N.Y. Tax Law § 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. (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. (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. (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. (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. (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. (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.