Section 1223. Limitations on rates

(a)  No transaction taxable under
  sections twelve hundred two through twelve hundred four of this  article
  shall  be  taxed  pursuant  to this article by any county or by any city
  located therein, or by both, at an  aggregate  rate  in  excess  of  the
  highest  rate  set forth in the applicable subdivision of section twelve
  hundred one of this article  or,  in  the  case  of  any  taxes  imposed
  pursuant  to  the  authority  of  section  twelve  hundred ten or twelve
  hundred eleven of this article (other than taxes imposed by  the  county
  of Nassau, Erie, Steuben, Cattaraugus, Suffolk, Oneida, Genesee, Greene,
  Franklin,   Herkimer,   Tioga,   Orleans,   Allegany,   Ulster,  Albany,
  Rensselaer, Tompkins, Wyoming, Columbia, Schuyler,  Rockland,  Chenango,
  Monroe,  Chemung,  Seneca,  Sullivan,  Wayne,  Livingston,  Schenectady,
  Montgomery, Delaware, Clinton, Niagara, Yates, Lewis,  Essex,  Dutchess,
  Schoharie,  Putnam,  Chautauqua,  Orange,  Oswego, Ontario, Jefferson or
  Onondaga and by the county of Cortland and the city of Cortland  and  by
  the  county  of  Broome  and the city of Binghamton and by the county of
  Cayuga and the city of Auburn and by the county of Otsego and  the  city
  of  Oneonta  and  by the county of Madison and the city of Oneida and by
  the county of Fulton and  the  city  of  Gloversville  or  the  city  of
  Johnstown  as provided in section twelve hundred ten of this article) at
  a rate in excess of three percent, except that, in the city of  Yonkers,
  in the city of Mount Vernon, in the city of New Rochelle, in the city of
  Fulton  and in the city of Oswego, the rate may not be in excess of four
  percent and in the city of White Plains, the rate may not be  in  excess
  of  three  and  three-quarters  percent  and  except that in the city of
  Poughkeepsie in the county of Dutchess, if such  county  withdraws  from
  the  metropolitan  commuter  transportation district pursuant to section
  twelve hundred seventy-nine-b of the public authorities law and  if  the
  revenues  from  a three-eighths percent rate of such tax imposed by such
  county, pursuant to the authority of section twelve hundred ten of  this
  article, are required by local laws, ordinances or resolutions to be set
  aside for mass transportation purposes, the rate may not be in excess of
  three and three-eighths percent.
    (b) If a transaction is taxed by both a county and a city, the rate of
  tax  on such transaction imposed by the county or city, not having prior
  right thereto pursuant to section twelve hundred twenty-four,  shall  be
  deemed to be reduced (or the entire tax eliminated, if necessary) to the
  extent necessary to comply with the foregoing requirement. A tax imposed
  by  a county upon any transaction, to the extent that it would require a
  reduction in any tax rate imposed thereon by a city,  shall  not  become
  effective  in  respect  to  any  transaction  taxed  by such city (or in
  respect of other similar transactions outside  of  the  city  which,  if
  occurring  in  such  city, would be subject to such city tax) before the
  commencement of the city's next succeeding fiscal year and then only  if
  the  county  shall have given notice to such city of its imposition of a
  tax on such transaction at least six months prior to the commencement of
  such fiscal year, provided however that the local  legislative  body  of
  such  city may waive the requirement of such notice and the postponement
  of the effective date of such tax. A city tax upon any  transaction,  to
  the  extent that it would require a reduction in any tax rate imposed by
  a  county  thereon,  shall  not  become  effective  in  respect  of  any
  transaction taxed by such county before the commencement of the county's
  next  succeeding  fiscal year and then only if the city shall have given
  notice to such county of its imposition of a tax on such transaction  at
  least  six  months  prior  to  the  commencement  of  such  fiscal year,
  provided, however, that the local legislative body of  such  county  may
  waive  the  requirement of such notice and postponement of the effective
  date of such tax.  However,  whether  or  not  the  six  months'  notice

  requirement  provided  in  this  section  has been waived, a tax imposed
  pursuant to the authority  of  section  twelve  hundred  ten  or  twelve
  hundred  eleven  shall still be subject to the requirements provided for
  in  the first three sentences of subdivision (d) of such sections and in
  subdivision (e) of such sections.