N.Y. Tax Law § 1313 — Deposit and disposition of revenues

§ 1313. Deposit and disposition of revenues. (a) All revenue collected\nby the commissioner from the taxes imposed pursuant to the authority of\nthis article or former article two-E of the general city law shall be\ndeposited daily with such responsible banks, banking houses or trust\ncompanies, as may be designated by the state comptroller, to the credit\nof the comptroller, in trust for the city of New York or the New York\ncity transitional finance authority, as their interests may appear\npursuant to this section. Such deposits shall be kept in trust and\nseparate and apart from all other moneys in the possession of the\ncomptroller. The comptroller shall require adequate security from all\nsuch depositories of such revenue collected by the commissioner.\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 pursuant to the authority of this article\nor former article two-E of the general city law and for reasonable costs\nof the commissioner in administering, collecting and distributing such\ntaxes and the tax imposed pursuant to article twenty-four-B of this\nchapter, out of which the comptroller shall pay any refunds of such\ntaxes to which taxpayers shall be entitled under any law enacted\npursuant to the authority of this article or former article two-E of the\ngeneral city law.\n (c) Subject to the provisions of subsection (g) of this section, the\ncomptroller, after reserving such refund fund and such costs shall,\ncommencing on or before the fifteenth day of each month, pay to the New\nYork city transitional finance authority on a daily basis the balance of\ntaxes imposed pursuant to the authority of this article or former\narticle two-E of the general city law to be applied by the authority, in\nthe following order of priority: first pursuant to the authority's\ncontracts with bondholders, then to pay the authority's operating\nexpenses not otherwise provided for, and then pursuant to the\nauthority's agreements with the city, which agreements shall require the\nauthority to transfer the balance of such taxes not required to meet\ncontractual or other obligations of the authority to the city as\nfrequently as practicable; except that the comptroller shall:\n (1) pay to the state department of social services that amount of\noverpayments of the taxes imposed pursuant to the authority of this\narticle or former article two-E of the general city law and the interest\non such amount which is certified to the comptroller by the commissioner\nas the amount to be credited against past-due support pursuant to\nsubdivision six of section one hundred seventy-one-c of this chapter;\n (2) pay to the New York state higher education services corporation\nthat amount of overpayments of the taxes imposed pursuant to the\nauthority of this article or former article two-E of the general city\nlaw and the interest on such amount which is certified to the\ncomptroller by the commissioner as the amount to be credited against the\namount of defaults in repayment of guaranteed student loans pursuant to\nsubdivision five of section one hundred seventy-one-d of this chapter;\n (3) pay to the state university of New York or the city university of\nNew York respectively that amount of overpayments of the taxes imposed\npursuant to the authority of this article or former article two-E of the\ngeneral city law and the interest on such amount which is certified to\nthe comptroller by the commissioner as the amount to be credited against\nthe amount of defaults in repayment of state or city university loans\npursuant to subdivision six of section one hundred seventy-one-e of this\nchapter;\n (4) notwithstanding any provision of law, credit to the revenue\narrearage account, pursuant to section ninety-one-a of the state finance\nlaw, that amount of overpayments of the taxes imposed pursuant to the\nauthority of this article or former article two-E of the general city\nlaw and the interest on such amount which is certified to the\ncomptroller by the commissioner as the amount to be credited against a\npast-due legally enforceable debt owed to a state agency pursuant to\nparagraph (a) of subdivision six of section one hundred seventy-one-f of\nthis chapter, provided, however, the comptroller shall credit to the\nspecial offset fiduciary account, pursuant to section ninety-one-c of\nthe state finance law, any such amount creditable as a liability as set\nforth in paragraph (b) of subdivision six of section one hundred\nseventy-one-f of this chapter;\n (5) pay to the city of New York that amount of overpayments of tax\nimposed pursuant to the authority of this article and the interest on\nsuch amount which is certified to the comptroller by the commissioner as\nthe amount to be credited against city of New York tax warrant judgment\ndebt pursuant to section one hundred seventy-one-l of this chapter; and\n (6) pay to a non-obligated spouse that amount of overpayment of tax\nimposed pursuant to the authority of this article or former article\ntwo-E of the general city law and the interest on such amount which has\nbeen credited pursuant to section one hundred seventy-one-c, one hundred\nseventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or\none hundred seventy-one-l of this chapter and which is certified to the\ncomptroller by the commissioner as the amount due such non-obligated\nspouse pursuant to paragraph six of subsection (b) of section six\nhundred fifty-one of this chapter, and the comptroller shall deduct a\nlike amount which, the comptroller shall pay into the treasury to the\ncredit of the general fund, from amounts subsequently payable to the\noffice of temporary and disability assistance, the state university of\nNew York, the city university of New York, the higher education services\ncorporation, or the revenue arrearage account or special offset\nfiduciary account pursuant to section ninety-one-a or ninety-one-c of\nthe state finance law, as the case may be, whichever had been credited\nthe amount originally withheld from such overpayment.\n (d) The amount deducted under subsection (b) of this section for\nadministering, collecting and distributing such taxes during such\nmonthly period shall be paid by the comptroller into the general fund of\nthe state treasury to the credit of the state purposes account therein.\n (e) The first payment to such chief fiscal officer shall be made on or\nbefore March fifteenth, nineteen hundred seventy-six, which payment\nshall represent the balance of revenue after provision for refund and\nsuch reasonable costs, with respect to taxes collected from January\nfirst, nineteen hundred seventy-six through February twenty-ninth,\nnineteen hundred seventy-six. Subsequent payments shall be made on or\nbefore April fifteenth, nineteen hundred seventy-six, and on or before\nthe fifteenth day of each succeeding month thereafter, and shall\nrepresent the balance of revenue with respect to taxes collected the\npreceding calendar months.\n (f) The amounts so payable under this section shall be certified to\nthe comptroller by the commissioner or the commissioner's delegate,\neither of whom shall not be held liable for any inaccuracy in such\ncertificate. Where the amount so paid over to such chief fiscal officer\nis more or less than the amount then due such city, the amount of\noverpayment or underpayment shall be certified to the comptroller by the\ncommissioner or the commissioner's delegate, either of whom shall not be\nheld liable for any inaccuracy in such certificate. The amount of\noverpayment or underpayment shall be so certified to the comptroller as\nsoon after the discovery of the overpayment or underpayment as\nreasonably possible and subsequent payments by the comptroller to such\nchief fiscal officer shall be adjusted by subtracting the amount of any\nsuch overpayment from, or by adding the amount of any such underpayment\nto such number of subsequent payments and distributions as the\ncomptroller and the commissioner shall consider reasonable in view of\nthe amount of the overpayment or underpayment and all other facts and\ncircumstances.\n (g) The balance payable to the New York city transitional finance\nauthority pursuant to this section shall instead be paid to the chief\nfiscal officer of the city of New York unless and until the comptroller\nhas received from such authority a notice, which shall be conclusive and\nupon which the comptroller may rely without further inquiry, that such\nauthority has incurred obligations payable by it, whether for borrowed\nmoney, operating expenses or otherwise. On and after the date of such\nnotice and until such date as the authority shall have no obligations\noutstanding, the city shall have no right, title or interest in or to\nthe taxes, except as provided in the authority's agreements with the\ncity.\n (h) 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 which imposes tax pursuant to the authority of this\narticle properly exercised its option pursuant to section two of the\nchapter of the laws of two thousand five which added this subdivision\nthat such city be reimbursed for medical assistance expenditures as\nprovided in such section two of such chapter, the commissioner shall\nmake and certify the calculations and the comptroller shall, on the\nfifteenth day of each month, starting in January, two thousand eight,\nintercept and pay monthly amounts of revenue from taxes imposed in such\na city pursuant to the authority of this article, as provided in\nsubdivision (g) of section twelve hundred sixty-one of this chapter.\n