Section 1235. Taxes paid to other jurisdictions

(a) With respect to taxes
  imposed pursuant to subdivision (a) of section twelve  hundred  ten  and
  pursuant  to section twelve hundred eleven, the use of tangible personal
  property purchased at retail and of any of the services subject  to  the
  sales tax shall be exempt from the compensating use tax authorized under
  subdivision  (a)  of  such  section twelve hundred ten and under section
  twelve hundred eleven, to the extent  that  a  retail  sales  tax  or  a
  compensating use tax was legally due and paid thereon, without any right
  to  a refund or credit thereof, to (1) any municipal corporation in this
  state or (2) any other state or jurisdiction within any other state, but
  only when it is shown that such other state  or  jurisdiction  allows  a
  corresponding  exemption  with  respect  to  the sale or use of tangible
  personal property or of any of the services upon which such  a  sale  or
  compensating  use  tax  was  paid to this state and any of its municipal
  corporations, except as provided in subdivision (b) of this section.
    (b) To the extent that a compensating use tax imposed pursuant to this
  article and the compensating use tax imposed by article twenty-eight are
  at a higher aggregate rate than the rate of tax  imposed  in  any  other
  state  or jurisdiction within any other state, the exemption provided in
  subdivision (a) of this section shall  be  inapplicable  and  the  taxes
  imposed pursuant to this article and by article twenty-eight shall apply
  to the extent of the difference between such aggregate rate and the rate
  paid  in  such  other state or jurisdiction.   In such event, the amount
  payable shall be allocated between the  tax  imposed  pursuant  to  this
  article and the tax imposed by article twenty-eight in proportion to the
  respective  rates  of  such  taxes.  Where  a  retail  sales  tax  or  a
  compensating  use  tax  was  legally  due  and  paid  to  any  municipal
  corporation  in  this  state,  without  any  right to a refund or credit
  thereof, with respect to the sale or use of tangible  personal  property
  or  any of the services subject to sales or compensating use tax, if the
  use of such property or services is then subject to a  compensating  use
  tax  imposed  by  any other municipal corporation in this state and such
  tax is at a higher rate than the  rate  of  tax  imposed  by  the  first
  municipal  corporation,  the  tax  of the municipal corporation with the
  higher rate shall also apply but only to the extent of the difference in
  such rates and  such  tax  shall  be  distributable  to  such  municipal
  corporation,  pursuant  to  section  twelve  hundred  sixty-one, without
  allocation as hereinabove provided.  Where  a  retail  sales  tax  or  a
  compensating  use  tax was legally due and paid to this state only, with
  respect to the sale or use of tangible personal property or any  of  the
  services  subject  to  sales or compensating use tax, if the use of such
  property or services is then subject to a compensating use  tax  imposed
  by   a   municipal   corporation  in  this  state,  such  tax  shall  be
  distributable to the municipal corporation, pursuant to  section  twelve
  hundred sixty-one, without allocation as hereinabove provided.
    (c) For purposes of this section, a payment to the tax commission of a
  tax imposed by a municipal corporation shall be deemed a payment to such
  municipal corporation.