N.Y. Tax Law § 1235: Taxes paid to other jurisdictions

§ 1235. Taxes paid to other jurisdictions. (a) With respect to taxes

imposed pursuant to subdivision (a) of section twelve hundred ten and

pursuant to section twelve hundred eleven, the use of tangible personal

property purchased at retail and of any of the services subject to the

sales tax shall be exempt from the compensating use tax authorized under

subdivision (a) of such section twelve hundred ten and under section

twelve hundred eleven, to the extent that a retail sales tax or a

compensating use tax was legally due and paid thereon, without any right

to a refund or credit thereof, to (1) any municipal corporation in this

state or (2) any other state or jurisdiction within any other state, but

only when it is shown that such other state or jurisdiction allows a

corresponding exemption with respect to the sale or use of tangible

personal property or of any of the services upon which such a sale or

compensating use tax was paid to this state and any of its municipal

corporations, except as provided in subdivision (b) of this section.

(b) To the extent that a compensating use tax imposed pursuant to this

article and the compensating use tax imposed by article twenty-eight are

at a higher aggregate rate than the rate of tax imposed in any other

state or jurisdiction within any other state, the exemption provided in

subdivision (a) of this section shall be inapplicable and the taxes

imposed pursuant to this article and by article twenty-eight shall apply

to the extent of the difference between such aggregate rate and the rate

paid in such other state or jurisdiction. In such event, the amount

payable shall be allocated between the tax imposed pursuant to this

article and the tax imposed by article twenty-eight in proportion to the

respective rates of such taxes. Where a retail sales tax or a

compensating use tax was legally due and paid to any municipal

corporation in this state, without any right to a refund or credit

thereof, with respect to the sale or use of tangible personal property

or any of the services subject to sales or compensating use tax, if the

use of such property or services is then subject to a compensating use

tax imposed by any other municipal corporation in this state and such

tax is at a higher rate than the rate of tax imposed by the first

municipal corporation, the tax of the municipal corporation with the

higher rate shall also apply but only to the extent of the difference in

such rates and such tax shall be distributable to such municipal

corporation, pursuant to section twelve hundred sixty-one, without

allocation as hereinabove provided. Where a retail sales tax or a

compensating use tax was legally due and paid to this state only, with

respect to the sale or use of tangible personal property or any of the

services subject to sales or compensating use tax, if the use of such

property or services is then subject to a compensating use tax imposed

by a municipal corporation in this state, such tax shall be

distributable to the municipal corporation, pursuant to section twelve

hundred sixty-one, without allocation as hereinabove provided.

(c) For purposes of this section, a payment to the tax commission of a

tax imposed by a municipal corporation shall be deemed a payment to such

municipal corporation.