N.Y. Tax Law § 261 — Payment over and distribution of taxes

§ 261. Payment over and distribution of taxes. 1. The balance of all\nmoneys paid to the recording officer of each county during each month\nupon account of the additional taxes imposed pursuant to subdivision two\nof section two hundred fifty-three of this article, after deducting the\nnecessary expenses of his or her office as provided in section two\nhundred sixty-two of this article, except taxes paid upon mortgages\nwhich under the provisions of section two hundred sixty of this article\nare first to be apportioned by the commissioner, shall be paid over by\nhim or her on or before the tenth day of each succeeding month as\nfollows: (a) with respect to those counties comprising the metropolitan\ncommuter transportation district, as defined by the provisions of\nsection twelve hundred sixty-two of the public authorities law, to the\nmetropolitan transportation authority to be applied in any authority\nfiscal year beginning on or after January first, nineteen hundred\neighty-seven (i) first, to meet the general, administrative and\noperating expenses of the authority net of reimbursements, recoveries\nand adjustments, not including the expenses of any subsidiaries thereof\nwhich operate any transportation facility, (ii) second, from any\nremaining revenues, fifty-five per centum of such revenues shall be paid\nby the metropolitan transportation authority to the transit account of\nthe metropolitan transportation authority special assistance fund\nestablished by section twelve hundred seventy-a of the public\nauthorities law; and (iii) the remaining forty-five per centum shall be\npaid by the metropolitan transportation authority to the commuter\nrailroad account of the metropolitan transportation authority special\nassistance fund established by section twelve hundred seventy-a of the\npublic authorities law; (b) with respect to those counties comprising\nthe Niagara Frontier transportation district, as defined by the\nprovisions of section twelve hundred ninety-nine-b of the public\nauthorities law, to the Niagara Frontier transportation authority; (c)\nwith respect to those counties comprising the Rochester-Genesee regional\ntransportation district, as defined by the provisions of section twelve\nhundred ninety-nine-cc of the public authorities law, to the\nRochester-Genesee Regional Transportation Authority; (d) with respect to\nthose counties comprising the capital district transportation district,\nas defined by the provisions of section thirteen hundred two of the\npublic authorities law, to the capital district transportation\nauthority; (e) with respect to those counties comprising the central New\nYork regional transportation district, as defined by the provisions of\nsection thirteen hundred twenty-seven of the public authorities law, to\nthe central New York regional transportation authority; (f) with respect\nto the county of Dutchess or the county of Orange or the county of\nRockland if any such county withdraws from the metropolitan commuter\ntransportation district pursuant to section twelve hundred\nseventy-nine-b of the public authorities law and does not suspend the\nimposition of such additional tax, to the county treasurer of such\ncounty if such county provides that the moneys shall be used for mass\ntransportation purposes but, if any such county which so withdraws and\nwhich does not so suspend does not so provide, to the comptroller\npursuant to paragraph (p) of this subdivision; * (g) with respect to the\ncounty of Washington, to the county treasurer of such county to be used\nto pay for any and all expenses incurred by such county for the support\nof community colleges pursuant to article one hundred twenty-six of the\neducation law; with respect to the county of Essex, to the county\ntreasurer of such county to be used to pay for any and all expenses\nincurred by such county for county office and court facility projects\nand, after all such expenses are paid, for any and all expenses incurred\nby such county for county correctional and public safety facility\nprojects;\n * NB Effective until December 1, 2027\n * (g) with respect to the county of Washington, to the county\ntreasurer of such county to be used to pay for any and all expenses\nincurred by such county for the support of community colleges pursuant\nto article one hundred twenty-six of the education law; with respect to\nthe county of Essex, to the county treasurer of such county to be used\nto pay for any and all expenses incurred by such county for county\noffice and court facility projects;\n * NB Effective December 1, 2027\n(h) with respect to the county of Franklin, to the county treasurer of\nsuch county to be used to pay for any and all expenses incurred by such\ncounty for county office and county correctional facility projects; (i)\nwith respect to the county of Clinton, to the county treasurer of such\ncounty to be used to pay for any and all expenses incurred by such\ncounty for county office and other county capital projects; (j) with\nrespect to the county of Chautauqua, to the county treasurer of such\ncounty to be used to pay for any and all expenses incurred by such\ncounty for county correctional facility and court facility projects, and\ndebt service thereon, including but not limited to, related heating,\nventilation, air-conditioning and parking infrastructure upgrades; (j-1)\nwith respect to the county of Tompkins, to the county treasurer of such\ncounty for mass transportation purposes; (k) with respect to the county\nof Allegany, to the county treasurer of such county for deposit into the\ngeneral fund of the county of Allegany; (l) with respect to the county\nof Schuyler, to the county treasurer of such county to be used to pay\nfor any and all expenses incurred by such county for the support of\ncommunity colleges pursuant to article one hundred twenty-six of the\neducation law; (m) with respect to the county of Delaware, to the county\ntreasurer of such county to be used to pay for the cost of the county\ncorrectional facility and public safety building complex and the county\ncomposting facility; * (n) with respect to the county of Fulton, to the\ncounty treasurer of such county for deposit into the general fund of the\ncounty of Fulton;\n * NB Repealed November 30, 2027\n(o) with respect to the county of Steuben, to the county treasurer of\nsuch county for deposit into the general fund of the county of Steuben;\n(p) with respect to the remaining counties of the state except\nCattaraugus county which have not suspended the imposition of such\nadditional tax pursuant to subdivision two of section two hundred\nfifty-three of this article, to the comptroller to be paid by them into\nthe general fund in the state treasury to the credit of the state\npurposes account; provided that money paid to the comptroller with\nrespect to any such remaining county in which on the date of such\npayment any mass transportation, airport or aviation, municipal historic\nsite, municipal park, community mental health and developmental\ndisabilities facility, or sewage treatment capital project is being\ncarried out by a municipality with state aid, or for which state aid\nwill be paid, pursuant to the provisions of title one of chapter seven\nhundred seventeen of the laws of nineteen hundred sixty-seven, section\n17.05 of the parks, recreation and historic preservation law, section\n41.18 of the mental hygiene law, or section 17-1903 of the environmental\nconservation law, shall be applied by them to increase the amount of aid\nfor which the state is obligated in respect to such project on such\ndate, provided that any such increase in state aid may not, together\nwith any federal funds paid or to be paid on account of the cost of such\nproject, exceed the total cost thereof, and where more than one such\ncapital project is being carried out on such date within such county,\nthe application of such monies by the comptroller shall be pro-rated\namong such municipalities on the basis of the respective amounts of\nstate aid which are so obligated on such date; (q) with respect to the\ncounty of Cattaraugus, to the comptroller to be paid by them into the\ngeneral fund in the state treasury to the credit of the state purposes\naccount for the construction of a county office building and a county\ndepartment of public works office building, or debt service thereon\nbeing carried out by the county of Cattaraugus up to but not exceeding\nthe total cost for such county office building and county department of\npublic works building, or debt service thereon less the amount of any\nstate aid or federal funds paid or to be paid on account of such project\nor debt service thereon; and (r) with respect to the county of Chenango,\nto the county treasurer of such county for deposit into the general fund\nof the county of Chenango. Notwithstanding the provisions of the\npreceding sentence, additional taxes so imposed and paid upon mortgages\ncovering real property situated in two or more counties, which under the\nprovisions of section two hundred sixty of this article are first to be\napportioned by the commissioner, shall be paid over by the recording\nofficer receiving the same as provided by the determination of said\ncommissioner.\n If and to the extent that either metropolitan transportation authority\nor Niagara Frontier transportation authority or Rochester-Genesee\nregional transportation authority or capital district transportation\nauthority or central New York regional transportation authority shall\ncertify that the proceeds of such additional tax received by it for any\ncalendar year subsequent to nineteen hundred sixty-nine are in excess of\nits needs, present and projected, and of those of its subsidiary\ncorporations, such excess shall be paid over at the end of such calendar\nyear to the comptroller for payment or application by him or her in\naccordance with the provisions of paragraph (p) of the opening paragraph\nof this subdivision. For the purposes of such application any such\nexcess shall be allocated among the counties comprising a transportation\ndistrict in the same proportion that their respective recording officers\npaid over additional taxes hereunder during the whole of the calendar\nyear which is the subject of the certification. For the counties\ncomprising the city of New York, any such application shall be for the\nbenefit of such city.\n 2. The balance of all moneys paid to the recording officer of each\ncounty during each month upon account of the special additional taxes\nimposed pursuant to subdivision one-a of section two hundred fifty-three\nof this chapter, after deducting the necessary expenses of his office as\nprovided in section two hundred sixty-two, except taxes paid upon\nmortgages which under the provisions of section two hundred sixty are\nfirst to be apportioned by the tax commission, shall be paid over by him\non or before the tenth day of each succeeding month to the state of New\nYork mortgage agency created pursuant to title seventeen of article\neight of the public authorities law for deposit to the credit of the\nmortgage insurance fund created pursuant to such title, and (i) except\nthat with respect to mortgages recorded on and after May first, nineteen\nhundred eighty-seven, the balance of all moneys paid upon account of\nsuch special additional taxes during each month to the recording\nofficers of the counties comprising the metropolitan commuter\ntransportation district, as defined by section twelve hundred sixty-two\nof the public authorities law, on mortgages of any real property\nprincipally improved or to be improved by a structure containing six\nresidential dwelling units or less with separate cooking facilities,\nafter the deduction of such expenses, shall be paid over by him on or\nbefore the tenth day of each succeeding month to the metropolitan\ntransportation authority for deposit in the corporate transportation\naccount of the metropolitan transportation special assistance fund\nestablished by section twelve hundred seventy-a of the public\nauthorities law, and (ii) except that with respect to mortgages recorded\non and after May first, nineteen hundred eighty-seven, the balance of\nall moneys paid upon account of such special additional taxes during\neach month to the recording officers of the county of Erie on mortgages\nof any real property principally improved or to be improved by a\nstructure containing six residential dwelling units or less with\nseparate cooking facilities, after the deduction of such expenses, shall\nbe paid over by him on or before the tenth day of each succeeding month\nto the Niagara Frontier transportation authority. Notwithstanding the\nprovisions of the preceding sentence, the special additional taxes so\nimposed and paid upon mortgages covering real property situated in two\nor more counties, which under the provisions of section two hundred\nsixty are first to be apportioned by the commissioner, shall be paid\nover by the recording officer receiving the same as provided by the\ndetermination of said commissioner.\n 3. On or before the tenth day of each month the recording officer of\neach county shall pay over to the county treasurer of said county, and\nin the counties of New York, Kings, Queens, Richmond and Bronx to the\ncommissioner of finance of the city of New York for credit to the\ngeneral fund of such city, the balance of the moneys received during the\npreceding month upon account of taxes paid to him or her as herein\nprescribed, after deducting the necessary expenses of his or her office\nas provided in section two hundred sixty-two of this article, except\ntaxes paid upon mortgages which under the provisions of section two\nhundred sixty of this article are first to be apportioned by the\ncommissioner, which taxes and money shall be paid over by the\ncommissioner of finance of the city of New York as provided by the\ndetermination of the commissioner. In each county not within the city of\nNew York, the whole of the net amount of such balance, after the\ndeduction by the county treasurer of the necessary expenses of his or\nher office provided in section two hundred sixty-two of this article,\nshall be held by him or her and shall be allocated to the tax districts\nof the county according to the location of the real property covered by\nthe respective mortgages upon which the tax was collected. The recording\nofficer and county treasurer shall prepare a joint semi-annual report on\nor before May fifteenth and on or before November fifteenth in each year\nshowing the amounts to be credited to each tax district of the county of\nthe moneys collected under this article during the preceding periods of\nsix months each which ended respectively on March thirty-first and\nSeptember thirtieth. Such report shall be made in duplicate in\naccordance with the rules and regulations of the commissioner and filed\nwith the clerk of the board of supervisors and the commissioner. The\nboard of supervisors, on or before the fifteenth day of June and on or\nbefore the fifteenth day of December in each year, shall issue its\nwarrant for the payment to the respective tax districts of the amounts\nso credited, provided, however, that in a county in which a town\ncontains within its limits an incorporated village, or portion thereof,\nthe board of supervisors shall apportion to such village so much of the\nshare credited to the town as the assessed value of said village or\nportion thereof bears to twice the total assessed valuation of the town,\nand provided, further, that, at the option of the governing board of the\ncounty, the county may instead prepare and file such a joint report and\nmake such payments on a monthly or quarterly basis. Where the county\nelects to make monthly payments, the recording officer and county\ntreasurer shall prepare a joint report on or before the fifteenth day of\neach month showing the amounts to be credited to each tax district of\nthe county and the moneys collected under this article for the month\npreceding the most recently concluded month, and the board of\nsupervisors shall issue its warrant for payment on or before the\nfifteenth day of the following month. Where the county elects to make\nquarterly payments, the recording officer and county treasurer shall\nprepare such a joint report on or before the fifteenth day of May,\nAugust, November, and February, showing the amounts to be credited to\neach tax district of the county of moneys collected under this article\nfor the preceding three-month period ending March thirty-first, June\nthirtieth, September thirtieth, and December thirty-first, respectively\nand the board of supervisors shall issue its warrant for payment on or\nbefore the fifteenth day of June, September, December, and March,\nrespectively. The warrant shall direct payment to the city treasurer of\nthe amount due the city, to the town supervisor of the amount due the\ntown, and to the village treasurer of the amount to which the village\nshall be entitled. Mortgage tax moneys allotted to cities, towns and\nvillages shall be applied to the payment of the general expenses\nthereof. The commissioner shall prescribe the method of adjustment and\ncorrection of errors heretofore or hereafter made in the distribution of\nmoneys collected under this article. Provided, however that in the town\nof Ossining, county of Westchester, monies due to the unincorporated\nportion of the town shall be placed in the unincorporated town fund\ninstead of into the general fund of such town.\n