2023 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, 2025
* (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, 2025
(3) However, the taxes, penalties and interest which (i) the county of
Nassau, (ii) the county of Erie, to the extent the  county  of  Erie  is
contractually  or statutorily obligated to allocate and apply or pay net
collections to the city of Buffalo and to the extent  that  such  county
has  set  aside net collections for educational purposes attributable to
the Buffalo school district, or the city of Buffalo or (iii) the  county
of  Erie  is authorized to impose pursuant to section twelve hundred ten
of this article,  other  than  such  taxes  in  the  amounts  described,
respectively,  in  subdivisions  one and two of section one thousand two
hundred sixty-two-e of this part, during the period  that  such  section
authorizes  Nassau  county  to  establish  special  or  local assistance
programs thereunder, together with any penalties  and  interest  related
thereto,  and  after  the  comptroller has reserved such refund fund and
such costs, shall,  commencing  on  the  next  payment  date  after  the
effective date of this sentence and of each month thereafter, until such
date  as  (i)  the Nassau county interim finance authority shall have no
obligations outstanding, or (ii) the Buffalo fiscal stability  authority
shall  cease  to  exist,  or  (iii)  the  Erie  county  fiscal stability
authority  shall  cease  to  exist,  be   paid   by   the   comptroller,
respectively,  to  (i) the Nassau county interim finance authority to be
applied by the Nassau county interim finance authority, or (ii)  to  the
Buffalo  fiscal  stability authority to be applied by the Buffalo fiscal
stability authority, or  (iii)  to  the  Erie  county  fiscal  stability
authority  to  be applied by the Erie county fiscal stability authority,
as the case may be, in the following order of priority:  first  pursuant
to   the  Nassau  county  interim  finance  authority's  contracts  with
bondholders or the Buffalo fiscal stability authority's  contracts  with
bondholders  or  the  Erie county fiscal stability authority's contracts
with bondholders, respectively, then to pay the  Nassau  county  interim
finance authority's operating expenses not otherwise provided for or the
Buffalo  fiscal  stability  authority's operating expenses not otherwise
provided for or the Erie county fiscal stability  authority's  operating
expenses not otherwise provided for, respectively, and then (i) pursuant
to  the  Nassau  county  interim finance authority's agreements with the
county of Nassau, which  agreements  shall  require  the  Nassau  county
interim finance authority to transfer such taxes, penalties and interest
remaining  after  providing  for contractual or other obligations of the
Nassau county interim finance authority, and subject  to  any  agreement
between such authority and the county of Nassau, to the county of Nassau
as  frequently  as  practicable;  or (ii) pursuant to the Buffalo fiscal
stability  authority's  agreements  with  the  city  of  Buffalo,  which
agreements  shall  require  the  Buffalo  fiscal  stability authority to
transfer such taxes, penalties and interest  remaining  after  providing
for  contractual  or  other  obligations of the Buffalo fiscal stability
authority, and subject to any agreement between such authority  and  the
city  of  Buffalo,  to the city of Buffalo or the city of Buffalo school

district, as the case may be, as frequently  as  practicable;  or  (iii)
pursuant to the Erie county fiscal stability authority's agreements with
the  county  of  Erie,  which  agreements  shall require the Erie county
fiscal  stability  authority  to  transfer  such  taxes,  penalties  and
interest remaining after providing for contractual or other  obligations
of  the  Erie  county  fiscal  stability  authority,  and subject to any
agreement between such authority and the county of Erie, to  the  county
of  Erie  as  frequently  as  practicable.  During  the  period that the
comptroller is required to make payments to the  Nassau  county  interim
finance  authority  described  in  the  previous sentence, the county of
Nassau shall have no right, title or  interest  in  or  to  such  taxes,
penalties  and interest required to be paid to the Nassau county interim
finance authority, except as provided  in  such  authority's  agreements
with  the  county  of  Nassau. During the period that the comptroller is
required to make payments to  the  Buffalo  fiscal  stability  authority
described  in the second previous sentence, the city of Buffalo and such
school district shall have no right, title or interest  in  or  to  such
taxes,  penalties and interest required to be paid to the Buffalo fiscal
stability authority, except as provided in such  authority's  agreements
with  the  city  of  Buffalo.  During the period that the comptroller is
required to make payments to the Erie county fiscal stability  authority
described  in the third previous sentence, the county of Erie shall have
no right, title or interest in or to such taxes, penalties and  interest
required  to  be  paid  to  the  Erie county fiscal stability authority,
except as provided in such authority's agreements  with  the  county  of
Erie.
(4) The amount so payable shall be certified to the comptroller by the
commissioner  or  the  commissioner's  delegate,  who  shall not be held
liable for any inaccuracy in such certificate.  Provided,  however,  any
such  certification may be based on such information as may be available
to the commissioner at the time such certificate must be made under this
section and may be estimated  on  the  basis  of  percentages  or  other
indices calculated from distributions for prior periods.
(5)  (i)  However,  the  comptroller  shall  withhold  from the taxes,
penalties and interest imposed by the city of  New  York  on  and  after
August  first, two thousand eight, and deposit such amounts to the state
treasury as reimbursement for appropriated disbursements made by the New
York state financial control board established by  the  New  York  state
financial emergency act for the city of New York and by the state deputy
comptroller  for the city of New York established by section forty-one-a
of the executive law, as the actual, reasonable expenses of  that  board
or  that  deputy  comptroller,  incurred  on  behalf  of  the  city, for
quarterly periods commencing July first, two thousand eight, and  ending
on  the date when those expenses are no longer incurred by that board or
deputy comptroller; and the comptroller shall pay those withheld amounts
immediately  into  the  miscellaneous  special  revenue  fund  financial
control  board account 339-15 and the miscellaneous special revenue fund
financial oversight account 339-DI of the state. During the period  that
the  comptroller  is  required  to  withhold  amounts  and make payments
described in this paragraph, the city of New York has no right, title or
interest in or to those taxes, penalties and  interest  required  to  be
paid into the above referenced miscellaneous special revenue funds.
* (ii)  After withholding the taxes, penalties and interest imposed by
the city of New York on and after August first, two  thousand  eight  as
provided  in  subparagraph  (i) of this paragraph, the comptroller shall
withhold a portion of such taxes, penalties and interest  sufficient  to
deposit  annually  into  the  central  business district tolling capital
lockbox established pursuant to section five  hundred  fifty-three-j  of

the  public  authorities  law:  (A)  in  state  fiscal year two thousand
nineteen - two thousand twenty, one hundred  twenty-seven  million  five
hundred thousand dollars; (B) in state fiscal year two thousand twenty -
two  thousand  twenty-one,  one  hundred seventy million dollars; (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 one
hundred  fifty  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, 2028
* (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, 2028
(6) Where the amount so paid over to any city, county, school district
or the special sales and compensating use  tax  fund  for  the  city  of
Yonkers  in  any  such  distribution or to any such authority is more or
less than the amount then due to such city, county, school  district  or
such  fund  or  to  such  authority,  the  amount  of the overpayment or
underpayment shall be certified to the comptroller by  the  commissioner
or  the  commissioner's  delegate,  who shall not be held liable for any
inaccuracy in  such  certificate.  The  amount  of  the  overpayment  or
underpayment  shall be so certified to the comptroller as soon after the
discovery of the overpayment or underpayment as reasonably possible  and
subsequent  payments  and distributions by the comptroller to such city,
county, school district or the special sales and  compensating  use  tax
fund  for  the city of Yonkers or to such authority shall be adjusted by
subtracting the amount of any such overpayment from  or  by  adding  the
amount  of  any  such underpayment to such number of subsequent payments
and distributions as the comptroller and the commissioner shall consider
reasonable in view of the amount of the overpayment or underpayment  and
all other facts and circumstances.
(d)  All  of  the provisions of this section shall apply to the taxes,
penalties and interest from sales and compensating use  taxes  on  sales
and  uses  of  motor  fuel or diesel motor fuel imposed pursuant to this
article except that the amount  certified  to  the  comptroller  by  the
commissioner  or the commissioner's delegate with respect to such taxes,
penalties and interest shall be based  upon  the  receipts  from  retail
sales  of  motor  fuel  or  diesel  motor fuel sold each month at retail
service stations and on other sales of such fuel for consumption by  the
purchaser  in  each  county  and  city  imposing  such  taxes, the total
receipts from taxes paid pursuant to the provisions  of  section  eleven
hundred  two of this article on motor fuel and diesel motor fuel sold in
this state each month, the total of the taxes,  penalties  and  interest
collected  or  received  in  such month with respect to retail sales and
uses of motor fuel and diesel motor fuel (determined without  regard  to
the  refunds  or credits allowed pursuant to subdivisions (a) and (b) of
section eleven hundred twenty of  this  article),  the  sales  tax  rate
applicable  for  that month in such county or city, the regional average
retail sales price for such month, the amount  of  refunds  and  credits
allowed  pursuant  to subdivisions (c) and (d) of section eleven hundred
twenty of this article  and  such  other  data  and  standards  as  such
commissioner  or delegate may deem necessary for such certification. The
commissioner or the commissioner's delegate shall arrive at  the  number
of  gallons of motor fuel and diesel motor fuel sold in each such county
or city and in this state by use of the reports of the number of gallons
sold required to be filed pursuant to section eleven hundred  thirty-six
of  this  chapter  and  such  other  information as such commissioner or
delegate deems appropriate. In arriving at the amount  to  be  certified
and  distributed, the commissioner shall consider the collections of the
taxes, penalties and interest  required  to  be  paid  pursuant  to  the
provisions  of  section  eleven  hundred  two  of  this  article and the
authorized refunds and credits of the  tax  imposed  by  section  eleven
hundred  two  of this article against the taxes required to be collected
or paid pursuant to this article.
(e) The total net collections from a tax imposed pursuant  to  section
twelve  hundred  eleven  by  a  city  and  a  school  district or school
districts, so authorized, shall be distributed  and  paid  to  the  city
school district where it is coterminous with or includes the entire city
or to all the school districts partly within or wholly within such city.
Except  where  the  city school district is coterminous with the city or
includes the entire area of the city, such amounts shall be  distributed
and  paid  to  the  school district or districts partly within or wholly
within the city, in accordance with the total average  daily  attendance
for  the  last  preceding  school  year  of pupils residing in each such
district and without regard to the location of the school attended.
(f) Notwithstanding any provision of state or local law, ordinance  or
resolution  to  the  contrary,  if  the  commissioner  of  health timely
certifies to the commissioner that a  county  which  imposes  sales  and
compensating  use  taxes  pursuant  to  the  authority of section twelve
hundred ten, twelve  hundred  ten-A,  twelve  hundred  ten-B  or  twelve
hundred ten-C of this article properly exercised its option by September
thirtieth, two thousand seven, pursuant to section two of the chapter of
the  laws  of  two thousand five which added this subdivision, that such
county be reimbursed for medical assistance expenditures as provided  in
such  section two of such chapter, then the commissioner shall calculate
the Medicaid amount of each such county. The amount due  each  month  to
each  such  county provided for in subdivision (c) of this section shall
be reduced by the monthly Medicaid amount;  and  such  monthly  Medicaid
amount  of  each such county shall instead be paid into the general fund

of the state treasury to  the  credit  of  the  state  purposes  account
therein.  The  calculation  of  each  such  county's Medicaid amount and
monthly Medicaid amounts and the procedures  governing  the  payment  of
such amounts shall be as follows:
(1) The commissioner of health shall furnish the commissioner with the
amount  of  every  county's  "two thousand six-two thousand seven fiscal
year social services district expenditure cap amount,"  as  provided  in
paragraph  (e)  of  section one of a chapter of the laws of two thousand
five which added this subdivision, as soon as practicable but  no  later
than April first, two thousand seven.
(2)  The  commissioner shall calculate the "Medicaid factor" for every
county as follows and shall notify each county's chief fiscal officer of
the results of such calculation by April thirtieth, two thousand  seven,
to help each county determine whether to exercise such option:
(A)  for a county in which no city exercises any prior right to impose
sales or compensating use taxes authorized by section twelve hundred ten
of  this  article,  first,  divide  the  total  amount  of   sales   and
compensating  use  tax  distributions to such county during state fiscal
year two thousand six-two thousand seven by the county's general rate of
such taxes during  such  period,  and  then  divide  the  county's  "two
thousand  six-two  thousand  seven  fiscal year social services district
expenditure cap amount" by the quotient of the first division;
(B) for a county in which one or more cities exercise any prior  right
to  impose  sales or compensating use taxes authorized by section twelve
hundred ten of this article and the combined rate of  the  county's  and
city's  taxes  in each such city equals the general rate of the county's
taxes on similar transactions in the area of  the  county  outside  such
city  or  cities, first, add the total amounts of sales and compensating
use tax distributions to such county and to each such city during  state
fiscal  year  two thousand six-two thousand seven and divide such sum by
the county's general rate of such taxes during  such  period,  and  then
divide  the  county's  "two  thousand six-two thousand seven fiscal year
social services district expenditure cap amount" by the quotient of  the
first division; and
(C)  for a county in which one or more cities exercise any prior right
to impose sales or compensating use taxes authorized by  section  twelve
hundred  ten  of  this article and the combined rate of the county's and
city's taxes in any such city does not equal the  general  rate  of  the
county's taxes on similar transactions in the area of the county outside
such city or cities:
(i) for each such city, add the total amount of sales and compensating
use tax distributions to such city during state fiscal year two thousand
six-two  thousand  seven  and  divide  such  sum by the city's effective
general rate of such  taxes  during  such  period,  then  multiply  such
quotient  by  the  amount by which the city's rate forced a reduction in
the county's rate of such taxes in such city  during  such  period,  and
then
(ii)  add  the  amount  derived in clause (i) of this subparagraph for
each such city to the total amount of sales  and  compensating  use  tax
distributions  to  such  county  during  state  fiscal year two thousand
six-two thousand seven;
(iii) divide the  total  of  the  addition  in  clause  (ii)  of  this
subparagraph  by  the  county's  general  rate of such taxes during such
period; and
(iv) divide the county's "two thousand six-two thousand  seven  fiscal
year social services district expenditure cap amount" by the quotient of
the division in clause (iii) of this subparagraph.
(D) The commissioner shall consider any change in a county's or city's
general  rate  of  sales  and  compensating use taxes which takes effect
during state fiscal year two thousand six-two  thousand  seven  and  the
number  of months such rates are in effect during such state fiscal year
in  order  to  perform  accurately the calculations provided for in this
paragraph.
(3) By the twelfth day of  each  month,  commencing  in  January,  two
thousand  eight,  the commissioner shall calculate the "monthly Medicaid
amount" of each such county which has made the election described in the
opening paragraph of this subdivision and certify such  amounts  to  the
comptroller.  The  comptroller shall reduce the amount due each month to
each such county provided for in subdivision (c) of this section by such
monthly Medicaid amount; and the comptroller shall  instead  each  month
pay  the  monthly  Medicaid  amount of each such county into the general
fund of the state treasury to the credit of the state  purposes  account
therein,  provided,  however,  that  the  comptroller,  subject  to  the
limitations provided in paragraphs five and  six  of  this  subdivision,
shall  each  month  collect the amount of Nassau county's reduction from
amounts payable to such county by  the  Nassau  county  interim  finance
authority while such authority exists.
(4)  "Monthly  Medicaid amount" shall mean the result of the following
calculations:
(A) for a county described in subparagraph (A)  of  paragraph  two  of
this  subdivision,  first,  the  amount of the comptroller's payment due
such a county in  the  immediately  preceding  month,  as  described  in
subdivision  (c)  of  this  section  and as described in sections twelve
hundred ten-A, twelve hundred ten-B and twelve  hundred  ten-C  of  this
article,  but without regard to whether the comptroller is to pay all or
a portion of such amount to another entity described in subdivision  (c)
of this section and without regard to the revenue disposition provisions
of  such  section  twelve  hundred ten-A, twelve hundred ten-B or twelve
hundred ten-C, and considered without regard  to  any  Medicaid  amount,
shall  be divided by the county's general rate of sales and compensating
use taxes in such month; and the quotient  of  that  division  shall  be
multiplied by the Medicaid factor calculated as provided in subparagraph
(A) of paragraph two of this subdivision.
(B)  for  a  county  described in subparagraph (B) of paragraph two of
this subdivision, first, add the amount of the comptroller's payment due
any city in such  a  county  in  the  immediately  preceding  month,  as
described  in  subdivision  (c)  of  this  section  to the amount of the
comptroller's payment due such a county  in  the  immediately  preceding
month,  as described in subdivision (c) of this section and as described
in sections twelve  hundred  ten-A,  twelve  hundred  ten-B  and  twelve
hundred  ten-C  of  this  article,  but  without  regard  to whether the
comptroller is to pay all or a portion of such amount to another  entity
described  in  subdivision (c) of this section and without regard to the
revenue disposition provisions of such  section  twelve  hundred  ten-A,
twelve  hundred  ten-B  or  twelve hundred ten-C, and considered without
regard to any Medicaid amount, then divide the total of such amounts  by
the  county's  general  rate of sales and compensating use taxes in such
month; and the quotient of that division  shall  be  multiplied  by  the
Medicaid  factor calculated as provided in subparagraph (B) of paragraph
two of this subdivision.
(C) For a county described in subparagraph (C)  of  paragraph  two  of
this subdivision:
(i)  with  respect  to  each  such city described in subparagraph (C),
divide the amount of the comptroller's payment due each such city in the
immediately preceding month, as described in  subdivision  (c)  of  this

section,  by the effective general rate of such city's taxes during such
month and multiply such quotient by the amount by which the city's  rate
forced  a  reduction  in  the  county's  rate of such taxes in such city
during such month;
(ii)  add  the  amount  or  amounts  derived  in  clause  (i)  of this
subparagraph to the amount of the comptroller's payment due such  county
in  the  immediately preceding month, as described in subdivision (c) of
this section and as described in sections twelve hundred  ten-A,  twelve
hundred  ten-B  and  twelve  hundred  ten-C of this article, but without
regard to whether the comptroller is to pay all or  a  portion  of  such
amount  to  another  entity described in subdivision (c) of this section
and without regard to the revenue disposition provisions of such section
twelve hundred ten-A, twelve hundred ten-B or twelve hundred ten-C,  and
considered without regard to any Medicaid amount; and
(iii)  divide  the  total  of  the  addition  in  clause  (ii) of this
subparagraph by the county's general rate  of  such  taxes  during  such
month,  and  the  quotient  of  that division shall be multiplied by the
Medicaid factor calculated as provided in subparagraph (C) of  paragraph
two of this subdivision.
(5)  If  for  any reason a county's monthly Medicaid amount is greater
than the amount of the comptroller's net payment to the county for  that
month  under  subdivision  (c) of this section and under sections twelve
hundred ten-A, twelve hundred ten-B and twelve  hundred  ten-C  of  this
article,  after  the comptroller has made any payments to other entities
required by subdivision (c) of this section or  by  any  other  law  and
after  any  payment,  deposit,  appropriation,  transfer  or expenditure
required or authorized by such  section  twelve  hundred  ten-A,  twelve
hundred  ten-B  or  twelve  hundred ten-C, the comptroller shall, at the
same time that the comptroller makes the payment and reduction described
in paragraph three of this subdivision, bill such county an amount equal
to the difference and such county shall pay in full the amount  of  such
bill  to  the  comptroller  by  the twenty-fifth day of such month. Such
county shall use any funds  available  to  it  to  pay  such  bill.  The
comptroller  shall  deposit  any  such amounts received into the general
fund of the state treasury to the credit of the state  purposes  account
therein.
(6)  If  a  county does not remit the required monies or pay in full a
bill described in paragraph five of this subdivision by the twenty-fifth
day of the month in accordance with paragraph five of this  subdivision,
the comptroller shall, as soon as any other moneys payable to the county
are  available, either deduct any amount not paid from the amount of the
next payment or payments due such county pursuant to subdivision (c)  of
this  section  until  such amount not paid has been recovered or, in the
alternative and at the comptroller's discretion, deduct any  amount  not
paid from the amount of any other moneys payable to such county from the
comptroller  and  not  subject  to any lien or pledge for the benefit of
bondholders of the Nassau county interim finance  authority  or  of  any
public  benefit  corporation,  as  defined  in  section sixty-six of the
general construction law, created by interstate compact or at least half
of whose members are appointed by the governor, until  such  amount  not
paid  has  been  recovered. The comptroller shall deposit any amounts so
deducted and recovered into the general fund of the  state  treasury  to
the credit of the state purposes account therein.
(7)  This subdivision shall apply to payments required in respect of a
county  to  be  made  on  January  twelfth,  two  thousand  eight,   and
thereafter.
(8) Nothing in this subdivision shall be construed to relieve a county
of  any  obligation  or commitment to distribute and pay or allocate net

collections pursuant to this part, regardless whether such obligation or
commitment arises before or after the date this subdivision  shall  have
taken  effect,  or  to  preclude  a city in a county from exercising its
prior  rights  under section twelve hundred twenty-four of this article.
To the extent that a county's net collections have been diminished below
a level sufficient to meet any such obligation or commitment as a result
of the reductions or bills provided for in this subdivision, such county
shall hereby be authorized to use any other funds  available  to  it  to
meet  such  obligation  or  commitment,  notwithstanding  any law to the
contrary.
(9) If a county adopts or amends a local law, ordinance or  resolution
to  repeal  its sales and compensating use taxes, then, effective on the
first day of the first month on which such  repeal  takes  effect,  such
county's  resolution  electing  to  be  reimbursed  for  certain medical
assistance expenditures pursuant to section two of the  chapter  of  the
laws  of  two  thousand  five which added this subdivision shall also be
repealed automatically as of  such  date;  and  the  commissioner  shall
notify the commissioner of health of such county's repeal of such taxes.
In  that  event,  as of such date, such county shall be treated as if it
had never made such election for purposes of such expenditures and  such
commissioner  of health shall thenceforth compute the amount due monthly
from such county for such expenditures pursuant to section  one  of  the
chapter of the laws of two thousand five which added this subdivision.
(g)  Notwithstanding any provision of state or local law, ordinance or
resolution to  the  contrary,  if  the  commissioner  of  health  timely
certifies  to  the  commissioner  that a city having a population of one
million or more in which the taxes imposed  by  section  eleven  hundred
seven  of  this  chapter  are  in  effect  or  which  imposes  sales and
compensating use taxes pursuant  to  the  authority  of  section  twelve
hundred  ten  of this article properly exercised its option by September
thirtieth, two thousand seven, pursuant to section two of the chapter of
the laws of two thousand five which added this  subdivision,  that  such
city  be  reimbursed  for medical assistance expenditures as provided in
such section two of such chapter, then the commissioner shall  calculate
the  Medicaid amount of such a city. The amount due each month to such a
city with respect to  such  taxes  and  certain  other  taxes  shall  be
reduced;  and  the  amount  of each such reduction shall instead be paid
into the general fund of the state treasury to the credit of  the  state
purposes  account  therein.  The  calculation  of such a city's Medicaid
amount and reductions and the procedure governing the  payment  of  such
amounts are as follows:
(1) The commissioner of health shall furnish the commissioner with the
amount of such a city's "two thousand six-two thousand seven fiscal year
social  services  district  expenditure  cap  amount,"  as  provided  in
paragraph (e) of section one of the chapter of the laws of two  thousand
five  which  added this subdivision, as soon as practicable but no later
than April first, two thousand seven.
(2) The commissioner shall use or calculate the following  amounts  in
respect  of  such  a  city,  which  amounts  shall  be designated by the
following symbols, in order to determine the components of  the  monthly
amount described in paragraph three of this subdivision and shall notify
the  chief fiscal officer of such city of the calculated value of "D" as
described  in  this  paragraph  and  such  other  information  available
relating to D, by April thirtieth, two thousand seven, to help such city
determine whether to exercise such option:
(A)  "A" shall equal the amount of such a city's "two thousand six-two
thousand seven fiscal year  social  services  district  expenditure  cap

amount,"  as  furnished  by  the  commissioner  of  health  pursuant  to
paragraph one of this subdivision;
(B)(i) "B1" shall equal the total amount of sales and compensating use
tax distributions during state fiscal year two thousand six-two thousand
seven  to  such  city  or  to a municipal assistance corporation on such
city's behalf from taxes imposed in such city by section eleven  hundred
seven  of  this  chapter, other than taxes imposed by subdivision (c) of
such section eleven hundred seven, at the rate of three percent;
(ii) "B2" shall equal the total  amount  of  sales  tax  distributions
during  state  fiscal  year  two thousand six-two thousand seven to such
city or to a municipal assistance corporation on such city's behalf from
taxes imposed in such city by subdivision (c) of section eleven  hundred
seven of this chapter, at the rate of three percent;
(C) "C" shall equal the total amount of sales and compensating use tax
distributions  during  state  fiscal  year two thousand six-two thousand
seven to such city from its taxes imposed pursuant to the  authority  of
section twelve hundred twelve-A of this article; and
(D)  "D" shall be the "Base Year PIT intercept amount" and shall equal
A less the sum of B1, B2 and C.
(3) (A) Commencing in January, two thousand  eight,  the  commissioner
shall  calculate  the  monthly  Medicaid  amount  ("MA")  for  such city
according to the following formula: MA equals  (((En/Fn)  +  (Ep/Fp))  X
(.03))  +  (C/12)  X (G) + (D/12) X (G); where C and D equal the amounts
described in paragraph two of this subdivision; "En" equals the  current
month's portion of revenues from taxes imposed by section eleven hundred
seven  of  this  chapter,  excluding  revenues  from  the tax on parking
imposed by subdivision (c) of such section eleven hundred seven, or from
taxes imposed pursuant to the authority of subdivision  (a)  of  section
twelve  hundred  ten of this article, excluding revenues from the tax on
parking authorized by subdivision (a) of  such  section  twelve  hundred
ten;  "Ep"  equals  the current month's revenues from either such tax on
parking, as the case may be; "Fn" equals  the  current  month's  general
rate of sales and use taxes imposed by such section eleven hundred seven
or  pursuant  to the authority of such section twelve hundred ten, other
than on parking; "Fp" equals the current month's rate of  sales  tax  on
parking  under  or  pursuant  to  the  authority  of such section eleven
hundred seven or twelve hundred ten, as the case may be;  "G"  equals  a
growth  factor  according  to  the  formula  G  equals (En/Fn) + (Ep/Fp)
divided by ((MB1/.04) + (MB2/.06)); "MB1" equals the revenues from taxes
imposed by section eleven  hundred  seven  of  this  chapter,  excluding
revenues  from  such  tax  on parking imposed by subdivision (c) of such
section eleven hundred seven, during the same month of state fiscal year
two thousand six-two thousand seven corresponding to the  current  month
described  above; and "MB2" equals the revenues from such tax on parking
during the same month of state fiscal year two thousand six-two thousand
seven corresponding to the current month described above.
(B) Using the amount of MA calculated each month in  subparagraph  (A)
of  this paragraph, the commissioner shall then calculate the amounts of
sales and use tax revenues (E + H, where  E  and  H  equal  the  amounts
described in subparagraph (C) of this paragraph) and personal income tax
revenues (PIT) of such city which are to be intercepted or billed for as
described  in this subdivision, according to the formula MA equals E + H
+ PIT, as PIT is defined in subparagraph (D) of this paragraph.  By  the
twelfth  day  of  each month, commencing in January, two thousand eight,
the commissioner shall establish the amount of E and H and certify  such
amounts  to  the  comptroller  and  by  the fifteenth day of each month,
commencing in  January,  two  thousand  eight,  the  commissioner  shall

establish the amount of PIT and certify such amount and the amount of MA
to the comptroller, in the manner set forth in this paragraph.
(C)  (i)  For the period commencing January first, two thousand eight,
and ending on the last day of the month in which the  taxes  imposed  in
such  a  city  by  section  eleven  hundred  seven of this chapter shall
expire, the sales and use tax component "E" shall equal  the  amount  of
revenues  from  such  taxes  imposed at the rate of three percent or the
amount of revenues from such taxes imposed at the rate of  four  percent
after  payments  to the municipal assistance corporation for such a city
required under section ninety-two-d of the state finance law  have  been
made, whichever amount is less, and "H" shall equal net collections from
taxes imposed by such a city pursuant to the authority of section twelve
hundred  twelve-A  of  this  article, due such a city in the immediately
preceding month.
(ii) For the period commencing on the first day  of  the  first  month
following  the  period described in clause (i) of this subparagraph, the
sales and use tax component "E" shall equal net collections  from  sales
and  compensating  use  taxes  imposed  by  such  city  pursuant  to the
authority of subdivision (a) of  section  twelve  hundred  ten  of  this
article  up  to  the  rate  of  three  percent  and  "H" shall equal net
collections from taxes imposed by such city pursuant to the authority of
section twelve hundred twelve-A of this article, due such a city in  the
immediately preceding month.
(D)  For  the period commencing January first, two thousand eight, the
PIT component for each month shall be designated "PIT" and  shall  equal
the  portion of the revenues from taxes imposed by such city pursuant to
the authority of article thirty of this chapter due such a city  in  the
immediately  preceding  month,  calculated according to the formula: PIT
equals MA - E - H.
(E)(i) During the period that the taxes imposed  in  such  a  city  by
section  eleven  hundred  seven  of  this  chapter  are  in  effect, the
comptroller shall each month, after paying amounts certified to  by  the
chairperson  of  the  municipal assistance corporation created in aid of
such city, as provided for in section ninety-two-d of the state  finance
law,  pay  the  relevant  portion  of  the  sales  and use tax component
relating to such taxes imposed by such section eleven hundred seven  for
such month equal to E into the general fund of the state treasury to the
credit of the state purposes account therein.
(ii)  During the period that the taxes imposed by such a city pursuant
to the authority of section twelve hundred ten of this  article  are  in
effect,  the  comptroller shall reduce the amount due each month to such
city from such taxes provided for in subdivision (c) of this section  by
the  relevant  portion of the sales and use tax component for such month
equal to E; and the  comptroller  shall  instead  each  month  pay  such
portion into the general fund of the state treasury to the credit of the
state purposes account therein.
(iii)  The  comptroller shall reduce the amount due each month to such
city from taxes imposed pursuant to  the  authority  of  section  twelve
hundred  twelve-A provided for in subdivision (c) of this section by the
relevant portion of the sales and use tax component for such month equal
to H; and the comptroller shall instead each month pay such portion into
the general fund of the state  treasury  to  the  credit  of  the  state
purposes account therein.
(iv)  The  comptroller  shall  each month certify to the New York city
transitional finance authority  the  monthly  amount  of  PIT  and  such
authority  shall,  after  applying amounts described in section thirteen
hundred thirteen of this chapter, immediately pay such  monthly  amount,
or  so  much of which is available after applying such amounts, directly

and immediately to the  comptroller;  and  the  comptroller  shall  upon
receipt  of  such  moneys,  subject  to  the  exceptions in such section
thirteen hundred thirteen, pay them into the general fund of  the  state
treasury to the credit of the state purposes account therein.
(4) If for any reason such a city's Medicaid amount in a month (MA) is
greater than the sum of the amounts of the comptroller's net payments to
such  city  for  that month under subdivision (c) of this section, under
section twelve hundred  twelve-A  of  this  article  and  under  section
thirteen  hundred  thirteen  of  this chapter, after the comptroller has
made any payments to other entities required by any law  and  after  any
payment,  deposit,  appropriation,  transfer  or expenditure required or
authorized by any of such sections, the comptroller shall, at  the  same
time that the comptroller makes the payments and reductions described in
paragraph  three  of this subdivision, bill such city an amount equal to
the difference and such city shall pay in full the amount of  such  bill
to  the  comptroller  by  the  twenty-fifth day of such month. Such city
shall use any funds available to it to pay such  bill.  The  comptroller
shall  deposit  any  such  amounts received into the general fund of the
state treasury to the credit of the state purposes account therein.
(5) If such a city does not pay in full a bill described in  paragraph
four  of  this  subdivision  by  the  twenty-fifth  day  of the month in
accordance with such paragraph four, the comptroller shall, as  soon  as
any  other  moneys  payable to the city are available, either deduct any
amount not paid from the amount of the next payment or payments due such
city pursuant to subdivision (c) of this section, section twelve hundred
twelve-A of this article or section thirteen hundred  thirteen  of  this
chapter,  until  such  amount  not  paid  has  been recovered or, in the
alternative and at the comptroller's discretion, deduct any  amount  not
paid  from  the amount of any other moneys payable to such city from the
comptroller and not subject to any lien or pledge  for  the  benefit  of
bondholders  of  the  transitional finance authority or of the municipal
assistance corporation, until such amount not paid has  been  recovered.
The comptroller shall deposit any amounts so deducted and recovered into
the  general  fund  of  the  state  treasury  to the credit of the state
purposes account therein.
(6) This subdivision shall apply to payments required in respect of  a
city to be made on January twelfth, two thousand eight, and thereafter.
(7)(A)  If  such  a  city  adopts  or amends a local law, ordinance or
resolution to repeal  its  sales  and  compensating  use  taxes  imposed
pursuant  to  the authority of subdivision (a) of section twelve hundred
ten of this article, then, effective on the first day of the first month
on which such repeal takes effect, such city's resolution electing to be
reimbursed for  certain  medical  assistance  expenditures  pursuant  to
section  two of the chapter of the laws of two thousand five which added
this subdivision shall also be repealed automatically as of  such  date;
and  the  commissioner  shall  notify the commissioner of health of such
city's repeal of such taxes. In that event, as of such date,  such  city
shall  be  treated as if it had never made such election for purposes of
such expenditures and such  commissioner  of  health  shall  thenceforth
compute  the  amount  due  monthly  from such city for such expenditures
pursuant to section one of such chapter of  the  laws  of  two  thousand
five.
(B)  If  such city adopts or amends a local law to repeal its taxes on
personal income authorized  by  article  thirty  of  this  chapter,  the
comptroller  shall  bill  such  city  monthly  in the manner provided in
paragraph four of this  subdivision  for  any  amounts  due  under  this
subdivision  which  otherwise  would have been paid out of revenues from
such taxes into the general fund of the state treasury pursuant to  this

subdivision,  and such bills shall be paid as provided in paragraph four
of this subdivision and any bill not paid shall be treated  as  provided
in paragraph five of this subdivision.