LBD09824-06-9
A. 5840--B 2
THIS SECTION SHALL BE CALCULATED WITHOUT REFERENCE TO THE ADDITIONAL ONE
PERCENT RATE OF TAX WHICH THE COUNTY OF WESTCHESTER IS AUTHORIZED AND
EMPOWERED TO ADOPT PURSUANT TO SECTION TWELVE HUNDRED TEN OF THIS ARTI-
CLE.
§ 3. Section 1262-b of the tax law, as amended by section 1 of part A
of chapter 8 of the laws of 2004, is amended to read as follows:
§ 1262-b. The Westchester county property tax stabilization and relief
act. (a) Notwithstanding any other provision of law to the contrary, if
the county of Westchester imposes sales and compensating use taxes
pursuant to [subdivision (a)] CLAUSE FORTY-TWO OF SUBPARAGRAPH (I) OF
THE OPENING PARAGRAPH of section twelve hundred ten of this article at
the rate of [three] FOUR percent:
(1) The county shall allocate net collections from such taxes imposed
at the rate of one and one-half percent countywide among the cities and
towns of the county on the basis of the ratio which the full valuation
of real property in each city or town bears to the aggregate full valu-
ation of real property in all cities and towns of the county. Amounts
so allocated shall be credited to each of said cities and towns against
the county taxes levied upon real property in said cities and towns.
(2) The county shall allocate and credit or pay net collections
received by the county by reason of its additional one percent rate of
such taxes on the area of the county outside any city imposing sales and
compensating use taxes at a rate of one and one-half percent or greater
pursuant to the authority of subdivision (a) or at any rate pursuant to
the authority of [subdivision (b)] CLAUSE FORTY-TWO OF SUBPARAGRAPH (I)
OF THE OPENING PARAGRAPH of section twelve hundred ten of this article
as follows:
(A) One-third of such net collections shall be allocated and credited
in the manner set forth in paragraph one of this subdivision.
(B) One-sixth of such net collections shall be allocated and paid
quarterly by the county commissioner of finance, in cash, to the several
school districts in such area of the county outside any such city impos-
ing sales and compensating use taxes. Such allocation and payment, to
such several school districts, shall be made on the basis of the ratio
which the population of each such school district bears to the aggregate
population of all of the school districts in such area. In the case of
school districts which are partially within and partially without the
county, or partially within or partially without the area of the county
outside a city imposing sales and compensating use taxes, the allocation
and payment to each such school district shall be made on the basis of
the population in such school district in the county, or in such area of
the county outside a city imposing sales and compensating use taxes, as
the case may be. Such populations shall be determined in accordance with
the latest federal census or special population census under section
twenty of the general municipal law completed and published prior to the
end of the quarter in which such allocation and payment are made, which
special population census shall include the entire area of the county;
provided that such special population census shall not be taken more
than once in every two years. A school district split between Westches-
ter county and another county shall apply such allocation and payment
solely to the benefit of the residents of the county in which the sales
and compensating use taxes are imposed.
(C) One-half of such net collections shall be allocated and paid quar-
terly by the county commissioner of finance, in cash, to the cities not
imposing sales and compensating use taxes and to the towns and villages
on which such additional one percent rate is imposed, on the basis of
A. 5840--B 3
the ratio which the population of each such city, town or village on
which such additional one percent rate is imposed bears to the entire
population of all such cities, towns and villages in the area on which
such additional one percent rate is imposed. Such populations shall be
determined in accordance with the latest federal census or special popu-
lation census under section twenty of the general municipal law
completed and published prior to the end of the quarter in which such
allocation is made, which special population census shall include the
entire area of the county; provided that such special population census
shall not be taken more than once in every two years.
(D) The quarterly allocation and payment of cash to cities, towns,
villages and school districts provided for under this paragraph and
under paragraph three of this subdivision may be made after payment by
the state comptroller to the county of the net collections subject to
such allocation and receipt by the county commissioner of finance of the
quarterly settlement report issued by the department, and may include
adjustments for corrections applicable to such allocations. All ratios
established by the county commissioner of finance with respect to allo-
cations to cities, towns, villages and school districts under this
subdivision shall be carried to four decimal places. The allocation of
net collections and payment of cash provided for under this paragraph
and under paragraph three of this subdivision shall be made to a town
based upon the population of the town less the population of any village
therein, provided that a town/village or village/town shall be deemed a
village for the purpose of determining such allocation. The allocation
of net collections and payment of cash provided for under this paragraph
and under paragraph three of this subdivision shall be applied by the
cities, towns, villages and school districts receiving such allocation
and payment as a credit against the taxes upon real property imposed by
such municipalities and school districts, respectively. The allocation
and payment received by towns shall be credited against real property
taxes in either the general fund town-wide or the town outside village
fund or a combination thereof.
(3) The county shall allocate and credit or pay net collections
received by the county by reason of its additional ONE AND one-half
percent rate of such taxes imposed on the area of the county outside any
city imposing sales and compensating use taxes at a rate of one and
one-half percent or greater pursuant to the authority of subdivision (a)
or at any rate pursuant to the authority of subdivision (b) of section
twelve hundred ten of this article as follows:
(A) Seventy percent of such net collections shall be retained by the
county to be used for any county purpose.
(B) Ten percent of such net collections shall be allocated and paid in
the manner set forth in subparagraph (B) of paragraph two of this subdi-
vision.
(C) Twenty percent of such net collections shall be allocated and paid
in the manner set forth in subparagraph (C) of paragraph two of this
subdivision.
(b) Nothing in this section shall be construed to impair the powers of
a city currently imposing sales and compensating use taxes pursuant to
the authority of section twelve hundred ten of this article from contin-
uing to do so in accordance with law. No school district in any city
imposing such sales and compensating use taxes shall be entitled to
receive a cash allocation and payment under paragraph two or three of
subdivision (a) of this section. No city, town or village authorized or
entitled to receive an allocation under subparagraph (C) of paragraph
A. 5840--B 4
two or subparagraph (C) of paragraph three of subdivision (a) of this
section shall be authorized or entitled to receive any cash allocation
under section twelve hundred sixty-two of this article.
§ 4. Subdivision e of section 4 and sections 5, 7 and 16 of chapter
272 of the laws of 1991, amending the tax law relating to the method of
disposition of sales and compensating use tax revenue in Westchester
county and enacting the Westchester county spending limitation act, as
amended by chapter 81 of the laws of 2017, are amended to read as
follows:
e. "Spending limitation" means the maximum amount of county spending
established in county fiscal years 1992, 1993, 1994, 1995, 1996, 1997,
1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009,
2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [and], 2020,
2021 AND 2022.
§ 5. Establishment of annual spending limitation. a. For county fiscal
years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002,
2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014,
2015, 2016, 2017, 2018, 2019 [and], 2020, 2021 AND 2022 there shall be
in effect an annual spending limitation. The spending limitation shall
be derived from a fixed percentage reflecting the ratio of base year
spending to county personal income. County personal income for such
calculation shall be for the period January 1, 1986 through December 31,
1986. Such percentage shall be applied to county personal income for the
period January 1, 1989 through December 31, 1989, to determine the
spending limitation for county fiscal year 1992; to determine the spend-
ing limitation for county fiscal year 1993, such percentage shall be
applied to county personal income for the period January 1, 1990 through
December 31, 1990; to determine the spending limitation for county
fiscal year 1994, such percentage shall be applied to county personal
income for the period January 1, 1991 through December 31, 1991; to
determine the spending limitation for county fiscal year 1995, such
percentage shall be applied to county personal income for the period
January 1, 1992 through December 31, 1992; to determine the spending
limitation for county fiscal year 1996, such percentage shall be applied
to county personal income for the period January 1, 1993 through Decem-
ber 31, 1993; to determine the spending limitation for county fiscal
year 1997, such percentage shall be applied to county personal income
for the period January 1, 1994 through December 31, 1994; to determine
the spending limitation for county fiscal year 1998, such percentage
shall be applied to county personal income for the period January 1,
1995 through December 31, 1995; to determine the spending limitation for
county fiscal year 1999, such percentage shall be applied to county
personal income for the period January 1, 1996 through December 31,
1996; to determine the spending limitation for county fiscal year 2000,
such percentage shall be applied to county personal income for the peri-
od January 1, 1997 through December 31, 1997; to determine the spending
limitation for county fiscal year 2001, such percentage shall be applied
to county personal income for the period January 1, 1998 through Decem-
ber 31, 1998; to determine the spending limitation for county fiscal
year 2002, such percentage shall be applied to county personal income
for the period January 1, 1999 through December 31, 1999; to determine
the spending limitation for county fiscal year 2003, such percentage
shall be applied to county personal income for the period January 1,
2000 through December 31, 2000; to determine the spending limitation for
county fiscal year 2004, such percentage shall be applied to county
personal income for the period January 1, 2001 through December 31,
A. 5840--B 5
2001; to determine the spending limitation for county fiscal year 2005,
such percentage shall be applied to county personal income for the peri-
od January 1, 2002 through December 31, 2002; to determine the spending
limitation for county fiscal year 2006, such percentage shall be applied
to county personal income for the period January 1, 2003 through Decem-
ber 31, 2003; to determine the spending limitation for the county fiscal
year 2007, such percentage shall be applied to county personal income
for the period January 1, 2004 through December 31, 2004; to determine
the spending limitation for the county fiscal year 2008, such percentage
shall be applied to county personal income for the period January 1,
2005 through December 31, 2005; to determine the spending limitation for
the county fiscal year 2009, such percentage shall be applied to county
personal income for the period January 1, 2006 through December 31,
2006; to determine the spending limitation for the county fiscal year
2010, such percentage shall be applied to county personal income for the
period January 1, 2007 through December 31, 2007; to determine the
spending limitation for the county fiscal year 2011, such percentage
shall be applied to county personal income for the period January 1,
2008 through December 31, 2008; to determine the spending limitation for
the county fiscal year 2012, such percentage shall be applied to county
personal income for the period January 1, 2009 through December 31,
2009; to determine the spending limitation for the county fiscal year
2013, such percentage shall be applied to county personal income for the
period January 1, 2010 through December 31, 2010; to determine the
spending limitation for the county fiscal year 2014, such percentage
shall be applied to county personal income for the period January 1,
2011 through December 31, 2011; to determine the spending limitation for
the county fiscal year 2015, such percentage shall be applied to county
personal income for the period January 1, 2012 through December 31,
2012; to determine the spending limitation for county fiscal year 2016,
such percentage shall be applied to the county personal income for the
period January 1, 2013 through December 31, 2013; to determine the
spending limitation for the county fiscal year 2017, such percentage
shall be applied to county personal income for the period January 1,
2014 through December 31, 2014; and to determine the spending limitation
for county fiscal year 2018, such percentage shall be applied to the
county personal income for the period January 1, 2015 through December
31, 2015; to determine the spending limitation for the county fiscal
year 2019, such percentage shall be applied to county personal income
for the period January 1, 2016 through December 31, 2016; and to deter-
mine the spending limitation for county fiscal year 2020, such percent-
age shall be applied to the county personal income for the period Janu-
ary 1, 2017 through December 31, 2017; AND TO DETERMINE THE SPENDING
LIMITATION FOR THE COUNTY FISCAL YEAR 2021, SUCH PERCENTAGE SHALL BE
APPLIED TO COUNTY PERSONAL INCOME FOR THE PERIOD JANUARY 1, 2018 THROUGH
DECEMBER 31, 2018; AND TO DETERMINE THE SPENDING LIMITATION FOR THE
COUNTY FISCAL YEAR 2022, SUCH PERCENTAGE SHALL BE APPLIED TO COUNTY
PERSONAL INCOME FOR THE PERIOD JANUARY 1, 2019 THROUGH DECEMBER 31,
2019.
b. The spending limitation shall serve as a statutory cap on county
spending to be reflected in the tentative budget as well as the enacted
budget for county fiscal years beginning in 1992.
§ 7. Mandatory tax reduction. In the event that the county spending
subject to the spending limitation exceeds such limitation in the adop-
tive county budget for county fiscal year 1992, 1993, 1994, 1995, 1996,
1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008,
A. 5840--B 6
2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [or],
2020, 2021 OR 2022 then section 1262-b of the tax law shall be repealed.
§ 16. This act shall take effect immediately, provided, however, that
sections one through seven of this act shall be in full force and effect
until [May 31, 2020, provided, however, that if the county of Westches-
ter imposes the tax authorized by section 1210 of the tax law in excess
of three percent, then sections one through seven of this act shall be
deemed repealed; provided that the commissioner of taxation and finance
shall notify the legislative bill drafting commission upon the repeal of
section 1262-b of the tax law pursuant to section seven of the Westches-
ter county spending limitation act in order that the commission may
maintain an accurate and timely effective data base of the official text
of laws of the state of New York in furtherance of effecting the
provisions of section 44 of the legislative law and section 70-b of the
public officers law] NOVEMBER 30, 2022.
§ 5. This act shall take effect immediately; provided that the amend-
ments to section 1262-b of the tax law made by section three of this act
shall not affect the expiration of such section and shall expire there-
with; and provided, further, that the amendments to sections 4, 5 and 7
of chapter 272 of the laws of 1991 made by section four of this act
shall not affect the expiration of such sections and shall expire there-
with.