2023 New York Laws › TAX - Tax › Article 30 - City Personal Income Tax › 1313 - Deposit and Disposition of Revenues.

§ 1313. Deposit and disposition of revenues. (a) All revenue collected
by  the commissioner from the taxes imposed pursuant to the authority of
this article or former article two-E of the general city  law  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 city of New York or the New York
city transitional finance  authority,  as  their  interests  may  appear
pursuant  to  this  section.  Such  deposits  shall be kept in trust and
separate and apart from all  other  moneys  in  the  possession  of  the
comptroller.  The  comptroller  shall require adequate security from all
such depositories of such revenue collected by the commissioner.
(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 pursuant to the authority of  this  article
or former article two-E of the general city law and for reasonable costs
of  the  commissioner in administering, collecting and distributing such
taxes and the tax imposed pursuant  to  article  twenty-four-B  of  this
chapter,  out  of  which  the  comptroller shall pay any refunds of such
taxes to which  taxpayers  shall  be  entitled  under  any  law  enacted
pursuant to the authority of this article or former article two-E of the
general city law.
(c)  Subject  to the provisions of subsection (g) of this section, the
comptroller, after reserving such refund  fund  and  such  costs  shall,
commencing  on or before the fifteenth day of each month, pay to the New
York city transitional finance authority on a daily basis the balance of
taxes imposed pursuant to  the  authority  of  this  article  or  former
article two-E of the general city law to be applied by the authority, in
the  following  order  of  priority:  first  pursuant to the authority's
contracts with  bondholders,  then  to  pay  the  authority's  operating
expenses   not   otherwise  provided  for,  and  then  pursuant  to  the
authority's agreements with the city, which agreements shall require the
authority to transfer the balance of such taxes  not  required  to  meet
contractual  or  other  obligations  of  the  authority  to  the city as
frequently as practicable; except that the comptroller shall:
(1) pay to the state department of  social  services  that  amount  of
overpayments  of  the  taxes  imposed  pursuant to the authority of this
article or former article two-E of the general city law and the interest
on such amount which is certified to the comptroller by the commissioner
as the amount to  be  credited  against  past-due  support  pursuant  to
subdivision six of section one hundred seventy-one-c of this chapter;
(2)  pay  to  the New York state higher education services corporation
that amount of  overpayments  of  the  taxes  imposed  pursuant  to  the
authority  of  this  article or former article two-E of the general city
law  and  the  interest  on  such  amount  which  is  certified  to  the
comptroller by the commissioner as the amount to be credited against the
amount  of defaults in repayment of guaranteed student loans pursuant to
subdivision five of section one hundred seventy-one-d of this chapter;
(3) pay to the state university of New York or the city university  of
New  York  respectively that amount of overpayments of the taxes imposed
pursuant to the authority of this article or former article two-E of the
general city law and the interest on such amount which is  certified  to
the comptroller by the commissioner as the amount to be credited against
the  amount  of  defaults in repayment of state or city university loans
pursuant to subdivision six of section one hundred seventy-one-e of this
chapter;
(4) notwithstanding any  provision  of  law,  credit  to  the  revenue
arrearage account, pursuant to section ninety-one-a of the state finance
law,  that  amount  of overpayments of the taxes imposed pursuant to the

authority of this article or former article two-E of  the  general  city
law  and  the  interest  on  such  amount  which  is  certified  to  the
comptroller by the commissioner as the amount to be credited  against  a
past-due  legally  enforceable  debt  owed to a state agency pursuant to
paragraph (a) of subdivision six of section one hundred seventy-one-f of
this chapter, provided, however, the comptroller  shall  credit  to  the
special  offset  fiduciary  account, pursuant to section ninety-one-c of
the state finance law, any such amount creditable as a liability as  set
forth  in  paragraph  (b)  of  subdivision  six  of  section one hundred
seventy-one-f of this chapter;
(5) pay to the city of New York that amount  of  overpayments  of  tax
imposed  pursuant  to  the authority of this article and the interest on
such amount which is certified to the comptroller by the commissioner as
the amount to be credited against city of New York tax warrant  judgment
debt pursuant to section one hundred seventy-one-l of this chapter; and
(6)  pay  to  a non-obligated spouse that amount of overpayment of tax
imposed pursuant to the authority of  this  article  or  former  article
two-E  of the general city law and the interest on such amount which has
been credited pursuant to section one hundred seventy-one-c, one hundred
seventy-one-d, one hundred seventy-one-e, one hundred  seventy-one-f  or
one  hundred seventy-one-l of this chapter and which is certified to the
comptroller by the commissioner as the  amount  due  such  non-obligated
spouse  pursuant  to  paragraph  six  of  subsection  (b) of section six
hundred fifty-one of this chapter, and the comptroller  shall  deduct  a
like  amount  which,  the comptroller shall pay into the treasury to the
credit of the general fund, from amounts  subsequently  payable  to  the
office  of  temporary and disability assistance, the state university of
New York, the city university of New York, the higher education services
corporation,  or  the  revenue  arrearage  account  or  special   offset
fiduciary  account  pursuant  to section ninety-one-a or ninety-one-c of
the state finance law, as the case may be, whichever had  been  credited
the amount originally withheld from such overpayment.
(d)  The  amount  deducted  under  subsection  (b) of this section for
administering,  collecting  and  distributing  such  taxes  during  such
monthly period shall be paid by the comptroller into the general fund of
the state treasury to the credit of the state purposes account therein.
(e) The first payment to such chief fiscal officer shall be made on or
before  March  fifteenth,  nineteen  hundred  seventy-six, which payment
shall represent the balance of revenue after provision  for  refund  and
such  reasonable  costs,  with  respect  to taxes collected from January
first,  nineteen  hundred  seventy-six  through  February  twenty-ninth,
nineteen  hundred  seventy-six.  Subsequent payments shall be made on or
before April fifteenth, nineteen hundred seventy-six, and on  or  before
the  fifteenth  day  of  each  succeeding  month  thereafter,  and shall
represent the balance of revenue with respect  to  taxes  collected  the
preceding calendar months.
(f)  The  amounts  so payable under this section shall be certified to
the comptroller by the  commissioner  or  the  commissioner's  delegate,
either  of  whom  shall  not  be  held liable for any inaccuracy in such
certificate.  Where the amount so paid over to such chief fiscal officer
is more or less than the amount  then  due  such  city,  the  amount  of
overpayment or underpayment shall be certified to the comptroller by the
commissioner or the commissioner's delegate, either of whom shall not be
held  liable  for  any  inaccuracy  in  such  certificate. The amount of
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 by the comptroller  to  such
chief  fiscal officer 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.
(g) The balance payable to the  New  York  city  transitional  finance
authority  pursuant  to  this section shall instead be paid to the chief
fiscal officer of the city of New York unless and until the  comptroller
has received from such authority a notice, which shall be conclusive and
upon  which  the comptroller may rely without further inquiry, that such
authority has incurred obligations payable by it, whether  for  borrowed
money,  operating  expenses  or otherwise. On and after the date of such
notice and until such date as the authority shall  have  no  obligations
outstanding,  the  city  shall have no right, title or interest in or to
the taxes, except as provided in the  authority's  agreements  with  the
city.
(h)  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 which imposes tax pursuant  to  the  authority  of  this
article  properly  exercised  its  option 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,  the  commissioner  shall
make  and  certify  the  calculations  and the comptroller shall, on the
fifteenth day of each month, starting in January,  two  thousand  eight,
intercept  and pay monthly amounts of revenue from taxes imposed in such
a city pursuant to  the  authority  of  this  article,  as  provided  in
subdivision (g) of section twelve hundred sixty-one of this chapter.