2023 New York Laws › TAX - Tax › Article 29 - Taxes Authorized for Cities, Counties and School Districts › Part 2 - Limitations on Authority and Exemptions › Sub Part C - Taxes Administered by State Tax Commission › 1235 - Taxes Paid to Other Jurisdictions.

§  1235.  Taxes paid to other jurisdictions. (a) With respect to taxes
imposed pursuant to subdivision (a) of section twelve  hundred  ten  and
pursuant  to section twelve hundred eleven, the use of tangible personal
property purchased at retail and of any of the services subject  to  the
sales tax shall be exempt from the compensating use tax authorized under
subdivision  (a)  of  such  section twelve hundred ten and under section
twelve hundred eleven, to the extent  that  a  retail  sales  tax  or  a
compensating use tax was legally due and paid thereon, without any right
to  a refund or credit thereof, to (1) any municipal corporation in this
state or (2) any other state or jurisdiction within any other state, but
only when it is shown that such other state  or  jurisdiction  allows  a
corresponding  exemption  with  respect  to  the sale or use of tangible
personal property or of any of the services upon which such  a  sale  or
compensating  use  tax  was  paid to this state and any of its municipal
corporations, except as provided in subdivision (b) of this section.
(b) To the extent that a compensating use tax imposed pursuant to this
article and the compensating use tax imposed by article twenty-eight are
at a higher aggregate rate than the rate of tax  imposed  in  any  other
state  or jurisdiction within any other state, the exemption provided in
subdivision (a) of this section shall  be  inapplicable  and  the  taxes
imposed pursuant to this article and by article twenty-eight shall apply
to the extent of the difference between such aggregate rate and the rate
paid  in  such  other state or jurisdiction.   In such event, the amount
payable shall be allocated between the  tax  imposed  pursuant  to  this
article and the tax imposed by article twenty-eight in proportion to the
respective  rates  of  such  taxes.  Where  a  retail  sales  tax  or  a
compensating  use  tax  was  legally  due  and  paid  to  any  municipal
corporation  in  this  state,  without  any  right to a refund or credit
thereof, with respect to the sale or use of tangible  personal  property
or  any of the services subject to sales or compensating use tax, if the
use of such property or services is then subject to a  compensating  use
tax  imposed  by  any other municipal corporation in this state and such
tax is at a higher rate than the  rate  of  tax  imposed  by  the  first
municipal  corporation,  the  tax  of the municipal corporation with the
higher rate shall also apply but only to the extent of the difference in
such rates and  such  tax  shall  be  distributable  to  such  municipal
corporation,  pursuant  to  section  twelve  hundred  sixty-one, without
allocation as hereinabove provided.  Where  a  retail  sales  tax  or  a
compensating  use  tax was legally due and paid to this state only, with
respect to the sale or use of tangible personal property or any  of  the
services  subject  to  sales or compensating use tax, if the use of such
property or services is then subject to a compensating use  tax  imposed
by   a   municipal   corporation  in  this  state,  such  tax  shall  be
distributable to the municipal corporation, pursuant to  section  twelve
hundred sixty-one, without allocation as hereinabove provided.
(c) For purposes of this section, a payment to the tax commission of a
tax imposed by a municipal corporation shall be deemed a payment to such
municipal corporation.