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This entry was published on 2022-07-29
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SECTION 261
Payment over and distribution of taxes
Tax (TAX) CHAPTER 60, ARTICLE 11
§ 261. Payment over and distribution of taxes. 1. The balance of all
moneys paid to the recording officer of each county during each month
upon account of the additional taxes imposed pursuant to subdivision two
of section two hundred fifty-three of this article, after deducting the
necessary expenses of his or her office as provided in section two
hundred sixty-two of this article, except taxes paid upon mortgages
which under the provisions of section two hundred sixty of this article
are first to be apportioned by the commissioner, shall be paid over by
him or her on or before the tenth day of each succeeding month as
follows: (a) with respect to those counties comprising the metropolitan
commuter transportation district, as defined by the provisions of
section twelve hundred sixty-two of the public authorities law, to the
metropolitan transportation authority to be applied in any authority
fiscal year beginning on or after January first, nineteen hundred
eighty-seven (i) first, to meet the general, administrative and
operating expenses of the authority net of reimbursements, recoveries
and adjustments, not including the expenses of any subsidiaries thereof
which operate any transportation facility, (ii) second, from any
remaining revenues, fifty-five per centum of such revenues shall be paid
by the metropolitan transportation authority to the transit account of
the metropolitan transportation authority special assistance fund
established by section twelve hundred seventy-a of the public
authorities law; and (iii) the remaining forty-five per centum shall be
paid by the metropolitan transportation authority to the commuter
railroad account of the metropolitan transportation authority special
assistance fund established by section twelve hundred seventy-a of the
public authorities law; (b) with respect to those counties comprising
the Niagara Frontier transportation district, as defined by the
provisions of section twelve hundred ninety-nine-b of the public
authorities law, to the Niagara Frontier transportation authority; (c)
with respect to those counties comprising the Rochester-Genesee regional
transportation district, as defined by the provisions of section twelve
hundred ninety-nine-cc of the public authorities law, to the
Rochester-Genesee Regional Transportation Authority; (d) with respect to
those counties comprising the capital district transportation district,
as defined by the provisions of section thirteen hundred two of the
public authorities law, to the capital district transportation
authority; (e) with respect to those counties comprising the central New
York regional transportation district, as defined by the provisions of
section thirteen hundred twenty-seven of the public authorities law, to
the central New York regional transportation authority; (f) with respect
to the county of Dutchess or the county of Orange or the county of
Rockland if any such county withdraws from the metropolitan commuter
transportation district pursuant to section twelve hundred
seventy-nine-b of the public authorities law and does not suspend the
imposition of such additional tax, to the county treasurer of such
county if such county provides that the moneys shall be used for mass
transportation purposes but, if any such county which so withdraws and
which does not so suspend does not so provide, to the comptroller
pursuant to paragraph (p) of this subdivision; * (g) with respect to the
counties of Washington and Warren, to the county treasurer of such
county to be used to pay for any and all expenses incurred by such
counties for the support of community colleges pursuant to article one
hundred twenty-six of the education law; with respect to the county of
Essex, to the county treasurer of such county to be used to pay for any
and all expenses incurred by such county for county office and court
facility projects and, after all such expenses are paid, for any and all
expenses incurred by such county for county correctional and public
safety facility projects;

* NB Effective until December 1, 2024

* (g) with respect to the counties of Washington and Warren, to the
county treasurer of such county to be used to pay for any and all
expenses incurred by such counties for the support of community colleges
pursuant to article one hundred twenty-six of the education law; with
respect to the county of Essex, to the county treasurer of such county
to be used to pay for any and all expenses incurred by such county for
county office and court facility projects;

* NB Effective December 1, 2024
(h) with respect to the county of Franklin, to the county treasurer of
such county to be used to pay for any and all expenses incurred by such
county for county office and county correctional facility projects; (i)
with respect to the county of Clinton, to the county treasurer of such
county to be used to pay for any and all expenses incurred by such
county for county office and other county capital projects; (j) with
respect to the county of Chautauqua, to the county treasurer of such
county to be used to pay for any and all expenses incurred by such
county for county correctional facility and court facility projects, and
debt service thereon, including but not limited to, related heating,
ventilation, air-conditioning and parking infrastructure upgrades; (j-1)
with respect to the county of Tompkins, to the county treasurer of such
county for mass transportation purposes; (k) with respect to the county
of Allegany, to the county treasurer of such county for deposit into the
general fund of the county of Allegany; (l) with respect to the county
of Schuyler, to the county treasurer of such county to be used to pay
for any and all expenses incurred by such county for the support of
community colleges pursuant to article one hundred twenty-six of the
education law; (m) with respect to the county of Delaware, to the county
treasurer of such county to be used to pay for the cost of the county
correctional facility and public safety building complex and the county
composting facility; * (n) with respect to the county of Fulton, to the
county treasurer of such county for deposit into the general fund of the
county of Fulton;

* NB Repealed November 30, 2023
(o) with respect to the county of Steuben, to the county treasurer of
such county for deposit into the general fund of the county of Steuben;
(p) with respect to the remaining counties of the state except
Cattaraugus county which have not suspended the imposition of such
additional tax pursuant to subdivision two of section two hundred
fifty-three of this article, to the comptroller to be paid by him or her
into the general fund in the state treasury to the credit of the state
purposes account; provided that money paid to the comptroller with
respect to any such remaining county in which on the date of such
payment any mass transportation, airport or aviation, municipal historic
site, municipal park, community mental health and developmental
disabilities facility, or sewage treatment capital project is being
carried out by a municipality with state aid, or for which state aid
will be paid, pursuant to the provisions of title one of chapter seven
hundred seventeen of the laws of nineteen hundred sixty-seven, section
17.05 of the parks, recreation and historic preservation law, section
41.18 of the mental hygiene law, or section 17-1903 of the environmental
conservation law, shall be applied by him or her to increase the amount
of aid for which the state is obligated in respect to such project on
such date, provided that any such increase in state aid may not,
together with any federal funds paid or to be paid on account of the
cost of such project, exceed the total cost thereof, and where more than
one such capital project is being carried out on such date within such
county, the application of such monies by the comptroller shall be
pro-rated among such municipalities on the basis of the respective
amounts of state aid which are so obligated on such date; and (q) with
respect to the county of Cattaraugus, to the comptroller to be paid by
him or her into the general fund in the state treasury to the credit of
the state purposes account for the construction of a county office
building and a county department of public works office building, or
debt service thereon being carried out by the county of Cattaraugus up
to but not exceeding the total cost for such county office building and
county department of public works building, or debt service thereon less
the amount of any state aid or federal funds paid or to be paid on
account of such project or debt service thereon. Notwithstanding the
provisions of the preceding sentence, additional taxes so imposed and
paid upon mortgages covering real property situated in two or more
counties, which under the provisions of section two hundred sixty of
this article are first to be apportioned by the commissioner, shall be
paid over by the recording officer receiving the same as provided by the
determination of said commissioner.

If and to the extent that either metropolitan transportation authority
or Niagara Frontier transportation authority or Rochester-Genesee
regional transportation authority or capital district transportation
authority or central New York regional transportation authority shall
certify that the proceeds of such additional tax received by it for any
calendar year subsequent to nineteen hundred sixty-nine are in excess of
its needs, present and projected, and of those of its subsidiary
corporations, such excess shall be paid over at the end of such calendar
year to the comptroller for payment or application by him or her in
accordance with the provisions of paragraph (p) of the opening paragraph
of this subdivision. For the purposes of such application any such
excess shall be allocated among the counties comprising a transportation
district in the same proportion that their respective recording officers
paid over additional taxes hereunder during the whole of the calendar
year which is the subject of the certification. For the counties
comprising the city of New York, any such application shall be for the
benefit of such city.

2. The balance of all moneys paid to the recording officer of each
county during each month upon account of the special additional taxes
imposed pursuant to subdivision one-a of section two hundred fifty-three
of this chapter, after deducting the necessary expenses of his office as
provided in section two hundred sixty-two, except taxes paid upon
mortgages which under the provisions of section two hundred sixty are
first to be apportioned by the tax commission, shall be paid over by him
on or before the tenth day of each succeeding month to the state of New
York mortgage agency created pursuant to title seventeen of article
eight of the public authorities law for deposit to the credit of the
mortgage insurance fund created pursuant to such title, and (i) except
that with respect to mortgages recorded on and after May first, nineteen
hundred eighty-seven, the balance of all moneys paid upon account of
such special additional taxes during each month to the recording
officers of the counties comprising the metropolitan commuter
transportation district, as defined by section twelve hundred sixty-two
of the public authorities law, on mortgages of any real property
principally improved or to be improved by a structure containing six
residential dwelling units or less with separate cooking facilities,
after the deduction of such expenses, shall be paid over by him on or
before the tenth day of each succeeding month to the metropolitan
transportation authority for deposit in the corporate transportation
account of the metropolitan transportation special assistance fund
established by section twelve hundred seventy-a of the public
authorities law, and (ii) except that with respect to mortgages recorded
on and after May first, nineteen hundred eighty-seven, the balance of
all moneys paid upon account of such special additional taxes during
each month to the recording officers of the county of Erie on mortgages
of any real property principally improved or to be improved by a
structure containing six residential dwelling units or less with
separate cooking facilities, after the deduction of such expenses, shall
be paid over by him on or before the tenth day of each succeeding month
to the Niagara Frontier transportation authority. Notwithstanding the
provisions of the preceding sentence, the special additional taxes so
imposed and paid upon mortgages covering real property situated in two
or more counties, which under the provisions of section two hundred
sixty are first to be apportioned by the commissioner, shall be paid
over by the recording officer receiving the same as provided by the
determination of said commissioner.

3. On or before the tenth day of each month the recording officer of
each county shall pay over to the county treasurer of said county, and
in the counties of New York, Kings, Queens, Richmond and Bronx to the
commissioner of finance of the city of New York for credit to the
general fund of such city, the balance of the moneys received during the
preceding month upon account of taxes paid to him or her as herein
prescribed, after deducting the necessary expenses of his or her office
as provided in section two hundred sixty-two of this article, except
taxes paid upon mortgages which under the provisions of section two
hundred sixty of this article are first to be apportioned by the
commissioner, which taxes and money shall be paid over by the
commissioner of finance of the city of New York as provided by the
determination of the commissioner. In each county not within the city of
New York, the whole of the net amount of such balance, after the
deduction by the county treasurer of the necessary expenses of his or
her office provided in section two hundred sixty-two of this article,
shall be held by him or her and shall be allocated to the tax districts
of the county according to the location of the real property covered by
the respective mortgages upon which the tax was collected. The recording
officer and county treasurer shall prepare a joint semi-annual report on
or before May fifteenth and on or before November fifteenth in each year
showing the amounts to be credited to each tax district of the county of
the moneys collected under this article during the preceding periods of
six months each which ended respectively on March thirty-first and
September thirtieth. Such report shall be made in duplicate in
accordance with the rules and regulations of the commissioner and filed
with the clerk of the board of supervisors and the commissioner. The
board of supervisors, on or before the fifteenth day of June and on or
before the fifteenth day of December in each year, shall issue its
warrant for the payment to the respective tax districts of the amounts
so credited, provided, however, that in a county in which a town
contains within its limits an incorporated village, or portion thereof,
the board of supervisors shall apportion to such village so much of the
share credited to the town as the assessed value of said village or
portion thereof bears to twice the total assessed valuation of the town,
and provided, further, that, at the option of the governing board of the
county, the county may instead prepare and file such a joint report and
make such payments on a monthly or quarterly basis. Where the county
elects to make monthly payments, the recording officer and county
treasurer shall prepare a joint report on or before the fifteenth day of
each month showing the amounts to be credited to each tax district of
the county and the moneys collected under this article for the month
preceding the most recently concluded month, and the board of
supervisors shall issue its warrant for payment on or before the
fifteenth day of the following month. Where the county elects to make
quarterly payments, the recording officer and county treasurer shall
prepare such a joint report on or before the fifteenth day of May,
August, November, and February, showing the amounts to be credited to
each tax district of the county of moneys collected under this article
for the preceding three-month period ending March thirty-first, June
thirtieth, September thirtieth, and December thirty-first, respectively
and the board of supervisors shall issue its warrant for payment on or
before the fifteenth day of June, September, December, and March,
respectively. The warrant shall direct payment to the city treasurer of
the amount due the city, to the town supervisor of the amount due the
town, and to the village treasurer of the amount to which the village
shall be entitled. Mortgage tax moneys allotted to cities, towns and
villages shall be applied to the payment of the general expenses
thereof. The commissioner shall prescribe the method of adjustment and
correction of errors heretofore or hereafter made in the distribution of
moneys collected under this article. Provided, however that in the town
of Ossining, county of Westchester, monies due to the unincorporated
portion of the town shall be placed in the unincorporated town fund
instead of into the general fund of such town.