N.Y. Tax Law § 1235 — Taxes paid to other jurisdictions

§ 1235. Taxes paid to other jurisdictions. (a) With respect to taxes\nimposed pursuant to subdivision (a) of section twelve hundred ten and\npursuant to section twelve hundred eleven, the use of tangible personal\nproperty purchased at retail and of any of the services subject to the\nsales tax shall be exempt from the compensating use tax authorized under\nsubdivision (a) of such section twelve hundred ten and under section\ntwelve hundred eleven, to the extent that a retail sales tax or a\ncompensating use tax was legally due and paid thereon, without any right\nto a refund or credit thereof, to (1) any municipal corporation in this\nstate or (2) any other state or jurisdiction within any other state, but\nonly when it is shown that such other state or jurisdiction allows a\ncorresponding exemption with respect to the sale or use of tangible\npersonal property or of any of the services upon which such a sale or\ncompensating use tax was paid to this state and any of its municipal\ncorporations, except as provided in subdivision (b) of this section.\n (b) To the extent that a compensating use tax imposed pursuant to this\narticle and the compensating use tax imposed by article twenty-eight are\nat a higher aggregate rate than the rate of tax imposed in any other\nstate or jurisdiction within any other state, the exemption provided in\nsubdivision (a) of this section shall be inapplicable and the taxes\nimposed pursuant to this article and by article twenty-eight shall apply\nto the extent of the difference between such aggregate rate and the rate\npaid in such other state or jurisdiction. In such event, the amount\npayable shall be allocated between the tax imposed pursuant to this\narticle and the tax imposed by article twenty-eight in proportion to the\nrespective rates of such taxes. Where a retail sales tax or a\ncompensating use tax was legally due and paid to any municipal\ncorporation in this state, without any right to a refund or credit\nthereof, with respect to the sale or use of tangible personal property\nor any of the services subject to sales or compensating use tax, if the\nuse of such property or services is then subject to a compensating use\ntax imposed by any other municipal corporation in this state and such\ntax is at a higher rate than the rate of tax imposed by the first\nmunicipal corporation, the tax of the municipal corporation with the\nhigher rate shall also apply but only to the extent of the difference in\nsuch rates and such tax shall be distributable to such municipal\ncorporation, pursuant to section twelve hundred sixty-one, without\nallocation as hereinabove provided. Where a retail sales tax or a\ncompensating use tax was legally due and paid to this state only, with\nrespect to the sale or use of tangible personal property or any of the\nservices subject to sales or compensating use tax, if the use of such\nproperty or services is then subject to a compensating use tax imposed\nby a municipal corporation in this state, such tax shall be\ndistributable to the municipal corporation, pursuant to section twelve\nhundred sixty-one, without allocation as hereinabove provided.\n (c) For purposes of this section, a payment to the tax commission of a\ntax imposed by a municipal corporation shall be deemed a payment to such\nmunicipal corporation.\n