N.Y. Tax Law § 1313: Deposit and disposition of revenues

§ 1313. Deposit and disposition of revenues. (a) All revenue collected

by the commissioner from the taxes imposed pursuant to the authority of

this article or former article two-E of the general city law 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 city of New York or the New York

city transitional finance authority, as their interests may appear

pursuant to this section. Such deposits shall be kept in trust and

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

comptroller. The comptroller shall require adequate security from all

such depositories of such revenue collected by the commissioner.

(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 pursuant to the authority of this article

or former article two-E of the general city law and for reasonable costs

of the commissioner in administering, collecting and distributing such

taxes and the tax imposed pursuant to article twenty-four-B of this

chapter, out of which the comptroller shall pay any refunds of such

taxes to which taxpayers shall be entitled under any law enacted

pursuant to the authority of this article or former article two-E of the

general city law.

(c) Subject to the provisions of subsection (g) of this section, the

comptroller, after reserving such refund fund and such costs shall,

commencing on or before the fifteenth day of each month, pay to the New

York city transitional finance authority on a daily basis the balance of

taxes imposed pursuant to the authority of this article or former

article two-E of the general city law to be applied by the authority, in

the following order of priority: first pursuant to the authority's

contracts with bondholders, then to pay the authority's operating

expenses not otherwise provided for, and then pursuant to the

authority's agreements with the city, which agreements shall require the

authority to transfer the balance of such taxes not required to meet

contractual or other obligations of the authority to the city as

frequently as practicable; except that the comptroller shall:

(1) pay to the state department of social services that amount of

overpayments of the taxes imposed pursuant to the authority of this

article or former article two-E of the general city law and the interest

on such amount which is certified to the comptroller by the commissioner

as the amount to be credited against past-due support pursuant to

subdivision six of section one hundred seventy-one-c of this chapter;

(2) pay to the New York state higher education services corporation

that amount of overpayments of the taxes imposed pursuant to the

authority of this article or former article two-E of the general city

law and the interest on such amount which is certified to the

comptroller by the commissioner as the amount to be credited against the

amount of defaults in repayment of guaranteed student loans pursuant to

subdivision five of section one hundred seventy-one-d of this chapter;

(3) pay to the state university of New York or the city university of

New York respectively that amount of overpayments of the taxes imposed

pursuant to the authority of this article or former article two-E of the

general city law and the interest on such amount which is certified to

the comptroller by the commissioner as the amount to be credited against

the amount of defaults in repayment of state or city university loans

pursuant to subdivision six of section one hundred seventy-one-e of this

chapter;

(4) notwithstanding any provision of law, credit to the revenue

arrearage account, pursuant to section ninety-one-a of the state finance

law, that amount of overpayments of the taxes imposed pursuant to the

authority of this article or former article two-E of the general city

law and the interest on such amount which is certified to the

comptroller by the commissioner as the amount to be credited against a

past-due legally enforceable debt owed to a state agency pursuant to

paragraph (a) of subdivision six of section one hundred seventy-one-f of

this chapter, provided, however, the comptroller shall credit to the

special offset fiduciary account, pursuant to section ninety-one-c of

the state finance law, any such amount creditable as a liability as set

forth in paragraph (b) of subdivision six of section one hundred

seventy-one-f of this chapter;

(5) pay to the city of New York that amount of overpayments of tax

imposed pursuant to the authority of this article and the interest on

such amount which is certified to the comptroller by the commissioner as

the amount to be credited against city of New York tax warrant judgment

debt pursuant to section one hundred seventy-one-l of this chapter; and

(6) pay to a non-obligated spouse that amount of overpayment of tax

imposed pursuant to the authority of this article or former article

two-E of the general city law and the interest on such amount which has

been credited pursuant to section one hundred seventy-one-c, one hundred

seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or

one hundred seventy-one-l of this chapter and which is certified to the

comptroller by the commissioner as the amount due such non-obligated

spouse pursuant to paragraph six of subsection (b) of section six

hundred fifty-one of this chapter, and the comptroller shall deduct a

like amount which, the comptroller shall pay into the treasury to the

credit of the general fund, from amounts subsequently payable to the

office of temporary and disability assistance, the state university of

New York, the city university of New York, the higher education services

corporation, or the revenue arrearage account or special offset

fiduciary account pursuant to section ninety-one-a or ninety-one-c of

the state finance law, as the case may be, whichever had been credited

the amount originally withheld from such overpayment.

(d) The amount deducted under subsection (b) of this section for

administering, collecting and distributing such taxes during such

monthly period shall be paid by the comptroller into the general fund of

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

(e) The first payment to such chief fiscal officer shall be made on or

before March fifteenth, nineteen hundred seventy-six, which payment

shall represent the balance of revenue after provision for refund and

such reasonable costs, with respect to taxes collected from January

first, nineteen hundred seventy-six through February twenty-ninth,

nineteen hundred seventy-six. Subsequent payments shall be made on or

before April fifteenth, nineteen hundred seventy-six, and on or before

the fifteenth day of each succeeding month thereafter, and shall

represent the balance of revenue with respect to taxes collected the

preceding calendar months.

(f) The amounts so payable under this section shall be certified to

the comptroller by the commissioner or the commissioner's delegate,

either of whom shall not be held liable for any inaccuracy in such

certificate. Where the amount so paid over to such chief fiscal officer

is more or less than the amount then due such city, the amount of

overpayment or underpayment shall be certified to the comptroller by the

commissioner or the commissioner's delegate, either of whom shall not be

held liable for any inaccuracy in such certificate. The amount of

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 by the comptroller to such

chief fiscal officer 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.

(g) The balance payable to the New York city transitional finance

authority pursuant to this section shall instead be paid to the chief

fiscal officer of the city of New York unless and until the comptroller

has received from such authority a notice, which shall be conclusive and

upon which the comptroller may rely without further inquiry, that such

authority has incurred obligations payable by it, whether for borrowed

money, operating expenses or otherwise. On and after the date of such

notice and until such date as the authority shall have no obligations

outstanding, the city shall have no right, title or interest in or to

the taxes, except as provided in the authority's agreements with the

city.

(h) 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 which imposes tax pursuant to the authority of this

article properly exercised its option 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, the commissioner shall

make and certify the calculations and the comptroller shall, on the

fifteenth day of each month, starting in January, two thousand eight,

intercept and pay monthly amounts of revenue from taxes imposed in such

a city pursuant to the authority of this article, as provided in

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