State Personal Income Tax Revenue Bonds (Transportation)
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PURPOSE: State Personal Income Tax Revenue Bonds finance various State-supported capital programs, including funds to municipalities and other project sponsors throughout the State for highway, bridge and multi-modal capital projects pursuant to established State programs.
SECURITY: State Personal Income Tax Revenue Bonds are authorized to be issued by the New York State Thruway Authority and four other Authorized Issuers (New York State Urban Development Corporation, the Dormitory Authority of the State of New York, the New York State Environmental Facilities Corporation, and the New York State Housing Finance Agency) to finance various State-supported capital programs.
The Bonds are secured by Financing Agreement Payments (FAPs) made to the New York State Thruway Authority from the deposit of 50% of New York State Personal Income Tax Receipts, 50% of New York State Employer Compensation Expense Program Receipts and 50% of New York State Pass-Through Entity Tax Receipts to the Revenue Bond Tax Fund (RBTF). Amounts deposited to the RBTF in excess of required FAPs are transferred back to the General Fund. Effective April 1, 2021, pursuant to legislative changes, the sources of payment of the State Personal Income Tax Revenue Bonds and the statutory allocation of tax revenues payable to the Revenue Bond Tax Fund were changed to add, as a new source of payment, 50 percent of receipts (the “New York State PTET Receipts”) from the New York State Pass-Through Entity Tax Program (the “PTET”). These changes were made as part of the State’s continuing response to Federal tax law changes.
If, at any time, the amounts deposited to the RBTF are insufficient to make all appropriated FAPs, the State Comptroller is statutorily required (without further appropriation) to immediately transfer sufficient amounts from the General Fund to the RBTF to satisfy the FAPs. In the event that the Legislature fails to appropriate all amounts required to make FAPs to all Authorized Issuers or if such appropriations have been made and FAPs have not been made when due on any State Personal Income Tax Revenue Bonds, New York State Personal Income Tax Receipts, New York State Employer Compensation Expense Program Receipts, and New York State Pass-Through Entity Tax Receipts are required to continue to be deposited to the RBTF until an amount equal to the greater of the aggregate of 40% (previously 25%) of New York State Personal Income Tax Receipts, New York State Employer Compensation Expense Program Receipts, New York State Pass-Through Entity Tax Receipts, or $12 billion (previously $6 billion) has been deposited to the RBTF. Other than to make appropriated FAPs (except, if necessary, for payment to State General Obligation bondholders), no payments may be made from the RBTF until all required appropriations and all required FAPs have been made.
All State Personal Income Tax Revenue Bonds issued by the Authorized Issuers are on a parity with each other as to payment from the RBTF. All FAPs are subject to annual appropriation.
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Source: NYS Division of the Budget and Annual Information Statement dated June 12, 2019. For more up-to-date information, please contact the NYS Division of the Budget.
*Reflects increased deposits to the Revenue Bond Tax Fund, resulting from FY 2019 Enacted Budget Legislation.