§ 54-a. Withholding of payment of local assistance by the state to counties, cities and villages, in certain cases. 1. In the event that any county, city or village, subject to the provisions of section ten of article eight of the constitution of this state, levies or causes to be levied taxes upon real property in excess of the limitation prescribed by or pursuant to such section, the state comptroller, upon a determination of the amount thereof as herein provided, shall withhold local assistance by the state as defined in section seventy-one of this chapter to such county, city or village to the extent of such excess. The state comptroller shall give notice in writing by registered mail addressed to the chief fiscal officer and to the legislative body of any such county, city or village of his determination of the amount of such excess levy and of his intention to withhold such local assistance to the extent of such excess, and further requiring such county, city or village, within thirty days from the date of such notice, to show cause why such withholding should not be made by filing a verified statement with him setting forth the facts in relation thereto. The comptroller, upon receipt of such verified statement, or if no verified statement is filed within the time permitted, then at the expiration of such time, shall review his determination and within thirty days thereafter make and file in his office his final determination thereon and cause copies thereof to be served by registered mail upon the chief fiscal officer and upon the legislative body of such county, city or village. The amount finally determined by the state comptroller to be withheld shall be deducted only from the next four quarterly instalments due or to become due thereafter to such county, city or village pursuant to the provisions of section fifty-four of this chapter.

2. To the extent that any county, city or village from which moneys shall have been withheld as provided by this section shall, in the next succeeding fiscal year of such county, city or village, levy or cause to be levied taxes upon real property to an amount less than the amount permitted under or pursuant to the provisions of section ten of article eight of the constitution of this state, such withheld local assistance may be paid to such county, city or village, to the extent of such decrease, provided, however, that not more than the amount withheld may be so paid. The state comptroller shall make and file his determination certifying the amount of such moneys so withheld to which the county, city or village may be entitled under the provisions of this subdivision. To the extent that such withheld moneys are not paid to such county, city or village as herein provided, they shall be retained in the general fund of the state treasury to the credit of the local assistance fund therein, and such county, city or village shall have no further claim to the payment thereof.

3. The chief fiscal officer of each county, city or village shall, not less than ten days prior to the adoption of its budget, file with the state comptroller on forms to be furnished by him, a statement showing the amount which such county, city or village may raise by tax on real estate under the provisions of sections ten and eleven of article eight of the constitution of this state and the estimated amount of tax on real estate proposed to be levied on account of such budget, and such chief fiscal officer shall also within thirty days after the adoption of such budget, file with the state comptroller a certified copy of such budget, the amount of its tax levy upon real estate on account of such budget, and such other information as the state comptroller may require. Failure to comply with the provisions of this subdivision shall not invalidate a tax levied by any such county, city or village.