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ALBANY, N.Y.- The town of Henrietta has been cleared to cut $100 rebate checks to its homeowners under a bill signed Tuesday by Gov. Andrew Cuomo.

The new state law will allow the Henrietta Town Board to formally approve the tax rebates, which would be distributed to about 10,000 households in Monroe County town and come from the town's surplus of more than $12 million.

"This is common sense legislation that returns money to property taxpayers with no harm to the town's finances, nor to the services it provides to its residents," Cuomo said in a statement Tuesday.

The town board in April approved a resolution supporting the rebate checks after the state Comptroller's Office was critical of the town for taking in more taxes than it needed. A state audit in January showed the town built up a $10.7 million surplus between 2008 and 2012, and it's grown by an additional $2 million since then.

The rebate checks are expected to cost the town about $1 million.

The town's plan, however, required approval from the state Legislature, which passed a bill in June to allow the board to distribute the rebates.

Cuomo signed that bill Tuesday, and it went into law immediately. Now, the Henrietta Town Board will have to pass a local law to authorize the rebates.

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