2023 New York Laws › STF - State Finance › Article 6 - Funds of the State › 92-H - Sales Tax Revenue Bond Tax Fund.

§  92-h.  Sales  tax  revenue  bond  tax  fund.  1.  There  is  hereby
established in the joint  custody  of  the  state  comptroller  and  the
commissioner  of  taxation  and  finance  a fund within the general debt
service fund to be known as the "sales tax revenue bond tax fund".
2. Such fund shall consist of the amount of revenue  collected  within
the  state  from  the imposition of the sales and compensating use taxes
(including interest and penalties) pursuant to  section  eleven  hundred
five  and  section eleven hundred ten of the tax law equal to the amount
attributable to a one percent rate of taxation, less such amounts as the
commissioner of taxation and finance may determine to be  necessary  for
refunds.  On  and  after  the  date  that  all  of  the  obligations and
liabilities of the New  York  local  government  assistance  corporation
shall  have  been  met  or  otherwise  discharged,  other  than  payment
obligations required by section thirty-two hundred thirty-eight-a of the
public authorities law, it shall equal the amount attributable to a  two
percent  rate  of  taxation,  less  such  amounts as the commissioner of
taxation and finance may determine to be  necessary  for  refunds.  Such
sales  and  compensating use tax revenues shall be separate and distinct
from the sales and compensating use tax revenues deposited from time  to
time  in  the  local government assistance tax fund, pursuant to section
ninety-two-r of this chapter.
3. On or before the twelfth day of each  month,  the  commissioner  of
taxation  and finance shall certify to the state comptroller the amounts
specified in subdivision two of this section relating to  the  preceding
month  and, in addition, no later than March thirty-first of each fiscal
year the commissioner of taxation and finance shall certify such amounts
relating to the last month of such fiscal year. The amounts so certified
shall be deposited by the state comptroller in  the  sales  tax  revenue
bond tax fund.
4.  Moneys  in  the  sales  tax  revenue  bond  tax fund shall be kept
separate and shall not be  commingled  with  any  other  moneys  in  the
custody  of  the  state comptroller and the commissioner of taxation and
finance. All deposits of such revenues shall, if required by  the  state
comptroller,  be  secured  by obligations of the United States or of the
state having a market value equal at all times to  the  amount  of  such
deposits  and  all  banks  and  trust  companies  are authorized to give
security for such deposits. Any such moneys in such  fund  may,  in  the
discretion of the state comptroller, be invested in obligations in which
the  state  comptroller  is  authorized  to  invest  pursuant to section
ninety-eight-a of this article.
5. (a) The state comptroller shall from time to time, but in no  event
later than the fifteenth day of each month (other than the last month of
the  fiscal  year)  and  no  later than the thirty-first day of the last
month of each fiscal year, pay over and distribute to the credit of  the
general  fund  of the state treasury all moneys in the sales tax revenue
bond tax fund, if any, in excess of the aggregate amount required to  be
set aside for the payment of cash requirements pursuant to paragraph (b)
of this subdivision, provided that an appropriation has been made to pay
all  amounts  specified  in any certificate or certificates delivered by
the director of the budget pursuant to paragraph (b) of this subdivision
as being required by any authorized issuer as such term  is  defined  in
section   sixty-nine-m   of   this  chapter  for  the  payment  of  cash
requirements of such authorized issuers for such fiscal year. Subject to
the rights of holders of debt of the state, in no event shall the  state
comptroller  pay  over and distribute any moneys on deposit in the sales
tax revenue bond tax fund to any person other than an authorized  issuer
pursuant  to  such  certificate or certificates (i) unless and until the
aggregate of all cash requirements certified to the state comptroller as

required by  such  authorized  issuers  to  be  set  aside  pursuant  to
paragraph  (b)  of this subdivision for such fiscal year shall have been
appropriated to such authorized issuers in accordance with the  schedule
specified  in  the  certificate or certificates filed by the director of
the budget or (ii) if, after having been so certified and  appropriated,
any  payment  required  to  be  made  pursuant  to paragraph (b) of this
subdivision has not been made to the authorized issuers pursuant to such
certificate  or  certificates;  provided,  however,  that   no   person,
including such authorized issuers or the holders of revenue bonds, shall
have  any  lien  on  moneys on deposit in the sales tax revenue bond tax
fund. Any agreement entered into pursuant  to  section  sixty-nine-o  of
this  chapter related to any payment authorized by this section shall be
executory only to the extent of such revenues available to the state  in
such  fund.  Notwithstanding subdivisions two and three of this section,
in the event the aggregate of all cash  requirements  certified  to  the
state comptroller as required by such authorized issuers to be set aside
pursuant  to  paragraph  (b)  of  this  subdivision  for the fiscal year
beginning on April first  shall  not  have  been  appropriated  to  such
authorized  issuers  in  accordance  with  the schedule specified in the
certificate or certificates filed by the director of the budget or,  if,
having  been  so  certified and appropriated, any payment required to be
made pursuant to paragraph (b) of this subdivision  has  not  been  made
pursuant to such certificate or certificates, all receipts collected and
deposited  in  the  sales tax revenue bond tax fund shall remain in such
fund. Notwithstanding any other provision  of  law,  if  the  state  has
appropriated  and  paid  to the authorized issuers all amounts necessary
for the authorized issuers to  meet  their  cash  requirements  for  the
current   fiscal  year  pursuant  to  the  certificate  or  certificates
submitted by the director of the budget pursuant  to  paragraph  (b)  of
this  section,  the  state  comptroller  shall,  on the last day of each
fiscal year, pay to the general fund of the state all sums remaining  in
the  sales tax revenue bond tax fund on such date except such amounts as
the director of the budget may certify  are  needed  to  meet  the  cash
requirements of authorized issuers during the subsequent fiscal year.
(b)  No  later  than thirty days after the submission of the executive
budget in  accordance  with  article  seven  of  the  constitution,  the
director  of  the  budget  shall  prepare a certificate of the amount of
monthly receipts anticipated to be deposited pursuant to subdivision two
of this section during the fiscal year beginning  April  first  of  that
year  together  with  the monthly amounts necessary to be set aside from
the receipts of such fund, as shall be sufficient to meet the total cash
requirements of authorized issuers, as defined by  section  sixty-nine-m
of this chapter during such fiscal year, based on information that shall
be provided by such authorized issuers, consistent with the terms of any
contract with outstanding bondholders. Except for the purpose of meeting
cash  requirements  of an authorized issuer that are due on a monthly or
more frequent basis, prior to transferring any moneys from  the  account
pursuant to paragraph (a) of this subdivision, the comptroller shall set
aside  on  a  monthly  basis  all  revenues  deposited  pursuant to this
subdivision as received until the amount set aside is equal to one-fifth
of the interest due on such obligations on the next succeeding  interest
payment  date  multiplied  by  the  number  of months from the last such
payment and one-eleventh of the next principal installment due  on  such
obligations  multiplied  by  the  number  of  months  from the last such
principal installment where principal is  due  on  an  annual  basis  or
one-fifth  of  the  next  principal  installment due on such obligations
multiplied by  the  number  of  months  from  the  last  such  principal
installment  where  principal  is  due  on  a  semiannual basis. For the

purpose of meeting cash requirements of an authorized  issuer  that  are
due  on  a  monthly  basis or more frequently, the comptroller shall set
aside all revenues deposited pursuant to subdivision two of this section
as received until the amount so set aside is, in the reasonable judgment
of  the  director  of  the  budget  as  set  forth  in such certificate,
sufficient to make the required payment on or before such payment  date.
Notwithstanding  subdivision  three  of,  section  seventy-two  of  this
article or any other provision of law, all moneys set aside in the sales
tax revenue bond tax fund  to  meet  the  annual  cash  requirements  of
authorized issuers pursuant to a certificate or certificates as required
in  this  paragraph  shall remain in the sales tax revenue bond tax fund
until needed for payment to authorized  issuers,  as  provided  in  this
section. In the event that the amount set aside by the state comptroller
pursuant   to  this  paragraph  is  not  sufficient  to  meet  the  cash
requirements  required  pursuant  to  a  certificate   or   certificates
submitted  by  the  director  of the budget, the state comptroller shall
immediately transfer from the general fund to the sales tax revenue bond
tax fund an amount which,  when  combined  with  the  amount  set  aside
pursuant  to  this  paragraph,  shall  be sufficient to meet the payment
required pursuant to such certificate or certificates. The  director  of
the  budget  may  revise  such  certification  at such times as shall be
necessary, provided, however, that the director of the budget shall,  as
necessary,  revise  such  certification not later than thirty days after
the issuance of any revenue bonds, including refunding bonds, and  after
the   adoption   of  any  interest  rate  exchange  or  other  financial
arrangement affecting the cash requirements of the  authorized  issuers.
In  no  event shall the state comptroller be held liable for the failure
to set aside an amount sufficient to pay  any  required  payment  of  an
authorized issuer.
6. All payments of moneys from the revenue bond tax fund shall be made
on the audit and warrant of the state comptroller.