There is a newer version of the New York Consolidated Laws
2012 New York Consolidated Laws
TAX - Tax
Article 29 - TAXES AUTHORIZED FOR CITIES, COUNTIES AND SCHOOL DISTRICTS
Part 4 - (1260 - 1264) DISPOSITION OF REVENUES
1261 - Revenues resulting from taxes administered by the commissioner.
NY Tax L § 1261 (2012) What's This?
§ 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 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 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 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 section ninety-two-f of the state finance law at the times set forth
in the preceding sentence.
(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 section twelve hundred ten
of this article, other than such taxes in the amounts described,
respectively, in subdivisions one and two of 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) 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 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.
(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 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
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 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 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 section eleven hundred two of this article and the
authorized refunds and credits of the tax imposed by 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 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 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 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 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 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 section eleven hundred
seven of this chapter are in effect or which imposes sales and
compensating use taxes pursuant to the authority of 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 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 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
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 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 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 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 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 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 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 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
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 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
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 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 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 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
section twelve hundred twelve-A of this article and under 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, section twelve hundred
twelve-A of this article or 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 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 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.
Disclaimer: These codes may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
