N.Y. State Finance Law § 92-d: Municipal assistance tax fund

§ 92-d. Municipal assistance tax fund. 1. There is hereby established

in the custody of the comptroller a special fund to be known as the

municipal assistance tax fund. Within such fund, there is hereby

established a special account for each municipal assistance corporation

created under article ten of the public authorities law.

2. Such fund shall consist of the revenues derived from municipal

assistance sales and compensating use taxes imposed by sections eleven

hundred seven and eleven hundred eight of the tax law, any amounts

transferred from the stock transfer tax fund pursuant to section

ninety-two-b of this article, any amounts transferred pursuant to

subdivision (a) of section nine of chapter seven hundred twenty-one of

the laws of nineteen hundred ninety-four, as amended by chapter one

hundred eighty-seven of the laws of nineteen hundred ninety-five, and

such amount of aid apportioned and paid into such fund pursuant to

section fifty-four of this chapter.

3. The taxes, interest and penalties imposed, pursuant to sections

eleven hundred seven or eleven hundred eight (as the case may be) of the

tax law within the territorial limits of a city in aid of which a

municipal assistance corporation has been created, and received by the

commissioner of taxation and finance, after deducting the amount which

the commissioner of taxation and finance shall determine to be necessary

for reasonable costs of the commissioner of taxation and finance in

administering, collecting and distributing such taxes, shall be

appropriated (i) to the municipal assistance corporation which has been

created in aid of such city in order to enable such corporation to

fulfill the terms of any agreements made with the holders of its notes

and bonds and to carry out its corporate purposes, including the

maintenance of the capital reserve fund, and (ii) the balance, if any,

to the city in aid of which such corporation has been created, or to a

public benefit corporation to which the tax may be otherwise payable

pursuant to law, as hereinafter provided.

4. On or before the twelfth day of each month, the commissioner of

taxation and finance shall certify to the comptroller the amount of all

revenues so received during the prior month as a result of the taxes,

interest and penalties so imposed and in addition on or before the last

day of June the commissioner shall certify the amount of such revenues

received during and including the first twenty-five days of June. The

amount of revenues so certified shall be deposited by the comptroller in

the municipal assistance tax fund and the amount attributable to the

taxes, interest and penalties imposed within the territorial limits of a

city in aid of which a municipal assistance corporation has been created

shall be credited to a special account established in such fund for such

corporation. Notwithstanding the foregoing provisions, the commissioner

of taxation and finance may prorate revenue attributable to the first or

last quarterly return period during which the taxes imposed by section

eleven hundred seven or eleven hundred eight (as the case may be) of the

tax law apply so as to separate from the revenue collected for that

quarter pursuant to such taxes the revenue collected pursuant to local

legislation adopted by a city pursuant to section twelve hundred ten or

twelve hundred twelve-A of the tax law. Such a proration by the

commissioner of taxation and finance shall be made on the basis of the

ratio of the number of months during which such taxes were imposed

during such quarterly return period to the total number of months in

such quarterly return period when such proration is reasonably necessary

to ascertain the amount of such money which must be deposited by the

comptroller in such special account and the amount of such money which

must be deposited pursuant to section twelve hundred sixty-one of the

tax law. The commissioner of taxation and finance shall not be held

liable for any inaccuracy in any certification under this subdivision.

5. Revenues in any special account in the municipal assistance tax

fund shall be kept separate and shall not be commingled with any other

moneys in the custody of the comptroller. All deposits of such revenues

shall, if required by the comptroller, be secured by obligations of the

United States or of the state having a market value equal at all times

to the amount of such deposits and all banks and trust companies are

authorized to give security for such deposits. Any such revenues in such

fund may, in the discretion of the comptroller, be invested in

obligations of the United States or of the state or in obligations the

principal of and interest on which are guaranteed by the United States

or by the state.

6. Upon receipt by the comptroller of a certificate or certificates

from the chairman of a municipal assistance corporation that such

corporation requires a payment or payments in order to comply with any

agreement with the holders of its notes and bonds and to carry out its

corporate purposes, including the maintenance of the capital reserve

fund, from the special account established for such corporation, each of

which certificates shall specify the required payment or payments and

the date when the payment or payments is required, the comptroller shall

pay from such special account on or before the specified date or within

thirty days after such receipt, whichever is later, to such corporation,

as the chairman thereof may direct in any such certificate, the amount

or amounts so certified. The chairman of such corporation shall furnish

the commissioner of taxation and finance with copies of such

certificates. The comptroller shall from time to time, but in no event

later than the fifteenth day of October, January and April and the last

day of June of each fiscal year, pay over and distribute to the chief

fiscal officer of the city in aid of which such municipal assistance

corporation has been created to be paid into the treasury of such city

to the credit of the general fund, or pay over and distribute to a

public benefit corporation to which the tax may otherwise be payable

pursuant to law, all revenues in the special account established for

such corporation in the municipal assistance tax fund, if any, in excess

of the aggregate amount which the chairman of such corporation has

certified to the comptroller and which has been previously appropriated

and paid to such corporation as hereinabove authorized. In no event

shall the comptroller pay over and distribute any revenues (other than

the amount to be deducted for administering, collecting and distributing

such sales and compensating use taxes) to any person other than the

municipal assistance corporation unless and until the aggregate of all

payments certified to the comptroller as required by such corporation as

of such date in order to comply with its agreements with the holders of

its notes and bonds and to carry out its corporate purposes, including

the maintenance of the capital reserve fund, which remain unappropriated

or unpaid to such corporation shall have been appropriated to such

corporation and shall have been paid in full; provided, however, that no

person, including such corporation or the holders of its notes or bonds

shall have any lien on such revenues and such agreement shall be

executory only to the extent of such revenues available to the state in

such special account. On the day on which the comptroller pays over and

distributes to the chief fiscal officer of such city any revenues from

such special account the commissioner of taxation and finance shall

certify to the comptroller the amount to be deducted for administering,

collecting and distributing the tax imposed pursuant to section eleven

hundred seven or eleven hundred eight (as the case may be) of the tax

law within the territorial limits of such city since he last certified

such amount and the comptroller shall pay such amount into the general

fund of the state treasury to the credit of the state purposes fund

therein.

7. In the event that the amount of revenues in the special account

established for the municipal assistance corporation for the city of New

York in the municipal assistance tax fund which have been appropriated

to such corporation shall at any time be less than the amount which the

chairman of such corporation has certified to the comptroller as

required in order to comply with its agreements with the holders of its

notes and bonds and to carry out its corporate purposes, including the

maintenance of the capital reserve fund, then and in such event the

comptroller shall forthwith certify to the commissioner of taxation and

finance the amount of the difference between the revenues in such

special account and the amount so certified as required by such

corporation and upon receipt of such certificate the commissioner of

taxation and finance shall approve a voucher for payment of the amount

of such difference into such special account in the municipal assistance

tax fund from the stock transfer tax fund established pursuant to

subdivision one of section ninety-two-b of this chapter at the next date

for payment from such fund as provided in subdivision four of such

section, anything in said section to the contrary notwithstanding. In

the case of every twelve month period commencing after June thirtieth,

nineteen hundred seventy-seven, the comptroller shall, before the last

day of September, December, March and June of each such period, certify

to the commissioner of taxation and finance the amount from the stock

transfer tax fund, if any, determined by the comptroller to be required

during the next following three months in order to provide the amounts

certified by the chairman of the municipal assistance corporation for

the city of New York, or if no such amount is necessary, a statement to

that effect. The amount so determined shall be arrived at after taking

into account a statement, to be furnished by the commissioner of

taxation and finance to the comptroller, of such information, including

revenue collection and estimates of revenue collection for certain

periods of the taxes imposed by section eleven hundred seven of the tax

law, as such commissioner is reasonably able to provide in order to aid

such comptroller in making the above determination with respect to

disposition of revenues in the stock transfer tax fund. Such

commissioner shall not be held liable for any inaccuracy of any such

information provided in such statement. The foregoing certificate or

statement, as the case may be, of such comptroller shall be made

regardless of the amount of revenues in the special account established

for the municipal assistance tax fund which have been appropriated to

such corporation. When all the notes and bonds of the corporation have

been fully paid and discharged, together with the interest thereon and

interest on unpaid installments of interest, the chairman of the

corporation must make a final certification to the comptroller that the

corporation has no more liabilities. Upon receipt of that certification,

the comptroller must notify the commissioner of taxation and finance

that all funds held in the stock transfer tax fund must be deposited in

the stock transfer incentive fund pursuant to subdivision seven of

section ninety-two-b of this article.

8. All payments of moneys from the municipal assistance tax fund shall

be made on the audit and warrant of the state comptroller.

9. With respect to: (i) net collections, as defined in section twelve

hundred sixty-two of the tax law, to the extent received by the county

of Rensselaer under payment procedures in effect, from taxes imposed by

such county under section twelve hundred ten of the tax law, as amended,

or any successor law thereto, and

(ii) monies, to the extent received by such county under payment

procedures in effect, to be paid to the city of Troy pursuant to an

agreement under subdivision (c) of section twelve hundred sixty-two of

the tax law, the special account established for the municipal

assistance corporation for the city of Troy within the municipal

assistance tax fund shall have a statutory first lien upon the entire

share of the city of Troy of any such net collections or monies. Such

lien shall not require any segregation of funds, physical delivery or

any other action, filing or agreement in order to evidence, perfect, or

preserve the priority of such lien and shall be valid, binding, and

perfected as against all parties, with or without notice thereof, having

claims of any kind in tort, contract or otherwise against such county.

Such county shall segregate, quarterly or on such other schedule as such

share of such net collections or monies shall be due and owing in

accordance with such law or agreement, such share of such net

collections or monies and shall, upon such segregation, use such

proceeds for no other purpose than to pay them to the comptroller for

deposit into the special account established for the municipal

assistance corporation for the city of Troy within the municipal

assistance tax fund in accordance with applicable law and payment

procedures in effect. Provided that such county has, by the payment due

date, paid such proceeds to the comptroller in accordance with the

provisions of this paragraph, such payment shall be deemed conclusive

evidence that the county had complied with the segregation requirement

respecting the proceeds so paid, as set forth in this paragraph. This

subdivision shall terminate upon the termination of the municipal

assistance corporation for the city of Troy.