County Sales Tax Distributions and Withholdings

Counties and other local governments which impose a local sales tax receive 26 distributions annually from sales tax revenue paid by vendors to New York State. The New York State Department of Taxation and Finance’s (Tax and Finance) Revenue Distribution Certification (AS001) contains the gross amounts of sales tax to be distributed to local governments.

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AIM-Related Payments

The Office of the State Comptroller (OSC) is required to withhold county sales tax revenues from the AS001 gross amounts to make payments to certain towns and villages that previously received Aid and Incentives for Municipalities (AIM) payments from the State. These withholdings and subsequent "AIM-Related" payments are made each year in May and December.

Distressed Provider Assistance

As part of the 2020-21 Enacted State Budget, OSC is required to withhold certain county and New York City sales tax revenues from the AS001 gross amounts and place those funds in a Distressed Provider Assistance Account to support financially distressed hospitals and nursing homes throughout the State. Withholding of these revenues will begin in January 2021 and continue throughout 2021 in April, July and October, with the last withholding being in January 2022. Sales tax distributions will be affected in February, May, August, November in 2021 and February in 2022.

During months when OSC withholds sales tax for AIM-Related payments or Distressed Provider Assistance (see table below), counties will receive the amounts listed in Tax and Finance’s AS001 Certification, less the withholding.

This spreadsheet identifies withholdings from county sales tax collections in certain months to be used for either AIM-Related payments to certain towns and villages or deposits into the Distressed Provider Assistance Account, including the following information:

  • Date of Tax and Finance's AS001 Revenue Distribution Certification;
  • County gross sales tax collections as reported on the AS001 Revenue Distribution Certification;
  • Withholding amount to make AIM-Related Payments or to be placed in the Distressed Provider Assistance Account and
  • Net amount of sales tax collections OSC distributed to counties

Type and Timing of Withholdings from County Sales Tax Distributions,
County Fiscal Years 2020-2023

Year Month Type of Withholding
2020
  May AIM-Related
  December AIM-Related
2021
  February Distressed Provider
  May AIM-Related and Distressed Provider
  August Distressed Provider
  November Distressed Provider
  December AIM-Related
2022
  February Distressed Provider
  May AIM-Related
  December AIM-Related
2023
  May AIM-Related
  December AIM-Related