at

resolutions imposing in any such city or county the following taxes the rate of one-half, one, one and one-half, two, two and one-half or three percent, provided, however, that for the period beginning June first, nineteen hundred seventy-four and ending June thirtieth, nineteen hundred seventy-five, any such city having a population of one million or more is hereby authorized and empowered to adopt and amend local laws imposing such taxes in any such city, at the rate of four percent and, provided further, however, that the county of Nassau is hereby further authorized and empowered to adopt and amend local laws imposing such taxes: (i) at a rate which is one percent additional to the three percent rate authorized above in this paragraph for such county for the period beginning June first, nineteen hundred eighty-three and ending December thirty-first, nineteen hundred eighty-five; and (ii) at a rate which is three-quarters percent additional to the three percent rate authorized above in this paragraph for such county for the period beginning January first, nineteen hundred eighty-six and ending December thirty-first, nineteen hundred ninety-three subject to the limitation set forth in section twelve hundred sixty-two-e of this chapter, and provided further, however, that the county of Nassau is hereby further authorized and empowered to adopt and amend local laws or resolutions imposing such taxes at a rate which is one-half of one percent additional to the three percent rate authorized above in this paragraph and which is additional to the three-quarters percent rate also authorized above in this paragraph for such county for the period beginning September first, nineteen hundred ninety-one and ending December thirty-first, nineteen hundred ninety-three, and provided further, however, that the county of Erie is hereby further authorized and empowered to adopt and amend local laws or resolutions imposing such taxes at a rate which is one percent additional to the three percent rate authorized above in this paragraph for such county for: (i) the period beginning March first, nineteen hundred eighty-five and ending December thirty-first, nineteen hundred eighty-seven; and (ii) the period beginning January tenth, nineteen hundred eighty-eight and ending February twenty-eighth, nineteen hundred ninety-three and provided further, however, that the county of Cattaraugus is hereby further authorized and empowered to adopt and amend local laws or resolutions imposing such taxes at a rate which is one percent additional to the three percent rate authorized above in this paragraph for such county for the period beginning March first, nineteen hundred eighty-six and ending February twenty-eighth, nineteen hundred ninety-four, and provided further, however, that the county of Allegany is hereby further authorized and empowered to adopt and amend local laws or resolutions imposing such taxes at a rate which is one percent additional to the three percent rate authorized above in this paragraph for such county for the period beginning December first, nineteen hundred eighty-six and ending November thirtieth, nineteen hundred ninety-two, and provided further, however, that the county of Suffolk is hereby further authorized and empowered to adopt and amend local laws or resolutions imposing such taxes at a rate which is one-half of one percent additional to the three percent rate authorized above this paragraph for such county for the period beginning September first, nineteen hundred ninety-one and ending December thirty-first, nineteen hundred ninety-three, and provided further, however, that, for the period beginning September first, nineteen hundred ninety-two and ending December thirty-first, nineteen hundred ninety-three, the county of Suffolk is hereby further authorized and empowered to adopt and amend local laws or resolutions imposing such taxes at a rate which is one-half percent additional to such three percent rate authorized above in this paragraph and which is additional to the one-half percent rate also authorized above in this paragraph for such county for the period beginning September first, nineteen hundred ninety-one and ending December thirty-first, nineteen hundred ninety-three, and provided further, however, that the city of Yonkers is hereby further authorized and empowered to adopt and amend local laws imposing such taxes at a rate which is one percent additional to the three percent rate authorized above in this paragraph for such city (The maximum rate referred to in section twelve hundred twenty-four shall be calculated without reference to such one percent additional rate authorized for Yonkers and the counties of Erie, Cattaraugus and Allegany. ), and provided further, however, that the city of Mount Vernon is hereby further authorized and empowered to adopt and amend local laws imposing such taxes at a rate which is one percent additional to the three percent rate authorized above in this paragraph for such city (The maximum rate referred to in section twelve

in

to such one

to

hundred twenty-four shall be calculated without reference percent additional rate authorized for Mount Vernon.), and provided further, however, that the city of Rome is hereby further authorized and empowered to adopt and amend local laws, ordinances or resolutions imposing such taxes at a rate which is one-quarter percent additional the three percent rate authorized above in this paragraph for such city for the period beginning September first, nineteen hundred ninety and ending August thirty-first, two thousand (The maximum rate referred to in section twelve hundred twenty-four shall be calculated without reference to such one-quarter of one percent additional rate authorized for Rome. ), and provided further, however, that if the county of Dutchess, the county of Orange or the county of Rockland withdraws from the metropolitan commuter transportation district pursuant to section twelve hundred seventy-nine-b of the public authorities law, such county is hereby authorized and empowered, in the alternative, to adopt and amend local laws, ordinances or resolutions imposing such taxes at the rate of one-half, three-quarters, one, one and one-quarter, one and one-half, and three-quarters, two, two and one-quarter, two and one-half, twó and three-quarters, three or three and one-quarter percent if the revenues from a one-quarter percent rate of such tax are required by such local laws, ordinances or resolutions to be set aside for mass transportation purposes, such taxes to be administered, collected and dis

one

tributed by the commissioner of taxation and finance as provided in subpart B of part III and in part IV of this article:

§ 13. Section 1223 of the tax law, as amended by chapter 769 of the laws of 1990, is amended to read as follows:

§ 1223. Limitations on rates. No transaction taxable under sections twelve hundred two through twelve hundred four 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 act or, in the case of any taxes imposed pursuant to the authority of section twelve hundred ten or twelve hundred eleven (other than taxes imposed by a city having a population of one million or more for the limited period provided in section twelve hundred ten or pursuant to subdivision (h) of section twelve hundred ten or by the counties of Nassau, Erie, Cattaraugus, Suffolk or Allegany, as provided in section twelve hundred ten) at a rate in excess of three percent, except that, in the city of Yonkers and in the city of Mount Vernon, the rate may not be in excess of four percent and in the city of Rome, the rate may not be in excess of three and one-quarter 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 one-quarter 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, ordinances or resolutions to be set aside for mass transportation purposes, the rate may not be in excess of three and one-quarter percent. 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, shall be deemed to be reduced (or the entire tax eliminated, if necessary) to the extent necessary to comply with the foregoing requirement. 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 legislative 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 EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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 effective 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 shall still be subject to the requirements provided for in the first three sentences of subdivision (d) of such sections and in subdivision (e) of such sections.

§ 14. Notwithstanding subdivision (c) of section 1262 of the tax law, any additional sales and compensating use taxes, after reserving the amounts provided for in subdivision (b) of section 1261 of the tax law, which may be levied by Suffolk county in addition to the three percent rate authorized by the opening paragraph of section 1210 of the tax law pursuant to this act shall be distributed to the county of Suffolk and shall not be subject to any revenue distribution agreement established pursuant to subdivision (c) of section 1262 of the tax law. Twenty-five per centum of such additional sales and compensating use taxes so received shall be deposited in the general fund of the county of Suffolk for expenditure on county purposes; fifty per centum of such additional sales and compensating use taxes so received shall be deposited in a special fund to be created by such county separate and apart from any other funds and accounts of such county, and to be designated the Suffolk deficit bond fund, for expenditure only for the purpose of payment of the principal of and interest on bonds and bond anticipation notes authorized by this act or budget notes issued in 1992 except as otherwise provided in this section; and twenty-five per centum of such taxes shall be deposited in a special fund to be created by such county separate and apart from any other funds and accounts of such county, and to be designated the Suffolk police district sales tax fund, for expenditure only for the police district in the county of Suffolk. When the amount of moneys in the Suffolk deficit bond fund is sufficient to pay all future debt service on such notes and bonds, the comptroller of the county of Suffolk shall immediately mail a notice of sufficient revenues to the commissioner of taxation and finance by certified or registered mail addressed to the office of such commissioner in Albany. When no such bonds or notes remain outstanding, the Suffolk deficit bond fund shall terminate and fifty percent of the moneys remaining therein shall be deposited in the general fund of such county for expenditure on county purposes and the remainder shall be used for public safety

purposes.

§ 15. Notwithstanding the provisions of subdivision (d) of section 1210 of the tax law or any other provision of law, local law, rule or regulation to the contrary, any local law, ordinance or resolution enacted or amended pursuant to the tax law as amended by this act imposing any additional tax in the county of Suffolk shall become effective in accordance with the provisions of subdivision (d) of section 1210 of the tax law, except that the certified copy of such local law, ordinance or resolution which must be mailed by registered mail to the commissioner of taxation and finance at his office in Albany must be so mailed at least thirty days prior to the date such local law, ordinance or resolution is to become effective.

§ 16. Notwithstanding any other provision of law to the contrary, any local law or resolution enacted or amended by the county of Suffolk to impose the additional tax as authorized by this act shall take effect in accordance with the provisions of section fifteen of this act, except that the minimum notice requirements to the commissioner of taxation and finance shall be deemed to have been complied with upon the mailing of a certified copy of such local law or resolution by registered or certified mail to the commissioner of taxation and finance at his office in Albany on or before August 1, 1992, with respect to such local law or resolution taking effect on September 1, 1992; provided, however, that if this act takes effect after July 28, 1992, and before August 5, 1992,

such minimum notice requirements with respect to such local law or resolution taking effect September 1, 1992, shall be deemed complied with upon such mailing of such local law or resolution by registered mail or certified mail to the commissioner of taxation and finance provided such mailing is made not later than August 9, 1992.

§ 17. (a) Police district advisory board; created. There shall be created for the police district within the county of Suffolk a local advisory board for the purpose of monitoring the use of the sales and com

pensating use taxes required by this act to be expended for such police district.

(b) Such board shall consist of five members: the county commissioner of police, the chairman of the criminal justice coordinating committee, the assistant county executive for public safety, and two members to be chosen by the members of the Suffolk county legislature one of whom is chosen by the members of the same political party as the minority of such legislature and one of whom is chosen by the remaining members of the Suffolk county legislature.

(c) No member of the board shall be disqualified from holding any public office or employment, nor shall a member forfeit any office or employment by reason of appointment as a member hereunder.

(d) The board shall convene as frequently as it deems necessary to accomplish its purposes, but not less than quarterly.

(e) The board may request and shall receive from the police district such assistance, information and data as will enable the board properly to carry out its functions.

(f) The director of the budget of the county of Suffolk, in consultation with the police commissioner, shall prepare an annual report with respect to the proposed expenditure of the additional sales and use taxes required by this act to be expended for the police district operating in the county of Suffolk. Such report shall be submitted, at the same time as the release of the executive's tentative budget, to the elected executive of the county of Suffolk, each member of the legislature of such county, the director of the state division of the budget the chairs of the senate finance committee and the assembly ways and means committee, each member of the local advisory board for the county of Suffolk, and each member of the police district advisory board. (g) The board shall report annually on the use of the sales tax proceeds dedicated by this act to the use of the police district within the county of Suffolk. Such report shall be submitted, within two weeks of the scheduled adoption of the ensuing year's budget, to the elected executive of the county of Suffolk, each member of the legislature of such county, the director of the state division of the the budget, the chairs of the senate finance committee and the assembly ways and means committee, each member of the local advisory board for the county of Suffolk, and each member of the police district advisory board.

(h) The board shall cease to exist upon submitting the annual report required by this act in regard to the final year of the imposition of the additional sales and compensating use tax authorized by this act. § 18. This act shall take effect immediately.

CHAPTER 714

AN ACT authorizing the towns of Frankfort and German Flatts, Herkimer county, New York, to issue bonds for the purpose of liquidating deficits in their respective general funds

Became a law July 31, 1992, with the approval of the Governor. Passed on Home Rule request pursuant to Article IX, section 2(b) (2) of the Constitution by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. (a) (i) The town of Frankfort and the town of German Flatts, Herkimer county, New York, are hereby authorized to issue bonds in an aggregate principal amount not to exceed eight hundred fifty thousand dollars ($850,000) and one million one hundred fifty thousand dollars ($1,150,000) respectively, for the purpose of liquidating cumulative deficits in their respective town wide general funds existing at the close of their fiscal years ended December 31, 1991, resulting from, among other factors, the joint operation by said towns, pursuant to provisions of section 126-a of the general municipal law, of the Mohawk Valley General Hospital.

the

EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

ex

(ii) In addition to the foregoing, the town of Frankfort is hereby authorized to issue bonds in an aggregate principal amount not to exceed two hundred eighty-six thousand dollars ($286,000) for the purpose of liquidating its further town wide general fund deficit projected to ist at the close of its fiscal year ending December 31, 1992, due, among other things, to overestimation of revenues and underestimation of expenditures at the time of the formulation of the budget for such fiscal year.

(iii) As provided herein, in anticipation of the issuance of the bonds authorized to be issued by this act, bond anticipation notes are hereby authorized to be issued.

(b) Such towns shall not issue said bonds or bond anticipation notes unless or until the existence of the deficits referred to in paragraph (a) of this section, and the amounts thereof, are confirmed by the state comptroller, and the aggregate amounts thereof so financed by each town shall not exceed the amount of each such respective deficit, as so confirmed by the state comptroller, plus amounts referred to in the last sentence of paragraph (b) of section five of this act, and any other preliminary and/or incidental costs referred to in paragraph a of section 11.00 of the local finance law. The appropriate officials of the towns shall provide, or shall cause to be provided, to the state comptroller such data and information as may be requested by the state comptroller to confirm the existence of said deficits and amounts thereof. Within sixty days after receiving such information and data, the state comptroller shall perform such reviews as may be necessary to confirm the existence of said deficits and the amounts thereof and advise said towns of the results of such reviews. Upon receipt of such confirmations, obligations may be issued by the towns not in excess of the amounts so confirmed.

§ 2. It is hereby determined that the financing of the deficits hereinbefore described is an object or purpose of said towns for which indebtedness may be incurred, the period of probable usefulness of which is hereby determined to be ten years, computed from the date of the aforesaid bonds issued by each respective town or from the date of the first bond anticipation note issued by each respective town in anticipation of the sale of such bonds, whichever date is earlier; provided, however, that if the proceeds of said bonds, or of bond anticipation notes issued in anticipation thereof, are applied in the manner authorized in section three of this act, such period of probable usefulness shall be computed from the date of the revenue anticipation notes referred to in said section three. Such bonds and bond anticipation notes shall be general obligations of the issuer, to which the faith and credit thereof is pledged, and said issuer shall make an annual appropriation sufficient to pay the principal of and interest on such obligations as the same shall become due.

§ 3. The computation of the amount of the aforesaid deficits may take account of the issuance by said towns during their fiscal years ended December 31, 1991, of revenue anticipation notes maturing during their fiscal years ending December 31, 1992, the proceeds of which were applied for the payment of expenditures in connection with the Mohawk Valley General Hospital, in such manner as the state comptroller may deem appropriate. To the extent that the same are taken into account for such purpose, the proceeds of the bonds herein authorized, or of any bond anticipation notes issued in anticipation thereof, máy be used to redeem said revenue anticipation notes.

§ 4. Nothing herein shall preclude or limit the financing by said towns of any judgments, compromised or settled claims, awards or similar sums payable with respect to the operation or affairs of the Mohawk Valley General Hospital as a public general hospital jointly owned and operated by said towns, including, without limitation, the cessation of the operation of the same, to the extent that said towns have the power to _do_so_pursuant to provisions of law other than this act.

§ 5. To facilitate the marketing of any issue of bonds of the town of Frankfort or the town of German Flatts, issued on or before December 31, 1993, such towns respectively, may, notwithstanding any limitations on private sales of bonds provided by law and subject to approval by the state comptroller of the terms and conditions of such sale:

(a) arrange for the underwriting of their bonds at private sale through negotiated agreement, compensation for such underwriting to be provided by negotiated fee or by sale of such bonds to an underwriter at a price less than the sum of par value of, and the accrued interest on, such bonds; or