N.Y. Tax Law § 1109 — Sales and compensating use taxes for the metropolitan commuter transportation district

§ 1109. Sales and compensating use taxes for the metropolitan commuter\ntransportation district. (a) General. In addition to the taxes imposed\nby sections eleven hundred five and eleven hundred ten of this article,\nthere is hereby imposed within the territorial limits of the\nmetropolitan commuter transportation district created and established\npursuant to section twelve hundred sixty-two of the public authorities\nlaw, and there shall be paid, additional taxes, at the rate of\nthree-eighths of one percent, which shall be identical to the taxes\nimposed by sections eleven hundred five and eleven hundred ten of this\narticle. Such sections and the other sections of this article, including\nthe definition and exemption provisions, shall apply for purposes of the\ntaxes imposed by this section in the same manner and with the same force\nand effect as if the language of those sections had been incorporated in\nfull into this section and had expressly referred to the taxes imposed\nby this section. Notwithstanding the foregoing, the tax imposed by this\nsection shall not apply to admissions to race tracks or simulcast\nfacilities.\n (b) Transitional provisions. (1) With respect to the one-fourth\npercent rate imposed effective September first, nineteen hundred\neighty-one, the transitional provisions contained in subdivisions (a),\n(b), (c) and (d) of section eleven hundred six of this article shall\napply to the taxes imposed by this section, except that all references\nin such subdivisions (a), (b), (c) and (d) to August first, nineteen\nhundred sixty-five shall be read as referring to September first,\nnineteen hundred eighty-one, all references in such subdivision (a) to\nApril first, nineteen hundred sixty-five shall be read as referring to\nMay first, nineteen hundred eighty-one, and the reference in such\nsubdivision (b) to July thirty-first, nineteen hundred sixty-five shall\nbe read as referring to August thirty-first, nineteen hundred\neighty-one.\n (2) With respect to the one-eighth percent rate imposed effective June\nfirst, two thousand five, the transitional provisions contained in\nsubdivisions (a), (b), (c) and (d) of section eleven hundred six of this\narticle shall apply to the taxes imposed by this section, except that\nall references in such subdivisions (a), (b), (c) and (d) to August\nfirst, nineteen hundred sixty-five, shall be read as referring to June\nfirst, two thousand five, all references in such subdivision (a) to\nApril first, nineteen hundred sixty-five, shall be read as referring to\nFebruary first, two thousand five, and the reference in such subdivision\n(b) to July thirty-first, nineteen hundred sixty-five, shall be read as\nreferring to May thirty-first, two thousand five.\n (c) Deliveries outside the district; deliveries within the district of\nproperty sold or serviced elsewhere. Where a sale of tangible personal\nproperty or services, including an agreement therefor, is made in the\ndistrict in which the taxes imposed by this section apply, but the\nproperty sold, the property upon which the services were performed or\nsuch service is or will be delivered to the purchaser elsewhere, such\nsale will not be subject to taxes imposed by this section. However, if\ndelivery occurs or will occur in the district where the tax imposed by\nthis section applies, a vendor will be required to collect from the\npurchaser the sales or compensating use taxes imposed by this section.\nFor the purposes of this section, delivery shall be deemed to include\ntransfer of possession to the purchaser and the receiving of the\nproperty or of the service by the purchaser. The provisions of section\ntwelve hundred fourteen of this chapter shall be applicable to this\nsection, but any reference in that section to a local sales or use tax\nimposed by a city, county or school district shall mean the additional\ntaxes imposed by this section.\n (d) Deposit and disposition of revenue. (1) The taxes, interest and\npenalties imposed pursuant to this section and received by the tax\ncommission, after deducting the amount which the commissioner of\ntaxation and finance shall determine to be necessary for reasonable\ncosts of the tax commission in administering, collecting and\ndistributing such taxes, shall be deposited daily with such responsible\nbanks, banking houses or trust companies, as may be designated by the\ncomptroller, to the credit of the comptroller. Such an account may be\nestablished in one or more of such depositories. Such deposits shall be\nkept separate and apart from all other money in the possession of the\ncomptroller. The comptroller shall require adequate security from all\nsuch depositories. Of the total revenue collected or received under this\nsection, the comptroller shall retain in his hands such amount as the\ncommissioner of taxation and finance may determine to be necessary for\nrefunds under this section.\n (2) On or before the twelfth day of each month, after reserving such\namount for such refunds and such costs, the commissioner of taxation and\nfinance shall certify to the comptroller the amount of all revenues so\nreceived during the prior month as a result of the taxes, interest and\npenalties so imposed and in addition on or before the last day of June\nthe commissioner shall certify the amount of such revenues received\nduring and including the first twenty-five days of June. Fifteen percent\nof the revenues so certified shall be deposited by the comptroller in\nthe mass transportation operating assistance fund established by section\neighty-eight-a of the state finance law to the credit of the\nmetropolitan mass transportation operating assistance account therein.\nEighty-five percent of the revenues so certified shall be deposited by\nthe comptroller in the dedicated mass transportation trust fund\nestablished pursuant to section eighty-nine-c of the state finance law\nto be distributed as follows: eighty-five percent of such amount shall\nbe allocated to the New York city transit authority and its subsidiaries\nand the Staten Island rapid transit operating authority and fifteen\npercent of such amount shall be allocated to the Long Island Rail Road\nCompany and Metro-North commuter railroad company in accordance with the\nprocedures for payment and distribution specified in section twelve\nhundred seventy-c of the public authorities law, for payment, subject to\nappropriation, to the metropolitan transportation authority dedicated\ntax fund established pursuant to section twelve hundred seventy-c of the\npublic authorities law.\n (e) The provision for a refund or credit contained in clause six of\nsubdivision (a) of section eleven hundred nineteen shall not apply.\n (f) The exemption contained in paragraph thirty of subdivision (a) of\nsection eleven hundred fifteen of this article shall not apply.\n (g) Notwithstanding any other provision of state or local law,\nordinance or resolution to the contrary: (1) In the event that a county,\ncity or school district located in the metropolitan commuter\ntransportation district imposes taxes pursuant to the authority of\nsubpart B of part I of article twenty-nine of this chapter and elects to\nprovide the clothing and footwear exemption authorized in paragraph one\nof subdivision (a) of section twelve hundred ten of this chapter, or the\ntaxes provided for in section eleven hundred eight of this article are\nin effect in a city located in such district, the exemption provided by\nparagraph thirty of subdivision (a) of section eleven hundred fifteen of\nthis article shall be applicable in such portion of the metropolitan\ncommuter transportation district in which such county, city or school\ndistrict which elects to provide the clothing and footwear exemption\nauthorized in paragraph one of subdivision (a) of section twelve hundred\nten of this chapter is located, or where the taxes provided for in\nsection eleven hundred eight of this part are in effect in a city\nlocated in such district. The commissioner shall determine and certify\nto the comptroller the amount of revenue forgone at the rate of\nthree-eighths of one percent under this section in such county, city or\nschool district on account of sales of clothing and footwear in such\ncounty, city or school district.\n (2) Commencing with the sales tax quarterly period which commences on\nMarch first, two thousand, the commissioner shall make such\ndeterminations and certifications on the twelfth day of the month\nfollowing the month in which sales tax quarterly returns are due under\nsection eleven hundred thirty-six of this article with respect to such\nquarterly period for as long as such clothing and footwear exemptions\nfrom such taxes imposed pursuant to the authority of article twenty-nine\nof this chapter or by section eleven hundred eight of this part are in\neffect. Neither the commissioner nor the comptroller shall be held\nliable for any inaccuracy in such determinations and certifications.\nSuch determinations and certifications may be based on such information\nas may be available to the commissioner at the time such determinations\nand certifications must be made under this subdivision and may be\nestimated on the basis of percentages or other indices calculated from\ndistributions from prior periods. The commissioner shall be authorized\nto require such information as the commissioner deems necessary to\ncomply with the requirements of this subdivision from persons required\nto file returns under such section eleven hundred thirty-six of this\narticle.\n (3) By the fifteenth day of the month in which the commissioner has\nmade the certifications to the comptroller described in paragraph two of\nthis subdivision, the comptroller shall bill any county, city or school\ndistrict in such metropolitan commuter transportation district which\nprovides such clothing and footwear exemption, and any city in such\ndistrict in which the taxes imposed by section eleven hundred eight of\nthis part are in effect, an amount equal to one-half of the amount\ncertified to the comptroller by the commissioner in respect of such\ncounty, city or school district; and such county, city or school\ndistrict shall pay the amount of such bill to the comptroller by the\ntwenty-fifth day of such month. The comptroller shall deposit any such\namounts received as provided in subdivision (d) of this section.\n (4) In the event that a county, city or school district imposing tax\npursuant to the authority of subpart B of part I of article twenty-nine\nof this chapter does not pay in full a bill described in paragraph three\nof this subdivision by the twenty-fifth day of the month described in\nparagraphs two and three of this subdivision, the comptroller shall\ndeduct any amount not paid from the amount of the next payment or\npayments due such county, city or school district pursuant to\nsubdivision (c) of section twelve hundred sixty-one of this chapter\nuntil such amount not paid has been recovered. The comptroller shall\ndeposit the amounts so deducted and recovered to be credited as provided\nin paragraph three of this subdivision.\n (5) In the event that a city in which the taxes imposed by section\neleven hundred eight of this article are in effect does not pay in full\na bill described in paragraph three of this subdivision by the\ntwenty-fifth day of the month described in paragraphs two and three of\nthis subdivision, the comptroller shall deduct any amount not paid from\nthe amount of any other moneys due such city from the comptroller, not\notherwise pledged, dedicated or encumbered pursuant to other state law,\nuntil such amount not paid has been recovered. The comptroller shall\ndeposit the amounts so deducted and recovered to be credited as provided\nin paragraph three of this subdivision.\n (6) The commissioner shall certify the amount of any over calculation\nor under calculation of any certification required to be made to the\ncomptroller under paragraph three of this subdivision as soon after its\ndiscovery as reasonably possible and subsequent bills to a city, county\nor school district to which the over calculation or under calculation\nrelates shall be adjusted accordingly, provided that the comptroller may\nadjust such number of subsequent bills as the comptroller shall consider\nreasonable in view of the amount of the adjustment and all other facts\nand circumstances.\n (7) On the same date that the comptroller is required to bill a\ncounty, city or school district an amount as provided in paragraph three\nof this subdivision, the comptroller shall, after having first made any\ndeposits required by section ninety-two-r of the state finance law and\nonly to the extent that there are moneys remaining after having made\nsuch required deposits, withdraw from the state treasury, to the debit\nof the general fund, an amount equal to the total of the amounts\nrequired to be billed to counties, cities and school districts pursuant\nto such subdivision three and deposit such total amount to be credited\nas provided in such paragraph three. The amount of any over calculation\nor under calculation determined in paragraph six of this subdivision\nshall likewise be applied to the amounts required to be deposited under\nthis paragraph, so that the amounts deposited under this paragraph equal\nthe total of the amounts required to be billed to counties, cities and\nschool districts under such paragraph three, as adjusted, pursuant to\nparagraph six of this subdivision.\n (h) Notwithstanding any provision of law to the contrary:\n (1) The commissioner shall determine and certify to the comptroller\nthe amount of revenue foregone as a result of the cents per gallon tax\nin paragraph two of subdivision (m) of section eleven hundred eleven of\nthis part in lieu of tax at the rate provided in subdivision (a) of this\nsection.\n (2) Commencing with the sales tax quarterly period beginning on June\nfirst, two thousand six, the commissioner shall make such determinations\nand certifications on the twelfth day of the month following the month\nin which sales tax quarterly returns are due under section eleven\nhundred thirty-six of this article with respect to such quarterly\nperiod. Such determinations and certifications may be based on such\ninformation as may be available to the commissioner at the time such\ndeterminations and certifications must be made under this subdivision.\nThe commissioner shall be authorized to require such information as the\ncommissioner deems necessary to comply with the requirements of this\nsubdivision from persons required to file returns under such section\neleven hundred thirty-six.\n (3) The comptroller shall, after having first made any deposits\nrequired by section ninety-two-r of the state finance law and only to\nthe extent that there are moneys remaining after having made such\nrequired deposits, withdraw from the state treasury, to the debit of the\ngeneral fund, and shall deposit the amount certified by the commissioner\nas such revenue foregone as provided in subdivision (d) of this section.\n (4) Neither the commissioner nor the comptroller shall be held liable\nfor any inaccuracy in such determinations and certifications. The\ncommissioner shall certify the amount of any over calculation or under\ncalculation of any certification required to be made to the comptroller\nunder this subdivision as soon after its discovery as reasonably\npossible.\n