§ 1109. Sales and compensating use taxes for the metropolitan commuter
transportation district. (a) General. In addition to the taxes imposed
by sections eleven hundred five and eleven hundred ten of this article,
there is hereby imposed within the territorial limits of the
metropolitan commuter transportation district created and established
pursuant to section twelve hundred sixty-two of the public authorities
law, and there shall be paid, additional taxes, at the rate of
three-eighths of one percent, which shall be identical to the taxes
imposed by sections eleven hundred five and eleven hundred ten of this
article. Such sections and the other sections of this article, including
the definition and exemption provisions, shall apply for purposes of the
taxes imposed by this section in the same manner and with the same force
and effect as if the language of those sections had been incorporated in
full into this section and had expressly referred to the taxes imposed
by this section. Notwithstanding the foregoing, the tax imposed by this
section shall not apply to admissions to race tracks or simulcast
facilities.

(b) Transitional provisions. (1) With respect to the one-fourth
percent rate imposed effective September first, nineteen hundred
eighty-one, the transitional provisions contained in subdivisions (a),
(b), (c) and (d) of section eleven hundred six of this article shall
apply to the taxes imposed by this section, except that all references
in such subdivisions (a), (b), (c) and (d) to August first, nineteen
hundred sixty-five shall be read as referring to September first,
nineteen hundred eighty-one, all references in such subdivision (a) to
April first, nineteen hundred sixty-five shall be read as referring to
May first, nineteen hundred eighty-one, and the reference in such
subdivision (b) to July thirty-first, nineteen hundred sixty-five shall
be read as referring to August thirty-first, nineteen hundred
eighty-one.

(2) With respect to the one-eighth percent rate imposed effective June
first, two thousand five, the transitional provisions contained in
subdivisions (a), (b), (c) and (d) of section eleven hundred six of this
article shall apply to the taxes imposed by this section, except that
all references in such subdivisions (a), (b), (c) and (d) to August
first, nineteen hundred sixty-five, shall be read as referring to June
first, two thousand five, all references in such subdivision (a) to
April first, nineteen hundred sixty-five, shall be read as referring to
February first, two thousand five, and the reference in such subdivision
(b) to July thirty-first, nineteen hundred sixty-five, shall be read as
referring to May thirty-first, two thousand five.

(c) Deliveries outside the district; deliveries within the district of
property sold or serviced elsewhere. Where a sale of tangible personal
property or services, including an agreement therefor, is made in the
district in which the taxes imposed by this section apply, but the
property sold, the property upon which the services were performed or
such service is or will be delivered to the purchaser elsewhere, such
sale will not be subject to taxes imposed by this section. However, if
delivery occurs or will occur in the district where the tax imposed by
this section applies, a vendor will be required to collect from the
purchaser the sales or compensating use taxes imposed by this section.
For the purposes of this section, delivery shall be deemed to include
transfer of possession to the purchaser and the receiving of the
property or of the service by the purchaser. The provisions of section
twelve hundred fourteen of this chapter shall be applicable to this
section, but any reference in that section to a local sales or use tax
imposed by a city, county or school district shall mean the additional
taxes imposed by this section.

(d) Deposit and disposition of revenue. (1) The taxes, interest and
penalties imposed pursuant to this section and received by the tax
commission, after deducting the amount which the commissioner of
taxation and finance shall determine to be necessary for reasonable
costs of the tax commission in administering, collecting and
distributing such taxes, shall be deposited daily with such responsible
banks, banking houses or trust companies, as may be designated by the
comptroller, to the credit of the comptroller. Such an account may be
established in one or more of such depositories. Such deposits shall be
kept separate and apart from all other money in the possession of the
comptroller. The comptroller shall require adequate security from all
such depositories. Of the total revenue collected or received under this
section, the comptroller shall retain in his hands such amount as the
commissioner of taxation and finance may determine to be necessary for
refunds under this section.

(2) On or before the twelfth day of each month, after reserving such
amount for such refunds and such costs, the commissioner of taxation and
finance shall certify to the comptroller the amount of all revenues so
received during the prior month as a result of the taxes, interest and
penalties so imposed and in addition on or before the last day of June
the commissioner shall certify the amount of such revenues received
during and including the first twenty-five days of June. The amount of
revenues so certified shall be deposited by the comptroller in the mass
transportation operating assistance fund established by section
eighty-eight-a of the state finance law to the credit of the
metropolitan mass transportation operating assistance account therein.

(e) The provision for a refund or credit contained in clause six of
subdivision (a) of section eleven hundred nineteen shall not apply.

(f) The exemption contained in paragraph thirty of subdivision (a) of
section eleven hundred fifteen of this article shall not apply.

(g) Notwithstanding any other provision of state or local law,
ordinance or resolution to the contrary: (1) In the event that a county,
city or school district located in the metropolitan commuter
transportation district imposes taxes pursuant to the authority of
subpart B of part I of article twenty-nine of this chapter and elects to
provide the clothing and footwear exemption authorized in paragraph one
of subdivision (a) of section twelve hundred ten of this chapter, or the
taxes provided for in section eleven hundred eight of this article are
in effect in a city located in such district, the exemption provided by
paragraph thirty of subdivision (a) of section eleven hundred fifteen of
this article shall be applicable in such portion of the metropolitan
commuter transportation district in which such county, city or school
district which elects to provide the clothing and footwear exemption
authorized in paragraph one of subdivision (a) of section twelve hundred
ten of this chapter is located, or where the taxes provided for in
section eleven hundred eight of this part are in effect in a city
located in such district. The commissioner shall determine and certify
to the comptroller the amount of revenue forgone at the rate of
three-eighths of one percent under this section in such county, city or
school district on account of sales of clothing and footwear in such
county, city or school district.

(2) Commencing with the sales tax quarterly period which commences on
March first, two thousand, the commissioner shall make such
determinations and certifications on the twelfth day of the month
following the month in which sales tax quarterly returns are due under
section eleven hundred thirty-six of this article with respect to such
quarterly period for as long as such clothing and footwear exemptions
from such taxes imposed pursuant to the authority of article twenty-nine
of this chapter or by section eleven hundred eight of this part are in
effect. Neither the commissioner nor the comptroller shall be held
liable for any inaccuracy in such determinations and certifications.
Such determinations and certifications may be based on such information
as may be available to the commissioner at the time such determinations
and certifications must be made under this subdivision and may be
estimated on the basis of percentages or other indices calculated from
distributions from prior periods. The commissioner shall be authorized
to require such information as the commissioner deems necessary to
comply with the requirements of this subdivision from persons required
to file returns under such section eleven hundred thirty-six of this
article.

(3) By the fifteenth day of the month in which the commissioner has
made the certifications to the comptroller described in paragraph two of
this subdivision, the comptroller shall bill any county, city or school
district in such metropolitan commuter transportation district which
provides such clothing and footwear exemption, and any city in such
district in which the taxes imposed by section eleven hundred eight of
this part are in effect, an amount equal to one-half of the amount
certified to the comptroller by the commissioner in respect of such
county, city or school district; and such county, city or school
district shall pay the amount of such bill to the comptroller by the
twenty-fifth day of such month. The comptroller shall deposit any such
amounts received in the mass transportation operating assistance fund
established by section eighty-eight-a of the state finance law to the
credit of the metropolitan mass transportation operating assistance
account therein.

(4) In the event that a county, city or school district imposing tax
pursuant to the authority of subpart B of part I of article twenty-nine
of this chapter does not pay in full a bill described in paragraph three
of this subdivision by the twenty-fifth day of the month described in
paragraphs two and three of this subdivision, the comptroller shall
deduct any amount not paid from the amount of the next payment or
payments due such county, city or school district pursuant to
subdivision (c) of section twelve hundred sixty-one of this chapter
until such amount not paid has been recovered. The comptroller shall
deposit the amounts so deducted and recovered in the mass transportation
operating assistance fund to be credited as provided in paragraph three
of this subdivision.

(5) In the event that a city in which the taxes imposed by section
eleven hundred eight of this article are in effect does not pay in full
a bill described in paragraph three of this subdivision by the
twenty-fifth day of the month described in paragraphs two and three of
this subdivision, the comptroller shall deduct any amount not paid from
the amount of any other moneys due such city from the comptroller, not
otherwise pledged, dedicated or encumbered pursuant to other state law,
until such amount not paid has been recovered. The comptroller shall
deposit the amounts so deducted and recovered in the mass transportation
operating assistance fund to be credited as provided in paragraph three
of this subdivision.

(6) The commissioner shall certify the amount of any over calculation
or under calculation of any certification required to be made to the
comptroller under paragraph three of this subdivision as soon after its
discovery as reasonably possible and subsequent bills to a city, county
or school district to which the over calculation or under calculation
relates shall be adjusted accordingly, provided that the comptroller may
adjust such number of subsequent bills as the comptroller shall consider
reasonable in view of the amount of the adjustment and all other facts
and circumstances.

(7) On the same date that the comptroller is required to bill a
county, city or school district an amount as provided in paragraph three
of this subdivision, the comptroller shall, after having first made any
deposits required by section ninety-two-r of the state finance law and
only to the extent that there are moneys remaining after having made
such required deposits, withdraw from the state treasury, to the debit
of the general fund, an amount equal to the total of the amounts
required to be billed to counties, cities and school districts pursuant
to such subdivision three and deposit such total amount in the mass
transportation operating assistance fund to be credited as provided in
such paragraph three. The amount of any over calculation or under
calculation determined in paragraph six of this subdivision shall
likewise be applied to the amounts required to be deposited under this
paragraph, so that the amounts deposited under this paragraph equal the
total of the amounts required to be billed to counties, cities and
school districts under such paragraph three, as adjusted, pursuant to
paragraph six of this subdivision.

(h) Notwithstanding any provision of law to the contrary:

(1) The commissioner shall determine and certify to the comptroller
the amount of revenue foregone as a result of the cents per gallon tax
in paragraph two of subdivision (m) of section eleven hundred eleven of
this part in lieu of tax at the rate provided in subdivision (a) of this
section.

(2) Commencing with the sales tax quarterly period beginning on June
first, two thousand six, the commissioner shall make such determinations
and certifications on the twelfth day of the month following the month
in which sales tax quarterly returns are due under section eleven
hundred thirty-six of this article with respect to such quarterly
period. Such determinations and certifications may be based on such
information as may be available to the commissioner at the time such
determinations and certifications must be made under this subdivision.
The commissioner shall be authorized to require such information as the
commissioner deems necessary to comply with the requirements of this
subdivision from persons required to file returns under such section
eleven hundred thirty-six.

(3) The comptroller shall, after having first made any deposits
required by section ninety-two-r of the state finance law and only to
the extent that there are moneys remaining after having made such
required deposits, withdraw from the state treasury, to the debit of the
general fund, and shall deposit the amount certified by the commissioner
as such revenue foregone in the mass transportation operating assistance
fund established by section eighty-eight-a of the state finance law to
the credit of the metropolitan mass transportation operating assistance
account therein.

(4) Neither the commissioner nor the comptroller shall be held liable
for any inaccuracy in such determinations and certifications. The
commissioner shall certify the amount of any over calculation or under
calculation of any certification required to be made to the comptroller
under this subdivision as soon after its discovery as reasonably
possible.