N.Y. Tax Law § 1261: Revenues resulting from taxes administered by the commissioner

§ 1261. Revenues resulting from taxes administered by the

commissioner. (a) All taxes, penalties and interest imposed by cities,

counties or school districts under the authority of section twelve

hundred ten, twelve hundred eleven, twelve hundred twelve or twelve

hundred twelve-A of this article, which are collected by the

commissioner, shall be deposited daily with such responsible banks,

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

comptroller, to the credit of the comptroller, in trust for the cities,

counties or school districts imposing the tax or for (i) the Nassau

county interim finance authority or (ii) the Buffalo fiscal stability

authority or (iii) the Erie county fiscal stability authority, created

by the public authorities law, (i) to the extent that net collections

from taxes imposed by Nassau county are payable to the Nassau county

interim finance authority or (ii) to the extent that net collections

from taxes imposed by Erie county or by the city of Buffalo are payable

to the Buffalo fiscal stability authority or (iii) to the extent that

net collections from taxes imposed by Erie county are payable to the

Erie county fiscal stability authority, or for any public benefit

corporation to which the tax may be payable pursuant to law. Such

deposits and deposits received pursuant to subdivision (b) of section

twelve hundred fifty-two of this article shall be kept in trust and

separate and apart from all other monies in the possession of the

comptroller. The comptroller shall require adequate security from all

such depositories of such revenue collected by the commissioner,

including the deposits received pursuant to subdivision (b) of section

twelve hundred fifty-two of this article. Any amount payable to such

authorities pursuant to the public authorities law shall, at the time it

is otherwise payable to (i) Nassau county, (ii) Erie county or the city

of Buffalo, or (iii) Erie county, respectively, as specified in this

section, be paid instead to such respective authority. Any amount

payable to a public benefit corporation pursuant to law shall, at the

time it is otherwise payable to the taxing jurisdiction as specified in

this section, be paid instead to such public benefit corporation.

(b) The comptroller shall retain in the comptroller's hands such

amount as the commissioner may determine to be necessary for refunds in

respect to the taxes imposed by cities, counties and school districts,

under the authority of section twelve hundred ten, twelve hundred

eleven, twelve hundred twelve or twelve hundred twelve-A, and for

reasonable costs of the commissioner in administering, collecting and

distributing such taxes, out of which the comptroller shall pay any

refunds of such taxes to which taxpayers shall be entitled under the

provisions of this article.

(c) (1) The comptroller, after reserving such refund fund and such

costs shall, on or before the twelfth day of each month pay to the

appropriate fiscal officers of the foregoing taxing jurisdictions the

taxes, penalties and interest imposed by such jurisdictions under the

authority of sections twelve hundred ten through twelve hundred twelve-A

of this article, collected by the commissioner pursuant to this article

during the next preceding calendar month, provided, however, that the

comptroller shall on or before the last day of June and December make a

partial payment consisting of the collections made during and including

the first twenty-five days of said months to said fiscal officers of the

foregoing taxing jurisdictions.

* (2) However, the taxes, penalties and interest from the additional

one percent rate which the city of Yonkers is authorized to impose

pursuant to item (a) of clause one of subparagraph (ii) of the opening

paragraph of section twelve hundred ten of this article, after the

comptroller has reserved such refund fund and such cost shall be paid to

the special sales and compensating use tax fund for the city of Yonkers

established by section ninety-two-f of the state finance law at the

times set forth in the preceding sentence.

* NB Effective until November 30, 2027

* (2) However, the taxes, penalties and interest from the additional

one percent rate which the city of Yonkers is authorized to impose

pursuant to section twelve hundred ten of this article, after the

comptroller has reserved such refund fund and such cost shall be paid to

the special sales and compensating use tax fund for the city of Yonkers

established by section ninety-two-f of the state finance law at the

times set forth in the preceding sentence.

* NB Effective November 30, 2027

(3) However, the taxes, penalties and interest which (i) the county of

Nassau, (ii) the county of Erie, to the extent the county of Erie is

contractually or statutorily obligated to allocate and apply or pay net

collections to the city of Buffalo and to the extent that such county

has set aside net collections for educational purposes attributable to

the Buffalo school district, or the city of Buffalo or (iii) the county

of Erie is authorized to impose pursuant to section twelve hundred ten

of this article, other than such taxes in the amounts described,

respectively, in subdivisions one and two of section one thousand two

hundred sixty-two-e of this part, during the period that such section

authorizes Nassau county to establish special or local assistance

programs thereunder, together with any penalties and interest related

thereto, and after the comptroller has reserved such refund fund and

such costs, shall, commencing on the next payment date after the

effective date of this sentence and of each month thereafter, until such

date as (i) the Nassau county interim finance authority shall have no

obligations outstanding, or (ii) the Buffalo fiscal stability authority

shall cease to exist, or (iii) the Erie county fiscal stability

authority shall cease to exist, be paid by the comptroller,

respectively, to (i) the Nassau county interim finance authority to be

applied by the Nassau county interim finance authority, or (ii) to the

Buffalo fiscal stability authority to be applied by the Buffalo fiscal

stability authority, or (iii) to the Erie county fiscal stability

authority to be applied by the Erie county fiscal stability authority,

as the case may be, in the following order of priority: first pursuant

to the Nassau county interim finance authority's contracts with

bondholders or the Buffalo fiscal stability authority's contracts with

bondholders or the Erie county fiscal stability authority's contracts

with bondholders, respectively, then to pay the Nassau county interim

finance authority's operating expenses not otherwise provided for or the

Buffalo fiscal stability authority's operating expenses not otherwise

provided for or the Erie county fiscal stability authority's operating

expenses not otherwise provided for, respectively, and then (i) pursuant

to the Nassau county interim finance authority's agreements with the

county of Nassau, which agreements shall require the Nassau county

interim finance authority to transfer such taxes, penalties and interest

remaining after providing for contractual or other obligations of the

Nassau county interim finance authority, and subject to any agreement

between such authority and the county of Nassau, to the county of Nassau

as frequently as practicable; or (ii) pursuant to the Buffalo fiscal

stability authority's agreements with the city of Buffalo, which

agreements shall require the Buffalo fiscal stability authority to

transfer such taxes, penalties and interest remaining after providing

for contractual or other obligations of the Buffalo fiscal stability

authority, and subject to any agreement between such authority and the

city of Buffalo, to the city of Buffalo or the city of Buffalo school

district, as the case may be, as frequently as practicable; or (iii)

pursuant to the Erie county fiscal stability authority's agreements with

the county of Erie, which agreements shall require the Erie county

fiscal stability authority to transfer such taxes, penalties and

interest remaining after providing for contractual or other obligations

of the Erie county fiscal stability authority, and subject to any

agreement between such authority and the county of Erie, to the county

of Erie as frequently as practicable. During the period that the

comptroller is required to make payments to the Nassau county interim

finance authority described in the previous sentence, the county of

Nassau shall have no right, title or interest in or to such taxes,

penalties and interest required to be paid to the Nassau county interim

finance authority, except as provided in such authority's agreements

with the county of Nassau. During the period that the comptroller is

required to make payments to the Buffalo fiscal stability authority

described in the second previous sentence, the city of Buffalo and such

school district shall have no right, title or interest in or to such

taxes, penalties and interest required to be paid to the Buffalo fiscal

stability authority, except as provided in such authority's agreements

with the city of Buffalo. During the period that the comptroller is

required to make payments to the Erie county fiscal stability authority

described in the third previous sentence, the county of Erie shall have

no right, title or interest in or to such taxes, penalties and interest

required to be paid to the Erie county fiscal stability authority,

except as provided in such authority's agreements with the county of

Erie.

(4) The amount so payable shall be certified to the comptroller by the

commissioner or the commissioner's delegate, who shall not be held

liable for any inaccuracy in such certificate. Provided, however, any

such certification may be based on such information as may be available

to the commissioner at the time such certificate must be made under this

section and may be estimated on the basis of percentages or other

indices calculated from distributions for prior periods.

(5) (i) However, the comptroller shall withhold from the taxes,

penalties and interest imposed by the city of New York on and after

August first, two thousand eight, and deposit such amounts to the state

treasury as reimbursement for appropriated disbursements made by the New

York state financial control board established by the New York state

financial emergency act for the city of New York and by the state deputy

comptroller for the city of New York established by section forty-one-a

of the executive law, as the actual, reasonable expenses of that board

or that deputy comptroller, incurred on behalf of the city, for

quarterly periods commencing July first, two thousand eight, and ending

on the date when those expenses are no longer incurred by that board or

deputy comptroller; and the comptroller shall pay those withheld amounts

immediately into the miscellaneous special revenue fund financial

control board account 339-15 and the miscellaneous special revenue fund

financial oversight account 339-DI of the state. During the period that

the comptroller is required to withhold amounts and make payments

described in this paragraph, the city of New York has no right, title or

interest in or to those taxes, penalties and interest required to be

paid into the above referenced miscellaneous special revenue funds.

(ii) After withholding the taxes, penalties and interest imposed by

the city of New York on and after August first, two thousand eight as

provided in subparagraph (i) of this paragraph, the comptroller shall

withhold a portion of such taxes, penalties and interest sufficient to

deposit annually into the central business district tolling capital

lockbox established pursuant to section five hundred fifty-three-j of

the public authorities law: (A) in state fiscal year two thousand

nineteen - two thousand twenty, one hundred twenty-seven million five

hundred thousand dollars; (B) in state fiscal year two thousand twenty -

two thousand twenty-one, one hundred seventy million dollars; and (C) in

state fiscal year two thousand twenty-one - two thousand twenty-two and

every succeeding state fiscal year, an amount equal to one hundred one

percent of the amount deposited in the immediately preceding state

fiscal year. The funds shall be deposited monthly in equal installments.

During the period that the comptroller is required to withhold amounts

and make payments described in this paragraph, the city of New York has

no right, title or interest in or to those taxes, penalties and interest

required to be paid into the above referenced central business district

tolling capital lockbox.

(6) Where the amount so paid over to any city, county, school district

or the special sales and compensating use tax fund for the city of

Yonkers in any such distribution or to any such authority is more or

less than the amount then due to such city, county, school district or

such fund or to such authority, the amount of the overpayment or

underpayment shall be certified to the comptroller by the commissioner

or the commissioner's delegate, who shall not be held liable for any

inaccuracy in such certificate. The amount of the overpayment or

underpayment shall be so certified to the comptroller as soon after the

discovery of the overpayment or underpayment as reasonably possible and

subsequent payments and distributions by the comptroller to such city,

county, school district or the special sales and compensating use tax

fund for the city of Yonkers or to such authority shall be adjusted by

subtracting the amount of any such overpayment from or by adding the

amount of any such underpayment to such number of subsequent payments

and distributions as the comptroller and the commissioner shall consider

reasonable in view of the amount of the overpayment or underpayment and

all other facts and circumstances.

(d) All of the provisions of this section shall apply to the taxes,

penalties and interest from sales and compensating use taxes on sales

and uses of motor fuel or diesel motor fuel imposed pursuant to this

article except that the amount certified to the comptroller by the

commissioner or the commissioner's delegate with respect to such taxes,

penalties and interest shall be based upon the receipts from retail

sales of motor fuel or diesel motor fuel sold each month at retail

service stations and on other sales of such fuel for consumption by the

purchaser in each county and city imposing such taxes, the total

receipts from taxes paid pursuant to the provisions of section eleven

hundred two of this article on motor fuel and diesel motor fuel sold in

this state each month, the total of the taxes, penalties and interest

collected or received in such month with respect to retail sales and

uses of motor fuel and diesel motor fuel (determined without regard to

the refunds or credits allowed pursuant to subdivisions (a) and (b) of

section eleven hundred twenty of this article), the sales tax rate

applicable for that month in such county or city, the regional average

retail sales price for such month, the amount of refunds and credits

allowed pursuant to subdivisions (c) and (d) of section eleven hundred

twenty of this article and such other data and standards as such

commissioner or delegate may deem necessary for such certification. The

commissioner or the commissioner's delegate shall arrive at the number

of gallons of motor fuel and diesel motor fuel sold in each such county

or city and in this state by use of the reports of the number of gallons

sold required to be filed pursuant to section eleven hundred thirty-six

of this chapter and such other information as such commissioner or

delegate deems appropriate. In arriving at the amount to be certified

and distributed, the commissioner shall consider the collections of the

taxes, penalties and interest required to be paid pursuant to the

provisions of section eleven hundred two of this article and the

authorized refunds and credits of the tax imposed by section eleven

hundred two of this article against the taxes required to be collected

or paid pursuant to this article.

(e) The total net collections from a tax imposed pursuant to section

twelve hundred eleven by a city and a school district or school

districts, so authorized, shall be distributed and paid to the city

school district where it is coterminous with or includes the entire city

or to all the school districts partly within or wholly within such city.

Except where the city school district is coterminous with the city or

includes the entire area of the city, such amounts shall be distributed

and paid to the school district or districts partly within or wholly

within the city, in accordance with the total average daily attendance

for the last preceding school year of pupils residing in each such

district and without regard to the location of the school attended.

(f) Notwithstanding any provision of state or local law, ordinance or

resolution to the contrary, if the commissioner of health timely

certifies to the commissioner that a county which imposes sales and

compensating use taxes pursuant to the authority of section twelve

hundred ten, twelve hundred ten-A, twelve hundred ten-B or twelve

hundred ten-C of this article properly exercised its option by September

thirtieth, two thousand seven, pursuant to section two of the chapter of

the laws of two thousand five which added this subdivision, that such

county be reimbursed for medical assistance expenditures as provided in

such section two of such chapter, then the commissioner shall calculate

the Medicaid amount of each such county. The amount due each month to

each such county provided for in subdivision (c) of this section shall

be reduced by the monthly Medicaid amount; and such monthly Medicaid

amount of each such county shall instead be paid into the general fund

of the state treasury to the credit of the state purposes account

therein. The calculation of each such county's Medicaid amount and

monthly Medicaid amounts and the procedures governing the payment of

such amounts shall be as follows:

(1) The commissioner of health shall furnish the commissioner with the

amount of every county's "two thousand six-two thousand seven fiscal

year social services district expenditure cap amount," as provided in

paragraph (e) of section one of a chapter of the laws of two thousand

five which added this subdivision, as soon as practicable but no later

than April first, two thousand seven.

(2) The commissioner shall calculate the "Medicaid factor" for every

county as follows and shall notify each county's chief fiscal officer of

the results of such calculation by April thirtieth, two thousand seven,

to help each county determine whether to exercise such option:

(A) for a county in which no city exercises any prior right to impose

sales or compensating use taxes authorized by section twelve hundred ten

of this article, first, divide the total amount of sales and

compensating use tax distributions to such county during state fiscal

year two thousand six-two thousand seven by the county's general rate of

such taxes during such period, and then divide the county's "two

thousand six-two thousand seven fiscal year social services district

expenditure cap amount" by the quotient of the first division;

(B) for a county in which one or more cities exercise any prior right

to impose sales or compensating use taxes authorized by section twelve

hundred ten of this article and the combined rate of the county's and

city's taxes in each such city equals the general rate of the county's

taxes on similar transactions in the area of the county outside such

city or cities, first, add the total amounts of sales and compensating

use tax distributions to such county and to each such city during state

fiscal year two thousand six-two thousand seven and divide such sum by

the county's general rate of such taxes during such period, and then

divide the county's "two thousand six-two thousand seven fiscal year

social services district expenditure cap amount" by the quotient of the

first division; and

(C) for a county in which one or more cities exercise any prior right

to impose sales or compensating use taxes authorized by section twelve

hundred ten of this article and the combined rate of the county's and

city's taxes in any such city does not equal the general rate of the

county's taxes on similar transactions in the area of the county outside

such city or cities:

(i) for each such city, add the total amount of sales and compensating

use tax distributions to such city during state fiscal year two thousand

six-two thousand seven and divide such sum by the city's effective

general rate of such taxes during such period, then multiply such

quotient by the amount by which the city's rate forced a reduction in

the county's rate of such taxes in such city during such period, and

then

(ii) add the amount derived in clause (i) of this subparagraph for

each such city to the total amount of sales and compensating use tax

distributions to such county during state fiscal year two thousand

six-two thousand seven;

(iii) divide the total of the addition in clause (ii) of this

subparagraph by the county's general rate of such taxes during such

period; and

(iv) divide the county's "two thousand six-two thousand seven fiscal

year social services district expenditure cap amount" by the quotient of

the division in clause (iii) of this subparagraph.

(D) The commissioner shall consider any change in a county's or city's

general rate of sales and compensating use taxes which takes effect

during state fiscal year two thousand six-two thousand seven and the

number of months such rates are in effect during such state fiscal year

in order to perform accurately the calculations provided for in this

paragraph.

(3) By the twelfth day of each month, commencing in January, two

thousand eight, the commissioner shall calculate the "monthly Medicaid

amount" of each such county which has made the election described in the

opening paragraph of this subdivision and certify such amounts to the

comptroller. The comptroller shall reduce the amount due each month to

each such county provided for in subdivision (c) of this section by such

monthly Medicaid amount; and the comptroller shall instead each month

pay the monthly Medicaid amount of each such county into the general

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

therein, provided, however, that the comptroller, subject to the

limitations provided in paragraphs five and six of this subdivision,

shall each month collect the amount of Nassau county's reduction from

amounts payable to such county by the Nassau county interim finance

authority while such authority exists.

(4) "Monthly Medicaid amount" shall mean the result of the following

calculations:

(A) for a county described in subparagraph (A) of paragraph two of

this subdivision, first, the amount of the comptroller's payment due

such a county in the immediately preceding month, as described in

subdivision (c) of this section and as described in sections twelve

hundred ten-A, twelve hundred ten-B and twelve hundred ten-C of this

article, but without regard to whether the comptroller is to pay all or

a portion of such amount to another entity described in subdivision (c)

of this section and without regard to the revenue disposition provisions

of such section twelve hundred ten-A, twelve hundred ten-B or twelve

hundred ten-C, and considered without regard to any Medicaid amount,

shall be divided by the county's general rate of sales and compensating

use taxes in such month; and the quotient of that division shall be

multiplied by the Medicaid factor calculated as provided in subparagraph

(A) of paragraph two of this subdivision.

(B) for a county described in subparagraph (B) of paragraph two of

this subdivision, first, add the amount of the comptroller's payment due

any city in such a county in the immediately preceding month, as

described in subdivision (c) of this section to the amount of the

comptroller's payment due such a county in the immediately preceding

month, as described in subdivision (c) of this section and as described

in sections twelve hundred ten-A, twelve hundred ten-B and twelve

hundred ten-C of this article, but without regard to whether the

comptroller is to pay all or a portion of such amount to another entity

described in subdivision (c) of this section and without regard to the

revenue disposition provisions of such section twelve hundred ten-A,

twelve hundred ten-B or twelve hundred ten-C, and considered without

regard to any Medicaid amount, then divide the total of such amounts by

the county's general rate of sales and compensating use taxes in such

month; and the quotient of that division shall be multiplied by the

Medicaid factor calculated as provided in subparagraph (B) of paragraph

two of this subdivision.

(C) For a county described in subparagraph (C) of paragraph two of

this subdivision:

(i) with respect to each such city described in subparagraph (C),

divide the amount of the comptroller's payment due each such city in the

immediately preceding month, as described in subdivision (c) of this

section, by the effective general rate of such city's taxes during such

month and multiply such quotient by the amount by which the city's rate

forced a reduction in the county's rate of such taxes in such city

during such month;

(ii) add the amount or amounts derived in clause (i) of this

subparagraph to the amount of the comptroller's payment due such county

in the immediately preceding month, as described in subdivision (c) of

this section and as described in sections twelve hundred ten-A, twelve

hundred ten-B and twelve hundred ten-C of this article, but without

regard to whether the comptroller is to pay all or a portion of such

amount to another entity described in subdivision (c) of this section

and without regard to the revenue disposition provisions of such section

twelve hundred ten-A, twelve hundred ten-B or twelve hundred ten-C, and

considered without regard to any Medicaid amount; and

(iii) divide the total of the addition in clause (ii) of this

subparagraph by the county's general rate of such taxes during such

month, and the quotient of that division shall be multiplied by the

Medicaid factor calculated as provided in subparagraph (C) of paragraph

two of this subdivision.

(5) If for any reason a county's monthly Medicaid amount is greater

than the amount of the comptroller's net payment to the county for that

month under subdivision (c) of this section and under sections twelve

hundred ten-A, twelve hundred ten-B and twelve hundred ten-C of this

article, after the comptroller has made any payments to other entities

required by subdivision (c) of this section or by any other law and

after any payment, deposit, appropriation, transfer or expenditure

required or authorized by such section twelve hundred ten-A, twelve

hundred ten-B or twelve hundred ten-C, the comptroller shall, at the

same time that the comptroller makes the payment and reduction described

in paragraph three of this subdivision, bill such county an amount equal

to the difference and such county shall pay in full the amount of such

bill to the comptroller by the twenty-fifth day of such month. Such

county shall use any funds available to it to pay such bill. The

comptroller shall deposit any such amounts received into the general

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

therein.

(6) If a county does not remit the required monies or pay in full a

bill described in paragraph five of this subdivision by the twenty-fifth

day of the month in accordance with paragraph five of this subdivision,

the comptroller shall, as soon as any other moneys payable to the county

are available, either deduct any amount not paid from the amount of the

next payment or payments due such county pursuant to subdivision (c) of

this section until such amount not paid has been recovered or, in the

alternative and at the comptroller's discretion, deduct any amount not

paid from the amount of any other moneys payable to such county from the

comptroller and not subject to any lien or pledge for the benefit of

bondholders of the Nassau county interim finance authority or of any

public benefit corporation, as defined in section sixty-six of the

general construction law, created by interstate compact or at least half

of whose members are appointed by the governor, until such amount not

paid has been recovered. The comptroller shall deposit any amounts so

deducted and recovered into the general fund of the state treasury to

the credit of the state purposes account therein.

(7) This subdivision shall apply to payments required in respect of a

county to be made on January twelfth, two thousand eight, and

thereafter.

(8) Nothing in this subdivision shall be construed to relieve a county

of any obligation or commitment to distribute and pay or allocate net

collections pursuant to this part, regardless whether such obligation or

commitment arises before or after the date this subdivision shall have

taken effect, or to preclude a city in a county from exercising its

prior rights under section twelve hundred twenty-four of this article.

To the extent that a county's net collections have been diminished below

a level sufficient to meet any such obligation or commitment as a result

of the reductions or bills provided for in this subdivision, such county

shall hereby be authorized to use any other funds available to it to

meet such obligation or commitment, notwithstanding any law to the

contrary.

(9) If a county adopts or amends a local law, ordinance or resolution

to repeal its sales and compensating use taxes, then, effective on the

first day of the first month on which such repeal takes effect, such

county's resolution electing to be reimbursed for certain medical

assistance expenditures pursuant to section two of the chapter of the

laws of two thousand five which added this subdivision shall also be

repealed automatically as of such date; and the commissioner shall

notify the commissioner of health of such county's repeal of such taxes.

In that event, as of such date, such county shall be treated as if it

had never made such election for purposes of such expenditures and such

commissioner of health shall thenceforth compute the amount due monthly

from such county for such expenditures pursuant to section one of the

chapter of the laws of two thousand five which added this subdivision.

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

resolution to the contrary, if the commissioner of health timely

certifies to the commissioner that a city having a population of one

million or more in which the taxes imposed by section eleven hundred

seven of this chapter are in effect or which imposes sales and

compensating use taxes pursuant to the authority of section twelve

hundred ten of this article properly exercised its option by September

thirtieth, two thousand seven, pursuant to section two of the chapter of

the laws of two thousand five which added this subdivision, that such

city be reimbursed for medical assistance expenditures as provided in

such section two of such chapter, then the commissioner shall calculate

the Medicaid amount of such a city. The amount due each month to such a

city with respect to such taxes and certain other taxes shall be

reduced; and the amount of each such reduction shall instead be paid

into the general fund of the state treasury to the credit of the state

purposes account therein. The calculation of such a city's Medicaid

amount and reductions and the procedure governing the payment of such

amounts are as follows:

(1) The commissioner of health shall furnish the commissioner with the

amount of such a city's "two thousand six-two thousand seven fiscal year

social services district expenditure cap amount," as provided in

paragraph (e) of section one of the chapter of the laws of two thousand

five which added this subdivision, as soon as practicable but no later

than April first, two thousand seven.

(2) The commissioner shall use or calculate the following amounts in

respect of such a city, which amounts shall be designated by the

following symbols, in order to determine the components of the monthly

amount described in paragraph three of this subdivision and shall notify

the chief fiscal officer of such city of the calculated value of "D" as

described in this paragraph and such other information available

relating to D, by April thirtieth, two thousand seven, to help such city

determine whether to exercise such option:

(A) "A" shall equal the amount of such a city's "two thousand six-two

thousand seven fiscal year social services district expenditure cap

amount," as furnished by the commissioner of health pursuant to

paragraph one of this subdivision;

(B)(i) "B1" shall equal the total amount of sales and compensating use

tax distributions during state fiscal year two thousand six-two thousand

seven to such city or to a municipal assistance corporation on such

city's behalf from taxes imposed in such city by section eleven hundred

seven of this chapter, other than taxes imposed by subdivision (c) of

such section eleven hundred seven, at the rate of three percent;

(ii) "B2" shall equal the total amount of sales tax distributions

during state fiscal year two thousand six-two thousand seven to such

city or to a municipal assistance corporation on such city's behalf from

taxes imposed in such city by subdivision (c) of section eleven hundred

seven of this chapter, at the rate of three percent;

(C) "C" shall equal the total amount of sales and compensating use tax

distributions during state fiscal year two thousand six-two thousand

seven to such city from its taxes imposed pursuant to the authority of

section twelve hundred twelve-A of this article; and

(D) "D" shall be the "Base Year PIT intercept amount" and shall equal

A less the sum of B1, B2 and C.

(3) (A) Commencing in January, two thousand eight, the commissioner

shall calculate the monthly Medicaid amount ("MA") for such city

according to the following formula: MA equals (((En/Fn) + (Ep/Fp)) X

(.03)) + (C/12) X (G) + (D/12) X (G); where C and D equal the amounts

described in paragraph two of this subdivision; "En" equals the current

month's portion of revenues from taxes imposed by section eleven hundred

seven of this chapter, excluding revenues from the tax on parking

imposed by subdivision (c) of such section eleven hundred seven, or from

taxes imposed pursuant to the authority of subdivision (a) of section

twelve hundred ten of this article, excluding revenues from the tax on

parking authorized by subdivision (a) of such section twelve hundred

ten; "Ep" equals the current month's revenues from either such tax on

parking, as the case may be; "Fn" equals the current month's general

rate of sales and use taxes imposed by such section eleven hundred seven

or pursuant to the authority of such section twelve hundred ten, other

than on parking; "Fp" equals the current month's rate of sales tax on

parking under or pursuant to the authority of such section eleven

hundred seven or twelve hundred ten, as the case may be; "G" equals a

growth factor according to the formula G equals (En/Fn) + (Ep/Fp)

divided by ((MB1/.04) + (MB2/.06)); "MB1" equals the revenues from taxes

imposed by section eleven hundred seven of this chapter, excluding

revenues from such tax on parking imposed by subdivision (c) of such

section eleven hundred seven, during the same month of state fiscal year

two thousand six-two thousand seven corresponding to the current month

described above; and "MB2" equals the revenues from such tax on parking

during the same month of state fiscal year two thousand six-two thousand

seven corresponding to the current month described above.

(B) Using the amount of MA calculated each month in subparagraph (A)

of this paragraph, the commissioner shall then calculate the amounts of

sales and use tax revenues (E + H, where E and H equal the amounts

described in subparagraph (C) of this paragraph) and personal income tax

revenues (PIT) of such city which are to be intercepted or billed for as

described in this subdivision, according to the formula MA equals E + H

+ PIT, as PIT is defined in subparagraph (D) of this paragraph. By the

twelfth day of each month, commencing in January, two thousand eight,

the commissioner shall establish the amount of E and H and certify such

amounts to the comptroller and by the fifteenth day of each month,

commencing in January, two thousand eight, the commissioner shall

establish the amount of PIT and certify such amount and the amount of MA

to the comptroller, in the manner set forth in this paragraph.

(C) (i) For the period commencing January first, two thousand eight,

and ending on the last day of the month in which the taxes imposed in

such a city by section eleven hundred seven of this chapter shall

expire, the sales and use tax component "E" shall equal the amount of

revenues from such taxes imposed at the rate of three percent or the

amount of revenues from such taxes imposed at the rate of four percent

after payments to the municipal assistance corporation for such a city

required under section ninety-two-d of the state finance law have been

made, whichever amount is less, and "H" shall equal net collections from

taxes imposed by such a city pursuant to the authority of section twelve

hundred twelve-A of this article, due such a city in the immediately

preceding month.

(ii) For the period commencing on the first day of the first month

following the period described in clause (i) of this subparagraph, the

sales and use tax component "E" shall equal net collections from sales

and compensating use taxes imposed by such city pursuant to the

authority of subdivision (a) of section twelve hundred ten of this

article up to the rate of three percent and "H" shall equal net

collections from taxes imposed by such city pursuant to the authority of

section twelve hundred twelve-A of this article, due such a city in the

immediately preceding month.

(D) For the period commencing January first, two thousand eight, the

PIT component for each month shall be designated "PIT" and shall equal

the portion of the revenues from taxes imposed by such city pursuant to

the authority of article thirty of this chapter due such a city in the

immediately preceding month, calculated according to the formula: PIT

equals MA - E - H.

(E)(i) During the period that the taxes imposed in such a city by

section eleven hundred seven of this chapter are in effect, the

comptroller shall each month, after paying amounts certified to by the

chairperson of the municipal assistance corporation created in aid of

such city, as provided for in section ninety-two-d of the state finance

law, pay the relevant portion of the sales and use tax component

relating to such taxes imposed by such section eleven hundred seven for

such month equal to E into the general fund of the state treasury to the

credit of the state purposes account therein.

(ii) During the period that the taxes imposed by such a city pursuant

to the authority of section twelve hundred ten of this article are in

effect, the comptroller shall reduce the amount due each month to such

city from such taxes provided for in subdivision (c) of this section by

the relevant portion of the sales and use tax component for such month

equal to E; and the comptroller shall instead each month pay such

portion into the general fund of the state treasury to the credit of the

state purposes account therein.

(iii) The comptroller shall reduce the amount due each month to such

city from taxes imposed pursuant to the authority of section twelve

hundred twelve-A provided for in subdivision (c) of this section by the

relevant portion of the sales and use tax component for such month equal

to H; and the comptroller shall instead each month pay such portion into

the general fund of the state treasury to the credit of the state

purposes account therein.

(iv) The comptroller shall each month certify to the New York city

transitional finance authority the monthly amount of PIT and such

authority shall, after applying amounts described in section thirteen

hundred thirteen of this chapter, immediately pay such monthly amount,

or so much of which is available after applying such amounts, directly

and immediately to the comptroller; and the comptroller shall upon

receipt of such moneys, subject to the exceptions in such section

thirteen hundred thirteen, pay them into the general fund of the state

treasury to the credit of the state purposes account therein.

(4) If for any reason such a city's Medicaid amount in a month (MA) is

greater than the sum of the amounts of the comptroller's net payments to

such city for that month under subdivision (c) of this section, under

section twelve hundred twelve-A of this article and under section

thirteen hundred thirteen of this chapter, after the comptroller has

made any payments to other entities required by any law and after any

payment, deposit, appropriation, transfer or expenditure required or

authorized by any of such sections, the comptroller shall, at the same

time that the comptroller makes the payments and reductions described in

paragraph three of this subdivision, bill such city an amount equal to

the difference and such city shall pay in full the amount of such bill

to the comptroller by the twenty-fifth day of such month. Such city

shall use any funds available to it to pay such bill. The comptroller

shall deposit any such amounts received into the general fund of the

state treasury to the credit of the state purposes account therein.

(5) If such a city does not pay in full a bill described in paragraph

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

accordance with such paragraph four, the comptroller shall, as soon as

any other moneys payable to the city are available, either deduct any

amount not paid from the amount of the next payment or payments due such

city pursuant to subdivision (c) of this section, section twelve hundred

twelve-A of this article or section thirteen hundred thirteen of this

chapter, until such amount not paid has been recovered or, in the

alternative and at the comptroller's discretion, deduct any amount not

paid from the amount of any other moneys payable to such city from the

comptroller and not subject to any lien or pledge for the benefit of

bondholders of the transitional finance authority or of the municipal

assistance corporation, until such amount not paid has been recovered.

The comptroller shall deposit any amounts so deducted and recovered into

the general fund of the state treasury to the credit of the state

purposes account therein.

(6) This subdivision shall apply to payments required in respect of a

city to be made on January twelfth, two thousand eight, and thereafter.

(7)(A) If such a city adopts or amends a local law, ordinance or

resolution to repeal its sales and compensating use taxes imposed

pursuant to the authority of subdivision (a) of section twelve hundred

ten of this article, then, effective on the first day of the first month

on which such repeal takes effect, such city's resolution electing to be

reimbursed for certain medical assistance expenditures pursuant to

section two of the chapter of the laws of two thousand five which added

this subdivision shall also be repealed automatically as of such date;

and the commissioner shall notify the commissioner of health of such

city's repeal of such taxes. In that event, as of such date, such city

shall be treated as if it had never made such election for purposes of

such expenditures and such commissioner of health shall thenceforth

compute the amount due monthly from such city for such expenditures

pursuant to section one of such chapter of the laws of two thousand

five.

(B) If such city adopts or amends a local law to repeal its taxes on

personal income authorized by article thirty of this chapter, the

comptroller shall bill such city monthly in the manner provided in

paragraph four of this subdivision for any amounts due under this

subdivision which otherwise would have been paid out of revenues from

such taxes into the general fund of the state treasury pursuant to this

subdivision, and such bills shall be paid as provided in paragraph four

of this subdivision and any bill not paid shall be treated as provided

in paragraph five of this subdivision.