§ 92-D — Municipal assistance tax fund

New York § 92-D

• Jurisdiction: New York
• Law STF: State Finance
• Art. 6: Funds of the State

Text

§ 92-d. Municipal assistance tax fund. 1. There is hereby established\nin the custody of the comptroller a special fund to be known as the\nmunicipal assistance tax fund. Within such fund, there is hereby\nestablished a special account for each municipal assistance corporation\ncreated under article ten of the public authorities law.\n 2. Such fund shall consist of the revenues derived from municipal\nassistance sales and compensating use taxes imposed by sections eleven\nhundred seven and eleven hundred eight of the tax law, any amounts\ntransferred from the stock transfer tax fund pursuant to section\nninety-two-b of this article, any amounts transferred pursuant to\nsubdivision (a) of section nine of chapter seven hundred twenty-one of\nthe laws of nineteen hundred ninety-four, as amended by chapter one\nhundred eighty-seven of the laws of nineteen hundred ninety-five, and\nsuch amount of aid apportioned and paid into such fund pursuant to\nsection fifty-four of this chapter.\n 3. The taxes, interest and penalties imposed, pursuant to sections\neleven hundred seven or eleven hundred eight (as the case may be) of the\ntax law within the territorial limits of a city in aid of which a\nmunicipal assistance corporation has been created, and received by the\ncommissioner of taxation and finance, after deducting the amount which\nthe commissioner of taxation and finance shall determine to be necessary\nfor reasonable costs of the commissioner of taxation and finance in\nadministering, collecting and distributing such taxes, shall be\nappropriated (i) to the municipal assistance corporation which has been\ncreated in aid of such city in order to enable such corporation to\nfulfill the terms of any agreements made with the holders of its notes\nand bonds and to carry out its corporate purposes, including the\nmaintenance of the capital reserve fund, and (ii) the balance, if any,\nto the city in aid of which such corporation has been created, or to a\npublic benefit corporation to which the tax may be otherwise payable\npursuant to law, as hereinafter provided.\n 4. On or before the twelfth day of each month, the commissioner of\ntaxation and finance shall certify to the comptroller the amount of all\nrevenues so received during the prior month as a result of the taxes,\ninterest and penalties so imposed and in addition on or before the last\nday of June the commissioner shall certify the amount of such revenues\nreceived during and including the first twenty-five days of June. The\namount of revenues so certified shall be deposited by the comptroller in\nthe municipal assistance tax fund and the amount attributable to the\ntaxes, interest and penalties imposed within the territorial limits of a\ncity in aid of which a municipal assistance corporation has been created\nshall be credited to a special account established in such fund for such\ncorporation. Notwithstanding the foregoing provisions, the commissioner\nof taxation and finance may prorate revenue attributable to the first or\nlast quarterly return period during which the taxes imposed by section\neleven hundred seven or eleven hundred eight (as the case may be) of the\ntax law apply so as to separate from the revenue collected for that\nquarter pursuant to such taxes the revenue collected pursuant to local\nlegislation adopted by a city pursuant to section twelve hundred ten or\ntwelve hundred twelve-A of the tax law. Such a proration by the\ncommissioner of taxation and finance shall be made on the basis of the\nratio of the number of months during which such taxes were imposed\nduring such quarterly return period to the total number of months in\nsuch quarterly return period when such proration is reasonably necessary\nto ascertain the amount of such money which must be deposited by the\ncomptroller in such special account and the amount of such money which\nmust be deposited pursuant to section twelve hundred sixty-one of the\ntax law. The commissioner of taxation and finance shall not be held\nliable for any inaccuracy in any certification under this subdivision.\n 5. Revenues in any special account in the municipal assistance tax\nfund shall be kept separate and shall not be commingled with any other\nmoneys in the custody of the comptroller. All deposits of such revenues\nshall, if required by the comptroller, be secured by obligations of the\nUnited States or of the state having a market value equal at all times\nto the amount of such deposits and all banks and trust companies are\nauthorized to give security for such deposits. Any such revenues in such\nfund may, in the discretion of the comptroller, be invested in\nobligations of the United States or of the state or in obligations the\nprincipal of and interest on which are guaranteed by the United States\nor by the state.\n 6. Upon receipt by the comptroller of a certificate or certificates\nfrom the chairman of a municipal assistance corporation that such\ncorporation requires a payment or payments in order to comply with any\nagreement with the holders of its notes and bonds and to carry out its\ncorporate purposes, including the maintenance of the capital reserve\nfund, from the special account established for such corporation, each of\nwhich certificates shall specify the required payment or payments and\nthe date when the payment or payments is required, the comptroller shall\npay from such special account on or before the specified date or within\nthirty days after such receipt, whichever is later, to such corporation,\nas the chairman thereof may direct in any such certificate, the amount\nor amounts so certified. The chairman of such corporation shall furnish\nthe commissioner of taxation and finance with copies of such\ncertificates. The comptroller shall from time to time, but in no event\nlater than the fifteenth day of October, January and April and the last\nday of June of each fiscal year, pay over and distribute to the chief\nfiscal officer of the city in aid of which such municipal assistance\ncorporation has been created to be paid into the treasury of such city\nto the credit of the general fund, or pay over and distribute to a\npublic benefit corporation to which the tax may otherwise be payable\npursuant to law, all revenues in the special account established for\nsuch corporation in the municipal assistance tax fund, if any, in excess\nof the aggregate amount which the chairman of such corporation has\ncertified to the comptroller and which has been previously appropriated\nand paid to such corporation as hereinabove authorized. In no event\nshall the comptroller pay over and distribute any revenues (other than\nthe amount to be deducted for administering, collecting and distributing\nsuch sales and compensating use taxes) to any person other than the\nmunicipal assistance corporation unless and until the aggregate of all\npayments certified to the comptroller as required by such corporation as\nof such date in order to comply with its agreements with the holders of\nits notes and bonds and to carry out its corporate purposes, including\nthe maintenance of the capital reserve fund, which remain unappropriated\nor unpaid to such corporation shall have been appropriated to such\ncorporation and shall have been paid in full; provided, however, that no\nperson, including such corporation or the holders of its notes or bonds\nshall have any lien on such revenues and such agreement shall be\nexecutory only to the extent of such revenues available to the state in\nsuch special account. On the day on which the comptroller pays over and\ndistributes to the chief fiscal officer of such city any revenues from\nsuch special account the commissioner of taxation and finance shall\ncertify to the comptroller the amount to be deducted for administering,\ncollecting and distributing the tax imposed pursuant to section eleven\nhundred seven or eleven hundred eight (as the case may be) of the tax\nlaw within the territorial limits of such city since he last certified\nsuch amount and the comptroller shall pay such amount into the general\nfund of the state treasury to the credit of the state purposes fund\ntherein.\n 7. In the event that the amount of revenues in the special account\nestablished for the municipal assistance corporation for the city of New\nYork in the municipal assistance tax fund which have been appropriated\nto such corporation shall at any time be less than the amount which the\nchairman of such corporation has certified to the comptroller as\nrequired in order to comply with its agreements with the holders of its\nnotes and bonds and to carry out its corporate purposes, including the\nmaintenance of the capital reserve fund, then and in such event the\ncomptroller shall forthwith certify to the commissioner of taxation and\nfinance the amount of the difference between the revenues in such\nspecial account and the amount so certified as required by such\ncorporation and upon receipt of such certificate the commissioner of\ntaxation and finance shall approve a voucher for payment of the amount\nof such difference into such special account in the municipal assistance\ntax fund from the stock transfer tax fund established pursuant to\nsubdivision one of section ninety-two-b of this chapter at the next date\nfor payment from such fund as provided in subdivision four of such\nsection, anything in said section to the contrary notwithstanding. In\nthe case of every twelve month period commencing after June thirtieth,\nnineteen hundred seventy-seven, the comptroller shall, before the last\nday of September, December, March and June of each such period, certify\nto the commissioner of taxation and finance the amount from the stock\ntransfer tax fund, if any, determined by the comptroller to be required\nduring the next following three months in order to provide the amounts\ncertified by the chairman of the municipal assistance corporation for\nthe city of New York, or if no such amount is necessary, a statement to\nthat effect. The amount so determined shall be arrived at after taking\ninto account a statement, to be furnished by the commissioner of\ntaxation and finance to the comptroller, of such information, including\nrevenue collection and estimates of revenue collection for certain\nperiods of the taxes imposed by section eleven hundred seven of the tax\nlaw, as such commissioner is reasonably able to provide in order to aid\nsuch comptroller in making the above determination with respect to\ndisposition of revenues in the stock transfer tax fund. Such\ncommissioner shall not be held liable for any inaccuracy of any such\ninformation provided in such statement. The foregoing certificate or\nstatement, as the case may be, of such comptroller shall be made\nregardless of the amount of revenues in the special account established\nfor the municipal assistance tax fund which have been appropriated to\nsuch corporation. When all the notes and bonds of the corporation have\nbeen fully paid and discharged, together with the interest thereon and\ninterest on unpaid installments of interest, the chairman of the\ncorporation must make a final certification to the comptroller that the\ncorporation has no more liabilities. Upon receipt of that certification,\nthe comptroller must notify the commissioner of taxation and finance\nthat all funds held in the stock transfer tax fund must be deposited in\nthe stock transfer incentive fund pursuant to subdivision seven of\nsection ninety-two-b of this article.\n 8. All payments of moneys from the municipal assistance tax fund shall\nbe made on the audit and warrant of the state comptroller.\n 9. With respect to: (i) net collections, as defined in section twelve\nhundred sixty-two of the tax law, to the extent received by the county\nof Rensselaer under payment procedures in effect, from taxes imposed by\nsuch county under section twelve hundred ten of the tax law, as amended,\nor any successor law thereto, and\n (ii) monies, to the extent received by such county under payment\nprocedures in effect, to be paid to the city of Troy pursuant to an\nagreement under subdivision (c) of section twelve hundred sixty-two of\nthe tax law, the special account established for the municipal\nassistance corporation for the city of Troy within the municipal\nassistance tax fund shall have a statutory first lien upon the entire\nshare of the city of Troy of any such net collections or monies. Such\nlien shall not require any segregation of funds, physical delivery or\nany other action, filing or agreement in order to evidence, perfect, or\npreserve the priority of such lien and shall be valid, binding, and\nperfected as against all parties, with or without notice thereof, having\nclaims of any kind in tort, contract or otherwise against such county.\nSuch county shall segregate, quarterly or on such other schedule as such\nshare of such net collections or monies shall be due and owing in\naccordance with such law or agreement, such share of such net\ncollections or monies and shall, upon such segregation, use such\nproceeds for no other purpose than to pay them to the comptroller for\ndeposit into the special account established for the municipal\nassistance corporation for the city of Troy within the municipal\nassistance tax fund in accordance with applicable law and payment\nprocedures in effect. Provided that such county has, by the payment due\ndate, paid such proceeds to the comptroller in accordance with the\nprovisions of this paragraph, such payment shall be deemed conclusive\nevidence that the county had complied with the segregation requirement\nrespecting the proceeds so paid, as set forth in this paragraph. This\nsubdivision shall terminate upon the termination of the municipal\nassistance corporation for the city of Troy.\n