Legislation
SECTION 1270-C
Metropolitan transportation authority dedicated tax fund
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 5, TITLE 11
§ 1270-c. Metropolitan transportation authority dedicated tax fund. 1.
The authority shall establish a fund to be known as the "metropolitan
transportation authority dedicated tax fund" which shall be kept
separate from and shall not be commingled with any other moneys of the
authority. The fund shall consist of a "pledged amounts account" and an
"operating and capital costs account" and such other accounts and
subaccounts as the authority may determine.
2. There shall be deposited, pursuant to appropriation, into the fund
the moneys deposited in the dedicated mass transportation trust fund for
payment to the metropolitan transportation authority dedicated tax fund
pursuant to the provisions of subdivision (d) of section three hundred
one-j of the tax law, paragraph two of subdivision (d) of section eleven
hundred nine of the tax law, and any other moneys collected for or
transferred to such fund pursuant to section eighty-eight-a of the state
finance law and any other provision of law directing or permitting the
deposit of moneys in such fund.
3. Moneys in the fund may be (a) pledged by the authority to secure
and be applied to the payment of its bonds, notes or other obligations
specified by the authority and issued to finance (i) transit projects
undertaken for the New York city transit authority and its subsidiaries
and (ii) transportation facilities undertaken for the authority and its
subsidiaries and (b) used for payment of operating costs, and capital
costs, including debt service, reserve requirements, if any, the payment
of amounts required under bond and note facilities or agreements related
thereto, the payment of federal government loans, security or credit
arrangements or other agreements related thereto, and the payment of all
costs related to such obligations, of or for the authority, the New York
city transit authority and their subsidiaries as the authority shall
determine. To the extent moneys in the fund have been pledged by the
authority to secure and pay its bonds, notes or other obligations as
herein provided, moneys deposited into the fund shall first be deposited
into the pledged amounts account to the extent necessary to satisfy the
requirements of any debt service or reserve requirements, if any, of the
resolution authorizing such bonds, notes or other obligations. After
satisfaction of such requirements of the resolution, or if the authority
has not so pledged the moneys in the fund, moneys deposited in the fund
shall be directly deposited into the operating and capital costs account
and, subject to the provisions of any resolutions of the authority not
secured by the pledged amounts account, transferred forthwith to or for
the benefit of the New York city transit authority and its subsidiaries
and the Staten Island rapid transit operating authority (the "TA") and
to and for the benefit of the Long Island Rail Road company and the
Metro-North commuter rail road company (the "CRR") as provided in this
section.
Moneys in the operating and capital costs account which were deposited
in the fund pursuant to appropriation from moneys deposited in the
dedicated mass transportation trust fund for payment to the metropolitan
transportation authority dedicated tax fund pursuant to subdivision (d)
of section three hundred one-j of the tax law or paragraph two of
subdivision (d) of section eleven hundred nine of the tax law (the
"remaining PBT amount") shall be distributed by the authority as
follows: an amount equal to the debt service incurred in such calendar
year as a result of obligations issued and secured by moneys in the
fund, to the extent such debt service is to be paid from money deposited
in the fund pursuant to appropriation from moneys deposited in the
dedicated mass transportation trust fund for payment to the metropolitan
transportation authority dedicated tax fund pursuant to subdivision (d)
of section three hundred one-j of the tax law or paragraph two of
subdivision (d) of section eleven hundred nine of the tax law ("PBT debt
service"), shall be added to the remaining PBT amount. The sum of these
figures shall then be allocated as follows: eighty-five per centum of
such sum shall be allocated to the TA and fifteen per centum of such sum
shall be allocated to the CRR. The amounts so allocated shall then be
reduced respectively by the proportional amount of PBT debt service
attributable to the payments for transit projects undertaken for the TA
and transportation facility projects undertaken for the CRR. The
remaining amounts shall constitute the respective distributable shares
of the remaining PBT amount and shall be distributed to or for the
benefit of the TA and the CRR.
Moneys in the operating and capital costs account which were deposited
in the fund pursuant to section eighty-eight-a of the state finance law
(the "remaining MMTOA amount") shall be distributed by the authority as
follows: an amount equal to the debt service incurred in such calendar
year as a result of obligations issued and secured by money in the fund,
to the extent such debt service is to be paid from money deposited in
the fund pursuant to section eighty-eight-a of the state finance law
("MMTOA debt service"), shall be added to the remaining MMTOA amount.
The sum of these figures shall then be allocated as follows: there shall
be allocated (i) to the TA an amount of such sum which bears the same
proportion to such sum as the amount appropriated and paid during such
calendar year from the metropolitan mass transportation operating
assistance account to the authority for the operating expenses of the TA
bears to the total amounts so appropriated and paid from such operating
assistance account during such calendar year to the TA and CRR combined
and (ii) to the CRR an amount of such sum which bears the same
proportion to such sum as the amount appropriated and paid during such
calendar year from the metropolitan mass transportation operating
assistance account to the CRR bears to the total amounts so appropriated
and paid from such operating assistance account during such calendar
year to the TA and CRR combined. The amounts so allocated shall then be
reduced respectively by the proportional amount of MMTOA debt service
attributable to the payments for transit projects undertaken for the TA
and transportation facility projects undertaken for the CRR. The
remaining amounts shall constitute the respective distributable shares
of the remaining MMTOA amount and shall be distributed to or for the
benefit of the TA and the CRR. In no event shall the authority utilize
any measure or calculation for determining such distributable shares
other than the formula prescribed herein nor shall the authority take
any action which would result in the use of such money which is
different from or inconsistent with the use prescribed in this section.
To the extent that amounts described in the preceding two paragraphs
are distributed more frequently than annually, each such distribution
shall be made as nearly as may be practicable in accordance with the
allocations described above to the TA and the CRR. Within thirty days
after the end of each calendar year, the authority shall certify to the
director of the budget, the chairperson of the senate finance committee
and the chairperson of the assembly ways and means committee, the amount
of money deposited in the fund pursuant to appropriation from moneys
deposited in the dedicated mass transportation trust fund for payment to
the metropolitan transportation authority dedicated tax fund pursuant to
subdivision (d) of section three hundred one-j of the tax law, paragraph
two of subdivision (d) of section eleven hundred nine of the tax law,
and section eighty-eight-a of the state finance law, the amounts
expended from the pledged amounts account for the benefit of the TA and
the CRR, and the amounts of the remaining PBT amount and the remaining
MMTOA amount distributed during the prior calendar year to the TA and
the CRR and specifying in each case the appropriation or appropriations
which was the source of such amounts.
4. Any money deposited in the fund shall be held in the fund free and
clear of any claim by any person arising out of or in connection with
article thirteen-A and article twenty-eight of the tax law. Without
limiting the generality of the foregoing and without limiting the rights
and duties of the commissioner of taxation and finance under article
thirteen-A of the tax law, no petroleum business, as defined in section
three hundred of the tax law, or any other person, including the state,
shall have any right or claim against the authority, any of its
bondholders, the TA or the CRR to any moneys in or distributed from the
fund or in respect of a refund, rebate, credit or reimbursement of taxes
paid under article thirteen-A and article twenty-eight of the tax law.
The authority shall establish a fund to be known as the "metropolitan
transportation authority dedicated tax fund" which shall be kept
separate from and shall not be commingled with any other moneys of the
authority. The fund shall consist of a "pledged amounts account" and an
"operating and capital costs account" and such other accounts and
subaccounts as the authority may determine.
2. There shall be deposited, pursuant to appropriation, into the fund
the moneys deposited in the dedicated mass transportation trust fund for
payment to the metropolitan transportation authority dedicated tax fund
pursuant to the provisions of subdivision (d) of section three hundred
one-j of the tax law, paragraph two of subdivision (d) of section eleven
hundred nine of the tax law, and any other moneys collected for or
transferred to such fund pursuant to section eighty-eight-a of the state
finance law and any other provision of law directing or permitting the
deposit of moneys in such fund.
3. Moneys in the fund may be (a) pledged by the authority to secure
and be applied to the payment of its bonds, notes or other obligations
specified by the authority and issued to finance (i) transit projects
undertaken for the New York city transit authority and its subsidiaries
and (ii) transportation facilities undertaken for the authority and its
subsidiaries and (b) used for payment of operating costs, and capital
costs, including debt service, reserve requirements, if any, the payment
of amounts required under bond and note facilities or agreements related
thereto, the payment of federal government loans, security or credit
arrangements or other agreements related thereto, and the payment of all
costs related to such obligations, of or for the authority, the New York
city transit authority and their subsidiaries as the authority shall
determine. To the extent moneys in the fund have been pledged by the
authority to secure and pay its bonds, notes or other obligations as
herein provided, moneys deposited into the fund shall first be deposited
into the pledged amounts account to the extent necessary to satisfy the
requirements of any debt service or reserve requirements, if any, of the
resolution authorizing such bonds, notes or other obligations. After
satisfaction of such requirements of the resolution, or if the authority
has not so pledged the moneys in the fund, moneys deposited in the fund
shall be directly deposited into the operating and capital costs account
and, subject to the provisions of any resolutions of the authority not
secured by the pledged amounts account, transferred forthwith to or for
the benefit of the New York city transit authority and its subsidiaries
and the Staten Island rapid transit operating authority (the "TA") and
to and for the benefit of the Long Island Rail Road company and the
Metro-North commuter rail road company (the "CRR") as provided in this
section.
Moneys in the operating and capital costs account which were deposited
in the fund pursuant to appropriation from moneys deposited in the
dedicated mass transportation trust fund for payment to the metropolitan
transportation authority dedicated tax fund pursuant to subdivision (d)
of section three hundred one-j of the tax law or paragraph two of
subdivision (d) of section eleven hundred nine of the tax law (the
"remaining PBT amount") shall be distributed by the authority as
follows: an amount equal to the debt service incurred in such calendar
year as a result of obligations issued and secured by moneys in the
fund, to the extent such debt service is to be paid from money deposited
in the fund pursuant to appropriation from moneys deposited in the
dedicated mass transportation trust fund for payment to the metropolitan
transportation authority dedicated tax fund pursuant to subdivision (d)
of section three hundred one-j of the tax law or paragraph two of
subdivision (d) of section eleven hundred nine of the tax law ("PBT debt
service"), shall be added to the remaining PBT amount. The sum of these
figures shall then be allocated as follows: eighty-five per centum of
such sum shall be allocated to the TA and fifteen per centum of such sum
shall be allocated to the CRR. The amounts so allocated shall then be
reduced respectively by the proportional amount of PBT debt service
attributable to the payments for transit projects undertaken for the TA
and transportation facility projects undertaken for the CRR. The
remaining amounts shall constitute the respective distributable shares
of the remaining PBT amount and shall be distributed to or for the
benefit of the TA and the CRR.
Moneys in the operating and capital costs account which were deposited
in the fund pursuant to section eighty-eight-a of the state finance law
(the "remaining MMTOA amount") shall be distributed by the authority as
follows: an amount equal to the debt service incurred in such calendar
year as a result of obligations issued and secured by money in the fund,
to the extent such debt service is to be paid from money deposited in
the fund pursuant to section eighty-eight-a of the state finance law
("MMTOA debt service"), shall be added to the remaining MMTOA amount.
The sum of these figures shall then be allocated as follows: there shall
be allocated (i) to the TA an amount of such sum which bears the same
proportion to such sum as the amount appropriated and paid during such
calendar year from the metropolitan mass transportation operating
assistance account to the authority for the operating expenses of the TA
bears to the total amounts so appropriated and paid from such operating
assistance account during such calendar year to the TA and CRR combined
and (ii) to the CRR an amount of such sum which bears the same
proportion to such sum as the amount appropriated and paid during such
calendar year from the metropolitan mass transportation operating
assistance account to the CRR bears to the total amounts so appropriated
and paid from such operating assistance account during such calendar
year to the TA and CRR combined. The amounts so allocated shall then be
reduced respectively by the proportional amount of MMTOA debt service
attributable to the payments for transit projects undertaken for the TA
and transportation facility projects undertaken for the CRR. The
remaining amounts shall constitute the respective distributable shares
of the remaining MMTOA amount and shall be distributed to or for the
benefit of the TA and the CRR. In no event shall the authority utilize
any measure or calculation for determining such distributable shares
other than the formula prescribed herein nor shall the authority take
any action which would result in the use of such money which is
different from or inconsistent with the use prescribed in this section.
To the extent that amounts described in the preceding two paragraphs
are distributed more frequently than annually, each such distribution
shall be made as nearly as may be practicable in accordance with the
allocations described above to the TA and the CRR. Within thirty days
after the end of each calendar year, the authority shall certify to the
director of the budget, the chairperson of the senate finance committee
and the chairperson of the assembly ways and means committee, the amount
of money deposited in the fund pursuant to appropriation from moneys
deposited in the dedicated mass transportation trust fund for payment to
the metropolitan transportation authority dedicated tax fund pursuant to
subdivision (d) of section three hundred one-j of the tax law, paragraph
two of subdivision (d) of section eleven hundred nine of the tax law,
and section eighty-eight-a of the state finance law, the amounts
expended from the pledged amounts account for the benefit of the TA and
the CRR, and the amounts of the remaining PBT amount and the remaining
MMTOA amount distributed during the prior calendar year to the TA and
the CRR and specifying in each case the appropriation or appropriations
which was the source of such amounts.
4. Any money deposited in the fund shall be held in the fund free and
clear of any claim by any person arising out of or in connection with
article thirteen-A and article twenty-eight of the tax law. Without
limiting the generality of the foregoing and without limiting the rights
and duties of the commissioner of taxation and finance under article
thirteen-A of the tax law, no petroleum business, as defined in section
three hundred of the tax law, or any other person, including the state,
shall have any right or claim against the authority, any of its
bondholders, the TA or the CRR to any moneys in or distributed from the
fund or in respect of a refund, rebate, credit or reimbursement of taxes
paid under article thirteen-A and article twenty-eight of the tax law.