STATE OF NEW YORK ________________________________________________________________________

6844

2019-2020 Regular Sessions

IN SENATE

November 8, 2019 ___________

Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules

AN ACT to amend the tax law, in relation to certain payments to be made to Nassau and Erie counties

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

1 Section 1. Paragraph 3 of subdivision (c) of section 1261 of the tax 2 law, as amended by section 9 of part SS-1 of chapter 57 of the laws of 3 2008, is amended to read as follows: 4 (3) However, the taxes, penalties and interest which (i) the county of 5 Nassau, (ii) the county of Erie, to the extent the county of Erie is 6 contractually or statutorily obligated to allocate and apply or pay net 7 collections to the city of Buffalo and to the extent that such county 8 has set aside net collections for educational purposes attributable to 9 the Buffalo school district, or the city of Buffalo or (iii) the county 10 of Erie is authorized to impose pursuant to section twelve hundred ten 11 of this article, other than such taxes in the amounts described, respec- 12 tively, in subdivisions one and two of section one thousand two hundred 13 sixty-two-e of this part, during the period that such section authorizes 14 Nassau county to establish special or local assistance programs there- 15 under, together with any penalties and interest related thereto, and 16 after the comptroller has reserved such refund fund and such costs, 17 shall, commencing on the next payment date after the effective date of 18 this sentence and of each month thereafter, until such date as (i) the 19 Nassau county interim finance authority shall have no obligations 20 outstanding, or (ii) the Buffalo fiscal stability authority shall cease 21 to exist, or (iii) the Erie county fiscal stability authority shall 22 cease to exist, be paid by the comptroller, respectively, to (i) the 23 Nassau county interim finance authority to be applied by the Nassau 24 county interim finance authority, or (ii) to the Buffalo fiscal stabili- 25 ty authority to be applied by the Buffalo fiscal stability authority, or

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14044-04-9

S. 6844 2

1 (iii) to the Erie county fiscal stability authority to be applied by the 2 Erie county fiscal stability authority, as the case may be, in the 3 following order of priority: first pursuant to the Nassau county interim 4 finance authority's contracts with bondholders or the Buffalo fiscal 5 stability authority's contracts with bondholders or the Erie county 6 fiscal stability authority's contracts with bondholders, respectively, 7 then to pay the Nassau county interim finance authority's operating 8 expenses not otherwise provided for or the Buffalo fiscal stability 9 authority's operating expenses not otherwise provided for or the Erie 10 county fiscal stability authority's operating expenses not otherwise 11 provided for, respectively, and then (i) pursuant to the Nassau county 12 interim finance authority's agreements with the county of Nassau, which 13 agreements shall require the Nassau county interim finance authority to 14 transfer such taxes, penalties and interest remaining after providing 15 for contractual or other obligations of the Nassau county interim 16 finance authority, and subject to any agreement between such authority 17 and the county of Nassau, to the county of Nassau as frequently as prac- 18 ticable, however, after the comptroller has made the payments for 19 contracts with Nassau county interim finance authority's bondholders and 20 payments for Nassau county interim finance authority's operating 21 expenses, for each municipality in Nassau county that received a base 22 level grant in state fiscal year two thousand eighteen-two thousand 23 nineteen but not in state fiscal year two thousand nineteen-two thousand 24 twenty under the aid and incentives for municipalities program pursuant 25 to subdivision ten of section fifty-four of the state finance law, the 26 comptroller shall annually withhold from the remaining taxes, penalties 27 and interest imposed by Nassau county in which a majority of the popu- 28 lation of such municipality in Nassau county resides an amount equal to 29 the base level grant received by such municipality in Nassau county in 30 state fiscal year two thousand eighteen-two thousand nineteen and shall 31 annually distribute, by December fifteenth, two thousand nineteen and by 32 such date annually thereafter, such amount directly to such municipality 33 in Nassau county, unless such municipality in Nassau county has a fiscal 34 year ending May thirty-first, then such annual distribution shall be 35 made by May fifteenth, two thousand twenty and by such date annually 36 thereafter. No county shall have any right, title or interest in or to 37 the taxes, penalties and interest required to be withheld and distrib- 38 uted pursuant to this paragraph; or (ii) pursuant to the Buffalo fiscal 39 stability authority's agreements with the city of Buffalo, which agree- 40 ments shall require the Buffalo fiscal stability authority to transfer 41 such taxes, penalties and interest remaining after providing for 42 contractual or other obligations of the Buffalo fiscal stability author- 43 ity, and subject to any agreement between such authority and the city of 44 Buffalo, to the city of Buffalo or the city of Buffalo school district, 45 as the case may be, as frequently as practicable; or (iii) pursuant to 46 the Erie county fiscal stability authority's agreements with the county 47 of Erie, which agreements shall require the Erie county fiscal stability 48 authority to transfer such taxes, penalties and interest remaining after 49 providing for contractual or other obligations of the Erie county fiscal 50 stability authority, and subject to any agreement between such authority 51 and the county of Erie, to the county of Erie as frequently as practica- 52 ble, however, after the comptroller has made the payments for Erie coun- 53 ty fiscal stability authority's contracts with bondholders and payments 54 for Erie county fiscal stability authority's operating expenses, for 55 each municipality in Erie county that received a base level grant in 56 state fiscal year two thousand eighteen-two thousand nineteen but not in

S. 6844 3

1 state fiscal year two thousand nineteen-two thousand twenty under the 2 aid and incentives for municipalities program pursuant to subdivision 3 ten of section fifty-four of the state finance law, the comptroller 4 shall annually withhold from the remaining taxes, penalties and interest 5 imposed by Erie county in which a majority of the population of such 6 municipality in Erie county resides an amount equal to the base level 7 grant received by such municipality in Erie county in state fiscal year 8 two thousand eighteen-two thousand nineteen and shall annually distrib- 9 ute, by December fifteenth, two thousand nineteen and by such date annu- 10 ally thereafter, such amount directly to such municipality in Erie coun- 11 ty, unless such municipality in Erie county has a fiscal year ending May 12 thirty-first, then such annual distribution shall be made by May 13 fifteenth, two thousand twenty and by such date annually thereafter. No 14 county shall have any right, title or interest in or to the taxes, 15 penalties and interest required to be withheld and distributed pursuant 16 to this paragraph. During the period that the comptroller is required to 17 make payments to the Nassau county interim finance authority described 18 in the previous sentence, the county of Nassau shall have no right, 19 title or interest in or to such taxes, penalties and interest required 20 to be paid to the Nassau county interim finance authority, except as 21 provided in such authority's agreements with the county of Nassau. 22 During the period that the comptroller is required to make payments to 23 the Buffalo fiscal stability authority described in the second previous 24 sentence, the city of Buffalo and such school district shall have no 25 right, title or interest in or to such taxes, penalties and interest 26 required to be paid to the Buffalo fiscal stability authority, except as 27 provided in such authority's agreements with the city of Buffalo. During 28 the period that the comptroller is required to make payments to the Erie 29 county fiscal stability authority described in the third previous 30 sentence, the county of Erie shall have no right, title or interest in 31 or to such taxes, penalties and interest required to be paid to the Erie 32 county fiscal stability authority, except as provided in such authori- 33 ty's agreements with the county of Erie. 34 § 2. This act shall take effect immediately.