New York Laws
Title 2 - Local Obligations: Types Thereof
24.00 - Tax Anticipation Notes.

(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, 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.