N.Y. Tax Law § 261: Payment over and distribution of taxes

§ 261. Payment over and distribution of taxes. 1. The balance of all

moneys paid to the recording officer of each county during each month

upon account of the additional taxes imposed pursuant to subdivision two

of section two hundred fifty-three of this article, after deducting the

necessary expenses of his or her office as provided in section two

hundred sixty-two of this article, except taxes paid upon mortgages

which under the provisions of section two hundred sixty of this article

are first to be apportioned by the commissioner, shall be paid over by

him or her on or before the tenth day of each succeeding month as

follows: (a) with respect to those counties comprising the metropolitan

commuter transportation district, as defined by the provisions of

section twelve hundred sixty-two of the public authorities law, to the

metropolitan transportation authority to be applied in any authority

fiscal year beginning on or after January first, nineteen hundred

eighty-seven (i) first, to meet the general, administrative and

operating expenses of the authority net of reimbursements, recoveries

and adjustments, not including the expenses of any subsidiaries thereof

which operate any transportation facility, (ii) second, from any

remaining revenues, fifty-five per centum of such revenues shall be paid

by the metropolitan transportation authority to the transit account of

the metropolitan transportation authority special assistance fund

established by section twelve hundred seventy-a of the public

authorities law; and (iii) the remaining forty-five per centum shall be

paid by the metropolitan transportation authority to the commuter

railroad account of the metropolitan transportation authority special

assistance fund established by section twelve hundred seventy-a of the

public authorities law; (b) with respect to those counties comprising

the Niagara Frontier transportation district, as defined by the

provisions of section twelve hundred ninety-nine-b of the public

authorities law, to the Niagara Frontier transportation authority; (c)

with respect to those counties comprising the Rochester-Genesee regional

transportation district, as defined by the provisions of section twelve

hundred ninety-nine-cc of the public authorities law, to the

Rochester-Genesee Regional Transportation Authority; (d) with respect to

those counties comprising the capital district transportation district,

as defined by the provisions of section thirteen hundred two of the

public authorities law, to the capital district transportation

authority; (e) with respect to those counties comprising the central New

York regional transportation district, as defined by the provisions of

section thirteen hundred twenty-seven of the public authorities law, to

the central New York regional transportation authority; (f) with respect

to the county of Dutchess or the county of Orange or the county of

Rockland if any such county withdraws from the metropolitan commuter

transportation district pursuant to section twelve hundred

seventy-nine-b of the public authorities law and does not suspend the

imposition of such additional tax, to the county treasurer of such

county if such county provides that the moneys shall be used for mass

transportation purposes but, if any such county which so withdraws and

which does not so suspend does not so provide, to the comptroller

pursuant to paragraph (p) of this subdivision; * (g) with respect to the

county of Washington, to the county treasurer of such county to be used

to pay for any and all expenses incurred by such county for the support

of community colleges pursuant to article one hundred twenty-six of the

education law; with respect to the county of Essex, to the county

treasurer of such county to be used to pay for any and all expenses

incurred by such county for county office and court facility projects

and, after all such expenses are paid, for any and all expenses incurred

by such county for county correctional and public safety facility

projects;

* NB Effective until December 1, 2027

* (g) with respect to the county of Washington, to the county

treasurer of such county to be used to pay for any and all expenses

incurred by such county for the support of community colleges pursuant

to article one hundred twenty-six of the education law; with respect to

the county of Essex, to the county treasurer of such county to be used

to pay for any and all expenses incurred by such county for county

office and court facility projects;

* NB Effective December 1, 2027

(h) with respect to the county of Franklin, to the county treasurer of

such county to be used to pay for any and all expenses incurred by such

county for county office and county correctional facility projects; (i)

with respect to the county of Clinton, to the county treasurer of such

county to be used to pay for any and all expenses incurred by such

county for county office and other county capital projects; (j) with

respect to the county of Chautauqua, to the county treasurer of such

county to be used to pay for any and all expenses incurred by such

county for county correctional facility and court facility projects, and

debt service thereon, including but not limited to, related heating,

ventilation, air-conditioning and parking infrastructure upgrades; (j-1)

with respect to the county of Tompkins, to the county treasurer of such

county for mass transportation purposes; (k) with respect to the county

of Allegany, to the county treasurer of such county for deposit into the

general fund of the county of Allegany; (l) with respect to the county

of Schuyler, to the county treasurer of such county to be used to pay

for any and all expenses incurred by such county for the support of

community colleges pursuant to article one hundred twenty-six of the

education law; (m) with respect to the county of Delaware, to the county

treasurer of such county to be used to pay for the cost of the county

correctional facility and public safety building complex and the county

composting facility; * (n) with respect to the county of Fulton, to the

county treasurer of such county for deposit into the general fund of the

county of Fulton;

* NB Repealed November 30, 2027

(o) with respect to the county of Steuben, to the county treasurer of

such county for deposit into the general fund of the county of Steuben;

(p) with respect to the remaining counties of the state except

Cattaraugus county which have not suspended the imposition of such

additional tax pursuant to subdivision two of section two hundred

fifty-three of this article, to the comptroller to be paid by them into

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

purposes account; provided that money paid to the comptroller with

respect to any such remaining county in which on the date of such

payment any mass transportation, airport or aviation, municipal historic

site, municipal park, community mental health and developmental

disabilities facility, or sewage treatment capital project is being

carried out by a municipality with state aid, or for which state aid

will be paid, pursuant to the provisions of title one of chapter seven

hundred seventeen of the laws of nineteen hundred sixty-seven, section

17.05 of the parks, recreation and historic preservation law, section

41.18 of the mental hygiene law, or section 17-1903 of the environmental

conservation law, shall be applied by them to increase the amount of aid

for which the state is obligated in respect to such project on such

date, provided that any such increase in state aid may not, together

with any federal funds paid or to be paid on account of the cost of such

project, exceed the total cost thereof, and where more than one such

capital project is being carried out on such date within such county,

the application of such monies by the comptroller shall be pro-rated

among such municipalities on the basis of the respective amounts of

state aid which are so obligated on such date; (q) with respect to the

county of Cattaraugus, to the comptroller to be paid by them into the

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

account for the construction of a county office building and a county

department of public works office building, or debt service thereon

being carried out by the county of Cattaraugus up to but not exceeding

the total cost for such county office building and county department of

public works building, or debt service thereon less the amount of any

state aid or federal funds paid or to be paid on account of such project

or debt service thereon; and (r) with respect to the county of Chenango,

to the county treasurer of such county for deposit into the general fund

of the county of Chenango. Notwithstanding the provisions of the

preceding sentence, additional taxes so imposed and paid upon mortgages

covering real property situated in two or more counties, which under the

provisions of section two hundred sixty of this article are first to be

apportioned by the commissioner, shall be paid over by the recording

officer receiving the same as provided by the determination of said

commissioner.

If and to the extent that either metropolitan transportation authority

or Niagara Frontier transportation authority or Rochester-Genesee

regional transportation authority or capital district transportation

authority or central New York regional transportation authority shall

certify that the proceeds of such additional tax received by it for any

calendar year subsequent to nineteen hundred sixty-nine are in excess of

its needs, present and projected, and of those of its subsidiary

corporations, such excess shall be paid over at the end of such calendar

year to the comptroller for payment or application by him or her in

accordance with the provisions of paragraph (p) of the opening paragraph

of this subdivision. For the purposes of such application any such

excess shall be allocated among the counties comprising a transportation

district in the same proportion that their respective recording officers

paid over additional taxes hereunder during the whole of the calendar

year which is the subject of the certification. For the counties

comprising the city of New York, any such application shall be for the

benefit of such city.

2. The balance of all moneys paid to the recording officer of each

county during each month upon account of the special additional taxes

imposed pursuant to subdivision one-a of section two hundred fifty-three

of this chapter, after deducting the necessary expenses of his office as

provided in section two hundred sixty-two, except taxes paid upon

mortgages which under the provisions of section two hundred sixty are

first to be apportioned by the tax commission, shall be paid over by him

on or before the tenth day of each succeeding month to the state of New

York mortgage agency created pursuant to title seventeen of article

eight of the public authorities law for deposit to the credit of the

mortgage insurance fund created pursuant to such title, and (i) except

that with respect to mortgages recorded on and after May first, nineteen

hundred eighty-seven, the balance of all moneys paid upon account of

such special additional taxes during each month to the recording

officers of the counties comprising the metropolitan commuter

transportation district, as defined by section twelve hundred sixty-two

of the public authorities law, on mortgages of any real property

principally improved or to be improved by a structure containing six

residential dwelling units or less with separate cooking facilities,

after the deduction of such expenses, shall be paid over by him on or

before the tenth day of each succeeding month to the metropolitan

transportation authority for deposit in the corporate transportation

account of the metropolitan transportation special assistance fund

established by section twelve hundred seventy-a of the public

authorities law, and (ii) except that with respect to mortgages recorded

on and after May first, nineteen hundred eighty-seven, the balance of

all moneys paid upon account of such special additional taxes during

each month to the recording officers of the county of Erie on mortgages

of any real property principally improved or to be improved by a

structure containing six residential dwelling units or less with

separate cooking facilities, after the deduction of such expenses, shall

be paid over by him on or before the tenth day of each succeeding month

to the Niagara Frontier transportation authority. Notwithstanding the

provisions of the preceding sentence, the special additional taxes so

imposed and paid upon mortgages covering real property situated in two

or more counties, which under the provisions of section two hundred

sixty are first to be apportioned by the commissioner, shall be paid

over by the recording officer receiving the same as provided by the

determination of said commissioner.

3. On or before the tenth day of each month the recording officer of

each county shall pay over to the county treasurer of said county, and

in the counties of New York, Kings, Queens, Richmond and Bronx to the

commissioner of finance of the city of New York for credit to the

general fund of such city, the balance of the moneys received during the

preceding month upon account of taxes paid to him or her as herein

prescribed, after deducting the necessary expenses of his or her office

as provided in section two hundred sixty-two of this article, except

taxes paid upon mortgages which under the provisions of section two

hundred sixty of this article are first to be apportioned by the

commissioner, which taxes and money shall be paid over by the

commissioner of finance of the city of New York as provided by the

determination of the commissioner. In each county not within the city of

New York, the whole of the net amount of such balance, after the

deduction by the county treasurer of the necessary expenses of his or

her office provided in section two hundred sixty-two of this article,

shall be held by him or her and shall be allocated to the tax districts

of the county according to the location of the real property covered by

the respective mortgages upon which the tax was collected. The recording

officer and county treasurer shall prepare a joint semi-annual report on

or before May fifteenth and on or before November fifteenth in each year

showing the amounts to be credited to each tax district of the county of

the moneys collected under this article during the preceding periods of

six months each which ended respectively on March thirty-first and

September thirtieth. Such report shall be made in duplicate in

accordance with the rules and regulations of the commissioner and filed

with the clerk of the board of supervisors and the commissioner. The

board of supervisors, on or before the fifteenth day of June and on or

before the fifteenth day of December in each year, shall issue its

warrant for the payment to the respective tax districts of the amounts

so credited, provided, however, that in a county in which a town

contains within its limits an incorporated village, or portion thereof,

the board of supervisors shall apportion to such village so much of the

share credited to the town as the assessed value of said village or

portion thereof bears to twice the total assessed valuation of the town,

and provided, further, that, at the option of the governing board of the

county, the county may instead prepare and file such a joint report and

make such payments on a monthly or quarterly basis. Where the county

elects to make monthly payments, the recording officer and county

treasurer shall prepare a joint report on or before the fifteenth day of

each month showing the amounts to be credited to each tax district of

the county and the moneys collected under this article for the month

preceding the most recently concluded month, and the board of

supervisors shall issue its warrant for payment on or before the

fifteenth day of the following month. Where the county elects to make

quarterly payments, the recording officer and county treasurer shall

prepare such a joint report on or before the fifteenth day of May,

August, November, and February, showing the amounts to be credited to

each tax district of the county of moneys collected under this article

for the preceding three-month period ending March thirty-first, June

thirtieth, September thirtieth, and December thirty-first, respectively

and the board of supervisors shall issue its warrant for payment on or

before the fifteenth day of June, September, December, and March,

respectively. The warrant shall direct payment to the city treasurer of

the amount due the city, to the town supervisor of the amount due the

town, and to the village treasurer of the amount to which the village

shall be entitled. Mortgage tax moneys allotted to cities, towns and

villages shall be applied to the payment of the general expenses

thereof. The commissioner shall prescribe the method of adjustment and

correction of errors heretofore or hereafter made in the distribution of

moneys collected under this article. Provided, however that in the town

of Ossining, county of Westchester, monies due to the unincorporated

portion of the town shall be placed in the unincorporated town fund

instead of into the general fund of such town.