N.Y. Tax Law § 1261 — Revenues resulting from taxes administered by the commissioner

§ 1261. Revenues resulting from taxes administered by the\ncommissioner. (a) All taxes, penalties and interest imposed by cities,\ncounties or school districts under the authority of section twelve\nhundred ten, twelve hundred eleven, twelve hundred twelve or twelve\nhundred twelve-A of this article, which are collected by the\ncommissioner, shall be deposited daily with such responsible banks,\nbanking houses or trust companies, as may be designated by the state\ncomptroller, to the credit of the comptroller, in trust for the cities,\ncounties or school districts imposing the tax or for (i) the Nassau\ncounty interim finance authority or (ii) the Buffalo fiscal stability\nauthority or (iii) the Erie county fiscal stability authority, created\nby the public authorities law, (i) to the extent that net collections\nfrom taxes imposed by Nassau county are payable to the Nassau county\ninterim finance authority or (ii) to the extent that net collections\nfrom taxes imposed by Erie county or by the city of Buffalo are payable\nto the Buffalo fiscal stability authority or (iii) to the extent that\nnet collections from taxes imposed by Erie county are payable to the\nErie county fiscal stability authority, or for any public benefit\ncorporation to which the tax may be payable pursuant to law. Such\ndeposits and deposits received pursuant to subdivision (b) of section\ntwelve hundred fifty-two of this article shall be kept in trust and\nseparate and apart from all other monies in the possession of the\ncomptroller. The comptroller shall require adequate security from all\nsuch depositories of such revenue collected by the commissioner,\nincluding the deposits received pursuant to subdivision (b) of section\ntwelve hundred fifty-two of this article. Any amount payable to such\nauthorities pursuant to the public authorities law shall, at the time it\nis otherwise payable to (i) Nassau county, (ii) Erie county or the city\nof Buffalo, or (iii) Erie county, respectively, as specified in this\nsection, be paid instead to such respective authority. Any amount\npayable to a public benefit corporation pursuant to law shall, at the\ntime it is otherwise payable to the taxing jurisdiction as specified in\nthis section, be paid instead to such public benefit corporation.\n (b) The comptroller shall retain in the comptroller's hands such\namount as the commissioner may determine to be necessary for refunds in\nrespect to the taxes imposed by cities, counties and school districts,\nunder the authority of section twelve hundred ten, twelve hundred\neleven, twelve hundred twelve or twelve hundred twelve-A, and for\nreasonable costs of the commissioner in administering, collecting and\ndistributing such taxes, out of which the comptroller shall pay any\nrefunds of such taxes to which taxpayers shall be entitled under the\nprovisions of this article.\n (c) (1) The comptroller, after reserving such refund fund and such\ncosts shall, on or before the twelfth day of each month pay to the\nappropriate fiscal officers of the foregoing taxing jurisdictions the\ntaxes, penalties and interest imposed by such jurisdictions under the\nauthority of sections twelve hundred ten through twelve hundred twelve-A\nof this article, collected by the commissioner pursuant to this article\nduring the next preceding calendar month, provided, however, that the\ncomptroller shall on or before the last day of June and December make a\npartial payment consisting of the collections made during and including\nthe first twenty-five days of said months to said fiscal officers of the\nforegoing taxing jurisdictions.\n * (2) However, the taxes, penalties and interest from the additional\none percent rate which the city of Yonkers is authorized to impose\npursuant to item (a) of clause one of subparagraph (ii) of the opening\nparagraph of section twelve hundred ten of this article, after the\ncomptroller has reserved such refund fund and such cost shall be paid to\nthe special sales and compensating use tax fund for the city of Yonkers\nestablished by section ninety-two-f of the state finance law at the\ntimes set forth in the preceding sentence.\n * NB Effective until November 30, 2027\n * (2) However, the taxes, penalties and interest from the additional\none percent rate which the city of Yonkers is authorized to impose\npursuant to section twelve hundred ten of this article, after the\ncomptroller has reserved such refund fund and such cost shall be paid to\nthe special sales and compensating use tax fund for the city of Yonkers\nestablished by section ninety-two-f of the state finance law at the\ntimes set forth in the preceding sentence.\n * NB Effective November 30, 2027\n (3) However, the taxes, penalties and interest which (i) the county of\nNassau, (ii) the county of Erie, to the extent the county of Erie is\ncontractually or statutorily obligated to allocate and apply or pay net\ncollections to the city of Buffalo and to the extent that such county\nhas set aside net collections for educational purposes attributable to\nthe Buffalo school district, or the city of Buffalo or (iii) the county\nof Erie is authorized to impose pursuant to section twelve hundred ten\nof this article, other than such taxes in the amounts described,\nrespectively, in subdivisions one and two of section one thousand two\nhundred sixty-two-e of this part, during the period that such section\nauthorizes Nassau county to establish special or local assistance\nprograms thereunder, together with any penalties and interest related\nthereto, and after the comptroller has reserved such refund fund and\nsuch costs, shall, commencing on the next payment date after the\neffective date of this sentence and of each month thereafter, until such\ndate as (i) the Nassau county interim finance authority shall have no\nobligations outstanding, or (ii) the Buffalo fiscal stability authority\nshall cease to exist, or (iii) the Erie county fiscal stability\nauthority shall cease to exist, be paid by the comptroller,\nrespectively, to (i) the Nassau county interim finance authority to be\napplied by the Nassau county interim finance authority, or (ii) to the\nBuffalo fiscal stability authority to be applied by the Buffalo fiscal\nstability authority, or (iii) to the Erie county fiscal stability\nauthority to be applied by the Erie county fiscal stability authority,\nas the case may be, in the following order of priority: first pursuant\nto the Nassau county interim finance authority's contracts with\nbondholders or the Buffalo fiscal stability authority's contracts with\nbondholders or the Erie county fiscal stability authority's contracts\nwith bondholders, respectively, then to pay the Nassau county interim\nfinance authority's operating expenses not otherwise provided for or the\nBuffalo fiscal stability authority's operating expenses not otherwise\nprovided for or the Erie county fiscal stability authority's operating\nexpenses not otherwise provided for, respectively, and then (i) pursuant\nto the Nassau county interim finance authority's agreements with the\ncounty of Nassau, which agreements shall require the Nassau county\ninterim finance authority to transfer such taxes, penalties and interest\nremaining after providing for contractual or other obligations of the\nNassau county interim finance authority, and subject to any agreement\nbetween such authority and the county of Nassau, to the county of Nassau\nas frequently as practicable; or (ii) pursuant to the Buffalo fiscal\nstability authority's agreements with the city of Buffalo, which\nagreements shall require the Buffalo fiscal stability authority to\ntransfer such taxes, penalties and interest remaining after providing\nfor contractual or other obligations of the Buffalo fiscal stability\nauthority, and subject to any agreement between such authority and the\ncity of Buffalo, to the city of Buffalo or the city of Buffalo school\ndistrict, as the case may be, as frequently as practicable; or (iii)\npursuant to the Erie county fiscal stability authority's agreements with\nthe county of Erie, which agreements shall require the Erie county\nfiscal stability authority to transfer such taxes, penalties and\ninterest remaining after providing for contractual or other obligations\nof the Erie county fiscal stability authority, and subject to any\nagreement between such authority and the county of Erie, to the county\nof Erie as frequently as practicable. During the period that the\ncomptroller is required to make payments to the Nassau county interim\nfinance authority described in the previous sentence, the county of\nNassau shall have no right, title or interest in or to such taxes,\npenalties and interest required to be paid to the Nassau county interim\nfinance authority, except as provided in such authority's agreements\nwith the county of Nassau. During the period that the comptroller is\nrequired to make payments to the Buffalo fiscal stability authority\ndescribed in the second previous sentence, the city of Buffalo and such\nschool district shall have no right, title or interest in or to such\ntaxes, penalties and interest required to be paid to the Buffalo fiscal\nstability authority, except as provided in such authority's agreements\nwith the city of Buffalo. During the period that the comptroller is\nrequired to make payments to the Erie county fiscal stability authority\ndescribed in the third previous sentence, the county of Erie shall have\nno right, title or interest in or to such taxes, penalties and interest\nrequired to be paid to the Erie county fiscal stability authority,\nexcept as provided in such authority's agreements with the county of\nErie.\n (4) The amount so payable shall be certified to the comptroller by the\ncommissioner or the commissioner's delegate, who shall not be held\nliable for any inaccuracy in such certificate. Provided, however, any\nsuch certification may be based on such information as may be available\nto the commissioner at the time such certificate must be made under this\nsection and may be estimated on the basis of percentages or other\nindices calculated from distributions for prior periods.\n (5) (i) However, the comptroller shall withhold from the taxes,\npenalties and interest imposed by the city of New York on and after\nAugust first, two thousand eight, and deposit such amounts to the state\ntreasury as reimbursement for appropriated disbursements made by the New\nYork state financial control board established by the New York state\nfinancial emergency act for the city of New York and by the state deputy\ncomptroller for the city of New York established by section forty-one-a\nof the executive law, as the actual, reasonable expenses of that board\nor that deputy comptroller, incurred on behalf of the city, for\nquarterly periods commencing July first, two thousand eight, and ending\non the date when those expenses are no longer incurred by that board or\ndeputy comptroller; and the comptroller shall pay those withheld amounts\nimmediately into the miscellaneous special revenue fund financial\ncontrol board account 339-15 and the miscellaneous special revenue fund\nfinancial oversight account 339-DI of the state. During the period that\nthe comptroller is required to withhold amounts and make payments\ndescribed in this paragraph, the city of New York has no right, title or\ninterest in or to those taxes, penalties and interest required to be\npaid into the above referenced miscellaneous special revenue funds.\n * (ii) After withholding the taxes, penalties and interest imposed by\nthe city of New York on and after August first, two thousand eight as\nprovided in subparagraph (i) of this paragraph, the comptroller shall\nwithhold a portion of such taxes, penalties and interest sufficient to\ndeposit annually into the central business district tolling capital\nlockbox established pursuant to section five hundred fifty-three-j of\nthe public authorities law: (A) in state fiscal year two thousand\nnineteen - two thousand twenty, one hundred twenty-seven million five\nhundred thousand dollars; (B) in state fiscal year two thousand twenty -\ntwo thousand twenty-one, one hundred seventy million dollars; (C) in\nstate fiscal year two thousand twenty-one - two thousand twenty-two and\nevery succeeding state fiscal year, an amount equal to one hundred one\npercent of the amount deposited in the immediately preceding state\nfiscal year. The funds shall be deposited monthly in equal installments.\nDuring the period that the comptroller is required to withhold amounts\nand make payments described in this paragraph, the city of New York has\nno right, title or interest in or to those taxes, penalties and interest\nrequired to be paid into the above referenced central business district\ntolling capital lockbox. In addition, the comptroller shall withhold a\nportion of such taxes, penalties and interest in the amount of one\nhundred fifty million dollars, to be withheld in four quarterly\ninstallments on January fifteenth, April fifteenth, July fifteenth and\nOctober fifteenth of each year, and shall deposit such amounts into the\nNew York State Agency Trust Fund, Distressed Provider Assistance\nAccount.\n * NB Effective until April 3, 2028\n * (ii) After withholding the taxes, penalties and interest imposed by\nthe city of New York on and after August first, two thousand eight as\nprovided in subparagraph (i) of this paragraph, the comptroller shall\nwithhold a portion of such taxes, penalties and interest sufficient to\ndeposit annually into the central business district tolling capital\nlockbox established pursuant to section five hundred fifty-three-j of\nthe public authorities law: (A) in state fiscal year two thousand\nnineteen - two thousand twenty, one hundred twenty-seven million five\nhundred thousand dollars; (B) in state fiscal year two thousand twenty -\ntwo thousand twenty-one, one hundred seventy million dollars; and (C) in\nstate fiscal year two thousand twenty-one - two thousand twenty-two and\nevery succeeding state fiscal year, an amount equal to one hundred one\npercent of the amount deposited in the immediately preceding state\nfiscal year. The funds shall be deposited monthly in equal installments.\nDuring the period that the comptroller is required to withhold amounts\nand make payments described in this paragraph, the city of New York has\nno right, title or interest in or to those taxes, penalties and interest\nrequired to be paid into the above referenced central business district\ntolling capital lockbox.\n * NB Effective April 3, 2028\n (6) Where the amount so paid over to any city, county, school district\nor the special sales and compensating use tax fund for the city of\nYonkers in any such distribution or to any such authority is more or\nless than the amount then due to such city, county, school district or\nsuch fund or to such authority, the amount of the overpayment or\nunderpayment shall be certified to the comptroller by the commissioner\nor the commissioner's delegate, who shall not be held liable for any\ninaccuracy in such certificate. The amount of the overpayment or\nunderpayment shall be so certified to the comptroller as soon after the\ndiscovery of the overpayment or underpayment as reasonably possible and\nsubsequent payments and distributions by the comptroller to such city,\ncounty, school district or the special sales and compensating use tax\nfund for the city of Yonkers or to such authority shall be adjusted by\nsubtracting the amount of any such overpayment from or by adding the\namount of any such underpayment to such number of subsequent payments\nand distributions as the comptroller and the commissioner shall consider\nreasonable in view of the amount of the overpayment or underpayment and\nall other facts and circumstances.\n (d) All of the provisions of this section shall apply to the taxes,\npenalties and interest from sales and compensating use taxes on sales\nand uses of motor fuel or diesel motor fuel imposed pursuant to this\narticle except that the amount certified to the comptroller by the\ncommissioner or the commissioner's delegate with respect to such taxes,\npenalties and interest shall be based upon the receipts from retail\nsales of motor fuel or diesel motor fuel sold each month at retail\nservice stations and on other sales of such fuel for consumption by the\npurchaser in each county and city imposing such taxes, the total\nreceipts from taxes paid pursuant to the provisions of section eleven\nhundred two of this article on motor fuel and diesel motor fuel sold in\nthis state each month, the total of the taxes, penalties and interest\ncollected or received in such month with respect to retail sales and\nuses of motor fuel and diesel motor fuel (determined without regard to\nthe refunds or credits allowed pursuant to subdivisions (a) and (b) of\nsection eleven hundred twenty of this article), the sales tax rate\napplicable for that month in such county or city, the regional average\nretail sales price for such month, the amount of refunds and credits\nallowed pursuant to subdivisions (c) and (d) of section eleven hundred\ntwenty of this article and such other data and standards as such\ncommissioner or delegate may deem necessary for such certification. The\ncommissioner or the commissioner's delegate shall arrive at the number\nof gallons of motor fuel and diesel motor fuel sold in each such county\nor city and in this state by use of the reports of the number of gallons\nsold required to be filed pursuant to section eleven hundred thirty-six\nof this chapter and such other information as such commissioner or\ndelegate deems appropriate. In arriving at the amount to be certified\nand distributed, the commissioner shall consider the collections of the\ntaxes, penalties and interest required to be paid pursuant to the\nprovisions of section eleven hundred two of this article and the\nauthorized refunds and credits of the tax imposed by section eleven\nhundred two of this article against the taxes required to be collected\nor paid pursuant to this article.\n (e) The total net collections from a tax imposed pursuant to section\ntwelve hundred eleven by a city and a school district or school\ndistricts, so authorized, shall be distributed and paid to the city\nschool district where it is coterminous with or includes the entire city\nor to all the school districts partly within or wholly within such city.\nExcept where the city school district is coterminous with the city or\nincludes the entire area of the city, such amounts shall be distributed\nand paid to the school district or districts partly within or wholly\nwithin the city, in accordance with the total average daily attendance\nfor the last preceding school year of pupils residing in each such\ndistrict and without regard to the location of the school attended.\n (f) Notwithstanding any provision of state or local law, ordinance or\nresolution to the contrary, if the commissioner of health timely\ncertifies to the commissioner that a county which imposes sales and\ncompensating use taxes pursuant to the authority of section twelve\nhundred ten, twelve hundred ten-A, twelve hundred ten-B or twelve\nhundred ten-C of this article properly exercised its option by September\nthirtieth, two thousand seven, pursuant to section two of the chapter of\nthe laws of two thousand five which added this subdivision, that such\ncounty be reimbursed for medical assistance expenditures as provided in\nsuch section two of such chapter, then the commissioner shall calculate\nthe Medicaid amount of each such county. The amount due each month to\neach such county provided for in subdivision (c) of this section shall\nbe reduced by the monthly Medicaid amount; and such monthly Medicaid\namount of each such county shall instead be paid into the general fund\nof the state treasury to the credit of the state purposes account\ntherein. The calculation of each such county's Medicaid amount and\nmonthly Medicaid amounts and the procedures governing the payment of\nsuch amounts shall be as follows:\n (1) The commissioner of health shall furnish the commissioner with the\namount of every county's "two thousand six-two thousand seven fiscal\nyear social services district expenditure cap amount," as provided in\nparagraph (e) of section one of a chapter of the laws of two thousand\nfive which added this subdivision, as soon as practicable but no later\nthan April first, two thousand seven.\n (2) The commissioner shall calculate the "Medicaid factor" for every\ncounty as follows and shall notify each county's chief fiscal officer of\nthe results of such calculation by April thirtieth, two thousand seven,\nto help each county determine whether to exercise such option:\n (A) for a county in which no city exercises any prior right to impose\nsales or compensating use taxes authorized by section twelve hundred ten\nof this article, first, divide the total amount of sales and\ncompensating use tax distributions to such county during state fiscal\nyear two thousand six-two thousand seven by the county's general rate of\nsuch taxes during such period, and then divide the county's "two\nthousand six-two thousand seven fiscal year social services district\nexpenditure cap amount" by the quotient of the first division;\n (B) for a county in which one or more cities exercise any prior right\nto impose sales or compensating use taxes authorized by section twelve\nhundred ten of this article and the combined rate of the county's and\ncity's taxes in each such city equals the general rate of the county's\ntaxes on similar transactions in the area of the county outside such\ncity or cities, first, add the total amounts of sales and compensating\nuse tax distributions to such county and to each such city during state\nfiscal year two thousand six-two thousand seven and divide such sum by\nthe county's general rate of such taxes during such period, and then\ndivide the county's "two thousand six-two thousand seven fiscal year\nsocial services district expenditure cap amount" by the quotient of the\nfirst division; and\n (C) for a county in which one or more cities exercise any prior right\nto impose sales or compensating use taxes authorized by section twelve\nhundred ten of this article and the combined rate of the county's and\ncity's taxes in any such city does not equal the general rate of the\ncounty's taxes on similar transactions in the area of the county outside\nsuch city or cities:\n (i) for each such city, add the total amount of sales and compensating\nuse tax distributions to such city during state fiscal year two thousand\nsix-two thousand seven and divide such sum by the city's effective\ngeneral rate of such taxes during such period, then multiply such\nquotient by the amount by which the city's rate forced a reduction in\nthe county's rate of such taxes in such city during such period, and\nthen\n (ii) add the amount derived in clause (i) of this subparagraph for\neach such city to the total amount of sales and compensating use tax\ndistributions to such county during state fiscal year two thousand\nsix-two thousand seven;\n (iii) divide the total of the addition in clause (ii) of this\nsubparagraph by the county's general rate of such taxes during such\nperiod; and\n (iv) divide the county's "two thousand six-two thousand seven fiscal\nyear social services district expenditure cap amount" by the quotient of\nthe division in clause (iii) of this subparagraph.\n (D) The commissioner shall consider any change in a county's or city's\ngeneral rate of sales and compensating use taxes which takes effect\nduring state fiscal year two thousand six-two thousand seven and the\nnumber of months such rates are in effect during such state fiscal year\nin order to perform accurately the calculations provided for in this\nparagraph.\n (3) By the twelfth day of each month, commencing in January, two\nthousand eight, the commissioner shall calculate the "monthly Medicaid\namount" of each such county which has made the election described in the\nopening paragraph of this subdivision and certify such amounts to the\ncomptroller. The comptroller shall reduce the amount due each month to\neach such county provided for in subdivision (c) of this section by such\nmonthly Medicaid amount; and the comptroller shall instead each month\npay the monthly Medicaid amount of each such county into the general\nfund of the state treasury to the credit of the state purposes account\ntherein, provided, however, that the comptroller, subject to the\nlimitations provided in paragraphs five and six of this subdivision,\nshall each month collect the amount of Nassau county's reduction from\namounts payable to such county by the Nassau county interim finance\nauthority while such authority exists.\n (4) "Monthly Medicaid amount" shall mean the result of the following\ncalculations:\n (A) for a county described in subparagraph (A) of paragraph two of\nthis subdivision, first, the amount of the comptroller's payment due\nsuch a county in the immediately preceding month, as described in\nsubdivision (c) of this section and as described in sections twelve\nhundred ten-A, twelve hundred ten-B and twelve hundred ten-C of this\narticle, but without regard to whether the comptroller is to pay all or\na portion of such amount to another entity described in subdivision (c)\nof this section and without regard to the revenue disposition provisions\nof such section twelve hundred ten-A, twelve hundred ten-B or twelve\nhundred ten-C, and considered without regard to any Medicaid amount,\nshall be divided by the county's general rate of sales and compensating\nuse taxes in such month; and the quotient of that division shall be\nmultiplied by the Medicaid factor calculated as provided in subparagraph\n(A) of paragraph two of this subdivision.\n (B) for a county described in subparagraph (B) of paragraph two of\nthis subdivision, first, add the amount of the comptroller's payment due\nany city in such a county in the immediately preceding month, as\ndescribed in subdivision (c) of this section to the amount of the\ncomptroller's payment due such a county in the immediately preceding\nmonth, as described in subdivision (c) of this section and as described\nin sections twelve hundred ten-A, twelve hundred ten-B and twelve\nhundred ten-C of this article, but without regard to whether the\ncomptroller is to pay all or a portion of such amount to another entity\ndescribed in subdivision (c) of this section and without regard to the\nrevenue disposition provisions of such section twelve hundred ten-A,\ntwelve hundred ten-B or twelve hundred ten-C, and considered without\nregard to any Medicaid amount, then divide the total of such amounts by\nthe county's general rate of sales and compensating use taxes in such\nmonth; and the quotient of that division shall be multiplied by the\nMedicaid factor calculated as provided in subparagraph (B) of paragraph\ntwo of this subdivision.\n (C) For a county described in subparagraph (C) of paragraph two of\nthis subdivision:\n (i) with respect to each such city described in subparagraph (C),\ndivide the amount of the comptroller's payment due each such city in the\nimmediately preceding month, as described in subdivision (c) of this\nsection, by the effective general rate of such city's taxes during such\nmonth and multiply such quotient by the amount by which the city's rate\nforced a reduction in the county's rate of such taxes in such city\nduring such month;\n (ii) add the amount or amounts derived in clause (i) of this\nsubparagraph to the amount of the comptroller's payment due such county\nin the immediately preceding month, as described in subdivision (c) of\nthis section and as described in sections twelve hundred ten-A, twelve\nhundred ten-B and twelve hundred ten-C of this article, but without\nregard to whether the comptroller is to pay all or a portion of such\namount to another entity described in subdivision (c) of this section\nand without regard to the revenue disposition provisions of such section\ntwelve hundred ten-A, twelve hundred ten-B or twelve hundred ten-C, and\nconsidered without regard to any Medicaid amount; and\n (iii) divide the total of the addition in clause (ii) of this\nsubparagraph by the county's general rate of such taxes during such\nmonth, and the quotient of that division shall be multiplied by the\nMedicaid factor calculated as provided in subparagraph (C) of paragraph\ntwo of this subdivision.\n (5) If for any reason a county's monthly Medicaid amount is greater\nthan the amount of the comptroller's net payment to the county for that\nmonth under subdivision (c) of this section and under sections twelve\nhundred ten-A, twelve hundred ten-B and twelve hundred ten-C of this\narticle, after the comptroller has made any payments to other entities\nrequired by subdivision (c) of this section or by any other law and\nafter any payment, deposit, appropriation, transfer or expenditure\nrequired or authorized by such section twelve hundred ten-A, twelve\nhundred ten-B or twelve hundred ten-C, the comptroller shall, at the\nsame time that the comptroller makes the payment and reduction described\nin paragraph three of this subdivision, bill such county an amount equal\nto the difference and such county shall pay in full the amount of such\nbill to the comptroller by the twenty-fifth day of such month. Such\ncounty shall use any funds available to it to pay such bill. The\ncomptroller shall deposit any such amounts received into the general\nfund of the state treasury to the credit of the state purposes account\ntherein.\n (6) If a county does not remit the required monies or pay in full a\nbill described in paragraph five of this subdivision by the twenty-fifth\nday of the month in accordance with paragraph five of this subdivision,\nthe comptroller shall, as soon as any other moneys payable to the county\nare available, either deduct any amount not paid from the amount of the\nnext payment or payments due such county pursuant to subdivision (c) of\nthis section until such amount not paid has been recovered or, in the\nalternative and at the comptroller's discretion, deduct any amount not\npaid from the amount of any other moneys payable to such county from the\ncomptroller and not subject to any lien or pledge for the benefit of\nbondholders of the Nassau county interim finance authority or of any\npublic benefit corporation, as defined in section sixty-six of the\ngeneral construction law, created by interstate compact or at least half\nof whose members are appointed by the governor, until such amount not\npaid has been recovered. The comptroller shall deposit any amounts so\ndeducted and recovered into the general fund of the state treasury to\nthe credit of the state purposes account therein.\n (7) This subdivision shall apply to payments required in respect of a\ncounty to be made on January twelfth, two thousand eight, and\nthereafter.\n (8) Nothing in this subdivision shall be construed to relieve a county\nof any obligation or commitment to distribute and pay or allocate net\ncollections pursuant to this part, regardless whether such obligation or\ncommitment arises before or after the date this subdivision shall have\ntaken effect, or to preclude a city in a county from exercising its\nprior rights under section twelve hundred twenty-four of this article.\nTo the extent that a county's net collections have been diminished below\na level sufficient to meet any such obligation or commitment as a result\nof the reductions or bills provided for in this subdivision, such county\nshall hereby be authorized to use any other funds available to it to\nmeet such obligation or commitment, notwithstanding any law to the\ncontrary.\n (9) If a county adopts or amends a local law, ordinance or resolution\nto repeal its sales and compensating use taxes, then, effective on the\nfirst day of the first month on which such repeal takes effect, such\ncounty's resolution electing to be reimbursed for certain medical\nassistance expenditures pursuant to section two of the chapter of the\nlaws of two thousand five which added this subdivision shall also be\nrepealed automatically as of such date; and the commissioner shall\nnotify the commissioner of health of such county's repeal of such taxes.\nIn that event, as of such date, such county shall be treated as if it\nhad never made such election for purposes of such expenditures and such\ncommissioner of health shall thenceforth compute the amount due monthly\nfrom such county for such expenditures pursuant to section one of the\nchapter of the laws of two thousand five which added this subdivision.\n (g) Notwithstanding any provision of state or local law, ordinance or\nresolution to the contrary, if the commissioner of health timely\ncertifies to the commissioner that a city having a population of one\nmillion or more in which the taxes imposed by section eleven hundred\nseven of this chapter are in effect or which imposes sales and\ncompensating use taxes pursuant to the authority of section twelve\nhundred ten of this article properly exercised its option by September\nthirtieth, two thousand seven, pursuant to section two of the chapter of\nthe laws of two thousand five which added this subdivision, that such\ncity be reimbursed for medical assistance expenditures as provided in\nsuch section two of such chapter, then the commissioner shall calculate\nthe Medicaid amount of such a city. The amount due each month to such a\ncity with respect to such taxes and certain other taxes shall be\nreduced; and the amount of each such reduction shall instead be paid\ninto the general fund of the state treasury to the credit of the state\npurposes account therein. The calculation of such a city's Medicaid\namount and reductions and the procedure governing the payment of such\namounts are as follows:\n (1) The commissioner of health shall furnish the commissioner with the\namount of such a city's "two thousand six-two thousand seven fiscal year\nsocial services district expenditure cap amount," as provided in\nparagraph (e) of section one of the chapter of the laws of two thousand\nfive which added this subdivision, as soon as practicable but no later\nthan April first, two thousand seven.\n (2) The commissioner shall use or calculate the following amounts in\nrespect of such a city, which amounts shall be designated by the\nfollowing symbols, in order to determine the components of the monthly\namount described in paragraph three of this subdivision and shall notify\nthe chief fiscal officer of such city of the calculated value of "D" as\ndescribed in this paragraph and such other information available\nrelating to D, by April thirtieth, two thousand seven, to help such city\ndetermine whether to exercise such option:\n (A) "A" shall equal the amount of such a city's "two thousand six-two\nthousand seven fiscal year social services district expenditure cap\namount," as furnished by the commissioner of health pursuant to\nparagraph one of this subdivision;\n (B)(i) "B1" shall equal the total amount of sales and compensating use\ntax distributions during state fiscal year two thousand six-two thousand\nseven to such city or to a municipal assistance corporation on such\ncity's behalf from taxes imposed in such city by section eleven hundred\nseven of this chapter, other than taxes imposed by subdivision (c) of\nsuch section eleven hundred seven, at the rate of three percent;\n (ii) "B2" shall equal the total amount of sales tax distributions\nduring state fiscal year two thousand six-two thousand seven to such\ncity or to a municipal assistance corporation on such city's behalf from\ntaxes imposed in such city by subdivision (c) of section eleven hundred\nseven of this chapter, at the rate of three percent;\n (C) "C" shall equal the total amount of sales and compensating use tax\ndistributions during state fiscal year two thousand six-two thousand\nseven to such city from its taxes imposed pursuant to the authority of\nsection twelve hundred twelve-A of this article; and\n (D) "D" shall be the "Base Year PIT intercept amount" and shall equal\nA less the sum of B1, B2 and C.\n (3) (A) Commencing in January, two thousand eight, the commissioner\nshall calculate the monthly Medicaid amount ("MA") for such city\naccording to the following formula: MA equals (((En/Fn) + (Ep/Fp)) X\n(.03)) + (C/12) X (G) + (D/12) X (G); where C and D equal the amounts\ndescribed in paragraph two of this subdivision; "En" equals the current\nmonth's portion of revenues from taxes imposed by section eleven hundred\nseven of this chapter, excluding revenues from the tax on parking\nimposed by subdivision (c) of such section eleven hundred seven, or from\ntaxes imposed pursuant to the authority of subdivision (a) of section\ntwelve hundred ten of this article, excluding revenues from the tax on\nparking authorized by subdivision (a) of such section twelve hundred\nten; "Ep" equals the current month's revenues from either such tax on\nparking, as the case may be; "Fn" equals the current month's general\nrate of sales and use taxes imposed by such section eleven hundred seven\nor pursuant to the authority of such section twelve hundred ten, other\nthan on parking; "Fp" equals the current month's rate of sales tax on\nparking under or pursuant to the authority of such section eleven\nhundred seven or twelve hundred ten, as the case may be; "G" equals a\ngrowth factor according to the formula G equals (En/Fn) + (Ep/Fp)\ndivided by ((MB1/.04) + (MB2/.06)); "MB1" equals the revenues from taxes\nimposed by section eleven hundred seven of this chapter, excluding\nrevenues from such tax on parking imposed by subdivision (c) of such\nsection eleven hundred seven, during the same month of state fiscal year\ntwo thousand six-two thousand seven corresponding to the current month\ndescribed above; and "MB2" equals the revenues from such tax on parking\nduring the same month of state fiscal year two thousand six-two thousand\nseven corresponding to the current month described above.\n (B) Using the amount of MA calculated each month in subparagraph (A)\nof this paragraph, the commissioner shall then calculate the amounts of\nsales and use tax revenues (E + H, where E and H equal the amounts\ndescribed in subparagraph (C) of this paragraph) and personal income tax\nrevenues (PIT) of such city which are to be intercepted or billed for as\ndescribed in this subdivision, according to the formula MA equals E + H\n+ PIT, as PIT is defined in subparagraph (D) of this paragraph. By the\ntwelfth day of each month, commencing in January, two thousand eight,\nthe commissioner shall establish the amount of E and H and certify such\namounts to the comptroller and by the fifteenth day of each month,\ncommencing in January, two thousand eight, the commissioner shall\nestablish the amount of PIT and certify such amount and the amount of MA\nto the comptroller, in the manner set forth in this paragraph.\n (C) (i) For the period commencing January first, two thousand eight,\nand ending on the last day of the month in which the taxes imposed in\nsuch a city by section eleven hundred seven of this chapter shall\nexpire, the sales and use tax component "E" shall equal the amount of\nrevenues from such taxes imposed at the rate of three percent or the\namount of revenues from such taxes imposed at the rate of four percent\nafter payments to the municipal assistance corporation for such a city\nrequired under section ninety-two-d of the state finance law have been\nmade, whichever amount is less, and "H" shall equal net collections from\ntaxes imposed by such a city pursuant to the authority of section twelve\nhundred twelve-A of this article, due such a city in the immediately\npreceding month.\n (ii) For the period commencing on the first day of the first month\nfollowing the period described in clause (i) of this subparagraph, the\nsales and use tax component "E" shall equal net collections from sales\nand compensating use taxes imposed by such city pursuant to the\nauthority of subdivision (a) of section twelve hundred ten of this\narticle up to the rate of three percent and "H" shall equal net\ncollections from taxes imposed by such city pursuant to the authority of\nsection twelve hundred twelve-A of this article, due such a city in the\nimmediately preceding month.\n (D) For the period commencing January first, two thousand eight, the\nPIT component for each month shall be designated "PIT" and shall equal\nthe portion of the revenues from taxes imposed by such city pursuant to\nthe authority of article thirty of this chapter due such a city in the\nimmediately preceding month, calculated according to the formula: PIT\nequals MA - E - H.\n (E)(i) During the period that the taxes imposed in such a city by\nsection eleven hundred seven of this chapter are in effect, the\ncomptroller shall each month, after paying amounts certified to by the\nchairperson of the municipal assistance corporation created in aid of\nsuch city, as provided for in section ninety-two-d of the state finance\nlaw, pay the relevant portion of the sales and use tax component\nrelating to such taxes imposed by such section eleven hundred seven for\nsuch month equal to E into the general fund of the state treasury to the\ncredit of the state purposes account therein.\n (ii) During the period that the taxes imposed by such a city pursuant\nto the authority of section twelve hundred ten of this article are in\neffect, the comptroller shall reduce the amount due each month to such\ncity from such taxes provided for in subdivision (c) of this section by\nthe relevant portion of the sales and use tax component for such month\nequal to E; and the comptroller shall instead each month pay such\nportion into the general fund of the state treasury to the credit of the\nstate purposes account therein.\n (iii) The comptroller shall reduce the amount due each month to such\ncity from taxes imposed pursuant to the authority of section twelve\nhundred twelve-A provided for in subdivision (c) of this section by the\nrelevant portion of the sales and use tax component for such month equal\nto H; and the comptroller shall instead each month pay such portion into\nthe general fund of the state treasury to the credit of the state\npurposes account therein.\n (iv) The comptroller shall each month certify to the New York city\ntransitional finance authority the monthly amount of PIT and such\nauthority shall, after applying amounts described in section thirteen\nhundred thirteen of this chapter, immediately pay such monthly amount,\nor so much of which is available after applying such amounts, directly\nand immediately to the comptroller; and the comptroller shall upon\nreceipt of such moneys, subject to the exceptions in such section\nthirteen hundred thirteen, pay them into the general fund of the state\ntreasury to the credit of the state purposes account therein.\n (4) If for any reason such a city's Medicaid amount in a month (MA) is\ngreater than the sum of the amounts of the comptroller's net payments to\nsuch city for that month under subdivision (c) of this section, under\nsection twelve hundred twelve-A of this article and under section\nthirteen hundred thirteen of this chapter, after the comptroller has\nmade any payments to other entities required by any law and after any\npayment, deposit, appropriation, transfer or expenditure required or\nauthorized by any of such sections, the comptroller shall, at the same\ntime that the comptroller makes the payments and reductions described in\nparagraph three of this subdivision, bill such city an amount equal to\nthe difference and such city shall pay in full the amount of such bill\nto the comptroller by the twenty-fifth day of such month. Such city\nshall use any funds available to it to pay such bill. The comptroller\nshall deposit any such amounts received into the general fund of the\nstate treasury to the credit of the state purposes account therein.\n (5) If such a city does not pay in full a bill described in paragraph\nfour of this subdivision by the twenty-fifth day of the month in\naccordance with such paragraph four, the comptroller shall, as soon as\nany other moneys payable to the city are available, either deduct any\namount not paid from the amount of the next payment or payments due such\ncity pursuant to subdivision (c) of this section, section twelve hundred\ntwelve-A of this article or section thirteen hundred thirteen of this\nchapter, until such amount not paid has been recovered or, in the\nalternative and at the comptroller's discretion, deduct any amount not\npaid from the amount of any other moneys payable to such city from the\ncomptroller and not subject to any lien or pledge for the benefit of\nbondholders of the transitional finance authority or of the municipal\nassistance corporation, until such amount not paid has been recovered.\nThe comptroller shall deposit any amounts so deducted and recovered into\nthe general fund of the state treasury to the credit of the state\npurposes account therein.\n (6) This subdivision shall apply to payments required in respect of a\ncity to be made on January twelfth, two thousand eight, and thereafter.\n (7)(A) If such a city adopts or amends a local law, ordinance or\nresolution to repeal its sales and compensating use taxes imposed\npursuant to the authority of subdivision (a) of section twelve hundred\nten of this article, then, effective on the first day of the first month\non which such repeal takes effect, such city's resolution electing to be\nreimbursed for certain medical assistance expenditures pursuant to\nsection two of the chapter of the laws of two thousand five which added\nthis subdivision shall also be repealed automatically as of such date;\nand the commissioner shall notify the commissioner of health of such\ncity's repeal of such taxes. In that event, as of such date, such city\nshall be treated as if it had never made such election for purposes of\nsuch expenditures and such commissioner of health shall thenceforth\ncompute the amount due monthly from such city for such expenditures\npursuant to section one of such chapter of the laws of two thousand\nfive.\n (B) If such city adopts or amends a local law to repeal its taxes on\npersonal income authorized by article thirty of this chapter, the\ncomptroller shall bill such city monthly in the manner provided in\nparagraph four of this subdivision for any amounts due under this\nsubdivision which otherwise would have been paid out of revenues from\nsuch taxes into the general fund of the state treasury pursuant to this\nsubdivision, and such bills shall be paid as provided in paragraph four\nof this subdivision and any bill not paid shall be treated as provided\nin paragraph five of this subdivision.\n