N.Y.
Tax Law Section 1261
Revenues resulting from taxes administered by the commissioner
(a)
All taxes, penalties and interest imposed by cities, counties or school districts under the authority of section twelve hundred ten, twelve hundred eleven, twelve hundred twelve or twelve hundred twelve-A of this article, which are collected by the commissioner, shall be deposited daily with such responsible banks, banking houses or trust companies, as may be designated by the state comptroller, to the credit of the comptroller, in trust for the cities, counties or school districts imposing the tax or for (i) the Nassau county interim finance authority or (ii) the Buffalo fiscal stability authority or (iii) the Erie county fiscal stability authority, created by the public authorities law, (i) to the extent that net collections from taxes imposed by Nassau county are payable to the Nassau county interim finance authority or (ii) to the extent that net collections from taxes imposed by Erie county or by the city of Buffalo are payable to the Buffalo fiscal stability authority or (iii) to the extent that net collections from taxes imposed by Erie county are payable to the Erie county fiscal stability authority, or for any public benefit corporation to which the tax may be payable pursuant to law. Such deposits and deposits received pursuant to subdivision (b) of § 1252 (Payment of tax)section twelve hundred fifty-two of this article shall be kept in trust and separate and apart from all other monies in the possession of the comptroller. The comptroller shall require adequate security from all such depositories of such revenue collected by the commissioner, including the deposits received pursuant to subdivision (b) of § 1252 (Payment of tax)section twelve hundred fifty-two of this article. Any amount payable to such authorities pursuant to the public authorities law shall, at the time it is otherwise payable to (i) Nassau county, (ii) Erie county or the city of Buffalo, or(iii)
Erie county, respectively, as specified in this section, be paid instead to such respective authority. Any amount payable to a public benefit corporation pursuant to law shall, at the time it is otherwise payable to the taxing jurisdiction as specified in this section, be paid instead to such public benefit corporation.(b)
The comptroller shall retain in the comptroller’s hands such amount as the commissioner may determine to be necessary for refunds in respect to the taxes imposed by cities, counties and school districts, under the authority of section twelve hundred ten, twelve hundred eleven, twelve hundred twelve or twelve hundred twelve-A, and for reasonable costs of the commissioner in administering, collecting and distributing such taxes, out of which the comptroller shall pay any refunds of such taxes to which taxpayers shall be entitled under the provisions of this article.(c)
(1) The comptroller, after reserving such refund fund and such costs shall, on or before the twelfth day of each month pay to the appropriate fiscal officers of the foregoing taxing jurisdictions the taxes, penalties and interest imposed by such jurisdictions under the authority of sections twelve hundred ten through twelve hundred twelve-A of this article, collected by the commissioner pursuant to this article during the next preceding calendar month, provided, however, that the comptroller shall on or before the last day of June and December make a partial payment consisting of the collections made during and including the first twenty-five days of said months to said fiscal officers of the foregoing taxing jurisdictions. * (2) However, the taxes, penalties and interest from the additional one percent rate which the city of Yonkers is authorized to impose pursuant to item (a) of clause one of subparagraph (ii) of the opening paragraph of § 1210 (Taxes of cities and counties administered by state tax commission)section twelve hundred ten of this article, after the comptroller has reserved such refund fund and such cost shall be paid to the special sales and compensating use tax fund for the city of Yonkers established by State Finance Law § 92-F (Special sales and compensating use tax fund for the city of Yonkers)section ninety-two-f of the state finance law at the times set forth in the preceding sentence. * NB Effective until November 30, 2025 * (2) However, the taxes, penalties and interest from the additional one percent rate which the city of Yonkers is authorized to impose pursuant to § 1210 (Taxes of cities and counties administered by state tax commission)section twelve hundred ten of this article, after the comptroller has reserved such refund fund and such cost shall be paid to the special sales and compensating use tax fund for the city of Yonkers established by State Finance Law § 92-F (Special sales and compensating use tax fund for the city of Yonkers)section ninety-two-f of the state finance law at the times set forth in the preceding sentence. * NB Effective November 30, 2025 (3) However, the taxes, penalties and interest which (i) the county of Nassau, (ii) the county of Erie, to the extent the county of Erie is contractually or statutorily obligated to allocate and apply or pay net collections to the city of Buffalo and to the extent that such county has set aside net collections for educational purposes attributable to the Buffalo school district, or the city of Buffalo or (iii) the county of Erie is authorized to impose pursuant to § 1210 (Taxes of cities and counties administered by state tax commission)section twelve hundred ten of this article, other than such taxes in the amounts described, respectively, in subdivisions one and two of § 1262-E (Establishment of local government assistance programs in Nassau county)section one thousand two hundred sixty-two-e of this part, during the period that such section authorizes Nassau county to establish special or local assistance programs thereunder, together with any penalties and interest related thereto, and after the comptroller has reserved such refund fund and such costs, shall, commencing on the next payment date after the effective date of this sentence and of each month thereafter, until such date as (i) the Nassau county interim finance authority shall have no obligations outstanding, or(ii)
the Buffalo fiscal stability authority shall cease to exist, or(iii)
the Erie county fiscal stability authority shall cease to exist, be paid by the comptroller, respectively, to (i) the Nassau county interim finance authority to be applied by the Nassau county interim finance authority, or(ii)
to the Buffalo fiscal stability authority to be applied by the Buffalo fiscal stability authority, or(iii)
to the Erie county fiscal stability authority to be applied by the Erie county fiscal stability authority, as the case may be, in the following order of priority: first pursuant to the Nassau county interim finance authority’s contracts with bondholders or the Buffalo fiscal stability authority’s contracts with bondholders or the Erie county fiscal stability authority’s contracts with bondholders, respectively, then to pay the Nassau county interim finance authority’s operating expenses not otherwise provided for or the Buffalo fiscal stability authority’s operating expenses not otherwise provided for or the Erie county fiscal stability authority’s operating expenses not otherwise provided for, respectively, and then (i) pursuant to the Nassau county interim finance authority’s agreements with the county of Nassau, which agreements shall require the Nassau county interim finance authority to transfer such taxes, penalties and interest remaining after providing for contractual or other obligations of the Nassau county interim finance authority, and subject to any agreement between such authority and the county of Nassau, to the county of Nassau as frequently as practicable; or(ii)
pursuant to the Buffalo fiscal stability authority’s agreements with the city of Buffalo, which agreements shall require the Buffalo fiscal stability authority to transfer such taxes, penalties and interest remaining after providing for contractual or other obligations of the Buffalo fiscal stability authority, and subject to any agreement between such authority and the city of Buffalo, to the city of Buffalo or the city of Buffalo school district, as the case may be, as frequently as practicable; or(iii)
pursuant to the Erie county fiscal stability authority’s agreements with the county of Erie, which agreements shall require the Erie county fiscal stability authority to transfer such taxes, penalties and interest remaining after providing for contractual or other obligations of the Erie county fiscal stability authority, and subject to any agreement between such authority and the county of Erie, to the county of Erie as frequently as practicable. During the period that the comptroller is required to make payments to the Nassau county interim finance authority described in the previous sentence, the county of Nassau shall have no right, title or interest in or to such taxes, penalties and interest required to be paid to the Nassau county interim finance authority, except as provided in such authority’s agreements with the county of Nassau. During the period that the comptroller is required to make payments to the Buffalo fiscal stability authority described in the second previous sentence, the city of Buffalo and such school district shall have no right, title or interest in or to such taxes, penalties and interest required to be paid to the Buffalo fiscal stability authority, except as provided in such authority’s agreements with the city of Buffalo. During the period that the comptroller is required to make payments to the Erie county fiscal stability authority described in the third previous sentence, the county of Erie shall have no right, title or interest in or to such taxes, penalties and interest required to be paid to the Erie county fiscal stability authority, except as provided in such authority’s agreements with the county of Erie.(4)
The amount so payable shall be certified to the comptroller by the commissioner or the commissioner’s delegate, who shall not be held liable for any inaccuracy in such certificate. Provided, however, any such certification may be based on such information as may be available to the commissioner at the time such certificate must be made under this section and may be estimated on the basis of percentages or other indices calculated from distributions for prior periods.(5)
(i) However, the comptroller shall withhold from the taxes, penalties and interest imposed by the city of New York on and after August first, two thousand eight, and deposit such amounts to the state treasury as reimbursement for appropriated disbursements made by the New York state financial control board established by the New York state financial emergency act for the city of New York and by the state deputy comptroller for the city of New York established by Executive Law § 41-A (Deputy comptroller for the city of New York)section forty-one-a of the executive law, as the actual, reasonable expenses of that board or that deputy comptroller, incurred on behalf of the city, for quarterly periods commencing July first, two thousand eight, and ending on the date when those expenses are no longer incurred by that board or deputy comptroller; and the comptroller shall pay those withheld amounts immediately into the miscellaneous special revenue fund financial control board account 339-15 and the miscellaneous special revenue fund financial oversight account 339-DI of the state. During the period that the comptroller is required to withhold amounts and make payments described in this paragraph, the city of New York has no right, title or interest in or to those taxes, penalties and interest required to be paid into the above referenced miscellaneous special revenue funds. * (ii) After withholding the taxes, penalties and interest imposed by the city of New York on and after August first, two thousand eight as provided in subparagraph (i) of this paragraph, the comptroller shall withhold a portion of such taxes, penalties and interest sufficient to deposit annually into the central business district tolling capital lockbox established pursuant to Public Authorities Law § 553-J (Additional powers and provisions in relation to central business district tolling program)section five hundred fifty-three-j of the public authorities law: (A) in state fiscal year two thousand nineteen - two thousand twenty, one hundred twenty-seven million five hundred thousand dollars; (B) in state fiscal year two thousand twenty - two thousand twenty-one, one hundred seventy million dollars; (C) in state fiscal year two thousand twenty-one - two thousand twenty-two and every succeeding state fiscal year, an amount equal to one hundred one percent of the amount deposited in the immediately preceding state fiscal year. The funds shall be deposited monthly in equal installments. During the period that the comptroller is required to withhold amounts and make payments described in this paragraph, the city of New York has no right, title or interest in or to those taxes, penalties and interest required to be paid into the above referenced central business district tolling capital lockbox. In addition, the comptroller shall withhold a portion of such taxes, penalties and interest in the amount of one hundred fifty million dollars, to be withheld in four quarterly installments on January fifteenth, April fifteenth, July fifteenth and October fifteenth of each year, and shall deposit such amounts into the New York State Agency Trust Fund, Distressed Provider Assistance Account. * NB Effective until April 3, 2028 * (ii) After withholding the taxes, penalties and interest imposed by the city of New York on and after August first, two thousand eight as provided in subparagraph (i) of this paragraph, the comptroller shall withhold a portion of such taxes, penalties and interest sufficient to deposit annually into the central business district tolling capital lockbox established pursuant to Public Authorities Law § 553-J (Additional powers and provisions in relation to central business district tolling program)section five hundred fifty-three-j of the public authorities law: (A) in state fiscal year two thousand nineteen - two thousand twenty, one hundred twenty-seven million five hundred thousand dollars; (B) in state fiscal year two thousand twenty - two thousand twenty-one, one hundred seventy million dollars; and (C) in state fiscal year two thousand twenty-one - two thousand twenty-two and every succeeding state fiscal year, an amount equal to one hundred one percent of the amount deposited in the immediately preceding state fiscal year. The funds shall be deposited monthly in equal installments. During the period that the comptroller is required to withhold amounts and make payments described in this paragraph, the city of New York has no right, title or interest in or to those taxes, penalties and interest required to be paid into the above referenced central business district tolling capital lockbox. * NB Effective April 3, 2028 (6) Where the amount so paid over to any city, county, school district or the special sales and compensating use tax fund for the city of Yonkers in any such distribution or to any such authority is more or less than the amount then due to such city, county, school district or such fund or to such authority, the amount of the overpayment or underpayment shall be certified to the comptroller by the commissioner or the commissioner’s delegate, who shall not be held liable for any inaccuracy in such certificate. The amount of the overpayment or underpayment shall be so certified to the comptroller as soon after the discovery of the overpayment or underpayment as reasonably possible and subsequent payments and distributions by the comptroller to such city, county, school district or the special sales and compensating use tax fund for the city of Yonkers or to such authority shall be adjusted by subtracting the amount of any such overpayment from or by adding the amount of any such underpayment to such number of subsequent payments and distributions as the comptroller and the commissioner shall consider reasonable in view of the amount of the overpayment or underpayment and all other facts and circumstances.(d)
All of the provisions of this section shall apply to the taxes, penalties and interest from sales and compensating use taxes on sales and uses of motor fuel or diesel motor fuel imposed pursuant to this article except that the amount certified to the comptroller by the commissioner or the commissioner’s delegate with respect to such taxes, penalties and interest shall be based upon the receipts from retail sales of motor fuel or diesel motor fuel sold each month at retail service stations and on other sales of such fuel for consumption by the purchaser in each county and city imposing such taxes, the total receipts from taxes paid pursuant to the provisions of § 1102 (Prepayment of sales tax on motor fuel and diesel motor fuel)section eleven hundred two of this article on motor fuel and diesel motor fuel sold in this state each month, the total of the taxes, penalties and interest collected or received in such month with respect to retail sales and uses of motor fuel and diesel motor fuel (determined without regard to the refunds or credits allowed pursuant to subdivisions (a) and (b) of § 1120 (Refunds and credits with respect to motor fuel and diesel motor fuel)section eleven hundred twenty of this article), the sales tax rate applicable for that month in such county or city, the regional average retail sales price for such month, the amount of refunds and credits allowed pursuant to subdivisions (c) and (d) of § 1120 (Refunds and credits with respect to motor fuel and diesel motor fuel)section eleven hundred twenty of this article and such other data and standards as such commissioner or delegate may deem necessary for such certification. The commissioner or the commissioner’s delegate shall arrive at the number of gallons of motor fuel and diesel motor fuel sold in each such county or city and in this state by use of the reports of the number of gallons sold required to be filed pursuant to § 1136 (Returns)section eleven hundred thirty-six of this chapter and such other information as such commissioner or delegate deems appropriate. In arriving at the amount to be certified and distributed, the commissioner shall consider the collections of the taxes, penalties and interest required to be paid pursuant to the provisions of § 1102 (Prepayment of sales tax on motor fuel and diesel motor fuel)section eleven hundred two of this article and the authorized refunds and credits of the tax imposed by § 1102 (Prepayment of sales tax on motor fuel and diesel motor fuel)section eleven hundred two of this article against the taxes required to be collected or paid pursuant to this article.(e)
The total net collections from a tax imposed pursuant to section twelve hundred eleven by a city and a school district or school districts, so authorized, shall be distributed and paid to the city school district where it is coterminous with or includes the entire city or to all the school districts partly within or wholly within such city. Except where the city school district is coterminous with the city or includes the entire area of the city, such amounts shall be distributed and paid to the school district or districts partly within or wholly within the city, in accordance with the total average daily attendance for the last preceding school year of pupils residing in each such district and without regard to the location of the school attended.(f)
Notwithstanding any provision of state or local law, ordinance or resolution to the contrary, if the commissioner of health timely certifies to the commissioner that a county which imposes sales and compensating use taxes pursuant to the authority of section twelve hundred ten, twelve hundred ten-A, twelve hundred ten-B or twelve hundred ten-C of this article properly exercised its option by September thirtieth, two thousand seven, pursuant to section two of the chapter of the laws of two thousand five which added this subdivision, that such county be reimbursed for medical assistance expenditures as provided in such section two of such chapter, then the commissioner shall calculate the Medicaid amount of each such county. The amount due each month to each such county provided for in subdivision (c) of this section shall be reduced by the monthly Medicaid amount; and such monthly Medicaid amount of each such county shall instead be paid into the general fund of the state treasury to the credit of the state purposes account therein. The calculation of each such county’s Medicaid amount and monthly Medicaid amounts and the procedures governing the payment of such amounts shall be as follows:(1)
The commissioner of health shall furnish the commissioner with the amount of every county’s “two thousand six-two thousand seven fiscal year social services district expenditure cap amount,” as provided in paragraph (e) of section one of a chapter of the laws of two thousand five which added this subdivision, as soon as practicable but no later than April first, two thousand seven.(2)
The commissioner shall calculate the “Medicaid factor” for every county as follows and shall notify each county’s chief fiscal officer of the results of such calculation by April thirtieth, two thousand seven, to help each county determine whether to exercise such option: (A) for a county in which no city exercises any prior right to impose sales or compensating use taxes authorized by § 1210 (Taxes of cities and counties administered by state tax commission)section twelve hundred ten of this article, first, divide the total amount of sales and compensating use tax distributions to such county during state fiscal year two thousand six-two thousand seven by the county’s general rate of such taxes during such period, and then divide the county’s “two thousand six-two thousand seven fiscal year social services district expenditure cap amount” by the quotient of the first division; (B) for a county in which one or more cities exercise any prior right to impose sales or compensating use taxes authorized by § 1210 (Taxes of cities and counties administered by state tax commission)section twelve hundred ten of this article and the combined rate of the county’s and city’s taxes in each such city equals the general rate of the county’s taxes on similar transactions in the area of the county outside such city or cities, first, add the total amounts of sales and compensating use tax distributions to such county and to each such city during state fiscal year two thousand six-two thousand seven and divide such sum by the county’s general rate of such taxes during such period, and then divide the county’s “two thousand six-two thousand seven fiscal year social services district expenditure cap amount” by the quotient of the first division; and (C) for a county in which one or more cities exercise any prior right to impose sales or compensating use taxes authorized by § 1210 (Taxes of cities and counties administered by state tax commission)section twelve hundred ten of this article and the combined rate of the county’s and city’s taxes in any such city does not equal the general rate of the county’s taxes on similar transactions in the area of the county outside such city or cities:(i)
for each such city, add the total amount of sales and compensating use tax distributions to such city during state fiscal year two thousand six-two thousand seven and divide such sum by the city’s effective general rate of such taxes during such period, then multiply such quotient by the amount by which the city’s rate forced a reduction in the county’s rate of such taxes in such city during such period, and then (ii) add the amount derived in clause (i) of this subparagraph for each such city to the total amount of sales and compensating use tax distributions to such county during state fiscal year two thousand six-two thousand seven;(iii)
divide the total of the addition in clause (ii) of this subparagraph by the county’s general rate of such taxes during such period; and(iv)
divide the county’s “two thousand six-two thousand seven fiscal year social services district expenditure cap amount” by the quotient of the division in clause (iii) of this subparagraph. (D) The commissioner shall consider any change in a county’s or city’s general rate of sales and compensating use taxes which takes effect during state fiscal year two thousand six-two thousand seven and the number of months such rates are in effect during such state fiscal year in order to perform accurately the calculations provided for in this paragraph.(3)
By the twelfth day of each month, commencing in January, two thousand eight, the commissioner shall calculate the “monthly Medicaid amount” of each such county which has made the election described in the opening paragraph of this subdivision and certify such amounts to the comptroller. The comptroller shall reduce the amount due each month to each such county provided for in subdivision (c) of this section by such monthly Medicaid amount; and the comptroller shall instead each month pay the monthly Medicaid amount of each such county into the general fund of the state treasury to the credit of the state purposes account therein, provided, however, that the comptroller, subject to the limitations provided in paragraphs five and six of this subdivision, shall each month collect the amount of Nassau county’s reduction from amounts payable to such county by the Nassau county interim finance authority while such authority exists.(4)
“Monthly Medicaid amount” shall mean the result of the following calculations: (A) for a county described in subparagraph (A) of paragraph two of this subdivision, first, the amount of the comptroller’s payment due such a county in the immediately preceding month, as described in subdivision (c) of this section and as described in sections twelve hundred ten-A, twelve hundred ten-B and twelve hundred ten-C of this article, but without regard to whether the comptroller is to pay all or a portion of such amount to another entity described in subdivision (c) of this section and without regard to the revenue disposition provisions of such section twelve hundred ten-A, twelve hundred ten-B or twelve hundred ten-C, and considered without regard to any Medicaid amount, shall be divided by the county’s general rate of sales and compensating use taxes in such month; and the quotient of that division shall be multiplied by the Medicaid factor calculated as provided in subparagraph (A) of paragraph two of this subdivision. (B) for a county described in subparagraph (B) of paragraph two of this subdivision, first, add the amount of the comptroller’s payment due any city in such a county in the immediately preceding month, as described in subdivision (c) of this section to the amount of the comptroller’s payment due such a county in the immediately preceding month, as described in subdivision (c) of this section and as described in sections twelve hundred ten-A, twelve hundred ten-B and twelve hundred ten-C of this article, but without regard to whether the comptroller is to pay all or a portion of such amount to another entity described in subdivision (c) of this section and without regard to the revenue disposition provisions of such section twelve hundred ten-A, twelve hundred ten-B or twelve hundred ten-C, and considered without regard to any Medicaid amount, then divide the total of such amounts by the county’s general rate of sales and compensating use taxes in such month; and the quotient of that division shall be multiplied by the Medicaid factor calculated as provided in subparagraph (B) of paragraph two of this subdivision. (C) For a county described in subparagraph (C) of paragraph two of this subdivision:(i)
with respect to each such city described in subparagraph (C), divide the amount of the comptroller’s payment due each such city in the immediately preceding month, as described in subdivision (c) of this section, by the effective general rate of such city’s taxes during such month and multiply such quotient by the amount by which the city’s rate forced a reduction in the county’s rate of such taxes in such city during such month;(ii)
add the amount or amounts derived in clause (i) of this subparagraph to the amount of the comptroller’s payment due such county in the immediately preceding month, as described in subdivision (c) of this section and as described in sections twelve hundred ten-A, twelve hundred ten-B and twelve hundred ten-C of this article, but without regard to whether the comptroller is to pay all or a portion of such amount to another entity described in subdivision (c) of this section and without regard to the revenue disposition provisions of such section twelve hundred ten-A, twelve hundred ten-B or twelve hundred ten-C, and considered without regard to any Medicaid amount; and(iii)
divide the total of the addition in clause (ii) of this subparagraph by the county’s general rate of such taxes during such month, and the quotient of that division shall be multiplied by the Medicaid factor calculated as provided in subparagraph (C) of paragraph two of this subdivision.(5)
If for any reason a county’s monthly Medicaid amount is greater than the amount of the comptroller’s net payment to the county for that month under subdivision (c) of this section and under sections twelve hundred ten-A, twelve hundred ten-B and twelve hundred ten-C of this article, after the comptroller has made any payments to other entities required by subdivision (c) of this section or by any other law and after any payment, deposit, appropriation, transfer or expenditure required or authorized by such section twelve hundred ten-A, twelve hundred ten-B or twelve hundred ten-C, the comptroller shall, at the same time that the comptroller makes the payment and reduction described in paragraph three of this subdivision, bill such county an amount equal to the difference and such county shall pay in full the amount of such bill to the comptroller by the twenty-fifth day of such month. Such county shall use any funds available to it to pay such bill. The comptroller shall deposit any such amounts received into the general fund of the state treasury to the credit of the state purposes account therein.(6)
If a county does not remit the required monies or pay in full a bill described in paragraph five of this subdivision by the twenty-fifth day of the month in accordance with paragraph five of this subdivision, the comptroller shall, as soon as any other moneys payable to the county are available, either deduct any amount not paid from the amount of the next payment or payments due such county pursuant to subdivision (c) of this section until such amount not paid has been recovered or, in the alternative and at the comptroller’s discretion, deduct any amount not paid from the amount of any other moneys payable to such county from the comptroller and not subject to any lien or pledge for the benefit of bondholders of the Nassau county interim finance authority or of any public benefit corporation, as defined in General Construction Law § 66 (Definitions)section sixty-six of the general construction law, created by interstate compact or at least half of whose members are appointed by the governor, until such amount not paid has been recovered. The comptroller shall deposit any amounts so deducted and recovered into the general fund of the state treasury to the credit of the state purposes account therein.(7)
This subdivision shall apply to payments required in respect of a county to be made on January twelfth, two thousand eight, and thereafter.(8)
Nothing in this subdivision shall be construed to relieve a county of any obligation or commitment to distribute and pay or allocate net collections pursuant to this part, regardless whether such obligation or commitment arises before or after the date this subdivision shall have taken effect, or to preclude a city in a county from exercising its prior rights under § 1224 (Prior rights assigned counties and cities)section twelve hundred twenty-four of this article. To the extent that a county’s net collections have been diminished below a level sufficient to meet any such obligation or commitment as a result of the reductions or bills provided for in this subdivision, such county shall hereby be authorized to use any other funds available to it to meet such obligation or commitment, notwithstanding any law to the contrary.(9)
If a county adopts or amends a local law, ordinance or resolution to repeal its sales and compensating use taxes, then, effective on the first day of the first month on which such repeal takes effect, such county’s resolution electing to be reimbursed for certain medical assistance expenditures pursuant to section two of the chapter of the laws of two thousand five which added this subdivision shall also be repealed automatically as of such date; and the commissioner shall notify the commissioner of health of such county’s repeal of such taxes. In that event, as of such date, such county shall be treated as if it had never made such election for purposes of such expenditures and such commissioner of health shall thenceforth compute the amount due monthly from such county for such expenditures pursuant to section one of the chapter of the laws of two thousand five which added this subdivision.(g)
Notwithstanding any provision of state or local law, ordinance or resolution to the contrary, if the commissioner of health timely certifies to the commissioner that a city having a population of one million or more in which the taxes imposed by § 1107 (Temporary municipal assistance sales and compensating use taxes for cities of one million or more)section eleven hundred seven of this chapter are in effect or which imposes sales and compensating use taxes pursuant to the authority of § 1210 (Taxes of cities and counties administered by state tax commission)section twelve hundred ten of this article properly exercised its option by September thirtieth, two thousand seven, pursuant to section two of the chapter of the laws of two thousand five which added this subdivision, that such city be reimbursed for medical assistance expenditures as provided in such section two of such chapter, then the commissioner shall calculate the Medicaid amount of such a city. The amount due each month to such a city with respect to such taxes and certain other taxes shall be reduced; and the amount of each such reduction shall instead be paid into the general fund of the state treasury to the credit of the state purposes account therein. The calculation of such a city’s Medicaid amount and reductions and the procedure governing the payment of such amounts are as follows:(1)
The commissioner of health shall furnish the commissioner with the amount of such a city’s “two thousand six-two thousand seven fiscal year social services district expenditure cap amount,” as provided in paragraph (e) of section one of the chapter of the laws of two thousand five which added this subdivision, as soon as practicable but no later than April first, two thousand seven.(2)
The commissioner shall use or calculate the following amounts in respect of such a city, which amounts shall be designated by the following symbols, in order to determine the components of the monthly amount described in paragraph three of this subdivision and shall notify the chief fiscal officer of such city of the calculated value of “D” as described in this paragraph and such other information available relating to D, by April thirtieth, two thousand seven, to help such city determine whether to exercise such option: (A) “A” shall equal the amount of such a city’s “two thousand six-two thousand seven fiscal year social services district expenditure cap amount,” as furnished by the commissioner of health pursuant to paragraph one of this subdivision; (B)(i) “B1” shall equal the total amount of sales and compensating use tax distributions during state fiscal year two thousand six-two thousand seven to such city or to a municipal assistance corporation on such city’s behalf from taxes imposed in such city by § 1107 (Temporary municipal assistance sales and compensating use taxes for cities of one million or more)section eleven hundred seven of this chapter, other than taxes imposed by subdivision (c) of such section eleven hundred seven, at the rate of three percent;(ii)
“B2” shall equal the total amount of sales tax distributions during state fiscal year two thousand six-two thousand seven to such city or to a municipal assistance corporation on such city’s behalf from taxes imposed in such city by subdivision (c) of § 1107 (Temporary municipal assistance sales and compensating use taxes for cities of one million or more)section eleven hundred seven of this chapter, at the rate of three percent; (C) “C” shall equal the total amount of sales and compensating use tax distributions during state fiscal year two thousand six-two thousand seven to such city from its taxes imposed pursuant to the authority of § 1212-A (Certain taxes of cities of one million or more administered by commissioner of taxation and finance)section twelve hundred twelve-A of this article; and (D) “D” shall be the “Base Year PIT intercept amount” and shall equal A less the sum of B1, B2 and C.(3)
(A) Commencing in January, two thousand eight, the commissioner shall calculate the monthly Medicaid amount (“MA”) for such city according to the following formula: MA equals (((En/Fn) + (Ep/Fp)) X (.03)) + (C/12) X (G) + (D/12) X (G); where C and D equal the amounts described in paragraph two of this subdivision; “En” equals the current month’s portion of revenues from taxes imposed by § 1107 (Temporary municipal assistance sales and compensating use taxes for cities of one million or more)section eleven hundred seven of this chapter, excluding revenues from the tax on parking imposed by subdivision (c) of such section eleven hundred seven, or from taxes imposed pursuant to the authority of subdivision (a) of § 1210 (Taxes of cities and counties administered by state tax commission)section twelve hundred ten of this article, excluding revenues from the tax on parking authorized by subdivision (a) of such section twelve hundred ten; “Ep” equals the current month’s revenues from either such tax on parking, as the case may be; “Fn” equals the current month’s general rate of sales and use taxes imposed by such section eleven hundred seven or pursuant to the authority of such section twelve hundred ten, other than on parking; “Fp” equals the current month’s rate of sales tax on parking under or pursuant to the authority of such section eleven hundred seven or twelve hundred ten, as the case may be; “G” equals a growth factor according to the formula G equals (En/Fn) + (Ep/Fp) divided by ((MB1/.04) + (MB2/.06)); “MB1” equals the revenues from taxes imposed by § 1107 (Temporary municipal assistance sales and compensating use taxes for cities of one million or more)section eleven hundred seven of this chapter, excluding revenues from such tax on parking imposed by subdivision (c) of such section eleven hundred seven, during the same month of state fiscal year two thousand six-two thousand seven corresponding to the current month described above; and “MB2” equals the revenues from such tax on parking during the same month of state fiscal year two thousand six-two thousand seven corresponding to the current month described above. (B) Using the amount of MA calculated each month in subparagraph (A) of this paragraph, the commissioner shall then calculate the amounts of sales and use tax revenues (E + H, where E and H equal the amounts described in subparagraph (C) of this paragraph) and personal income tax revenues (PIT) of such city which are to be intercepted or billed for as described in this subdivision, according to the formula MA equals E + H + PIT, as PIT is defined in subparagraph (D) of this paragraph. By the twelfth day of each month, commencing in January, two thousand eight, the commissioner shall establish the amount of E and H and certify such amounts to the comptroller and by the fifteenth day of each month, commencing in January, two thousand eight, the commissioner shall establish the amount of PIT and certify such amount and the amount of MA to the comptroller, in the manner set forth in this paragraph. (C) (i) For the period commencing January first, two thousand eight, and ending on the last day of the month in which the taxes imposed in such a city by § 1107 (Temporary municipal assistance sales and compensating use taxes for cities of one million or more)section eleven hundred seven of this chapter shall expire, the sales and use tax component “E” shall equal the amount of revenues from such taxes imposed at the rate of three percent or the amount of revenues from such taxes imposed at the rate of four percent after payments to the municipal assistance corporation for such a city required under State Finance Law § 92-D (Municipal assistance tax fund)section ninety-two-d of the state finance law have been made, whichever amount is less, and “H” shall equal net collections from taxes imposed by such a city pursuant to the authority of § 1212-A (Certain taxes of cities of one million or more administered by commissioner of taxation and finance)section twelve hundred twelve-A of this article, due such a city in the immediately preceding month.(ii)
For the period commencing on the first day of the first month following the period described in clause (i) of this subparagraph, the sales and use tax component “E” shall equal net collections from sales and compensating use taxes imposed by such city pursuant to the authority of subdivision (a) of § 1210 (Taxes of cities and counties administered by state tax commission)section twelve hundred ten of this article up to the rate of three percent and “H” shall equal net collections from taxes imposed by such city pursuant to the authority of § 1212-A (Certain taxes of cities of one million or more administered by commissioner of taxation and finance)section twelve hundred twelve-A of this article, due such a city in the immediately preceding month. (D) For the period commencing January first, two thousand eight, the PIT component for each month shall be designated “PIT” and shall equal the portion of the revenues from taxes imposed by such city pursuant to the authority of article 30 (City Personal Income Tax)article thirty of this chapter due such a city in the immediately preceding month, calculated according to the formula: PIT equals MA - E - H. (E)(i) During the period that the taxes imposed in such a city by § 1107 (Temporary municipal assistance sales and compensating use taxes for cities of one million or more)section eleven hundred seven of this chapter are in effect, the comptroller shall each month, after paying amounts certified to by the chairperson of the municipal assistance corporation created in aid of such city, as provided for in State Finance Law § 92-D (Municipal assistance tax fund)section ninety-two-d of the state finance law, pay the relevant portion of the sales and use tax component relating to such taxes imposed by such section eleven hundred seven for such month equal to E into the general fund of the state treasury to the credit of the state purposes account therein.(ii)
During the period that the taxes imposed by such a city pursuant to the authority of § 1210 (Taxes of cities and counties administered by state tax commission)section twelve hundred ten of this article are in effect, the comptroller shall reduce the amount due each month to such city from such taxes provided for in subdivision (c) of this section by the relevant portion of the sales and use tax component for such month equal to E; and the comptroller shall instead each month pay such portion into the general fund of the state treasury to the credit of the state purposes account therein.(iii)
The comptroller shall reduce the amount due each month to such city from taxes imposed pursuant to the authority of section twelve hundred twelve-A provided for in subdivision (c) of this section by the relevant portion of the sales and use tax component for such month equal to H; and the comptroller shall instead each month pay such portion into the general fund of the state treasury to the credit of the state purposes account therein.(iv)
The comptroller shall each month certify to the New York city transitional finance authority the monthly amount of PIT and such authority shall, after applying amounts described in § 1313 (Deposit and disposition of revenues)section thirteen hundred thirteen of this chapter, immediately pay such monthly amount, or so much of which is available after applying such amounts, directly and immediately to the comptroller; and the comptroller shall upon receipt of such moneys, subject to the exceptions in such section thirteen hundred thirteen, pay them into the general fund of the state treasury to the credit of the state purposes account therein.(4)
If for any reason such a city’s Medicaid amount in a month (MA) is greater than the sum of the amounts of the comptroller’s net payments to such city for that month under subdivision (c) of this section, under § 1212-A (Certain taxes of cities of one million or more administered by commissioner of taxation and finance)section twelve hundred twelve-A of this article and under § 1313 (Deposit and disposition of revenues)section thirteen hundred thirteen of this chapter, after the comptroller has made any payments to other entities required by any law and after any payment, deposit, appropriation, transfer or expenditure required or authorized by any of such sections, the comptroller shall, at the same time that the comptroller makes the payments and reductions described in paragraph three of this subdivision, bill such city an amount equal to the difference and such city shall pay in full the amount of such bill to the comptroller by the twenty-fifth day of such month. Such city shall use any funds available to it to pay such bill. The comptroller shall deposit any such amounts received into the general fund of the state treasury to the credit of the state purposes account therein.(5)
If such a city does not pay in full a bill described in paragraph four of this subdivision by the twenty-fifth day of the month in accordance with such paragraph four, the comptroller shall, as soon as any other moneys payable to the city are available, either deduct any amount not paid from the amount of the next payment or payments due such city pursuant to subdivision (c) of this section, § 1212-A (Certain taxes of cities of one million or more administered by commissioner of taxation and finance)section twelve hundred twelve-A of this article or § 1313 (Deposit and disposition of revenues)section thirteen hundred thirteen of this chapter, until such amount not paid has been recovered or, in the alternative and at the comptroller’s discretion, deduct any amount not paid from the amount of any other moneys payable to such city from the comptroller and not subject to any lien or pledge for the benefit of bondholders of the transitional finance authority or of the municipal assistance corporation, until such amount not paid has been recovered. The comptroller shall deposit any amounts so deducted and recovered into the general fund of the state treasury to the credit of the state purposes account therein.(6)
This subdivision shall apply to payments required in respect of a city to be made on January twelfth, two thousand eight, and thereafter.(7)
(A) If such a city adopts or amends a local law, ordinance or resolution to repeal its sales and compensating use taxes imposed pursuant to the authority of subdivision (a) of § 1210 (Taxes of cities and counties administered by state tax commission)section twelve hundred ten of this article, then, effective on the first day of the first month on which such repeal takes effect, such city’s resolution electing to be reimbursed for certain medical assistance expenditures pursuant to section two of the chapter of the laws of two thousand five which added this subdivision shall also be repealed automatically as of such date; and the commissioner shall notify the commissioner of health of such city’s repeal of such taxes. In that event, as of such date, such city shall be treated as if it had never made such election for purposes of such expenditures and such commissioner of health shall thenceforth compute the amount due monthly from such city for such expenditures pursuant to section one of such chapter of the laws of two thousand five. (B) If such city adopts or amends a local law to repeal its taxes on personal income authorized by article 30 (City Personal Income Tax)article thirty of this chapter, the comptroller shall bill such city monthly in the manner provided in paragraph four of this subdivision for any amounts due under this subdivision which otherwise would have been paid out of revenues from such taxes into the general fund of the state treasury pursuant to this subdivision, and such bills shall be paid as provided in paragraph four of this subdivision and any bill not paid shall be treated as provided in paragraph five of this subdivision.
Source:
Section 1261 — Revenues resulting from taxes administered by the commissioner, https://www.nysenate.gov/legislation/laws/TAX/1261 (updated Apr. 26, 2024; accessed Oct. 26, 2024).
