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.
The State Fiscal Year (SFY) 2022-23 Enacted State Budget has made changes to both AIM-Related and Distressed Provider Assistance county sales tax withholding programs. Please see each section below for more details.
AIM & AIM-Related Payments
From December 2019 through May 2022, the Office of the State Comptroller (OSC) was required to withhold county sales tax revenues from the AS001 gross amounts to make payments to certain towns and villages that previously received AIM payments from the State. These withholdings and subsequent "AIM-Related" payments were made each year in May and December.
Beginning July 1, 2022, AIM-Related payments will be eliminated. All towns and villages that previously received AIM-Related payments will now receive annual AIM payments, in the same amounts, beginning in September 2022 and each September thereafter.
- Aid and Incentives for Municipalities (AIM) and AIM-Related Payments
- AIM Payments and Payment Months by Municipality – Beginning July 2022 and annually thereafter [xlsx] (last updated May 2022)
- AIM and AIM-Related Payments and Payment Months by Municipality - December 2019 through May 2022 [xlsx] (last updated April 2022)
- Sales Tax Withholding by County for AIM-Related Payments - December 2019 through May 2022 [xlsx] (last updated April 2022)
Distressed Provider Assistance
As part of the 2020-21 Enacted State Budget, OSC was 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 began in January 2021 and continued throughout 2021 in April, July and October, with the last withholding being in January 2022. Sales tax distributions were affected in February, May, August, November in 2021 and February in 2022.
The SFY 2022-23 Enacted Budget did not continue the Distressed Provider Assistance program for counties outside New York City.
- 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)
- In SFY 2022-23 through 2024-25, New York City’s sales tax withholding will be $150 million, in aggregate, each SFY (to be withheld equally in four quarterly installments each SFY in April, July, October and January; affecting sales tax distributions in May, August, November and February).
During months when OSC withholds sales tax for AIM-Related payments or Distressed Provider Assistance, 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