N.Y. State Fin. Law § 92-D

Current through 2024 NY Law Chapter 443

Section 92-D - Municipal assistance tax fund

1. There is hereby established in the custody of the comptroller a special fund to be known as the municipal assistance tax fund. Within such fund, there is hereby established a special account for each municipal assistance corporation created under article ten of the public authorities law.

2. Such fund shall consist of the revenues derived from municipal assistance sales and compensating use taxes imposed by sections eleven hundred seven and eleven hundred eight of the tax law, any amounts transferred from the stock transfer tax fund pursuant to section ninety-two-b of this article, any amounts transferred pursuant to subdivision (a) of section nine of chapter seven hundred twenty-one of the laws of nineteen hundred ninety-four, as amended by chapter one hundred eighty-seven of the laws of nineteen hundred ninety-five, and such amount of aid apportioned and paid into such fund pursuant to section fifty-four of this chapter.

3. The taxes, interest and penalties imposed, pursuant to sections eleven hundred seven or eleven hundred eight (as the case may be) of the tax law within the territorial limits of a city in aid of which a municipal assistance corporation has been created, and received by the commissioner of taxation and finance, after deducting the amount which the commissioner of taxation and finance shall determine to be necessary for reasonable costs of the commissioner of taxation and finance in administering, collecting and distributing such taxes, shall be appropriated (i) to the municipal assistance corporation which has been created in aid of such city in order to enable such corporation to fulfill the terms of any agreements made with the holders of its notes and bonds and to carry out its corporate purposes, including the maintenance of the capital reserve fund, and (ii) the balance, if any, to the city in aid of which such corporation has been created, or to a public benefit corporation to which the tax may be otherwise payable pursuant to law, as hereinafter provided.

4. On or before the twelfth day of each month, 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. The amount of revenues so certified shall be deposited by the comptroller in the municipal assistance tax fund and the amount attributable to the taxes, interest and penalties imposed within the territorial limits of a city in aid of which a municipal assistance corporation has been created shall be credited to a special account established in such fund for such corporation. Notwithstanding the foregoing provisions, the commissioner of taxation and finance may prorate revenue attributable to the first or last quarterly return period during which the taxes imposed by section eleven hundred seven or eleven hundred eight (as the case may be) of the tax law apply so as to separate from the revenue collected for that quarter pursuant to such taxes the revenue collected pursuant to local legislation adopted by a city pursuant to section twelve hundred ten or twelve hundred twelve-A of the tax law. Such a proration by the commissioner of taxation and finance shall be made on the basis of the ratio of the number of months during which such taxes were imposed during such quarterly return period to the total number of months in such quarterly return period when such proration is reasonably necessary to ascertain the amount of such money which must be deposited by the comptroller in such special account and the amount of such money which must be deposited pursuant to section twelve hundred sixty-one of the tax law. The commissioner of taxation and finance shall not be held liable for any inaccuracy in any certification under this subdivision.

5. Revenues in any special account in the municipal assistance tax fund shall be kept separate and shall not be commingled with any other moneys in the custody of the comptroller. All deposits of such revenues shall, if required by the comptroller, be secured by obligations of the United States or of the state having a market value equal at all times to the amount of such deposits and all banks and trust companies are authorized to give security for such deposits. Any such revenues in such fund may, in the discretion of the comptroller, be invested in obligations of the United States or of the state or in obligations the principal of and interest on which are guaranteed by the United States or by the state.

6. Upon receipt by the comptroller of a certificate or certificates from the chairman of a municipal assistance corporation that such corporation requires a payment or payments in order to comply with any agreement with the holders of its notes and bonds and to carry out its corporate purposes, including the maintenance of the capital reserve fund, from the special account established for such corporation, each of which certificates shall specify the required payment or payments and the date when the payment or payments is required, the comptroller shall pay from such special account on or before the specified date or within thirty days after such receipt, whichever is later, to such corporation, as the chairman thereof may direct in any such certificate, the amount or amounts so certified. The chairman of such corporation shall furnish the commissioner of taxation and finance with copies of such certificates. The comptroller shall from time to time, but in no event later than the fifteenth day of October, January and April and the last day of June of each fiscal year, pay over and distribute to the chief fiscal officer of the city in aid of which such municipal assistance corporation has been created to be paid into the treasury of such city to the credit of the general fund, or pay over and distribute to a public benefit corporation to which the tax may otherwise be payable pursuant to law, all revenues in the special account established for such corporation in the municipal assistance tax fund, if any, in excess of the aggregate amount which the chairman of such corporation has certified to the comptroller and which has been previously appropriated and paid to such corporation as hereinabove authorized. In no event shall the comptroller pay over and distribute any revenues (other than the amount to be deducted for administering, collecting and distributing such sales and compensating use taxes) to any person other than the municipal assistance corporation unless and until the aggregate of all payments certified to the comptroller as required by such corporation as of such date in order to comply with its agreements with the holders of its notes and bonds and to carry out its corporate purposes, including the maintenance of the capital reserve fund, which remain unappropriated or unpaid to such corporation shall have been appropriated to such corporation and shall have been paid in full; provided, however, that no person, including such corporation or the holders of its notes or bonds shall have any lien on such revenues and such agreement shall be executory only to the extent of such revenues available to the state in such special account. On the day on which the comptroller pays over and distributes to the chief fiscal officer of such city any revenues from such special account the commissioner of taxation and finance shall certify to the comptroller the amount to be deducted for administering, collecting and distributing the tax imposed pursuant to section eleven hundred seven or eleven hundred eight (as the case may be) of the tax law within the territorial limits of such city since he last certified such amount and the comptroller shall pay such amount into the general fund of the state treasury to the credit of the state purposes fund therein.

7. In the event that the amount of revenues in the special account established for the municipal assistance corporation for the city of New York in the municipal assistance tax fund which have been appropriated to such corporation shall at any time be less than the amount which the chairman of such corporation has certified to the comptroller as required in order to comply with its agreements with the holders of its notes and bonds and to carry out its corporate purposes, including the maintenance of the capital reserve fund, then and in such event the comptroller shall forthwith certify to the commissioner of taxation and finance the amount of the difference between the revenues in such special account and the amount so certified as required by such corporation and upon receipt of such certificate the commissioner of taxation and finance shall approve a voucher for payment of the amount of such difference into such special account in the municipal assistance tax fund from the stock transfer tax fund established pursuant to subdivision one of section ninety-two-b of this chapter at the next date for payment from such fund as provided in subdivision four of such section, anything in said section to the contrary notwithstanding. In the case of every twelve month period commencing after June thirtieth, nineteen hundred seventy-seven, the comptroller shall, before the last day of September, December, March and June of each such period, certify to the commissioner of taxation and finance the amount from the stock transfer tax fund, if any, determined by the comptroller to be required during the next following three months in order to provide the amounts certified by the chairman of the municipal assistance corporation for the city of New York, or if no such amount is necessary, a statement to that effect. The amount so determined shall be arrived at after taking into account a statement, to be furnished by the commissioner of taxation and finance to the comptroller, of such information, including revenue collection and estimates of revenue collection for certain periods of the taxes imposed by section eleven hundred seven of the tax law, as such commissioner is reasonably able to provide in order to aid such comptroller in making the above determination with respect to disposition of revenues in the stock transfer tax fund. Such commissioner shall not be held liable for any inaccuracy of any such information provided in such statement. The foregoing certificate or statement, as the case may be, of such comptroller shall be made regardless of the amount of revenues in the special account established for the municipal assistance tax fund which have been appropriated to such corporation. When all the notes and bonds of the corporation have been fully paid and discharged, together with the interest thereon and interest on unpaid installments of interest, the chairman of the corporation must make a final certification to the comptroller that the corporation has no more liabilities. Upon receipt of that certification, the comptroller must notify the commissioner of taxation and finance that all funds held in the stock transfer tax fund must be deposited in the stock transfer incentive fund pursuant to subdivision seven of section ninety-two-b of this article.

8. All payments of moneys from the municipal assistance tax fund shall be made on the audit and warrant of the state comptroller.

9. With respect to:

(i) net collections, as defined in section twelve hundred sixty-two of the tax law, to the extent received by the county of Rensselaer under payment procedures in effect, from taxes imposed by such county under section twelve hundred ten of the tax law, as amended, or any successor law thereto, and

(ii) monies, to the extent received by such county under payment procedures in effect, to be paid to the city of Troy pursuant to an agreement under subdivision (c) of section twelve hundred sixty-two of the tax law, the special account established for the municipal assistance corporation for the city of Troy within the municipal assistance tax fund shall have a statutory first lien upon the entire share of the city of Troy of any such net collections or monies. Such lien shall not require any segregation of funds, physical delivery or any other action, filing or agreement in order to evidence, perfect, or preserve the priority of such lien and shall be valid, binding, and perfected as against all parties, with or without notice thereof, having claims of any kind in tort, contract or otherwise against such county. Such county shall segregate, quarterly or on such other schedule as such share of such net collections or monies shall be due and owing in accordance with such law or agreement, such share of such net collections or monies and shall, upon such segregation, use such proceeds for no other purpose than to pay them to the comptroller for deposit into the special account established for the municipal assistance corporation for the city of Troy within the municipal assistance tax fund in accordance with applicable law and payment procedures in effect. Provided that such county has, by the payment due date, paid such proceeds to the comptroller in accordance with the provisions of this paragraph, such payment shall be deemed conclusive evidence that the county had complied with the segregation requirement respecting the proceeds so paid, as set forth in this paragraph. This subdivision shall terminate upon the termination of the municipal assistance corporation for the city of Troy.

N.Y. State Fin. Law § 92-D