§ 1263. Deposit of funds and use of funds not having assigned
purposes. (a) Deposit and use of net collections from taxes imposed by
cities of over one million administered and collected by state tax
commission. Net collections paid to the director of finance of the city
of New York and any other appropriate fiscal officer of any city having
a population of over one million, as provided for in section twelve
hundred sixty-one, shall be deposited by such fiscal officer in the
general fund of such city, but no part of such revenues may be expended
by such city unless appropriated in the annual budget of such city.

(b) Deposit and use of net collections by cities, counties and
villages. Net collections received by or distributed to a county, a city
with a population of less than one million or a village from taxes
imposed pursuant to this article shall be paid into the treasury of the
county, city or village and shall be credited to and deposited in the
general fund thereof and, unless restricted by local law, ordinance or
resolution to a specified purpose or purposes, shall be available for
any county, city or village purpose of such county, city or village.
Expenditures from the proceeds of any such tax shall not be considered
as part of the cost of government within the meaning of any limitation
on expenditures contained in any general, special or local law
applicable to such county, city or village.