaccuracy in
such certificate. The amount of the overpayment or underpayment shall be
so certified to the comptroller as soon after the discovery of the over-
payment or underpayment as reasonably possible and  subsequent  payments
and  distributions  by  the  comptroller  to  such  city, county, school
district or the special sales and compensating use tax fund for the city
of Yonkers or to such authority shall be  adjusted  by  subtracting  the
amount  of any such overpayment from or by adding the amount of any such
underpayment to such number of subsequent payments and distributions  as
the  comptroller  and the commissioner shall consider reasonable in view
of the amount of the overpayment or underpayment and all other facts and
circumstances.
  S 30. Subdivision (e) of section 1261 of the tax law is REPEALED.
  S 31. Subdivision (e) of section 1262 of the tax law is REPEALED.
  S 32. Subdivision 2 of section 302 of the real property  tax  law,  as
amended  by  chapter  755  of  the  laws  of 1962, is amended to read as
follows:
  2. The taxable status  date  of  real  property  assessed  for  school
district  and  village  purposes  shall be determined in accordance with
[sections thirteen hundred two and] ARTICLE SEVENTY-ONE OF THE EDUCATION
LAW AND SECTION fourteen hundred of this chapter, respectively. The date

S. 2967                            16

of taxable status of the real property contained on any village  assess-
ment  roll  shall  be imprinted or otherwise indicated at the top of the
first page of each volume of such roll.
  S  33. Subdivision 2 of section 1909 of the education law, as added by
section 3 of part C of chapter 58 of the laws of  1998,  is  amended  to
read as follows:
  2. Any state aid representing tax savings duly provided by a component
school district of the central high school district [pursuant to section
thirteen hundred six-a of the real property tax law] for taxes levied to
fund  expenditures  of the central high school district shall be claimed
by such component school district  [pursuant  to  subdivision  three  of
section  thirteen  hundred  six-a of the real property tax law,] and any
resulting payment of state aid to the component school district based on
such tax savings shall be paid by the component school district,  within
ten  days  after  receipt of such payment, over to the treasurer of such
central high school district in an amount equal to the  product  of  the
total  payment  received  by  such component school district for all tax
savings [provided pursuant to section thirteen hundred six-a of the real
property tax law] multiplied by the quotient of the tax savings provided
for taxes levied  to  fund  expenditures  of  the  central  high  school
district  divided  by the total tax savings duly provided by such compo-
nent school district [pursuant to section thirteen hundred six-a of  the
real property law].
  S  34. Section 3601 of the education law, as amended by section 4-a of
part A-1 of chapter 58 of the laws of 2006 and  as  further  amended  by
subdivision  (d)  of  section  1  of part W of chapter 56 of the laws of
2010, is amended to read as follows:
  S 3601. When apportioned and how applied. The amount  annually  appro-
priated  by  the legislature for general support for public schools, net
of disallowances, refunds, reimbursements and credits, shall  be  appor-
tioned  by  the commissioner each year prior to the dates of the respec-
tive final payments provided by law and all moneys so apportioned  shall
be  applied  exclusively  to school purposes authorized by law.  General
state aid claims, on forms prescribed  by  the  commissioner,  shall  be
submitted  to  the commissioner by September second of each school year,
except that the audit report required by subdivision  three  of  section
twenty-one  hundred  sixteen-a of this chapter shall be submitted to the
commissioner by October fifteenth following the close of the school year
audited for all districts other than the city school  districts  of  the
cities  of  Buffalo,  Rochester,  Syracuse,  Yonkers and New York and by
January first following the close of the school year  audited  for  such
city  school  districts.  No  aid  shall be paid to a school district or
board of cooperative educational services prior  to  the  submission  of
claims  as required by the commissioner, except that no aid certified as
payable to a school district by the commissioner of taxation and finance
[pursuant to paragraph (c) of  subdivision  three  of  section  thirteen
hundred six-a of the real property tax law] shall be withheld due to the
failure  of  the  school  district  to  submit  general state aid claims
required by the commissioner, and except that no aids shall be  withheld
due  to  the  failure  of  a  school district to submit the audit report
required by subdivision three of section twenty-one hundred sixteen-a of
this chapter until the thirtieth day following the due date specified in
this section for such report.
  S 35. Paragraph y of subdivision 1 of section 3602  of  the  education
law,  as added by section 11 of part B of chapter 57 of the laws of 2007

S. 2967                            17

and as further amended by subdivision (d) of section  1  of  part  W  of
chapter 56 of the laws of 2010, is amended to read as follows:
  y.  "School  tax  relief aid" shall mean state aid payable to a school
district representing tax savings duly provided by the  school  district
[pursuant  to  section  thirteen  hundred six-a of the real property tax
law] that is claimed by the school district and certified by the commis-
sioner of taxation and finance [pursuant to subdivision three of section
thirteen hundred six-a of the real property tax law].
  S 36. Paragraph (j) and subparagraph (iv) of paragraph (k) of subdivi-
sion 2 of section 425 of the real property tax  law,  paragraph  (j)  as
amended by section 1 of part A of chapter 405 of the laws of 1999 and as
further  amended by subdivision (b) of section 1 of part W of chapter 56
of the laws of 2010 and, subparagraph (iv) of paragraph (k) as added  by
section 1-a of part E of chapter 83 of the laws of 2002 and redesignated
by chapter 355 of the laws of 2003, are amended to read as follows:
  (j)  Certain  city school districts. The commissioner shall adjust the
exempt amount for each  city  containing  a  school  district  which  is
subject  to  article  fifty-two of the education law, to account for the
fact that the school district is fiscally dependent upon the city.  This
adjustment  shall  be  made  by multiplying the exempt amount that would
otherwise be determined for the city by sixty-seven percent, or, in  the
case  of  a  city  with  a  population  of one million or more, by fifty
percent. The exempt amount resulting  from  this  calculation  shall  be
applied both to the assessed value for city school district purposes and
to  the assessed value for general city purposes, and state aid shall be
payable on the combined tax savings [in the manner provided  by  section
thirteen hundred six-a of this chapter].
  (iv) Notwithstanding the provisions of subparagraph (ii) of this para-
graph,  when  a  cooperative  apartment corporation is incorporated as a
mutual company pursuant to the private  housing  finance  law,  and  the
granting of an exemption pursuant to this section would not inure to the
benefit  of  eligible  tenant-stockholders  because the real property of
such corporation is subject to an exemption from  taxation  pursuant  to
section  thirty-three,  ninety-three,  one  hundred  twenty-five or five
hundred fifty-six of the private housing  finance  law,  an  alternative
benefit  shall  be  provided  to  such corporation and passed through to
eligible tenant-stockholders in the manner provided by this subdivision.
Such alternative benefit shall consist of a reduction in the real  prop-
erty  taxes or payments in lieu of taxes that would otherwise be payable
on account of such real property. The total  amount  of  such  reduction
shall be the sum of the "STAR savings" for all of the cooperative apart-
ment  units  that are occupied by one or more eligible tenant-stockhold-
ers. The STAR savings for each such unit shall be equal to one-third  of
the  exempt amount determined pursuant to paragraph (a) of this subdivi-
sion for purposes of the basic or enhanced exemption, as  the  case  may
be,  multiplied  by  the applicable school tax rate, or in the case of a
school district described in paragraph (j) of this subdivision,  by  the
applicable  city  tax rate. Provided, however, in no case shall the STAR
savings for any individual unit exceed the amount payable by or chargea-
ble to the unit on account of real property taxes or payments in lieu of
taxes. The STAR savings so determined for each unit shall be credited by
the cooperative apartment corporation against the real property taxes or
payments in lieu of taxes otherwise payable  by  or  chargeable  to  the
eligible  tenant-stockholders.  The  total  of  the alternative benefits
provided pursuant to this subparagraph shall be  a  state  charge  which
shall  be  payable  in the same manner that school districts are compen-

S. 2967                            18

sated [pursuant to section thirteen hundred six-a of this  chapter]  for
tax savings attributable to exemptions granted pursuant to this section.
  S  37.  Subdivisions  1 and 2 of section 1216 of the real property tax
law, as added by chapter 800 of the laws of 1967 and  subdivision  1  as
further  amended by subdivision (b) of section 1 of part W of chapter 56
of the laws of 2010, are amended to read as follows:
  1. Where a supplemental assessment roll has been  completed,  verified
and  filed  [pursuant  to  section  thirteen hundred thirty-five of this
chapter] AS PER THE REQUEST  OF  THE  SCHOOL  AUTHORITIES  OF  A  SCHOOL
DISTRICT, the commissioner shall determine an equalization rate for such
supplemental  assessment roll in the manner provided in this article for
determining equalization rates  for  towns.  The  equalization  rate  so
determined for the supplemental assessment roll shall be used in comput-
ing  the  taxable  full  valuation  of real property on the supplemental
assessment roll for all school district  purposes  except  as  otherwise
provided  [in  section thirteen hundred fourteen] BY OTHER PROVISIONS of
this chapter.
  2. The full valuation of taxable property for school district purposes
for a fiscal year of  a  school  district  in  which  SUCH  supplemental
assessment rolls were completed, verified and filed [pursuant to section
thirteen  hundred  thirty-five  of  this  chapter] for such fiscal year,
shall be the simple average of the full valuation of taxable property on
the regular and supplemental assessment rolls of  such  school  district
for  such  fiscal year, provided however, that such supplemental assess-
ment rolls shall not be used in determining limitations on  indebtedness
pursuant to the local finance law. Such full valuation shall be computed
for  each  roll  by dividing the taxable assessed valuation on each such
roll by the state equalization rate established for each such roll.
  S 38. Subdivision 1 of section 1226 of the real property tax  law,  as
added  by  chapter  280  of  the  laws of 1985 and as further amended by
subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
2010, is amended to read as follows:
  1.  If the commissioner finds that there has been a material change in
level of assessment in a town or city since the last state  equalization
rate was established, it shall determine and certify a special equaliza-
tion  rate for tax apportionment purposes to the district superintendent
of schools for use in the apportionment of school taxes [as provided  in
section thirteen hundred fourteen of this chapter].
  S 39. Paragraph (a) of subdivision 2 of section 1227 of the real prop-
erty  tax law, as added by chapter 87 of the laws of 2001 and as further
amended by subdivision (b) of section 1 of part W of chapter 56  of  the
laws of 2010, is amended to read as follows:
  (a) When a nuclear powered electric generating facility is exempt from
taxation  for  school district purposes pursuant to section four hundred
eighty-five of this chapter, but it is not exempt for all purposes,  the
commissioner  shall  establish  a  special  apportionment  rate  for the
assessing unit containing the facility, which rate  shall  be  used  for
purposes  of  apportioning  school district taxes to that assessing unit
[pursuant to section thirteen hundred fourteen of this chapter,] subject
to the provisions of paragraph  (b)  of  this  subdivision.    Provided,
however,  that  no such rate shall be established unless it would result
in a change of two percent or more in the share of the  school  district
levy  allocated to at least one school district segment, or where appli-
cable in the share of the non-homestead class levy allocated to at least
one portion.

S. 2967                            19

  S 40. Subdivision 1 and paragraph (a) and  the  opening  paragraph  of
paragraph  (d) of subdivision 7 of section 1316 of the real property tax
law, as added by chapter 556 of the laws of 2002, are amended to read as
follows:
  1.  Notwithstanding  the provisions of [section thirteen hundred four-
teen of this]  article  SEVENTY-ONE  OF  THE  EDUCATION  LAW,  a  school
district  located in more than one city or town, which includes a desig-
nated large property, as determined by the [state  board]  COMMISSIONER,
may  provide  by annual resolution, adopted no later than ten days prior
to the last day provided by law for  the  levy  of  school  taxes,  that
school  taxes  to be levied for the fiscal year commencing July first of
the same year shall be apportioned to each city or town or part  thereof
in accordance with the provisions set forth in this section.
  (a)  The tax shall be apportioned in accordance with the provisions of
[section thirteen hundred fourteen of this] article SEVENTY-ONE  OF  THE
EDUCATION LAW.
  The resulting tax levy from paragraph (c) of this subdivision shall be
reapportioned  among  all other property within the taxing jurisdiction,
exclusive of the designated large property. This  reapportionment  shall
be  done  in accordance with [section thirteen hundred fourteen of this]
THE PROVISIONS OF article SEVENTY-ONE OF THE EDUCATION LAW, except that:
  S 41. Paragraphs (a) and (f) of subdivision 4 of section 1903-a of the
real property tax law, as amended by chapter 47 of the laws of 1991, are
amended to read as follows:
  (a) Equalization by class. The tax authorities shall determine for the
homestead and non-homestead classes, respectively, the total full  valu-
ation  and  total taxable full valuation of the real property subject to
taxation for district purposes in each city  or  town  or  part  thereof
included within the tax district. The total full valuation of a class in
a  city  or town or part thereof shall be computed by dividing the total
assessed value of the property in the class by  the  state  equalization
rate  or  special  equalization  rate  [prescribed  in  section thirteen
hundred fourteen of this chapter]. The total taxable full valuation of a
class in a city or town or part thereof shall be  computed  by  dividing
the  total  taxable  assessed  value of the property in the class by the
state equalization rate or  special  equalization  rate  [prescribed  in
section thirteen hundred fourteen of this chapter].
  (f) Correction and review. The equalization and apportionment required
by  this  subdivision  shall  be subject to correction and review to the
extent practicable [as provided in section thirteen hundred fourteen  of
this chapter].
  S  42.  Subdivision  2 of section 954 of the real property tax law, as
added by chapter 440 of the laws of 1989, is amended to read as follows:
  2. Notwithstanding the provisions of section nine hundred twenty-two[,
thirteen hundred twenty-two, thirteen hundred twenty-four]  or  fourteen
hundred  thirty  of  this  chapter,  upon agreement between a collecting
officer and a mortgage investing  institution,  the  mortgage  investing
institution  or  its agent shall, no later than thirty days prior to the
last date established by law for the annexation of the  warrant  to  the
assessment roll, present to the collecting officer a list in any mutual-
ly  agreeable  format  of  the  real  property  tax escrow accounts with
respect to which the mortgage investing institution  or  its  agent  has
been authorized by the mortgagor to receive tax bills. If the collecting
officer  and  mortgage  investing institution agree, a list of additions
and deletions to the last  such  list  so  delivered  may  be  presented
instead.

S. 2967                            20

  S  43.  Subdivision  2  of section 544 of the real property tax law is
amended to read as follows:
  2.  No penalties, interest or fees of any kind, except fees payable to
school district collecting officers  [pursuant  to  subdivision  one  of
section  thirteen  hundred twenty-eight of this chapter] on school taxes
on lands outside the forest preserve, shall be added to taxes payable by
the state pursuant to the provisions of this section.
  S 44. Subdivision 2 of section 558 of the real property  tax  law,  as
amended  by  chapter  529  of  the  laws  of 1990, is amended to read as
follows:
  2. The county legislature of any county shall direct the  cancellation
of  any  unpaid school tax relevied by such county [pursuant to subdivi-
sion five of section thirteen hundred  thirty  or  subdivision  five  of
section  thirteen  hundred  thirty-two  of  this chapter,] or any unpaid
village tax relevied by such county  pursuant  to  subdivision  four  of
section  fourteen hundred forty-two of this chapter, against property of
the state or the United States where it is determined that the  lien  of
such  tax  cannot be enforced, or where the lien of such tax is rendered
permanently unenforceable by operation of the provisions of any statute.
The amount of any tax so cancelled shall be charged against  the  school
district or village which levied such tax. The amount so charged against
a  school  district or village shall be withheld by the county treasurer
from any moneys which  shall  become  payable  by  him  to  such  school
district  or  village  by  reason  of  taxes  which  shall thereafter be
returned to him as uncollected by such school district  or  village.  No
such  cancellation of any unpaid school taxes or no such charge shall be
made by the county legislature  against  any  such  school  district  or
village  unless  ten  days' notice thereof by mail shall be given to the
school authorities thereof.
  S 45. Subdivision 1-b of section 3651 of the education law,  as  added
by  section  73 of part A of chapter 436 of the laws of 1997, is amended
to read as follows:
  1-b.  Notwithstanding  the  provisions  of  subdivision  one  of  this
section, where the city or county is not required to pay to the treasur-
er  of  a  city  school district unpaid taxes during the fiscal year for
which such real property taxes are levied, the  board  of  education  of
such  city school district may establish a reserve for uncollected taxes
without approval  of  the  qualified  voters  of  the  school  district,
provided that the ratio of the amount of such reserve to the total prin-
cipal  amount  of the district's tax levy for such fiscal year shall not
be less than the ratio of the principal amount of  the  school  district
taxes  as  levied  by  the school district for the last completed fiscal
year but not received by the district before the end of such fiscal year
to the total principal amount of the tax levy for  such  last  completed
fiscal year.  If the city or county is not required to pay to the treas-
urer  of  a city school district unpaid taxes [pursuant to section thir-
teen hundred thirty-two of the real property  tax  law],  the  board  of
education of the city school district shall establish a reserve pursuant
to  this  subdivision, provided that such reserve shall not be less than
the amount of taxes for the fiscal year for which such budget  is  being
prepared which are estimated to be unpaid during such fiscal year [under
the aforesaid provisions of the real property tax law].
  S 46. Paragraph e of subdivision 7 of section 545 of the real property
tax  law,  as  amended by chapter 800 of the laws of 1967, is amended to
read as follows:

S. 2967                            21

  e. "Latest preceding assessment roll" means the last preceding assess-
ment roll finally completed, verified  and  filed  prior  to  the  final
completion of the assessment roll for which the transition assessment is
being  established, but shall not mean or include a supplemental assess-
ment roll completed, verified and filed as [provided in section thirteen
hundred  thirty-five  of  this  chapter]  PER  THE REQUEST OF THE SCHOOL
AUTHORITIES OF A SCHOOL DISTRICT.
  S 47. Subdivisions 1 and 3 of section 972 of  the  real  property  tax
law,  as  amended  by section 12 of part B of chapter 389 of the laws of
1997, are amended to read as follows:
  1. Adoption.  Notwithstanding any provisions of this chapter,  or  any
other  general,  special  or  local law to the contrary, the legislative
body of a county may, by local law, provide that  thereafter  and  until
such  local  law is repealed, the county shall become the tax collection
agency for the purpose of collecting taxes in installments as prescribed
by this title [and by sections thirteen hundred thirty-six through thir-
teen hundred forty-two of this chapter].  The term "taxes"  as  used  in
this  title  shall  include  special assessments which are levied by the
county legislative body at the time and in the manner  provided  by  law
for the levy of county and town taxes.
  3.    Interest.  (a)  Each  installment  other than the first shall be
subject to interest at the rate  determined  pursuant  to  section  nine
hundred  twenty-four-a  of  this  article,  or  such other law as may be
locally applicable, up to and including the date on which it  is  to  be
paid.    Such  interest  shall be amortized over all scheduled payments,
unless the local law provides for unequal installments,  in  which  case
interest  shall  be calculated and imposed separately upon each install-
ment.
  (b) If an installment is not paid on or before the  date  it  is  due,
additional  interest  shall be added as provided by section nine hundred
seventy-five [or section thirteen hundred forty] of this [chapter] ARTI-
CLE.
  (c) The amount of any interest which shall be added to any installment
pursuant to this section  and  section  nine  hundred  seventy-five  [or
section  thirteen  hundred forty] of this [chapter] ARTICLE shall belong
to the county.
  S 48. In  order  to  provide  for  continuity  of  funding  to  school
districts,  fifty  percent  of the school taxes due on July first in the
year preceding the effective date of this act shall be paid  as  hereto-
fore required by law.
  S 49. This act shall take effect on the first of January next succeed-
ing  the  date  on  which it shall have become a law, provided, however,
that sections two, four, five, six, eight and ten through forty-seven of
this act shall take effect on the first of January  in  the  fifth  year
next succeeding such effective date.

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