2006 New York Code - Types Thereof

 
    § 24.00 Tax anticipation notes.
    a. 1. Tax anticipation notes may be issued by any municipality, school
  district or district corporation, other than a fire district,
    (a) During a fiscal year in anticipation of the collection of taxes or
  assessments levied for such fiscal year,
    (b)  Within  ten  days  prior to the commencement of a fiscal year or,
  where the fiscal year of the issuer is a calendar  year,  within  thirty
  days  prior to the commencement of a fiscal year, in anticipation of the
  collection of taxes or assessments levied for such fiscal year,
    (c) During a fiscal year in anticipation of the collection of taxes or
  assessments to be levied in such fiscal year,
    (d) Within ten days prior to the commencement of  a  fiscal  year  or,
  where  the  fiscal  year of the issuer is a calendar year, within thirty
  days prior to the commencement of a fiscal year, in anticipation of  the
  collection of taxes or assessments to be levied in such fiscal year, or
    (e)  During any fiscal year in anticipation of the collection of taxes
  or assessments levied for any of the four preceding fiscal years.
  The term "assessments" as  used  in  this  paragraph  means  assessments
  levied or to be levied for operation, maintenance or debt service.
    2. Prior to the adoption of its annual budget any municipality, school
  district or district corporation which adopts an annual budget after the
  commencement  of  its fiscal year shall not issue such notes pursuant to
  items (c) or (d) of subdivision one of this paragraph in excess  of  the
  combined amounts of:
    (a)  The  amount  necessary  for  the  payment of the principal of and
  interest on any indebtedness to become due during the first four  months
  of its current fiscal year, and
    (b) Thirty-five per centum of the difference between the amount of its
  annual  budget  for  the  preceding  fiscal year and the amount provided
  therein  for  the  payment  of  the  principal  of   and   interest   on
  indebtedness.
    3.  In  no  event  shall any municipality, school district or district
  corporation reduce the amount to be raised by taxes  or  assessments  in
  its  annual  budget or other determination of taxes or assessments to be
  raised to an amount less than the amount of the outstanding notes  which
  have  been  issued  pursuant  to items (c) and (d) of subdivision one of
  this paragraph.
    4. In the case of such notes issued pursuant to items (a), (b) and (e)
  of subdivision one of this paragraph, such notes shall not be issued  in
  an amount in excess of the amount of the taxes or assessments levied for
  a fiscal year which is uncollected at the time of such borrowing less:
    (a)  The  amount  of  the outstanding tax anticipation notes issued in
  anticipation of the collection of such taxes or assessments, and
    (b) The amount, if any, included in the annual budget for such  fiscal
  year  or  in  the  levy  of taxes or assessments for such fiscal year to
  offset, in whole or in part, an anticipated deficiency in the collection
  before the end of such fiscal year of the taxes  or  assessments  levied
  for such fiscal year.
    5.  The  proceeds  of  notes  issued  pursuant to items (c) and (d) of
  subdivision one of this paragraph shall be used only  for  the  purposes
  for  which  the  taxes  or  assessments  are  to  be  levied  or for the
  redemption of notes in renewal of which they were issued.  The  proceeds
  of notes issued pursuant to items (a), (b) and (e) of subdivision one of
  this  paragraph  shall be used only for the purposes for which the taxes
  or assessments were levied or for the redemption of notes in renewal  of
  which  they  were  issued,  provided, however, that the proceeds of such
  notes may be used for other lawful purposes if the  purposes  for  which
  the  taxes  or assessments were levied have been satisfied and there are
  no unpaid claims arising therefrom or appropriate provision has  already
  been made for the payment of such unpaid claims.
    6.  Tax  anticipation  notes  issued  pursuant to this paragraph shall
  mature within one year from the  date  of  their  issuance  and  may  be
  renewed from time to time, but each renewal shall be for a period not to
  exceed  one  year.  Such  notes or the renewals thereof shall be retired
  within five years after their date of original issue and  in  any  event
  not  later  than five years after the close of the fiscal year for which
  were levied the taxes or assessments in anticipation of  the  collection
  of  which  such  notes  were  issued; provided, however, that such notes
  issued pursuant to  items  (b)  and  (d)  of  subdivision  one  of  this
  paragraph, or the renewals thereof, shall not extend beyond the close of
  the  fourth fiscal year succeeding that in which the original notes were
  issued.
    b. A municipality may issue tax anticipation notes in anticipation  of
  the   collection   of   the  unpaid  taxes  or  assessments  of  another
  municipality, a school district or a district corporation  provided  (1)
  such  unpaid  taxes  or  assessments  are  returned  or certified to it,
  pursuant to law, and (2) such unpaid taxes  or  assessments  are  to  be
  collected  by  or  on behalf of the municipality to which such return or
  certification is made, and (3) such return or certification be  accepted
  by  such  municipality. If a municipality is required by law to pay over
  to another municipality, a school district or district  corporation  all
  or  part  of the taxes or assessments of such other municipality, school
  district or  district  corporation,  such  municipality  may  issue  tax
  anticipation  notes  in  anticipation  of  the collection of such unpaid
  taxes or assessments  in  order  to  make  such  payment.  Notes  issued
  pursuant  to  this  paragraph shall mature within a period not to exceed
  one year from the date of their issuance and may be renewed from time to
  time, but each renewal shall be for a period not to exceed one year  and
  in  no  event shall such notes or the renewals thereof extend beyond the
  close of the fourth fiscal year succeeding the  fiscal  year  for  which
  such  taxes or assessments were levied. The proceeds of such notes shall
  be used as required by law, or for the redemption of notes in renewal of
  which they were issued.
    c. If any tax district which is required by law to  pay  over  to  the
  county treasurer on or before October fifteenth of any calendar year the
  full  amount  of  county or county district taxes or assessments due for
  such calendar year fails or neglects to pay to  the  treasurer  of  such
  county  on  or  before  such  date  the  full  amount  of  such taxes or
  assessments due for  such  calendar  year,  the  county  may  issue  tax
  anticipation  notes  in  its  own name to the amount of such deficiency.
  Such notes shall mature on or before June first  of  the  next  calendar
  year  after  such  default  and  may be renewed from time to time but no
  renewal shall extend beyond eighteen months from the date  of  issue  of
  the  original  note.  Provision  shall  be  made  for the payment of the
  principal of and interest on said tax anticipation notes in  the  manner
  provided  by  section  ninety-six  of  the tax law. The proceeds of such
  notes shall be used only for  the  purposes  for  which  such  taxes  or
  assessments  were  levied  or  for the redemption of notes in renewal of
  which they were issued.
    c-1. Any fire district in a town in the county of Westchester in which
  real estate taxes and assessments become payable on April first in  each
  year  may  issue  tax anticipation notes during any fiscal year prior to
  June first in such year in anticipation of the collection  of  taxes  or
  assessments  levied  for  such fire district for such year. Notes issued
  pursuant to the provisions of this paragraph shall mature on  or  before
  June  first  next  following  the  date  of  their issuance and shall be
  redeemed from the taxes or assessments in anticipation of the collection
  of which such notes were issued. Such notes shall not be  issued  in  an
  amount  in  excess  of  the  difference  between  the amount of the fire
  district  taxes or assessments remaining uncollected at the time of such
  borrowing  and  the  amount  of  tax  anticipation   notes   issued   in
  anticipation  of  the  collection of such taxes or assessments. Whenever
  the amount of tax anticipation notes issued pursuant to  this  paragraph
  shall   equal   the  amount  of  such  taxes  or  assessments  remaining
  uncollected, all of such taxes or assessments, as thereafter  collected,
  shall  be  set  aside  in a special bank account to be used only for the
  payment of such notes as they become due. The  proceeds  of  such  notes
  shall  be  used only for the purposes for which such taxes or assessment
  were levied.
    c-2. Any fire district in any town other than a town in the county  of
  Westchester  may  issue  tax  anticipation  notes at any time during the
  first three months of its fiscal year in anticipation of the  collection
  of real estate taxes levied for such fire district for such fiscal year.
  Notes  issued  pursuant to the provisions of this paragraph shall mature
  on or before the fifteenth day of April next following the date of their
  issuance and shall be redeemed from the taxes  in  anticipation  of  the
  collection  of  which  such  notes  were issued. Such notes shall not be
  issued in an amount in excess of the difference between  the  amount  of
  the  fire  district  taxes  remaining  uncollected  at  the time of such
  borrowing  and  the  amount  of  tax  anticipation   notes   issued   in
  anticipation of the collection of such taxes. Whenever the amount of tax
  anticipation  notes  issued  pursuant  to this paragraph shall equal the
  amount of such taxes  remaining  uncollected,  all  of  such  taxes,  as
  thereafter collected, shall be set aside in a special bank account to be
  used only for the payment of such notes as they become due. The proceeds
  of  such  notes shall be used only for the purposes for which such taxes
  were levied. For the purpose of this paragraph such  real  estate  taxes
  shall  be deemed to be uncollected until the fire district receives cash
  therefor from the public officer required to pay such taxes to the  fire
  district.
    d.  1. In the case of a newly created municipality, school district or
  district corporation, or in the case of  any  such  unit  of  government
  which  has  elected a finance board for the first time, tax anticipation
  notes may be issued, prior to the first levy of  taxes  or  assessments,
  for  the  necessary expenses incidental to its incorporation or creation
  and the other necessary expenses incurred or to  be  incurred  prior  to
  such  levy. In the case of a municipality or school district, such notes
  shall not be issued in an amount in excess of  two  per  centum  of  the
  assessed  valuation  of  the  taxable property therein as shown upon the
  last preceding assessment roll of any unit of government in  which  such
  property  was  evaluated.  If,  however,  any  part of such property was
  evaluated in the assessment roll of more than one unit of government its
  value, for the purposes of this  section,  shall  be  the  lowest  value
  assigned  to  it  by  any  such  assessment  roll. In the case of a fire
  district, such  notes  shall  not  be  issued  in  an  amount  exceeding
  one-twelfth  of  the  amount  of taxes which the fire district may raise
  annually without adopting a proposition pursuant to  the  provisions  of
  the town law for each calendar month intervening between the date of the
  creation  of  the  district  and the first day of the fiscal year of the
  district for which an annual budget can be adopted, plus an  amount  not
  exceeding  the actual and necessary expenses incidental to its creation.
  The phrase "the amount of  taxes  which  the  fire  district  may  raise
  annually  without  adopting  a proposition pursuant to the provisions of
  the town law," as used herein, shall mean two thousand  dollars,  except
  that  in fire districts having a full valuation in excess of one million
  dollars it shall mean two thousand dollars plus one mill for each dollar
  of full valuation of the taxable real property of the fire  district  in
  excess  of  the  first million dollars of full valuation of such taxable
  real property. In the case of any district  corporation,  other  than  a
  fire  district, such notes shall not be issued in an amount in excess of
  one mill of the assessed valuation of the taxable  property  therein  as
  shown  upon the last preceding assessment roll of any unit of government
  in which such property  was  evaluated  in  addition  to  the  necessary
  expenses  incidental  to  incorporation.  If,  however, any part of such
  property was evaluated in the assessment roll of more than one  unit  of
  government,  its  value  for  the  purpose  of this section shall be the
  lowest value assigned to it by any such assessment roll.
    2. In the case of the establishment of any improvement district  of  a
  county  or  of  a  town, which is to be financed by taxes or assessments
  levied upon an ad valorem or benefit  basis,  or  in  the  case  of  the
  consolidation  of  special improvement districts pursuant to section two
  hundred six of the town law, prior to the first levy in which such taxes
  or assessments are to  be  levied  for  such  district  or  consolidated
  district  the  county  or  town,  as  the  case  may  be,  may issue tax
  anticipation notes for the necessary expenses incidental to the creation
  of such district or consolidation  of  such  districts,  and  the  other
  necessary  expenses  incurred  or  to  be  incurred for such district or
  consolidated district prior to such levy.
    3. An appropriation for the redemption of  notes  issued  pursuant  to
  this  paragraph  shall  be  included  in  the  first  levy  of  taxes or
  assessments of or  for  such  municipality,  school  district,  district
  corporation  or improvement district. Such notes shall mature within one
  year from their date of issue and may be renewed from time to time,  but
  each  renewal  shall  be  for  a period not to exceed one year and in no
  event shall such notes or the renewals thereof extend beyond  the  close
  of the second fiscal year succeeding the fiscal year in which such notes
  were  issued.  The proceeds of such notes shall be used only to pay such
  necessary expenses incidental to such incorporation or creation and such
  other necessary expenses incurred or to be incurred prior  to  any  such
  levy  or  for  the  redemption  of  notes  in renewal of which they were
  issued.
    e. Whenever the amount of tax anticipation notes  issued  pursuant  to
  paragraphs  a, b and d of this section in anticipation of the collection
  of the taxes or assessments levied or to be levied  for  a  fiscal  year
  shall   equal   the  amount  of  such  taxes  or  assessments  remaining
  uncollected less the amount, if any, included in the annual  budget  for
  such  fiscal year or in the levy of taxes or assessments for such fiscal
  year to offset, in whole or in part, an anticipated  deficiency  in  the
  collection  before  the  end  of  such  fiscal  year  of  the  taxes  or
  assessments levied for such fiscal year, all of such  uncollected  taxes
  or assessments, as thereafter collected, shall be set aside in a special
  bank  account  to  be  used  only  for the payment of such notes as they
  become due, unless other provision is  made  pursuant  to  law  for  the
  redemption  of such notes. Any municipality, school district or district
  corporation may make budgetary appropriations for the redemption of such
  notes whether or not required or otherwise authorized by law to  do  so.
  In  the  event  such an appropriation is made, such municipality, school
  district or district corporation shall not be required to pay  into  the
  special  account  the proceeds of the taxes or assessments against which
  such notes were issued but such proceeds  may  be  used  in  the  manner
  provided by law or if there is no provision of law pertaining to the use
  of  such  proceeds, such proceeds shall be treated as surplus moneys for
  the fiscal year in which they are collected. This  paragraph  shall  not
  apply to notes issued pursuant to paragraph c of this section.
    f. 1. Where a tax anticipation note issued pursuant to paragraphs a, b
  or d of this section is to be renewed by the issuance of a renewal note,
  and the taxes or assessments in anticipation of which it was issued have
  been levied for a fiscal year, but remain uncollected, such renewal note
  shall  not be issued for an amount in excess of the amount of such taxes
  or assessments remaining uncollected at the time of such renewal, less:
    (a) The amount of any other outstanding tax anticipation notes  issued
  in anticipation of the collection of such taxes or assessments, and
    (b)  The amount, if any, included in the annual budget for such fiscal
  year or in the levy of taxes or assessments  for  such  fiscal  year  to
  offset, in whole or in part, an anticipated deficiency in the collection
  before  the  end  of such fiscal year of the taxes or assessments levied
  for such fiscal year.
  In no event shall such a renewal note be issued for an amount in  excess
  of  the  original  amount  of  the  note in renewal of which it is to be
  issued.
    2. Where a tax anticipation note issued pursuant to paragraphs a or  d
  of  this  section  is  to  be  renewed,  and the taxes or assessments in
  anticipation of which it was issued have not been levied,  such  renewal
  note  shall not be issued for an amount in excess of the original amount
  of the note in renewal of which it is to be issued.
    3. Where a tax anticipation note issued pursuant  to  paragraph  c  of
  this  section is to be renewed, such renewal note shall not be issued in
  an amount in excess of the difference between  the  original  amount  of
  such  note to be renewed, less the amount of moneys received and applied
  or to be applied to the payment of such note.
    g. Tax anticipation notes may be issued by any municipality during any
  fiscal year thereof:
    1. In anticipation of the collection of assessments  levied  for  such
  fiscal  year,  or  to  be levied in such fiscal year, to pay the cost of
  capital improvements, if such assessments are to  be  collected  in  one
  installment;  provided,  however,  that  if  such  assessments have been
  levied, such notes shall not be issued in an amount  in  excess  of  the
  difference  between the amount of such assessments remaining uncollected
  at the time  of  such  borrowing  and  the  amount  of  outstanding  tax
  anticipation  notes  issued  in  anticipation  of the collection of such
  assessments.
    2. In anticipation of the collection of an installment of  assessments
  levied  for  a  capital  improvement,  if  such  assessments  are  to be
  collected in several annual installments and  such  installment  becomes
  due  and  payable  during such fiscal year; provided, however, that such
  notes shall not be issued in an  amount  in  excess  of  the  difference
  between the amount of such installment remaining uncollected at the time
  of  such  borrowing and the amount of outstanding tax anticipation notes
  issued in anticipation of the collection of such installment.
    3. The proceeds of tax anticipation  notes  issued  pursuant  to  this
  paragraph shall be used only for the purposes for which such assessments
  were  levied  or  are  to  be  levied  or for the redemption of notes in
  renewal of which they were issued.
    4. Tax anticipation notes issued  pursuant  to  this  paragraph  shall
  mature  within  one  year  from  the  date  of their issuance and may be
  renewed from time to time but each renewal shall be for a period not  to
  exceed one year and in no event shall such notes or the renewals thereof
  extend  beyond the close of the second fiscal year succeeding the fiscal
  year in which such notes were issued.
    5. Whenever the amount of tax anticipation notes  issued  pursuant  to
  this  paragraph  in  anticipation of the collection of assessments or an
  installment thereof levied for a capital improvement equals  the  amount
  of  such  assessments  or such installment remaining uncollected, all of
  such  assessments or such installment, as thereafter collected, shall be
  set aside in a special bank account to be used only for the  payment  of
  such  notes as they become due, unless other provision is made, pursuant
  to law, for the redemption of such  notes.  Any  municipality  may  make
  budgetary appropriations for the redemption of such notes whether or not
  required  or  otherwise authorized by law to do so. In the event such an
  appropriation is made, such municipality shall not be  required  to  pay
  into  the  special  account  the  proceeds  of  the  assessments, or the
  installment thereof, against which  such  notes  were  issued  but  such
  proceeds  may  be  used  in the manner provided by law or if there is no
  provision of law pertaining to the use of such proceeds,  such  proceeds
  shall be treated as surplus moneys for the fiscal year in which they are
  collected.
    6. (a) Where a tax anticipation note issued pursuant to this paragraph
  is  to be renewed by the issuance of a renewal note, and the assessments
  or installment thereof in anticipation of which it was issued have  been
  levied,  but  remain  uncollected, such renewal note shall not be issued
  for an amount in excess of the amount of such assessments or installment
  thereof remaining uncollected at the time  of  such  renewal,  less  the
  amount  of  any  other  outstanding  tax  anticipation  notes  issued in
  anticipation of  the  collection  of  such  assessments  or  installment
  thereof;  but  in  no  event  shall such a renewal note be issued for an
  amount in excess of the original amount of the note in renewal of  which
  it is to be issued.
    (b) Where a tax anticipation note issued pursuant to this paragraph is
  to   be   renewed,   and  the  assessments  or  installment  thereof  in
  anticipation of which it was issued have not been levied,  such  renewal
  note  shall not be issued for an amount in excess of the original amount
  of the note in renewal of which it is to be issued.
    h. Tax anticipation notes may be issued by any municipality during any
  fiscal year thereof in anticipation  of  the  levy  or  distribution  of
  assessments  for  work  or services if the expenditures for such work or
  services are financed from a fund into which are paid  the  proceeds  of
  such  notes  and if such assessments are required to be collected in one
  installment and included in the tax roll for the fiscal year  succeeding
  the  fiscal  year in which such notes were issued or in the tax roll for
  the second succeeding fiscal year. Any such municipality shall  pay  the
  proceeds  of  such assessments into any such fund. Notes issued pursuant
  to the provisions of this paragraph shall mature within  one  year  from
  the date of their issuance and may be renewed from time to time but each
  renewal  shall  be  for  a period not to exceed one year and in no event
  shall such notes or the renewals thereof extend beyond the close of  the
  second  fiscal  year succeeding the fiscal year in which such notes were
  issued. No such renewal note shall be issued for an amount in excess  of
  the original amount of the note in renewal of which it was issued.
    i.  For  the  purpose  of  this section, taxes or assessments shall be
  deemed to be uncollected and not  received  by  a  municipality,  school
  district   or   district   corporation   until  cash  is  paid  to  such
  municipality, school district or district corporation for such taxes  or
  assessments  and such taxes or assessments are cancelled or the title to
  such taxes or assessments is transferred by  such  municipality,  school
  district  or  district corporation, or until real property has been sold
  for  such  taxes  or  assessments  and  has  been   acquired   by   such
  municipality,   school   district   or  district  corporation  and  such
  municipality, school district or district corporation has realized  cash
  by  the  sale of such real property. For the purpose of this section the
  term "taxes" or the term "assessments" shall  not  include  interest  or
  penalties upon uncollected taxes or assessments.
    j. Notwithstanding any provision of any other law, general or special,
  a  central  high  school  district  may  issue tax anticipation notes in
  accordance with and subject to the provisions of this section applicable
  to a school district; provided, however, that the  aggregate  amount  of
  taxes  in anticipation of which a central high school district may issue
  tax anticipation notes shall not exceed the sum of the taxes  levied  or
  to  be  levied  for central high school district purposes in each school
  district included within the central high school district and,  provided
  further,  that  no such school district included within the central high
  school district shall be authorized to issue tax anticipation  notes  in
  anticipation  of  taxes  levied or to be levied therein for central high
  school district purposes.