N.Y. Tax Law § 1109: Sales and compensating use taxes for the metropolitan commuter transportation district

§ 1109. Sales and compensating use taxes for the metropolitan commuter

transportation district. (a) General. In addition to the taxes imposed

by sections eleven hundred five and eleven hundred ten of this article,

there is hereby imposed within the territorial limits of the

metropolitan commuter transportation district created and established

pursuant to section twelve hundred sixty-two of the public authorities

law, and there shall be paid, additional taxes, at the rate of

three-eighths of one percent, which shall be identical to the taxes

imposed by sections eleven hundred five and eleven hundred ten of this

article. Such sections and the other sections of this article, including

the definition and exemption provisions, shall apply for purposes of the

taxes imposed by this section in the same manner and with the same force

and effect as if the language of those sections had been incorporated in

full into this section and had expressly referred to the taxes imposed

by this section. Notwithstanding the foregoing, the tax imposed by this

section shall not apply to admissions to race tracks or simulcast

facilities.

(b) Transitional provisions. (1) With respect to the one-fourth

percent rate imposed effective September first, nineteen hundred

eighty-one, the transitional provisions contained in subdivisions (a),

(b), (c) and (d) of section eleven hundred six of this article shall

apply to the taxes imposed by this section, except that all references

in such subdivisions (a), (b), (c) and (d) to August first, nineteen

hundred sixty-five shall be read as referring to September first,

nineteen hundred eighty-one, all references in such subdivision (a) to

April first, nineteen hundred sixty-five shall be read as referring to

May first, nineteen hundred eighty-one, and the reference in such

subdivision (b) to July thirty-first, nineteen hundred sixty-five shall

be read as referring to August thirty-first, nineteen hundred

eighty-one.

(2) With respect to the one-eighth percent rate imposed effective June

first, two thousand five, the transitional provisions contained in

subdivisions (a), (b), (c) and (d) of section eleven hundred six of this

article shall apply to the taxes imposed by this section, except that

all references in such subdivisions (a), (b), (c) and (d) to August

first, nineteen hundred sixty-five, shall be read as referring to June

first, two thousand five, all references in such subdivision (a) to

April first, nineteen hundred sixty-five, shall be read as referring to

February first, two thousand five, and the reference in such subdivision

(b) to July thirty-first, nineteen hundred sixty-five, shall be read as

referring to May thirty-first, two thousand five.

(c) Deliveries outside the district; deliveries within the district of

property sold or serviced elsewhere. Where a sale of tangible personal

property or services, including an agreement therefor, is made in the

district in which the taxes imposed by this section apply, but the

property sold, the property upon which the services were performed or

such service is or will be delivered to the purchaser elsewhere, such

sale will not be subject to taxes imposed by this section. However, if

delivery occurs or will occur in the district where the tax imposed by

this section applies, a vendor will be required to collect from the

purchaser the sales or compensating use taxes imposed by this section.

For the purposes of this section, delivery shall be deemed to include

transfer of possession to the purchaser and the receiving of the

property or of the service by the purchaser. The provisions of section

twelve hundred fourteen of this chapter shall be applicable to this

section, but any reference in that section to a local sales or use tax

imposed by a city, county or school district shall mean the additional

taxes imposed by this section.

(d) Deposit and disposition of revenue. (1) The taxes, interest and

penalties imposed pursuant to this section and received by the tax

commission, after deducting the amount which the commissioner of

taxation and finance shall determine to be necessary for reasonable

costs of the tax commission in administering, collecting and

distributing such taxes, shall be deposited daily with such responsible

banks, banking houses or trust companies, as may be designated by the

comptroller, to the credit of the comptroller. Such an account may be

established in one or more of such depositories. Such deposits shall be

kept separate and apart from all other money in the possession of the

comptroller. The comptroller shall require adequate security from all

such depositories. Of the total revenue collected or received under this

section, the comptroller shall retain in his hands such amount as the

commissioner of taxation and finance may determine to be necessary for

refunds under this section.

(2) On or before the twelfth day of each month, after reserving such

amount for such refunds and such costs, 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. Fifteen percent

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

the mass transportation operating assistance fund established by section

eighty-eight-a of the state finance law to the credit of the

metropolitan mass transportation operating assistance account therein.

Eighty-five percent of the revenues so certified shall be deposited by

the comptroller in the dedicated mass transportation trust fund

established pursuant to section eighty-nine-c of the state finance law

to be distributed as follows: eighty-five percent of such amount shall

be allocated to the New York city transit authority and its subsidiaries

and the Staten Island rapid transit operating authority and fifteen

percent of such amount shall be allocated to the Long Island Rail Road

Company and Metro-North commuter railroad company in accordance with the

procedures for payment and distribution specified in section twelve

hundred seventy-c of the public authorities law, for payment, subject to

appropriation, to the metropolitan transportation authority dedicated

tax fund established pursuant to section twelve hundred seventy-c of the

public authorities law.

(e) The provision for a refund or credit contained in clause six of

subdivision (a) of section eleven hundred nineteen shall not apply.

(f) The exemption contained in paragraph thirty of subdivision (a) of

section eleven hundred fifteen of this article shall not apply.

(g) Notwithstanding any other provision of state or local law,

ordinance or resolution to the contrary: (1) In the event that a county,

city or school district located in the metropolitan commuter

transportation district imposes taxes pursuant to the authority of

subpart B of part I of article twenty-nine of this chapter and elects to

provide the clothing and footwear exemption authorized in paragraph one

of subdivision (a) of section twelve hundred ten of this chapter, or the

taxes provided for in section eleven hundred eight of this article are

in effect in a city located in such district, the exemption provided by

paragraph thirty of subdivision (a) of section eleven hundred fifteen of

this article shall be applicable in such portion of the metropolitan

commuter transportation district in which such county, city or school

district which elects to provide the clothing and footwear exemption

authorized in paragraph one of subdivision (a) of section twelve hundred

ten of this chapter is located, or where the taxes provided for in

section eleven hundred eight of this part are in effect in a city

located in such district. The commissioner shall determine and certify

to the comptroller the amount of revenue forgone at the rate of

three-eighths of one percent under this section in such county, city or

school district on account of sales of clothing and footwear in such

county, city or school district.

(2) Commencing with the sales tax quarterly period which commences on

March first, two thousand, the commissioner shall make such

determinations and certifications on the twelfth day of the month

following the month in which sales tax quarterly returns are due under

section eleven hundred thirty-six of this article with respect to such

quarterly period for as long as such clothing and footwear exemptions

from such taxes imposed pursuant to the authority of article twenty-nine

of this chapter or by section eleven hundred eight of this part are in

effect. Neither the commissioner nor the comptroller shall be held

liable for any inaccuracy in such determinations and certifications.

Such determinations and certifications may be based on such information

as may be available to the commissioner at the time such determinations

and certifications must be made under this subdivision and may be

estimated on the basis of percentages or other indices calculated from

distributions from prior periods. The commissioner shall be authorized

to require such information as the commissioner deems necessary to

comply with the requirements of this subdivision from persons required

to file returns under such section eleven hundred thirty-six of this

article.

(3) By the fifteenth day of the month in which the commissioner has

made the certifications to the comptroller described in paragraph two of

this subdivision, the comptroller shall bill any county, city or school

district in such metropolitan commuter transportation district which

provides such clothing and footwear exemption, and any city in such

district in which the taxes imposed by section eleven hundred eight of

this part are in effect, an amount equal to one-half of the amount

certified to the comptroller by the commissioner in respect of such

county, city or school district; and such county, city or school

district shall pay the amount of such bill to the comptroller by the

twenty-fifth day of such month. The comptroller shall deposit any such

amounts received as provided in subdivision (d) of this section.

(4) In the event that a county, city or school district imposing tax

pursuant to the authority of subpart B of part I of article twenty-nine

of this chapter does not pay in full a bill described in paragraph three

of this subdivision by the twenty-fifth day of the month described in

paragraphs two and three of this subdivision, the comptroller shall

deduct any amount not paid from the amount of the next payment or

payments due such county, city or school district pursuant to

subdivision (c) of section twelve hundred sixty-one of this chapter

until such amount not paid has been recovered. The comptroller shall

deposit the amounts so deducted and recovered to be credited as provided

in paragraph three of this subdivision.

(5) In the event that a city in which the taxes imposed by section

eleven hundred eight of this article are in effect does not pay in full

a bill described in paragraph three of this subdivision by the

twenty-fifth day of the month described in paragraphs two and three of

this subdivision, the comptroller shall deduct any amount not paid from

the amount of any other moneys due such city from the comptroller, not

otherwise pledged, dedicated or encumbered pursuant to other state law,

until such amount not paid has been recovered. The comptroller shall

deposit the amounts so deducted and recovered to be credited as provided

in paragraph three of this subdivision.

(6) The commissioner shall certify the amount of any over calculation

or under calculation of any certification required to be made to the

comptroller under paragraph three of this subdivision as soon after its

discovery as reasonably possible and subsequent bills to a city, county

or school district to which the over calculation or under calculation

relates shall be adjusted accordingly, provided that the comptroller may

adjust such number of subsequent bills as the comptroller shall consider

reasonable in view of the amount of the adjustment and all other facts

and circumstances.

(7) On the same date that the comptroller is required to bill a

county, city or school district an amount as provided in paragraph three

of this subdivision, the comptroller shall, after having first made any

deposits required by section ninety-two-r of the state finance law and

only to the extent that there are moneys remaining after having made

such required deposits, withdraw from the state treasury, to the debit

of the general fund, an amount equal to the total of the amounts

required to be billed to counties, cities and school districts pursuant

to such subdivision three and deposit such total amount to be credited

as provided in such paragraph three. The amount of any over calculation

or under calculation determined in paragraph six of this subdivision

shall likewise be applied to the amounts required to be deposited under

this paragraph, so that the amounts deposited under this paragraph equal

the total of the amounts required to be billed to counties, cities and

school districts under such paragraph three, as adjusted, pursuant to

paragraph six of this subdivision.

(h) Notwithstanding any provision of law to the contrary:

(1) The commissioner shall determine and certify to the comptroller

the amount of revenue foregone as a result of the cents per gallon tax

in paragraph two of subdivision (m) of section eleven hundred eleven of

this part in lieu of tax at the rate provided in subdivision (a) of this

section.

(2) Commencing with the sales tax quarterly period beginning on June

first, two thousand six, the commissioner shall make such determinations

and certifications on the twelfth day of the month following the month

in which sales tax quarterly returns are due under section eleven

hundred thirty-six of this article with respect to such quarterly

period. Such determinations and certifications may be based on such

information as may be available to the commissioner at the time such

determinations and certifications must be made under this subdivision.

The commissioner shall be authorized to require such information as the

commissioner deems necessary to comply with the requirements of this

subdivision from persons required to file returns under such section

eleven hundred thirty-six.

(3) The comptroller shall, after having first made any deposits

required by section ninety-two-r of the state finance law and only to

the extent that there are moneys remaining after having made such

required deposits, withdraw from the state treasury, to the debit of the

general fund, and shall deposit the amount certified by the commissioner

as such revenue foregone as provided in subdivision (d) of this section.

(4) Neither the commissioner nor the comptroller shall be held liable

for any inaccuracy in such determinations and certifications. The

commissioner shall certify the amount of any over calculation or under

calculation of any certification required to be made to the comptroller

under this subdivision as soon after its discovery as reasonably

possible.