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.
For more information on this topic, you can access the following webinar on demand at:
- "Local Government Impact From Sales Tax Withholding Programs" - Held on December 16, 2020
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.
- Aid and Incentives for Municipalities (AIM) and AIM-Related Payments
- AIM and AIM-Related Payments and Payment Months by Municipality [xlsx] (last updated June 2021)
- Sales Tax Withholding by County for AIM-Related Payments [.xlsx] (last updated June 2021)
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.
- Distressed Provider Assistance Account Responsibility
- Sales Tax Withholding by County for Distressed Provider Assistance Account, Fiscal Year 2020-21 [.xlsx] (deferred until January 2021, affects February 2021 sales tax distribution)
- Sales Tax Withholding by County for Distressed Provider Assistance Account, Fiscal Year 2021-22 [.xlsx] (quarterly withholdings for April, July, October in 2021 and January in 2022; affects sales tax distributions in 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,
|
||
| 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 | |