NY Tax L § 1261 (2021)
2021 New York Laws TAX - Tax Article 29 - Taxes Authorized for Cities, Counties and School Districts Part 4 - Disposition of Revenues 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, 2023   * (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, 2023  (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, then (i) for the Nassau county interim finance authority to pay to the state as  soon  as practicable  in  the  months  of  May and December each year, the amount necessary to fulfill the town and village  distribution  requirement  on behalf   of   Nassau   county  pursuant  to  paragraph  five-a  of  this subdivision, or (ii) for the Buffalo fiscal stability authority  to  pay to  the  state  as soon as practicable in the months of May and December each year, the percentage of the amount necessary to  fulfill  the  town and  village  distribution requirement on behalf of Erie county pursuant to paragraph five-a of this subdivision that equates to  the  percentage of  the  county net collections that the city of Buffalo and the Buffalo city school district, together,  are  due  in  the  months  of  May  and December  each  year,  or  (iii)  for  the  Erie county fiscal stability authority to pay to the state as soon as practicable in  the  months  of  May and December each year, the amount necessary to fulfill the town and village  distribution  requirement  on behalf of Erie county pursuant to paragraph five-a of this subdivision, less the amount being paid to  the state  by  the  Buffalo  fiscal  stability  authority in each respective month, 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;  (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. In addition, the comptroller shall withhold a portion of such taxes, penalties and  interest  in  the  amount  of  two hundred  million  dollars, to be withheld in four quarterly installments on January  fifteenth,  April  fifteenth,  July  fifteenth  and  October fifteenth of each year, and shall deposit such amounts into the New York State Agency Trust Fund, Distressed Provider Assistance Account.   * NB Effective until April 3, 2022   * (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.   * NB Effective April 3, 2022  (5-a)  However,  after  the  comptroller  has made the payments to the Nassau county interim finance authority, the  Buffalo  fiscal  stability  authority,  and  the  Erie county fiscal stability authority required by paragraph three of this subdivision, for each municipality that received a base level grant  in  state  fiscal  year  two  thousand  eighteen-two thousand nineteen but not in state fiscal year two thousand nineteen-two thousand  twenty under the aid and incentives for municipalities program pursuant to subdivision ten of section fifty-four of the  state  finance law,  the  comptroller  shall  annually withhold from each county except Nassau and Erie from the remaining taxes, penalties and interest imposed by the county in which a majority of the population of such municipality resides, and on behalf of Nassau and Erie counties the comptroller shall annually receive from the Nassau county interim finance  authority,  the Buffalo fiscal stability authority, and the Erie county fiscal stability authority,  an  amount  equal  to  the base level grant received by such municipality in state fiscal year  two  thousand  eighteen-two  thousand nineteen  and  shall  annually  distribute,  by  December fifteenth, two thousand nineteen and by such  date  annually  thereafter,  such  amount directly  to  such  municipality,  unless such municipality has a fiscal year ending May thirty-first, then such  annual  distribution  shall  be made  by  May  fifteenth,  two thousand twenty and by such date annually thereafter. No county shall have any right, title or interest in  or  to the taxes, penalties and interest required to be withheld or distributed pursuant to this paragraph.  (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.   * (7) In order to provide critical support to  financially  distressed hospitals   and  nursing  home  facilities  throughout  the  state,  the comptroller shall, by April  fifteenth,  two  thousand  twenty,  and  by January   first   of  each  year  thereafter,  determine  each  county's percentage share of the total aggregate net collections of all counties, excluding a city with a population of  one  million  or  more,  for  the one-year  period  ending  November  thirtieth of the preceding year, and withhold from the taxes, penalties and interest imposed by each  county, excluding  a  city having a population of one million or more, an amount equal to the product of such county's percentage share and fifty million dollars. Such amounts shall be withheld in four  quarterly  installments on  January  fifteenth,  April  fifteenth,  July  fifteenth  and October fifteenth, and shall be deposited into the New York State  Agency  Trust Fund, Distressed Provider Assistance Account. Provided, however, for the tax  jurisdictions  that  are  subject to paragraphs three and five-a of this subdivision, the comptroller shall deposit such amount to  the  New York  State  Agency  Trust  Fund, Distressed Provider Assistance Account  after funds are distributed pursuant to such paragraphs three and five-a of this subdivision.   * NB Repealed April 3, 2022  (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.