§ 24.00 — Tax anticipation notes

New York § 24.00

• Jurisdiction: New York
• Law LFN: Local Finance
• Title 2: Local Obligations: Types Thereof
• Art. 2: Local Indebtedness

Text

§ 24.00 Tax anticipation notes.\n a. 1. Tax anticipation notes may be issued by any municipality, school\ndistrict or district corporation, other than a fire district,\n (a) During a fiscal year in anticipation of the collection of taxes or\nassessments levied for such fiscal year,\n (b) Within ten days prior to the commencement of a fiscal year or,\nwhere the fiscal year of the issuer is a calendar year, within thirty\ndays prior to the commencement of a fiscal year, in anticipation of the\ncollection of taxes or assessments levied for such fiscal year,\n (c) During a fiscal year in anticipation of the collection of taxes or\nassessments to be levied in such fiscal year,\n (d) Within ten days prior to the commencement of a fiscal year or,\nwhere the fiscal year of the issuer is a calendar year, within thirty\ndays prior to the commencement of a fiscal year, in anticipation of the\ncollection of taxes or assessments to be levied in such fiscal year, or\n (e) During any fiscal year in anticipation of the collection of taxes\nor assessments levied for any of the four preceding fiscal years.\nThe term "assessments" as used in this paragraph means assessments\nlevied or to be levied for operation, maintenance or debt service.\n 2. Prior to the adoption of its annual budget any municipality, school\ndistrict or district corporation which adopts an annual budget after the\ncommencement of its fiscal year shall not issue such notes pursuant to\nitems (c) or (d) of subdivision one of this paragraph in excess of the\ncombined amounts of:\n (a) The amount necessary for the payment of the principal of and\ninterest on any indebtedness to become due during the first four months\nof its current fiscal year, and\n (b) Thirty-five per centum of the difference between the amount of its\nannual budget for the preceding fiscal year and the amount provided\ntherein for the payment of the principal of and interest on\nindebtedness.\n 3. In no event shall any municipality, school district or district\ncorporation reduce the amount to be raised by taxes or assessments in\nits annual budget or other determination of taxes or assessments to be\nraised to an amount less than the amount of the outstanding notes which\nhave been issued pursuant to items (c) and (d) of subdivision one of\nthis paragraph.\n 4. In the case of such notes issued pursuant to items (a), (b) and (e)\nof subdivision one of this paragraph, such notes shall not be issued in\nan amount in excess of the amount of the taxes or assessments levied for\na fiscal year which is uncollected at the time of such borrowing less:\n (a) The amount of the outstanding tax anticipation notes issued in\nanticipation of the collection of such taxes or assessments, and\n (b) The amount, if any, included in the annual budget for such fiscal\nyear or in the levy of taxes or assessments for such fiscal year to\noffset, in whole or in part, an anticipated deficiency in the collection\nbefore the end of such fiscal year of the taxes or assessments levied\nfor such fiscal year.\n 5. The proceeds of notes issued pursuant to items (c) and (d) of\nsubdivision one of this paragraph shall be used only for the purposes\nfor which the taxes or assessments are to be levied or for the\nredemption of notes in renewal of which they were issued. The proceeds\nof notes issued pursuant to items (a), (b) and (e) of subdivision one of\nthis paragraph shall be used only for the purposes for which the taxes\nor assessments were levied or for the redemption of notes in renewal of\nwhich they were issued, provided, however, that the proceeds of such\nnotes may be used for other lawful purposes if the purposes for which\nthe taxes or assessments were levied have been satisfied and there are\nno unpaid claims arising therefrom or appropriate provision has already\nbeen made for the payment of such unpaid claims.\n 6. Tax anticipation notes issued pursuant to this paragraph shall\nmature within one year from the date of their issuance and may be\nrenewed from time to time, but each renewal shall be for a period not to\nexceed one year. Such notes or the renewals thereof shall be retired\nwithin five years after their date of original issue and in any event\nnot later than five years after the close of the fiscal year for which\nwere levied the taxes or assessments in anticipation of the collection\nof which such notes were issued; provided, however, that such notes\nissued pursuant to items (b) and (d) of subdivision one of this\nparagraph, or the renewals thereof, shall not extend beyond the close of\nthe fourth fiscal year succeeding that in which the original notes were\nissued.\n b. A municipality may issue tax anticipation notes in anticipation of\nthe collection of the unpaid taxes or assessments of another\nmunicipality, a school district or a district corporation provided (1)\nsuch unpaid taxes or assessments are returned or certified to it,\npursuant to law, and (2) such unpaid taxes or assessments are to be\ncollected by or on behalf of the municipality to which such return or\ncertification is made, and (3) such return or certification be accepted\nby such municipality. If a municipality is required by law to pay over\nto another municipality, a school district or district corporation all\nor part of the taxes or assessments of such other municipality, school\ndistrict or district corporation, such municipality may issue tax\nanticipation notes in anticipation of the collection of such unpaid\ntaxes or assessments in order to make such payment. Notes issued\npursuant to this paragraph shall mature within a period not to exceed\none year from the date of their issuance and may be renewed from time to\ntime, but each renewal shall be for a period not to exceed one year and\nin no event shall such notes or the renewals thereof extend beyond the\nclose of the fourth fiscal year succeeding the fiscal year for which\nsuch taxes or assessments were levied. The proceeds of such notes shall\nbe used as required by law, or for the redemption of notes in renewal of\nwhich they were issued.\n c. If any tax district which is required by law to pay over to the\ncounty treasurer on or before October fifteenth of any calendar year the\nfull amount of county or county district taxes or assessments due for\nsuch calendar year fails or neglects to pay to the treasurer of such\ncounty on or before such date the full amount of such taxes or\nassessments due for such calendar year, the county may issue tax\nanticipation notes in its own name to the amount of such deficiency.\nSuch notes shall mature on or before June first of the next calendar\nyear after such default and may be renewed from time to time but no\nrenewal shall extend beyond eighteen months from the date of issue of\nthe original note. Provision shall be made for the payment of the\nprincipal of and interest on said tax anticipation notes in the manner\nprovided by section ninety-six of the tax law. The proceeds of such\nnotes shall be used only for the purposes for which such taxes or\nassessments were levied or for the redemption of notes in renewal of\nwhich they were issued.\n c-1. Any fire district in a town in the county of Westchester in which\nreal estate taxes and assessments become payable on April first in each\nyear may issue tax anticipation notes during any fiscal year prior to\nJune first in such year in anticipation of the collection of taxes or\nassessments levied for such fire district for such year. Notes issued\npursuant to the provisions of this paragraph shall mature on or before\nJune first next following the date of their issuance and shall be\nredeemed from the taxes or assessments in anticipation of the collection\nof which such notes were issued. Such notes shall not be issued in an\namount in excess of the difference between the amount of the fire\ndistrict taxes or assessments remaining uncollected at the time of such\nborrowing and the amount of tax anticipation notes issued in\nanticipation of the collection of such taxes or assessments. Whenever\nthe amount of tax anticipation notes issued pursuant to this paragraph\nshall equal the amount of such taxes or assessments remaining\nuncollected, all of such taxes or assessments, as thereafter collected,\nshall be set aside in a special bank account to be used only for the\npayment of such notes as they become due. The proceeds of such notes\nshall be used only for the purposes for which such taxes or assessment\nwere levied.\n c-2. Any fire district in any town other than a town in the county of\nWestchester may issue tax anticipation notes at any time during the\nfirst three months of its fiscal year in anticipation of the collection\nof real estate taxes levied for such fire district for such fiscal year.\nNotes issued pursuant to the provisions of this paragraph shall mature\non or before the fifteenth day of April next following the date of their\nissuance and shall be redeemed from the taxes in anticipation of the\ncollection of which such notes were issued. Such notes shall not be\nissued in an amount in excess of the difference between the amount of\nthe fire district taxes remaining uncollected at the time of such\nborrowing and the amount of tax anticipation notes issued in\nanticipation of the collection of such taxes. Whenever the amount of tax\nanticipation notes issued pursuant to this paragraph shall equal the\namount of such taxes remaining uncollected, all of such taxes, as\nthereafter collected, shall be set aside in a special bank account to be\nused only for the payment of such notes as they become due. The proceeds\nof such notes shall be used only for the purposes for which such taxes\nwere levied. For the purpose of this paragraph such real estate taxes\nshall be deemed to be uncollected until the fire district receives cash\ntherefor from the public officer required to pay such taxes to the fire\ndistrict.\n d. 1. In the case of a newly created municipality, school district or\ndistrict corporation, or in the case of any such unit of government\nwhich has elected a finance board for the first time, tax anticipation\nnotes may be issued, prior to the first levy of taxes or assessments,\nfor the necessary expenses incidental to its incorporation or creation\nand the other necessary expenses incurred or to be incurred prior to\nsuch levy. In the case of a municipality or school district, such notes\nshall not be issued in an amount in excess of two per centum of the\nassessed valuation of the taxable property therein as shown upon the\nlast preceding assessment roll of any unit of government in which such\nproperty was evaluated. If, however, any part of such property was\nevaluated in the assessment roll of more than one unit of government its\nvalue, for the purposes of this section, shall be the lowest value\nassigned to it by any such assessment roll. In the case of a fire\ndistrict, such notes shall not be issued in an amount exceeding\none-twelfth of the amount of taxes which the fire district may raise\nannually without adopting a proposition pursuant to the provisions of\nthe town law for each calendar month intervening between the date of the\ncreation of the district and the first day of the fiscal year of the\ndistrict for which an annual budget can be adopted, plus an amount not\nexceeding the actual and necessary expenses incidental to its creation.\nThe phrase "the amount of taxes which the fire district may raise\nannually without adopting a proposition pursuant to the provisions of\nthe town law," as used herein, shall mean two thousand dollars, except\nthat in fire districts having a full valuation in excess of one million\ndollars it shall mean two thousand dollars plus one mill for each dollar\nof full valuation of the taxable real property of the fire district in\nexcess of the first million dollars of full valuation of such taxable\nreal property. In the case of any district corporation, other than a\nfire district, such notes shall not be issued in an amount in excess of\none mill of the assessed valuation of the taxable property therein as\nshown upon the last preceding assessment roll of any unit of government\nin which such property was evaluated in addition to the necessary\nexpenses incidental to incorporation. If, however, any part of such\nproperty was evaluated in the assessment roll of more than one unit of\ngovernment, its value for the purpose of this section shall be the\nlowest value assigned to it by any such assessment roll.\n 2. In the case of the establishment of any improvement district of a\ncounty or of a town, which is to be financed by taxes or assessments\nlevied upon an ad valorem or benefit basis, or in the case of the\nconsolidation of special improvement districts, prior to the first levy\nin which such taxes or assessments are to be levied for such district or\nconsolidated district the county or town, as the case may be, may issue\ntax anticipation notes for the necessary expenses incidental to the\ncreation of such district or consolidation of such districts, and the\nother necessary expenses incurred or to be incurred for such district or\nconsolidated district prior to such levy.\n 3. An appropriation for the redemption of notes issued pursuant to\nthis paragraph shall be included in the first levy of taxes or\nassessments of or for such municipality, school district, district\ncorporation or improvement district. Such notes shall mature within one\nyear from their date of issue and may be renewed from time to time, but\neach renewal shall be for a period not to exceed one year and in no\nevent shall such notes or the renewals thereof extend beyond the close\nof the second fiscal year succeeding the fiscal year in which such notes\nwere issued. The proceeds of such notes shall be used only to pay such\nnecessary expenses incidental to such incorporation or creation and such\nother necessary expenses incurred or to be incurred prior to any such\nlevy or for the redemption of notes in renewal of which they were\nissued.\n e. Whenever the amount of tax anticipation notes issued pursuant to\nparagraphs a, b and d of this section in anticipation of the collection\nof the taxes or assessments levied or to be levied for a fiscal year\nshall equal the amount of such taxes or assessments remaining\nuncollected less the amount, if any, included in the annual budget for\nsuch fiscal year or in the levy of taxes or assessments for such fiscal\nyear to offset, in whole or in part, an anticipated deficiency in the\ncollection before the end of such fiscal year of the taxes or\nassessments levied for such fiscal year, all of such uncollected taxes\nor assessments, as thereafter collected, shall be set aside in a special\nbank account to be used only for the payment of such notes as they\nbecome due, unless other provision is made pursuant to law for the\nredemption of such notes. Any municipality, school district or district\ncorporation may make budgetary appropriations for the redemption of such\nnotes whether or not required or otherwise authorized by law to do so.\nIn the event such an appropriation is made, such municipality, school\ndistrict or district corporation shall not be required to pay into the\nspecial account the proceeds of the taxes or assessments against which\nsuch notes were issued but such proceeds may be used in the manner\nprovided by law or if there is no provision of law pertaining to the use\nof such proceeds, such proceeds shall be treated as surplus moneys for\nthe fiscal year in which they are collected. This paragraph shall not\napply to notes issued pursuant to paragraph c of this section.\n f. 1. Where a tax anticipation note issued pursuant to paragraphs a, b\nor d of this section is to be renewed by the issuance of a renewal note,\nand the taxes or assessments in anticipation of which it was issued have\nbeen levied for a fiscal year, but remain uncollected, such renewal note\nshall not be issued for an amount in excess of the amount of such taxes\nor assessments remaining uncollected at the time of such renewal, less:\n (a) The amount of any other outstanding tax anticipation notes issued\nin anticipation of the collection of such taxes or assessments, and\n (b) The amount, if any, included in the annual budget for such fiscal\nyear or in the levy of taxes or assessments for such fiscal year to\noffset, in whole or in part, an anticipated deficiency in the collection\nbefore the end of such fiscal year of the taxes or assessments levied\nfor such fiscal year.\nIn no event shall such a renewal note be issued for an amount in excess\nof the original amount of the note in renewal of which it is to be\nissued.\n 2. Where a tax anticipation note issued pursuant to paragraphs a or d\nof this section is to be renewed, and the taxes or assessments in\nanticipation of which it was issued have not been levied, such renewal\nnote shall not be issued for an amount in excess of the original amount\nof the note in renewal of which it is to be issued.\n 3. Where a tax anticipation note issued pursuant to paragraph c of\nthis section is to be renewed, such renewal note shall not be issued in\nan amount in excess of the difference between the original amount of\nsuch note to be renewed, less the amount of moneys received and applied\nor to be applied to the payment of such note.\n g. Tax anticipation notes may be issued by any municipality during any\nfiscal year thereof:\n 1. In anticipation of the collection of assessments levied for such\nfiscal year, or to be levied in such fiscal year, to pay the cost of\ncapital improvements, if such assessments are to be collected in one\ninstallment; provided, however, that if such assessments have been\nlevied, such notes shall not be issued in an amount in excess of the\ndifference between the amount of such assessments remaining uncollected\nat the time of such borrowing and the amount of outstanding tax\nanticipation notes issued in anticipation of the collection of such\nassessments.\n 2. In anticipation of the collection of an installment of assessments\nlevied for a capital improvement, if such assessments are to be\ncollected in several annual installments and such installment becomes\ndue and payable during such fiscal year; provided, however, that such\nnotes shall not be issued in an amount in excess of the difference\nbetween the amount of such installment remaining uncollected at the time\nof such borrowing and the amount of outstanding tax anticipation notes\nissued in anticipation of the collection of such installment.\n 3. The proceeds of tax anticipation notes issued pursuant to this\nparagraph shall be used only for the purposes for which such assessments\nwere levied or are to be levied or for the redemption of notes in\nrenewal of which they were issued.\n 4. Tax anticipation notes issued pursuant to this paragraph shall\nmature within one year from the date of their issuance and may be\nrenewed from time to time but each renewal shall be for a period not to\nexceed one year and in no event shall such notes or the renewals thereof\nextend beyond the close of the second fiscal year succeeding the fiscal\nyear in which such notes were issued.\n 5. Whenever the amount of tax anticipation notes issued pursuant to\nthis paragraph in anticipation of the collection of assessments or an\ninstallment thereof levied for a capital improvement equals the amount\nof such assessments or such installment remaining uncollected, all of\nsuch assessments or such installment, as thereafter collected, shall be\nset aside in a special bank account to be used only for the payment of\nsuch notes as they become due, unless other provision is made, pursuant\nto law, for the redemption of such notes. Any municipality may make\nbudgetary appropriations for the redemption of such notes whether or not\nrequired or otherwise authorized by law to do so. In the event such an\nappropriation is made, such municipality shall not be required to pay\ninto the special account the proceeds of the assessments, or the\ninstallment thereof, against which such notes were issued but such\nproceeds may be used in the manner provided by law or if there is no\nprovision of law pertaining to the use of such proceeds, such proceeds\nshall be treated as surplus moneys for the fiscal year in which they are\ncollected.\n 6. (a) Where a tax anticipation note issued pursuant to this paragraph\nis to be renewed by the issuance of a renewal note, and the assessments\nor installment thereof in anticipation of which it was issued have been\nlevied, but remain uncollected, such renewal note shall not be issued\nfor an amount in excess of the amount of such assessments or installment\nthereof remaining uncollected at the time of such renewal, less the\namount of any other outstanding tax anticipation notes issued in\nanticipation of the collection of such assessments or installment\nthereof; but in no event shall such a renewal note be issued for an\namount in excess of the original amount of the note in renewal of which\nit is to be issued.\n (b) Where a tax anticipation note issued pursuant to this paragraph is\nto be renewed, and the assessments or installment thereof in\nanticipation of which it was issued have not been levied, such renewal\nnote shall not be issued for an amount in excess of the original amount\nof the note in renewal of which it is to be issued.\n h. Tax anticipation notes may be issued by any municipality during any\nfiscal year thereof in anticipation of the levy or distribution of\nassessments for work or services if the expenditures for such work or\nservices are financed from a fund into which are paid the proceeds of\nsuch notes and if such assessments are required to be collected in one\ninstallment and included in the tax roll for the fiscal year succeeding\nthe fiscal year in which such notes were issued or in the tax roll for\nthe second succeeding fiscal year. Any such municipality shall pay the\nproceeds of such assessments into any such fund. Notes issued pursuant\nto the provisions of this paragraph shall mature within one year from\nthe date of their issuance and may be renewed from time to time but each\nrenewal shall be for a period not to exceed one year and in no event\nshall such notes or the renewals thereof extend beyond the close of the\nsecond fiscal year succeeding the fiscal year in which such notes were\nissued. No such renewal note shall be issued for an amount in excess of\nthe original amount of the note in renewal of which it was issued.\n i. For the purpose of this section, taxes or assessments shall be\ndeemed to be uncollected and not received by a municipality, school\ndistrict or district corporation until cash is paid to such\nmunicipality, school district or district corporation for such taxes or\nassessments and such taxes or assessments are cancelled or the title to\nsuch taxes or assessments is transferred by such municipality, school\ndistrict or district corporation, or until real property has been sold\nfor such taxes or assessments and has been acquired by such\nmunicipality, school district or district corporation and such\nmunicipality, school district or district corporation has realized cash\nby the sale of such real property. For the purpose of this section the\nterm "taxes" or the term "assessments" shall not include interest or\npenalties upon uncollected taxes or assessments.\n j. Notwithstanding any provision of any other law, general or special,\na central high school district may issue tax anticipation notes in\naccordance with and subject to the provisions of this section applicable\nto a school district; provided, however, that the aggregate amount of\ntaxes in anticipation of which a central high school district may issue\ntax anticipation notes shall not exceed the sum of the taxes levied or\nto be levied for central high school district purposes in each school\ndistrict included within the central high school district and, provided\nfurther, that no such school district included within the central high\nschool district shall be authorized to issue tax anticipation notes in\nanticipation of taxes levied or to be levied therein for central high\nschool district purposes.\n