§ 1270-C — Metropolitan transportation authority dedicated tax fund

§ 1270-c. Metropolitan transportation authority dedicated tax fund. 1.\nThe authority shall establish a fund to be known as the "metropolitan\ntransportation authority dedicated tax fund" which shall be kept\nseparate from and shall not be commingled with any other moneys of the\nauthority. The fund shall consist of a "pledged amounts account" and an\n"operating and capital costs account" and such other accounts and\nsubaccounts as the authority may determine.\n * 2. There shall be deposited, pursuant to appropriation, into the\nfund the moneys deposited in the dedicated mass transportation trust\nfund for payment to the metropolitan transportation authority dedicated\ntax fund pursuant to the provisions of subdivision (d) of section three\nhundred one-j of the tax law, and any other moneys collected for or\ntransferred to such fund pursuant to section eighty-eight-a of the state\nfinance law and any other provision of law directing or permitting the\ndeposit of moneys in such fund.\n * NB Effective until April 1, 2026\n * 2. There shall be deposited, pursuant to appropriation, into the\nfund the moneys deposited in the dedicated mass transportation trust\nfund for payment to the metropolitan transportation authority dedicated\ntax fund pursuant to the provisions of subdivision (d) of section three\nhundred one-j of the tax law, paragraph two of subdivision (d) of\nsection eleven hundred nine of the tax law, and any other moneys\ncollected for or transferred to such fund pursuant to section\neighty-eight-a of the state finance law and any other provision of law\ndirecting or permitting the deposit of moneys in such fund.\n * NB Effective April 1, 2026\n * 3. Moneys in the fund may be (a) pledged by the authority to secure\nand be applied to the payment of its bonds, notes or other obligations\nspecified by the authority and issued to finance (i) transit projects\nundertaken for the New York city transit authority and its subsidiaries\nand (ii) transportation facilities undertaken for the authority and its\nsubsidiaries and (b) used for payment of operating costs, and capital\ncosts, including debt service, reserve requirements, if any, the payment\nof amounts required under bond and note facilities or agreements related\nthereto, the payment of federal government loans, security or credit\narrangements or other agreements related thereto, and the payment of all\ncosts related to such obligations, of or for the authority, the New York\ncity transit authority and their subsidiaries as the authority shall\ndetermine. To the extent moneys in the fund have been pledged by the\nauthority to secure and pay its bonds, notes or other obligations as\nherein provided, moneys deposited into the fund shall first be deposited\ninto the pledged amounts account to the extent necessary to satisfy the\nrequirements of any debt service or reserve requirements, if any, of the\nresolution authorizing such bonds, notes or other obligations. After\nsatisfaction of such requirements of the resolution, or if the authority\nhas not so pledged the moneys in the fund, moneys deposited in the fund\nshall be directly deposited into the operating and capital costs account\nand, subject to the provisions of any resolutions of the authority not\nsecured by the pledged amounts account, transferred forthwith to or for\nthe benefit of the New York city transit authority and its subsidiaries\nand the Staten Island rapid transit operating authority (the "TA") and\nto and for the benefit of the Long Island Rail Road company and the\nMetro-North commuter rail road company (the "CRR") as provided in this\nsection.\n Moneys in the operating and capital costs account which were deposited\nin the fund pursuant to appropriation from moneys deposited in the\ndedicated mass transportation trust fund for payment to the metropolitan\ntransportation authority dedicated tax fund pursuant to subdivision (d)\nof section three hundred one-j of the tax law (the "remaining PBT\namount") shall be distributed by the authority as follows: an amount\nequal to the debt service incurred in such calendar year as a result of\nobligations issued and secured by moneys in the fund, to the extent such\ndebt service is to be paid from money deposited in the fund pursuant to\nappropriation from moneys deposited in the dedicated mass transportation\ntrust fund for payment to the metropolitan transportation authority\ndedicated tax fund pursuant to subdivision (d) of section three hundred\none-j of the tax law ("PBT debt service"), shall be added to the\nremaining PBT amount. The sum of these figures shall then be allocated\nas follows: eighty-five per centum of such sum shall be allocated to the\nTA and fifteen per centum of such sum shall be allocated to the CRR. The\namounts so allocated shall then be reduced respectively by the\nproportional amount of PBT debt service attributable to the payments for\ntransit projects undertaken for the TA and transportation facility\nprojects undertaken for the CRR. The remaining amounts shall constitute\nthe respective distributable shares of the remaining PBT amount and\nshall be distributed to or for the benefit of the TA and the CRR.\n Moneys in the operating and capital costs account which were deposited\nin the fund pursuant to section eighty-eight-a of the state finance law\n(the "remaining MMTOA amount") shall be distributed by the authority as\nfollows: an amount equal to the debt service incurred in such calendar\nyear as a result of obligations issued and secured by money in the fund,\nto the extent such debt service is to be paid from money deposited in\nthe fund pursuant to section eighty-eight-a of the state finance law\n("MMTOA debt service"), shall be added to the remaining MMTOA amount.\nThe sum of these figures shall then be allocated as follows: there shall\nbe allocated (i) to the TA an amount of such sum which bears the same\nproportion to such sum as the amount appropriated and paid during such\ncalendar year from the metropolitan mass transportation operating\nassistance account to the authority for the operating expenses of the TA\nbears to the total amounts so appropriated and paid from such operating\nassistance account during such calendar year to the TA and CRR combined\nand (ii) to the CRR an amount of such sum which bears the same\nproportion to such sum as the amount appropriated and paid during such\ncalendar year from the metropolitan mass transportation operating\nassistance account to the CRR bears to the total amounts so appropriated\nand paid from such operating assistance account during such calendar\nyear to the TA and CRR combined. The amounts so allocated shall then be\nreduced respectively by the proportional amount of MMTOA debt service\nattributable to the payments for transit projects undertaken for the TA\nand transportation facility projects undertaken for the CRR. The\nremaining amounts shall constitute the respective distributable shares\nof the remaining MMTOA amount and shall be distributed to or for the\nbenefit of the TA and the CRR. In no event shall the authority utilize\nany measure or calculation for determining such distributable shares\nother than the formula prescribed herein nor shall the authority take\nany action which would result in the use of such money which is\ndifferent from or inconsistent with the use prescribed in this section.\n To the extent that amounts described in the preceding two paragraphs\nare distributed more frequently than annually, each such distribution\nshall be made as nearly as may be practicable in accordance with the\nallocations described above to the TA and the CRR. Within thirty days\nafter the end of each calendar year, the authority shall certify to the\ndirector of the budget, the chairperson of the senate finance committee\nand the chairperson of the assembly ways and means committee, the amount\nof money deposited in the fund pursuant to appropriation from moneys\ndeposited in the dedicated mass transportation trust fund for payment to\nthe metropolitan transportation authority dedicated tax fund pursuant to\nsubdivision (d) of section three hundred one-j of the tax law and\nsection eighty-eight-a of the state finance law, the amounts expended\nfrom the pledged amounts account for the benefit of the TA and the CRR,\nand the amounts of the remaining PBT amount and the remaining MMTOA\namount distributed during the prior calendar year to the TA and the CRR\nand specifying in each case the appropriation or appropriations which\nwas the source of such amounts.\n * NB Effective until April 1, 2026\n * 3. Moneys in the fund may be (a) pledged by the authority to secure\nand be applied to the payment of its bonds, notes or other obligations\nspecified by the authority and issued to finance (i) transit projects\nundertaken for the New York city transit authority and its subsidiaries\nand (ii) transportation facilities undertaken for the authority and its\nsubsidiaries and (b) used for payment of operating costs, and capital\ncosts, including debt service, reserve requirements, if any, the payment\nof amounts required under bond and note facilities or agreements related\nthereto, the payment of federal government loans, security or credit\narrangements or other agreements related thereto, and the payment of all\ncosts related to such obligations, of or for the authority, the New York\ncity transit authority and their subsidiaries as the authority shall\ndetermine. To the extent moneys in the fund have been pledged by the\nauthority to secure and pay its bonds, notes or other obligations as\nherein provided, moneys deposited into the fund shall first be deposited\ninto the pledged amounts account to the extent necessary to satisfy the\nrequirements of any debt service or reserve requirements, if any, of the\nresolution authorizing such bonds, notes or other obligations. After\nsatisfaction of such requirements of the resolution, or if the authority\nhas not so pledged the moneys in the fund, moneys deposited in the fund\nshall be directly deposited into the operating and capital costs account\nand, subject to the provisions of any resolutions of the authority not\nsecured by the pledged amounts account, transferred forthwith to or for\nthe benefit of the New York city transit authority and its subsidiaries\nand the Staten Island rapid transit operating authority (the "TA") and\nto and for the benefit of the Long Island Rail Road company and the\nMetro-North commuter rail road company (the "CRR") as provided in this\nsection.\n Moneys in the operating and capital costs account which were deposited\nin the fund pursuant to appropriation from moneys deposited in the\ndedicated mass transportation trust fund for payment to the metropolitan\ntransportation authority dedicated tax fund pursuant to subdivision (d)\nof section three hundred one-j of the tax law or paragraph two of\nsubdivision (d) of section eleven hundred nine of the tax law (the\n"remaining PBT amount") shall be distributed by the authority as\nfollows: an amount equal to the debt service incurred in such calendar\nyear as a result of obligations issued and secured by moneys in the\nfund, to the extent such debt service is to be paid from money deposited\nin the fund pursuant to appropriation from moneys deposited in the\ndedicated mass transportation trust fund for payment to the metropolitan\ntransportation authority dedicated tax fund pursuant to subdivision (d)\nof section three hundred one-j of the tax law or paragraph two of\nsubdivision (d) of section eleven hundred nine of the tax law ("PBT debt\nservice"), shall be added to the remaining PBT amount. The sum of these\nfigures shall then be allocated as follows: eighty-five per centum of\nsuch sum shall be allocated to the TA and fifteen per centum of such sum\nshall be allocated to the CRR. The amounts so allocated shall then be\nreduced respectively by the proportional amount of PBT debt service\nattributable to the payments for transit projects undertaken for the TA\nand transportation facility projects undertaken for the CRR. The\nremaining amounts shall constitute the respective distributable shares\nof the remaining PBT amount and shall be distributed to or for the\nbenefit of the TA and the CRR.\n Moneys in the operating and capital costs account which were deposited\nin the fund pursuant to section eighty-eight-a of the state finance law\n(the "remaining MMTOA amount") shall be distributed by the authority as\nfollows: an amount equal to the debt service incurred in such calendar\nyear as a result of obligations issued and secured by money in the fund,\nto the extent such debt service is to be paid from money deposited in\nthe fund pursuant to section eighty-eight-a of the state finance law\n("MMTOA debt service"), shall be added to the remaining MMTOA amount.\nThe sum of these figures shall then be allocated as follows: there shall\nbe allocated (i) to the TA an amount of such sum which bears the same\nproportion to such sum as the amount appropriated and paid during such\ncalendar year from the metropolitan mass transportation operating\nassistance account to the authority for the operating expenses of the TA\nbears to the total amounts so appropriated and paid from such operating\nassistance account during such calendar year to the TA and CRR combined\nand (ii) to the CRR an amount of such sum which bears the same\nproportion to such sum as the amount appropriated and paid during such\ncalendar year from the metropolitan mass transportation operating\nassistance account to the CRR bears to the total amounts so appropriated\nand paid from such operating assistance account during such calendar\nyear to the TA and CRR combined. The amounts so allocated shall then be\nreduced respectively by the proportional amount of MMTOA debt service\nattributable to the payments for transit projects undertaken for the TA\nand transportation facility projects undertaken for the CRR. The\nremaining amounts shall constitute the respective distributable shares\nof the remaining MMTOA amount and shall be distributed to or for the\nbenefit of the TA and the CRR. In no event shall the authority utilize\nany measure or calculation for determining such distributable shares\nother than the formula prescribed herein nor shall the authority take\nany action which would result in the use of such money which is\ndifferent from or inconsistent with the use prescribed in this section.\n To the extent that amounts described in the preceding two paragraphs\nare distributed more frequently than annually, each such distribution\nshall be made as nearly as may be practicable in accordance with the\nallocations described above to the TA and the CRR. Within thirty days\nafter the end of each calendar year, the authority shall certify to the\ndirector of the budget, the chairperson of the senate finance committee\nand the chairperson of the assembly ways and means committee, the amount\nof money deposited in the fund pursuant to appropriation from moneys\ndeposited in the dedicated mass transportation trust fund for payment to\nthe metropolitan transportation authority dedicated tax fund pursuant to\nsubdivision (d) of section three hundred one-j of the tax law, paragraph\ntwo of subdivision (d) of section eleven hundred nine of the tax law,\nand section eighty-eight-a of the state finance law, the amounts\nexpended from the pledged amounts account for the benefit of the TA and\nthe CRR, and the amounts of the remaining PBT amount and the remaining\nMMTOA amount distributed during the prior calendar year to the TA and\nthe CRR and specifying in each case the appropriation or appropriations\nwhich was the source of such amounts.\n * NB Effective April 1, 2026\n * 4. Any money deposited in the fund shall be held in the fund free\nand clear of any claim by any person arising out of or in connection\nwith article thirteen-A of the tax law. Without limiting the generality\nof the foregoing and without limiting the rights and duties of the\ncommissioner of taxation and finance under article thirteen-A of the tax\nlaw, no petroleum business, as defined in section three hundred of the\ntax law, or any other person, including the state, shall have any right\nor claim against the authority, any of its bondholders, the TA or the\nCRR to any moneys in or distributed from the fund or in respect of a\nrefund, rebate, credit or reimbursement of taxes paid under article\nthirteen-A of the tax law.\n * NB Effective until April 1, 2026\n * 4. Any money deposited in the fund shall be held in the fund free\nand clear of any claim by any person arising out of or in connection\nwith article thirteen-A and article twenty-eight of the tax law. Without\nlimiting the generality of the foregoing and without limiting the rights\nand duties of the commissioner of taxation and finance under article\nthirteen-A of the tax law, no petroleum business, as defined in section\nthree hundred of the tax law, or any other person, including the state,\nshall have any right or claim against the authority, any of its\nbondholders, the TA or the CRR to any moneys in or distributed from the\nfund or in respect of a refund, rebate, credit or reimbursement of taxes\npaid under article thirteen-A and article twenty-eight of the tax law.\n * NB Effective April 1, 2026\n