Distressed Provider Assistance Account

Part ZZ of Chapter 56 of the Laws of 2020 amends New York State Tax Law Section 1261 to direct the Office of the State Comptroller to withhold sales tax collections in the aggregate amount of $50 million from counties outside of New York City and $200 million from New York City and place them into a New York Agency Trust Fund, Distressed Provider Assistance Account, annually, for two years. These funds will be used to provide critical support to financially distressed hospitals and nursing homes throughout the State.

Part ZZ of Chapter 56 of the Laws of 2020 requires OSC to do the following:

  • By April 15, 2020, OSC must determine how much in sales tax collections will be withheld from each county outside of New York City, based on their total sales tax collections as a percentage of statewide county collections for the period of December 1, 2018 to November 30, 2019.
    • $50 million will be withheld, in aggregate, from sales tax collections from counties outside of New York City.
    • $200 million will be withheld from sales tax collections from New York City.
    • The total value of the withholding amounts will be deferred until January 15, 2021.
    • County sales tax distributions will be affected in February 2021.
  • By January 1, 2021, OSC must determine how much in sales tax collections will be withheld from each county outside of New York City, based on their total collections as a percentage of statewide county collections for the period of December 1, 2019 to November 30, 2020.
    • $50 million will be withheld, in aggregate, from sales tax collections from counties outside of New York City.
    • $200 million will be withheld from sales tax collections from New York City.
    • The total value of the withholding amounts will be broken into 4 quarterly installments to be made on April 15, 2021, July 15, 2021, October 15, 2021, and January 15, 2022.
    • County sales tax distributions will be affected in May, August and November in 2021 and February in 2022.
  • Part ZZ of Chapter 56 of the Laws of 2020 [.pdf]
  • 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)

For more information related to County Sales Tax Distributions and Withholdings, you can access the following webinar on demand at: