§ 92-H — Sales tax revenue bond tax fund

New York § 92-H

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

Text

§ 92-h. Sales tax revenue bond tax fund. 1. There is hereby\nestablished in the joint custody of the state comptroller and the\ncommissioner of taxation and finance a fund within the general debt\nservice fund to be known as the "sales tax revenue bond tax fund".\n 2. Such fund shall consist of the amount of revenue collected within\nthe state from the imposition of the sales and compensating use taxes\n(including interest and penalties) pursuant to section eleven hundred\nfive and section eleven hundred ten of the tax law equal to the amount\nattributable to a one percent rate of taxation, less such amounts as the\ncommissioner of taxation and finance may determine to be necessary for\nrefunds. On and after the date that all of the obligations and\nliabilities of the New York local government assistance corporation\nshall have been met or otherwise discharged, other than payment\nobligations required by section thirty-two hundred thirty-eight-a of the\npublic authorities law, it shall equal the amount attributable to a two\npercent rate of taxation, less such amounts as the commissioner of\ntaxation and finance may determine to be necessary for refunds. Such\nsales and compensating use tax revenues shall be separate and distinct\nfrom the sales and compensating use tax revenues deposited from time to\ntime in the local government assistance tax fund, pursuant to section\nninety-two-r of this chapter.\n 3. On or before the twelfth day of each month, the commissioner of\ntaxation and finance shall certify to the state comptroller the amounts\nspecified in subdivision two of this section relating to the preceding\nmonth and, in addition, no later than March thirty-first of each fiscal\nyear the commissioner of taxation and finance shall certify such amounts\nrelating to the last month of such fiscal year. The amounts so certified\nshall be deposited by the state comptroller in the sales tax revenue\nbond tax fund.\n 4. Moneys in the sales tax revenue bond tax fund shall be kept\nseparate and shall not be commingled with any other moneys in the\ncustody of the state comptroller and the commissioner of taxation and\nfinance. All deposits of such revenues shall, if required by the state\ncomptroller, be secured by obligations of the United States or of the\nstate having a market value equal at all times to the amount of such\ndeposits and all banks and trust companies are authorized to give\nsecurity for such deposits. Any such moneys in such fund may, in the\ndiscretion of the state comptroller, be invested in obligations in which\nthe state comptroller is authorized to invest pursuant to section\nninety-eight-a of this article.\n 5. (a) The state comptroller shall from time to time, but in no event\nlater than the fifteenth day of each month (other than the last month of\nthe fiscal year) and no later than the thirty-first day of the last\nmonth of each fiscal year, pay over and distribute to the credit of the\ngeneral fund of the state treasury all moneys in the sales tax revenue\nbond tax fund, if any, in excess of the aggregate amount required to be\nset aside for the payment of cash requirements pursuant to paragraph (b)\nof this subdivision, provided that an appropriation has been made to pay\nall amounts specified in any certificate or certificates delivered by\nthe director of the budget pursuant to paragraph (b) of this subdivision\nas being required by any authorized issuer as such term is defined in\nsection sixty-nine-m of this chapter for the payment of cash\nrequirements of such authorized issuers for such fiscal year. Subject to\nthe rights of holders of debt of the state, in no event shall the state\ncomptroller pay over and distribute any moneys on deposit in the sales\ntax revenue bond tax fund to any person other than an authorized issuer\npursuant to such certificate or certificates (i) unless and until the\naggregate of all cash requirements certified to the state comptroller as\nrequired by such authorized issuers to be set aside pursuant to\nparagraph (b) of this subdivision for such fiscal year shall have been\nappropriated to such authorized issuers in accordance with the schedule\nspecified in the certificate or certificates filed by the director of\nthe budget or (ii) if, after having been so certified and appropriated,\nany payment required to be made pursuant to paragraph (b) of this\nsubdivision has not been made to the authorized issuers pursuant to such\ncertificate or certificates; provided, however, that no person,\nincluding such authorized issuers or the holders of revenue bonds, shall\nhave any lien on moneys on deposit in the sales tax revenue bond tax\nfund. Any agreement entered into pursuant to section sixty-nine-o of\nthis chapter related to any payment authorized by this section shall be\nexecutory only to the extent of such revenues available to the state in\nsuch fund. Notwithstanding subdivisions two and three of this section,\nin the event the aggregate of all cash requirements certified to the\nstate comptroller as required by such authorized issuers to be set aside\npursuant to paragraph (b) of this subdivision for the fiscal year\nbeginning on April first shall not have been appropriated to such\nauthorized issuers in accordance with the schedule specified in the\ncertificate or certificates filed by the director of the budget or, if,\nhaving been so certified and appropriated, any payment required to be\nmade pursuant to paragraph (b) of this subdivision has not been made\npursuant to such certificate or certificates, all receipts collected and\ndeposited in the sales tax revenue bond tax fund shall remain in such\nfund. Notwithstanding any other provision of law, if the state has\nappropriated and paid to the authorized issuers all amounts necessary\nfor the authorized issuers to meet their cash requirements for the\ncurrent fiscal year pursuant to the certificate or certificates\nsubmitted by the director of the budget pursuant to paragraph (b) of\nthis section, the state comptroller shall, on the last day of each\nfiscal year, pay to the general fund of the state all sums remaining in\nthe sales tax revenue bond tax fund on such date except such amounts as\nthe director of the budget may certify are needed to meet the cash\nrequirements of authorized issuers during the subsequent fiscal year.\n (b) No later than thirty days after the submission of the executive\nbudget in accordance with article seven of the constitution, the\ndirector of the budget shall prepare a certificate of the amount of\nmonthly receipts anticipated to be deposited pursuant to subdivision two\nof this section during the fiscal year beginning April first of that\nyear together with the monthly amounts necessary to be set aside from\nthe receipts of such fund, as shall be sufficient to meet the total cash\nrequirements of authorized issuers, as defined by section sixty-nine-m\nof this chapter during such fiscal year, based on information that shall\nbe provided by such authorized issuers, consistent with the terms of any\ncontract with outstanding bondholders. Except for the purpose of meeting\ncash requirements of an authorized issuer that are due on a monthly or\nmore frequent basis, prior to transferring any moneys from the account\npursuant to paragraph (a) of this subdivision, the comptroller shall set\naside on a monthly basis all revenues deposited pursuant to this\nsubdivision as received until the amount set aside is equal to one-fifth\nof the interest due on such obligations on the next succeeding interest\npayment date multiplied by the number of months from the last such\npayment and one-eleventh of the next principal installment due on such\nobligations multiplied by the number of months from the last such\nprincipal installment where principal is due on an annual basis or\none-fifth of the next principal installment due on such obligations\nmultiplied by the number of months from the last such principal\ninstallment where principal is due on a semiannual basis. For the\npurpose of meeting cash requirements of an authorized issuer that are\ndue on a monthly basis or more frequently, the comptroller shall set\naside all revenues deposited pursuant to subdivision two of this section\nas received until the amount so set aside is, in the reasonable judgment\nof the director of the budget as set forth in such certificate,\nsufficient to make the required payment on or before such payment date.\nNotwithstanding subdivision three of, section seventy-two of this\narticle or any other provision of law, all moneys set aside in the sales\ntax revenue bond tax fund to meet the annual cash requirements of\nauthorized issuers pursuant to a certificate or certificates as required\nin this paragraph shall remain in the sales tax revenue bond tax fund\nuntil needed for payment to authorized issuers, as provided in this\nsection. In the event that the amount set aside by the state comptroller\npursuant to this paragraph is not sufficient to meet the cash\nrequirements required pursuant to a certificate or certificates\nsubmitted by the director of the budget, the state comptroller shall\nimmediately transfer from the general fund to the sales tax revenue bond\ntax fund an amount which, when combined with the amount set aside\npursuant to this paragraph, shall be sufficient to meet the payment\nrequired pursuant to such certificate or certificates. The director of\nthe budget may revise such certification at such times as shall be\nnecessary, provided, however, that the director of the budget shall, as\nnecessary, revise such certification not later than thirty days after\nthe issuance of any revenue bonds, including refunding bonds, and after\nthe adoption of any interest rate exchange or other financial\narrangement affecting the cash requirements of the authorized issuers.\nIn no event shall the state comptroller be held liable for the failure\nto set aside an amount sufficient to pay any required payment of an\nauthorized issuer.\n 6. All payments of moneys from the revenue bond tax fund shall be made\non the audit and warrant of the state comptroller.\n