N.Y. VIL Law § 18-1802

§ 18-1802 Taxes to pay interest and principal of town highway bonds.\nThe board of trustees of a village which has had or may hereafter have\nits boundaries extended when authorized by a majority vote of the\nelectors thereof at a referendum duly called therein, in behalf of said\nvillage, may by contract with the town or towns in which said village\nlies agree to assume and pay that part of the town taxes to be levied in\nfuture years by such town or towns to pay principal and interest of\nobligations sold to improve and pave highways in said town or towns\nwhich taxes will, when levied, become a lien upon property in territory\nannexed to said village, and to the extent contracted for, the said\ntaxes shall be collectible by the town or towns from said village and\nbecome a general village charge, and when said village shall have paid\nsuch part of said town taxes the property in the annexed territory\nsubject to such levy shall be relieved from paying the part thereof paid\nby said village.\n