N.Y. State Finance Law § 92-h: Sales tax revenue bond tax fund

§ 92-h. Sales tax revenue bond tax fund. 1. There is hereby

established in the joint custody of the state comptroller and the

commissioner of taxation and finance a fund within the general debt

service fund to be known as the "sales tax revenue bond tax fund".

2. Such fund shall consist of the amount of revenue collected within

the state from the imposition of the sales and compensating use taxes

(including interest and penalties) pursuant to section eleven hundred

five and section eleven hundred ten of the tax law equal to the amount

attributable to a one percent rate of taxation, less such amounts as the

commissioner of taxation and finance may determine to be necessary for

refunds. On and after the date that all of the obligations and

liabilities of the New York local government assistance corporation

shall have been met or otherwise discharged, other than payment

obligations required by section thirty-two hundred thirty-eight-a of the

public authorities law, it shall equal the amount attributable to a two

percent rate of taxation, less such amounts as the commissioner of

taxation and finance may determine to be necessary for refunds. Such

sales and compensating use tax revenues shall be separate and distinct

from the sales and compensating use tax revenues deposited from time to

time in the local government assistance tax fund, pursuant to section

ninety-two-r of this chapter.

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

taxation and finance shall certify to the state comptroller the amounts

specified in subdivision two of this section relating to the preceding

month and, in addition, no later than March thirty-first of each fiscal

year the commissioner of taxation and finance shall certify such amounts

relating to the last month of such fiscal year. The amounts so certified

shall be deposited by the state comptroller in the sales tax revenue

bond tax fund.

4. Moneys in the sales tax revenue bond tax fund shall be kept

separate and shall not be commingled with any other moneys in the

custody of the state comptroller and the commissioner of taxation and

finance. All deposits of such revenues shall, if required by the state

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 moneys in such fund may, in the

discretion of the state comptroller, be invested in obligations in which

the state comptroller is authorized to invest pursuant to section

ninety-eight-a of this article.

5. (a) The state comptroller shall from time to time, but in no event

later than the fifteenth day of each month (other than the last month of

the fiscal year) and no later than the thirty-first day of the last

month of each fiscal year, pay over and distribute to the credit of the

general fund of the state treasury all moneys in the sales tax revenue

bond tax fund, if any, in excess of the aggregate amount required to be

set aside for the payment of cash requirements pursuant to paragraph (b)

of this subdivision, provided that an appropriation has been made to pay

all amounts specified in any certificate or certificates delivered by

the director of the budget pursuant to paragraph (b) of this subdivision

as being required by any authorized issuer as such term is defined in

section sixty-nine-m of this chapter for the payment of cash

requirements of such authorized issuers for such fiscal year. Subject to

the rights of holders of debt of the state, in no event shall the state

comptroller pay over and distribute any moneys on deposit in the sales

tax revenue bond tax fund to any person other than an authorized issuer

pursuant to such certificate or certificates (i) unless and until the

aggregate of all cash requirements certified to the state comptroller as

required by such authorized issuers to be set aside pursuant to

paragraph (b) of this subdivision for such fiscal year shall have been

appropriated to such authorized issuers in accordance with the schedule

specified in the certificate or certificates filed by the director of

the budget or (ii) if, after having been so certified and appropriated,

any payment required to be made pursuant to paragraph (b) of this

subdivision has not been made to the authorized issuers pursuant to such

certificate or certificates; provided, however, that no person,

including such authorized issuers or the holders of revenue bonds, shall

have any lien on moneys on deposit in the sales tax revenue bond tax

fund. Any agreement entered into pursuant to section sixty-nine-o of

this chapter related to any payment authorized by this section shall be

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

such fund. Notwithstanding subdivisions two and three of this section,

in the event the aggregate of all cash requirements certified to the

state comptroller as required by such authorized issuers to be set aside

pursuant to paragraph (b) of this subdivision for the fiscal year

beginning on April first shall not have been appropriated to such

authorized issuers in accordance with the schedule specified in the

certificate or certificates filed by the director of the budget or, if,

having been so certified and appropriated, any payment required to be

made pursuant to paragraph (b) of this subdivision has not been made

pursuant to such certificate or certificates, all receipts collected and

deposited in the sales tax revenue bond tax fund shall remain in such

fund. Notwithstanding any other provision of law, if the state has

appropriated and paid to the authorized issuers all amounts necessary

for the authorized issuers to meet their cash requirements for the

current fiscal year pursuant to the certificate or certificates

submitted by the director of the budget pursuant to paragraph (b) of

this section, the state comptroller shall, on the last day of each

fiscal year, pay to the general fund of the state all sums remaining in

the sales tax revenue bond tax fund on such date except such amounts as

the director of the budget may certify are needed to meet the cash

requirements of authorized issuers during the subsequent fiscal year.

(b) No later than thirty days after the submission of the executive

budget in accordance with article seven of the constitution, the

director of the budget shall prepare a certificate of the amount of

monthly receipts anticipated to be deposited pursuant to subdivision two

of this section during the fiscal year beginning April first of that

year together with the monthly amounts necessary to be set aside from

the receipts of such fund, as shall be sufficient to meet the total cash

requirements of authorized issuers, as defined by section sixty-nine-m

of this chapter during such fiscal year, based on information that shall

be provided by such authorized issuers, consistent with the terms of any

contract with outstanding bondholders. Except for the purpose of meeting

cash requirements of an authorized issuer that are due on a monthly or

more frequent basis, prior to transferring any moneys from the account

pursuant to paragraph (a) of this subdivision, the comptroller shall set

aside on a monthly basis all revenues deposited pursuant to this

subdivision as received until the amount set aside is equal to one-fifth

of the interest due on such obligations on the next succeeding interest

payment date multiplied by the number of months from the last such

payment and one-eleventh of the next principal installment due on such

obligations multiplied by the number of months from the last such

principal installment where principal is due on an annual basis or

one-fifth of the next principal installment due on such obligations

multiplied by the number of months from the last such principal

installment where principal is due on a semiannual basis. For the

purpose of meeting cash requirements of an authorized issuer that are

due on a monthly basis or more frequently, the comptroller shall set

aside all revenues deposited pursuant to subdivision two of this section

as received until the amount so set aside is, in the reasonable judgment

of the director of the budget as set forth in such certificate,

sufficient to make the required payment on or before such payment date.

Notwithstanding subdivision three of, section seventy-two of this

article or any other provision of law, all moneys set aside in the sales

tax revenue bond tax fund to meet the annual cash requirements of

authorized issuers pursuant to a certificate or certificates as required

in this paragraph shall remain in the sales tax revenue bond tax fund

until needed for payment to authorized issuers, as provided in this

section. In the event that the amount set aside by the state comptroller

pursuant to this paragraph is not sufficient to meet the cash

requirements required pursuant to a certificate or certificates

submitted by the director of the budget, the state comptroller shall

immediately transfer from the general fund to the sales tax revenue bond

tax fund an amount which, when combined with the amount set aside

pursuant to this paragraph, shall be sufficient to meet the payment

required pursuant to such certificate or certificates. The director of

the budget may revise such certification at such times as shall be

necessary, provided, however, that the director of the budget shall, as

necessary, revise such certification not later than thirty days after

the issuance of any revenue bonds, including refunding bonds, and after

the adoption of any interest rate exchange or other financial

arrangement affecting the cash requirements of the authorized issuers.

In no event shall the state comptroller be held liable for the failure

to set aside an amount sufficient to pay any required payment of an

authorized issuer.

6. All payments of moneys from the revenue bond tax fund shall be made

on the audit and warrant of the state comptroller.