Section 1261. Revenues resulting from taxes administered by the commissioner

(a) All taxes, penalties and interest imposed by  cities,  counties  or  school  districts  under  the  authority of section twelve
  hundred ten, twelve hundred eleven,  twelve  hundred  twelve  or  twelve
  hundred   twelve-A   of   this  article,  which  are  collected  by  the
  commissioner, shall be deposited  daily  with  such  responsible  banks,
  banking  houses  or  trust  companies, as may be designated by the state
  comptroller, to the credit of the comptroller, in trust for the  cities,
  counties  or  school  districts  imposing  the tax or for (i) the Nassau
  county interim finance authority or (ii) the  Buffalo  fiscal  stability
  authority  or  (iii) the Erie county fiscal stability authority, created
  by the public authorities law, (i) to the extent  that  net  collections
  from  taxes  imposed  by  Nassau county are payable to the Nassau county
  interim finance authority or (ii) to the  extent  that  net  collections
  from  taxes imposed by Erie county or by the city of Buffalo are payable
  to the Buffalo fiscal stability authority or (iii) to  the  extent  that
  net  collections  from  taxes  imposed by Erie county are payable to the
  Erie county fiscal  stability  authority,  or  for  any  public  benefit
  corporation  to  which  the  tax  may  be  payable pursuant to law. Such
  deposits and deposits received pursuant to subdivision  (b)  of  section
  twelve  hundred  fifty-two  of  this  article shall be kept in trust and
  separate and apart from all  other  monies  in  the  possession  of  the
  comptroller.  The  comptroller  shall require adequate security from all
  such  depositories  of  such  revenue  collected  by  the  commissioner,
  including  the  deposits received pursuant to subdivision (b) of section
  twelve hundred fifty-two of this article. Any  amount  payable  to  such
  authorities pursuant to the public authorities law shall, at the time it
  is  otherwise payable to (i) Nassau county, (ii) Erie county or the city
  of Buffalo, or (iii) Erie county, respectively,  as  specified  in  this
  section,  be  paid  instead  to  such  respective  authority. Any amount
  payable to a public benefit corporation pursuant to law  shall,  at  the
  time  it is otherwise payable to the taxing jurisdiction as specified in
  this section, be paid instead to such public benefit corporation.
    (b) The comptroller shall  retain  in  the  comptroller's  hands  such
  amount  as the commissioner may determine to be necessary for refunds in
  respect to the taxes imposed by cities, counties and  school  districts,
  under  the  authority  of  section  twelve  hundred  ten, twelve hundred
  eleven, twelve hundred  twelve  or  twelve  hundred  twelve-A,  and  for
  reasonable  costs  of  the commissioner in administering, collecting and
  distributing such taxes, out of which  the  comptroller  shall  pay  any
  refunds  of  such  taxes  to which taxpayers shall be entitled under the
  provisions of this article.
    (c) (1) The comptroller, after reserving such  refund  fund  and  such
  costs  shall,  on  or  before  the  twelfth day of each month pay to the
  appropriate fiscal officers of the foregoing  taxing  jurisdictions  the
  taxes,  penalties  and  interest imposed by such jurisdictions under the
  authority of sections twelve hundred ten through twelve hundred twelve-A
  of this article, collected by the commissioner pursuant to this  article
  during  the  next  preceding calendar month, provided, however, that the
  comptroller shall on or before the last day of June and December make  a
  partial  payment consisting of the collections made during and including
  the first twenty-five days of said months to said fiscal officers of the
  foregoing taxing jurisdictions.
    (2) However, the taxes, penalties and interest from the additional one
  percent rate which the city of Yonkers is authorized to impose  pursuant
  to section twelve hundred ten of this article, after the comptroller has
  reserved  such  refund  fund  and such cost shall be paid to the special
  sales and compensating use tax fund for the city of Yonkers  established

  by  section ninety-two-f of the state finance law at the times set forth
  in the preceding sentence.
    (3) However, the taxes, penalties and interest which (i) the county of
  Nassau,  (ii)  the  county  of Erie, to the extent the county of Erie is
  contractually or statutorily obligated to allocate and apply or pay  net
  collections  to  the  city of Buffalo and to the extent that such county
  has set aside net collections for educational purposes  attributable  to
  the  Buffalo school district, or the city of Buffalo or (iii) the county
  of Erie is authorized to impose pursuant to section twelve  hundred  ten
  of  this  article,  other  than  such  taxes  in  the amounts described,
  respectively, in subdivisions one and two of section  one  thousand  two
  hundred  sixty-two-e  of  this part, during the period that such section
  authorizes Nassau  county  to  establish  special  or  local  assistance
  programs  thereunder,  together  with any penalties and interest related
  thereto, and after the comptroller has reserved  such  refund  fund  and
  such  costs,  shall,  commencing  on  the  next  payment  date after the
  effective date of this sentence and of each month thereafter, until such
  date as (i) the Nassau county interim finance authority  shall  have  no
  obligations  outstanding, or (ii) the Buffalo fiscal stability authority
  shall cease  to  exist,  or  (iii)  the  Erie  county  fiscal  stability
  authority   shall   cease   to   exist,  be  paid  by  the  comptroller,
  respectively, to (i) the Nassau county interim finance authority  to  be
  applied  by  the Nassau county interim finance authority, or (ii) to the
  Buffalo fiscal stability authority to be applied by the  Buffalo  fiscal
  stability  authority,  or  (iii)  to  the  Erie  county fiscal stability
  authority to be applied by the Erie county fiscal  stability  authority,
  as  the  case may be, in the following order of priority: first pursuant
  to  the  Nassau  county  interim  finance  authority's  contracts   with
  bondholders  or  the Buffalo fiscal stability authority's contracts with
  bondholders or the Erie county fiscal  stability  authority's  contracts
  with  bondholders,  respectively,  then to pay the Nassau county interim
  finance authority's operating expenses not otherwise provided for or the
  Buffalo fiscal stability authority's operating  expenses  not  otherwise
  provided  for  or the Erie county fiscal stability authority's operating
  expenses not otherwise provided for, respectively, and then (i) pursuant
  to the Nassau county interim finance  authority's  agreements  with  the
  county  of  Nassau,  which  agreements  shall  require the Nassau county
  interim finance authority to transfer such taxes, penalties and interest
  remaining after providing for contractual or other  obligations  of  the
  Nassau  county  interim  finance authority, and subject to any agreement
  between such authority and the county of Nassau, to the county of Nassau
  as frequently as practicable; or (ii) pursuant  to  the  Buffalo  fiscal
  stability  authority's  agreements  with  the  city  of  Buffalo,  which
  agreements shall require  the  Buffalo  fiscal  stability  authority  to
  transfer  such  taxes,  penalties and interest remaining after providing
  for contractual or other obligations of  the  Buffalo  fiscal  stability
  authority,  and  subject to any agreement between such authority and the
  city of Buffalo, to the city of Buffalo or the city  of  Buffalo  school
  district,  as  the  case  may be, as frequently as practicable; or (iii)
  pursuant to the Erie county fiscal stability authority's agreements with
  the county of Erie, which  agreements  shall  require  the  Erie  county
  fiscal  stability  authority  to  transfer  such  taxes,  penalties  and
  interest remaining after providing for contractual or other  obligations
  of  the  Erie  county  fiscal  stability  authority,  and subject to any
  agreement between such authority and the county of Erie, to  the  county
  of  Erie  as  frequently  as  practicable.  During  the  period that the
  comptroller is required to make payments to the  Nassau  county  interim
  finance  authority  described  in  the  previous sentence, the county of

  Nassau shall have no right, title or  interest  in  or  to  such  taxes,
  penalties  and interest required to be paid to the Nassau county interim
  finance authority, except as provided  in  such  authority's  agreements
  with  the  county  of  Nassau. During the period that the comptroller is
  required to make payments to  the  Buffalo  fiscal  stability  authority
  described  in the second previous sentence, the city of Buffalo and such
  school district shall have no right, title or interest  in  or  to  such
  taxes,  penalties and interest required to be paid to the Buffalo fiscal
  stability authority, except as provided in such  authority's  agreements
  with  the  city  of  Buffalo.  During the period that the comptroller is
  required to make payments to the Erie county fiscal stability  authority
  described  in the third previous sentence, the county of Erie shall have
  no right, title or interest in or to such taxes, penalties and  interest
  required  to  be  paid  to  the  Erie county fiscal stability authority,
  except as provided in such authority's agreements  with  the  county  of
  Erie.
    (4) The amount so payable shall be certified to the comptroller by the
  commissioner  or  the  commissioner's  delegate,  who  shall not be held
  liable for any inaccuracy in such certificate.  Provided,  however,  any
  such  certification may be based on such information as may be available
  to the commissioner at the time such certificate must be made under this
  section and may be estimated  on  the  basis  of  percentages  or  other
  indices calculated from distributions for prior periods.
    (5)  However, the comptroller shall withhold from the taxes, penalties
  and interest imposed by the city of New York on and after August  first,
  two  thousand  eight,  and deposit such amounts to the state treasury as
  reimbursement for appropriated disbursements made by the New York  state
  financial  control  board  established  by  the New York state financial
  emergency act for  the  city  of  New  York  and  by  the  state  deputy
  comptroller  for the city of New York established by section forty-one-a
  of the executive law, as the actual, reasonable expenses of  that  board
  or  that  deputy  comptroller,  incurred  on  behalf  of  the  city, for
  quarterly periods commencing July first, two thousand eight, and  ending
  on  the date when those expenses are no longer incurred by that board or
  deputy comptroller; and the comptroller shall pay those withheld amounts
  immediately  into  the  miscellaneous  special  revenue  fund  financial
  control  board account 339-15 and the miscellaneous special revenue fund
  financial oversight account 339-DI of the state. During the period  that
  the  comptroller  is  required  to  withhold  amounts  and make payments
  described in this paragraph, the city of New York has no right, title or
  interest in or to those taxes, penalties and  interest  required  to  be
  paid into the above referenced miscellaneous special revenue funds.
    (6) Where the amount so paid over to any city, county, school district
  or  the  special  sales  and  compensating  use tax fund for the city of
  Yonkers in any such distribution or to any such  authority  is  more  or
  less  than  the amount then due to such city, county, school district or
  such fund or to  such  authority,  the  amount  of  the  overpayment  or
  underpayment  shall  be certified to the comptroller by the commissioner
  or the commissioner's delegate, who shall not be  held  liable  for  any
  inaccuracy  in  such  certificate.  The  amount  of  the  overpayment or
  underpayment shall be so certified to the comptroller as soon after  the
  discovery  of the overpayment or underpayment as reasonably possible and
  subsequent payments and distributions by the comptroller to  such  city,
  county,  school  district  or the special sales and compensating use tax
  fund for the city of Yonkers or to such authority shall be  adjusted  by
  subtracting  the  amount  of  any such overpayment from or by adding the
  amount of any such underpayment to such number  of  subsequent  payments
  and distributions as the comptroller and the commissioner shall consider

  reasonable  in view of the amount of the overpayment or underpayment and
  all other facts and circumstances.
    (d)  All  of  the provisions of this section shall apply to the taxes,
  penalties and interest from sales and compensating use  taxes  on  sales
  and  uses  of  motor  fuel or diesel motor fuel imposed pursuant to this
  article except that the amount  certified  to  the  comptroller  by  the
  commissioner  or the commissioner's delegate with respect to such taxes,
  penalties and interest shall be based  upon  the  receipts  from  retail
  sales  of  motor  fuel  or  diesel  motor fuel sold each month at retail
  service stations and on other sales of such fuel for consumption by  the
  purchaser  in  each  county  and  city  imposing  such  taxes, the total
  receipts from taxes paid pursuant to the provisions  of  section  eleven
  hundred  two of this article on motor fuel and diesel motor fuel sold in
  this state each month, the total of the taxes,  penalties  and  interest
  collected  or  received  in  such month with respect to retail sales and
  uses of motor fuel and diesel motor fuel (determined without  regard  to
  the  refunds  or credits allowed pursuant to subdivisions (a) and (b) of
  section eleven hundred twenty of  this  article),  the  sales  tax  rate
  applicable  for  that month in such county or city, the regional average
  retail sales price for such month, the amount  of  refunds  and  credits
  allowed  pursuant  to subdivisions (c) and (d) of section eleven hundred
  twenty of this article  and  such  other  data  and  standards  as  such
  commissioner  or delegate may deem necessary for such certification. The
  commissioner or the commissioner's delegate shall arrive at  the  number
  of  gallons of motor fuel and diesel motor fuel sold in each such county
  or city and in this state by use of the reports of the number of gallons
  sold required to be filed pursuant to section eleven hundred  thirty-six
  of  this  chapter  and  such  other  information as such commissioner or
  delegate deems appropriate. In arriving at the amount  to  be  certified
  and  distributed, the commissioner shall consider the collections of the
  taxes, penalties and interest  required  to  be  paid  pursuant  to  the
  provisions  of  section  eleven  hundred  two  of  this  article and the
  authorized refunds and credits of the  tax  imposed  by  section  eleven
  hundred  two  of this article against the taxes required to be collected
  or paid pursuant to this article.
    (e) The total net collections from a tax imposed pursuant  to  section
  twelve  hundred  eleven  by  a  city  and  a  school  district or school
  districts, so authorized, shall be distributed  and  paid  to  the  city
  school district where it is coterminous with or includes the entire city
  or to all the school districts partly within or wholly within such city.
  Except  where  the  city school district is coterminous with the city or
  includes the entire area of the city, such amounts shall be  distributed
  and  paid  to  the  school district or districts partly within or wholly
  within the city, in accordance with the total average  daily  attendance
  for  the  last  preceding  school  year  of pupils residing in each such
  district and without regard to the location of the school attended.
    (f) Notwithstanding any provision of state or local law, ordinance  or
  resolution  to  the  contrary,  if  the  commissioner  of  health timely
  certifies to the commissioner that a  county  which  imposes  sales  and
  compensating  use  taxes  pursuant  to  the  authority of section twelve
  hundred ten, twelve  hundred  ten-A,  twelve  hundred  ten-B  or  twelve
  hundred ten-C of this article properly exercised its option by September
  thirtieth, two thousand seven, pursuant to section two of the chapter of
  the  laws  of  two thousand five which added this subdivision, that such
  county be reimbursed for medical assistance expenditures as provided  in
  such  section two of such chapter, then the commissioner shall calculate
  the Medicaid amount of each such county. The amount due  each  month  to
  each  such  county provided for in subdivision (c) of this section shall

  be reduced by the monthly Medicaid amount;  and  such  monthly  Medicaid
  amount  of  each such county shall instead be paid into the general fund
  of the state treasury to  the  credit  of  the  state  purposes  account
  therein.  The  calculation  of  each  such  county's Medicaid amount and
  monthly Medicaid amounts and the procedures  governing  the  payment  of
  such amounts shall be as follows:
    (1) The commissioner of health shall furnish the commissioner with the
  amount  of  every  county's  "two thousand six-two thousand seven fiscal
  year social services district expenditure cap amount,"  as  provided  in
  paragraph  (e)  of  section one of a chapter of the laws of two thousand
  five which added this subdivision, as soon as practicable but  no  later
  than April first, two thousand seven.
    (2)  The  commissioner shall calculate the "Medicaid factor" for every
  county as follows and shall notify each county's chief fiscal officer of
  the results of such calculation by April thirtieth, two thousand  seven,
  to help each county determine whether to exercise such option:
    (A)  for a county in which no city exercises any prior right to impose
  sales or compensating use taxes authorized by section twelve hundred ten
  of  this  article,  first,  divide  the  total  amount  of   sales   and
  compensating  use  tax  distributions to such county during state fiscal
  year two thousand six-two thousand seven by the county's general rate of
  such taxes during  such  period,  and  then  divide  the  county's  "two
  thousand  six-two  thousand  seven  fiscal year social services district
  expenditure cap amount" by the quotient of the first division;
    (B) for a county in which one or more cities exercise any prior  right
  to  impose  sales or compensating use taxes authorized by section twelve
  hundred ten of this article and the combined rate of  the  county's  and
  city's  taxes  in each such city equals the general rate of the county's
  taxes on similar transactions in the area of  the  county  outside  such
  city  or  cities, first, add the total amounts of sales and compensating
  use tax distributions to such county and to each such city during  state
  fiscal  year  two thousand six-two thousand seven and divide such sum by
  the county's general rate of such taxes during  such  period,  and  then
  divide  the  county's  "two  thousand six-two thousand seven fiscal year
  social services district expenditure cap amount" by the quotient of  the
  first division; and
    (C)  for a county in which one or more cities exercise any prior right
  to impose sales or compensating use taxes authorized by  section  twelve
  hundred  ten  of  this article and the combined rate of the county's and
  city's taxes in any such city does not equal the  general  rate  of  the
  county's taxes on similar transactions in the area of the county outside
  such city or cities:
    (i) for each such city, add the total amount of sales and compensating
  use tax distributions to such city during state fiscal year two thousand
  six-two  thousand  seven  and  divide  such  sum by the city's effective
  general rate of such  taxes  during  such  period,  then  multiply  such
  quotient  by  the  amount by which the city's rate forced a reduction in
  the county's rate of such taxes in such city  during  such  period,  and
  then
    (ii)  add  the  amount  derived in clause (i) of this subparagraph for
  each such city to the total amount of sales  and  compensating  use  tax
  distributions  to  such  county  during  state  fiscal year two thousand
  six-two thousand seven;
    (iii) divide the  total  of  the  addition  in  clause  (ii)  of  this
  subparagraph  by  the  county's  general  rate of such taxes during such
  period; and

    (iv) divide the county's "two thousand six-two thousand  seven  fiscal
  year social services district expenditure cap amount" by the quotient of
  the division in clause (iii) of this subparagraph.
    (D) The commissioner shall consider any change in a county's or city's
  general  rate  of  sales  and  compensating use taxes which takes effect
  during state fiscal year two thousand six-two  thousand  seven  and  the
  number  of months such rates are in effect during such state fiscal year
  in order to perform accurately the calculations  provided  for  in  this
  paragraph.
    (3)  By  the  twelfth  day  of  each month, commencing in January, two
  thousand eight, the commissioner shall calculate the  "monthly  Medicaid
  amount" of each such county which has made the election described in the
  opening  paragraph  of  this subdivision and certify such amounts to the
  comptroller. The comptroller shall reduce the amount due each  month  to
  each such county provided for in subdivision (c) of this section by such
  monthly  Medicaid  amount;  and the comptroller shall instead each month
  pay the monthly Medicaid amount of each such  county  into  the  general
  fund  of  the state treasury to the credit of the state purposes account
  therein,  provided,  however,  that  the  comptroller,  subject  to  the
  limitations  provided  in  paragraphs  five and six of this subdivision,
  shall each month collect the amount of Nassau  county's  reduction  from
  amounts  payable  to  such  county  by the Nassau county interim finance
  authority while such authority exists.
    (4) "Monthly Medicaid amount" shall mean the result of  the  following
  calculations:
    (A)  for  a  county  described in subparagraph (A) of paragraph two of
  this subdivision, first, the amount of  the  comptroller's  payment  due
  such  a  county  in  the  immediately  preceding  month, as described in
  subdivision (c) of this section and  as  described  in  sections  twelve
  hundred  ten-A,  twelve  hundred  ten-B and twelve hundred ten-C of this
  article, but without regard to whether the comptroller is to pay all  or
  a  portion of such amount to another entity described in subdivision (c)
  of this section and without regard to the revenue disposition provisions
  of such section twelve hundred ten-A, twelve  hundred  ten-B  or  twelve
  hundred  ten-C,  and  considered  without regard to any Medicaid amount,
  shall be divided by the county's general rate of sales and  compensating
  use  taxes  in  such  month;  and the quotient of that division shall be
  multiplied by the Medicaid factor calculated as provided in subparagraph
  (A) of paragraph two of this subdivision.
    (B) for a county described in subparagraph (B)  of  paragraph  two  of
  this subdivision, first, add the amount of the comptroller's payment due
  any  city  in  such  a  county  in  the  immediately preceding month, as
  described in subdivision (c) of  this  section  to  the  amount  of  the
  comptroller's  payment  due  such  a county in the immediately preceding
  month, as described in subdivision (c) of this section and as  described
  in  sections  twelve  hundred  ten-A,  twelve  hundred  ten-B and twelve
  hundred ten-C of  this  article,  but  without  regard  to  whether  the
  comptroller  is to pay all or a portion of such amount to another entity
  described in subdivision (c) of this section and without regard  to  the
  revenue  disposition  provisions  of  such section twelve hundred ten-A,
  twelve hundred ten-B or twelve hundred  ten-C,  and  considered  without
  regard  to any Medicaid amount, then divide the total of such amounts by
  the county's general rate of sales and compensating use  taxes  in  such
  month;  and  the  quotient  of  that division shall be multiplied by the
  Medicaid factor calculated as provided in subparagraph (B) of  paragraph
  two of this subdivision.
    (C)  For  a  county  described in subparagraph (C) of paragraph two of
  this subdivision:

    (i) with respect to each such  city  described  in  subparagraph  (C),
  divide the amount of the comptroller's payment due each such city in the
  immediately  preceding  month,  as  described in subdivision (c) of this
  section, by the effective general rate of such city's taxes during  such
  month  and multiply such quotient by the amount by which the city's rate
  forced a reduction in the county's rate  of  such  taxes  in  such  city
  during such month;
    (ii)  add  the  amount  or  amounts  derived  in  clause  (i)  of this
  subparagraph to the amount of the comptroller's payment due such  county
  in  the  immediately preceding month, as described in subdivision (c) of
  this section and as described in sections twelve hundred  ten-A,  twelve
  hundred  ten-B  and  twelve  hundred  ten-C of this article, but without
  regard to whether the comptroller is to pay all or  a  portion  of  such
  amount  to  another  entity described in subdivision (c) of this section
  and without regard to the revenue disposition provisions of such section
  twelve hundred ten-A, twelve hundred ten-B or twelve hundred ten-C,  and
  considered without regard to any Medicaid amount; and
    (iii)  divide  the  total  of  the  addition  in  clause  (ii) of this
  subparagraph by the county's general rate  of  such  taxes  during  such
  month,  and  the  quotient  of  that division shall be multiplied by the
  Medicaid factor calculated as provided in subparagraph (C) of  paragraph
  two of this subdivision.
    (5)  If  for  any reason a county's monthly Medicaid amount is greater
  than the amount of the comptroller's net payment to the county for  that
  month  under  subdivision  (c) of this section and under sections twelve
  hundred ten-A, twelve hundred ten-B and twelve  hundred  ten-C  of  this
  article,  after  the comptroller has made any payments to other entities
  required by subdivision (c) of this section or  by  any  other  law  and
  after  any  payment,  deposit,  appropriation,  transfer  or expenditure
  required or authorized by such  section  twelve  hundred  ten-A,  twelve
  hundred  ten-B  or  twelve  hundred ten-C, the comptroller shall, at the
  same time that the comptroller makes the payment and reduction described
  in paragraph three of this subdivision, bill such county an amount equal
  to the difference and such county shall pay in full the amount  of  such
  bill  to  the  comptroller  by  the twenty-fifth day of such month. Such
  county shall use any funds  available  to  it  to  pay  such  bill.  The
  comptroller  shall  deposit  any  such amounts received into the general
  fund of the state treasury to the credit of the state  purposes  account
  therein.
    (6)  If  a  county does not remit the required monies or pay in full a
  bill described in paragraph five of this subdivision by the twenty-fifth
  day of the month in accordance with paragraph five of this  subdivision,
  the comptroller shall, as soon as any other moneys payable to the county
  are  available, either deduct any amount not paid from the amount of the
  next payment or payments due such county pursuant to subdivision (c)  of
  this  section  until  such amount not paid has been recovered or, in the
  alternative and at the comptroller's discretion, deduct any  amount  not
  paid from the amount of any other moneys payable to such county from the
  comptroller  and  not  subject  to any lien or pledge for the benefit of
  bondholders of the Nassau county interim finance  authority  or  of  any
  public  benefit  corporation,  as  defined  in  section sixty-six of the
  general construction law, created by interstate compact or at least half
  of whose members are appointed by the governor, until  such  amount  not
  paid  has  been  recovered. The comptroller shall deposit any amounts so
  deducted and recovered into the general fund of the  state  treasury  to
  the credit of the state purposes account therein.

    (7)  This subdivision shall apply to payments required in respect of a
  county  to  be  made  on  January  twelfth,  two  thousand  eight,   and
  thereafter.
    (8) Nothing in this subdivision shall be construed to relieve a county
  of  any  obligation  or commitment to distribute and pay or allocate net
  collections pursuant to this part, regardless whether such obligation or
  commitment arises before or after the date this subdivision  shall  have
  taken  effect,  or  to  preclude  a city in a county from exercising its
  prior rights under section twelve hundred twenty-four of  this  article.
  To the extent that a county's net collections have been diminished below
  a level sufficient to meet any such obligation or commitment as a result
  of the reductions or bills provided for in this subdivision, such county
  shall  hereby  be  authorized  to use any other funds available to it to
  meet such obligation or  commitment,  notwithstanding  any  law  to  the
  contrary.
    (9)  If a county adopts or amends a local law, ordinance or resolution
  to repeal its sales and compensating use taxes, then, effective  on  the
  first  day  of  the  first month on which such repeal takes effect, such
  county's resolution  electing  to  be  reimbursed  for  certain  medical
  assistance  expenditures  pursuant  to section two of the chapter of the
  laws of two thousand five which added this  subdivision  shall  also  be
  repealed  automatically  as  of  such  date;  and the commissioner shall
  notify the commissioner of health of such county's repeal of such taxes.
  In that event, as of such date, such county shall be treated  as  if  it
  had  never made such election for purposes of such expenditures and such
  commissioner of health shall thenceforth compute the amount due  monthly
  from  such  county  for such expenditures pursuant to section one of the
  chapter of the laws of two thousand five which added this subdivision.
    (g) Notwithstanding any provision of state or local law, ordinance  or
  resolution  to  the  contrary,  if  the  commissioner  of  health timely
  certifies to the commissioner that a city having  a  population  of  one
  million  or  more  in  which the taxes imposed by section eleven hundred
  seven of  this  chapter  are  in  effect  or  which  imposes  sales  and
  compensating  use  taxes  pursuant  to  the  authority of section twelve
  hundred ten of this article properly exercised its option  by  September
  thirtieth, two thousand seven, pursuant to section two of the chapter of
  the  laws  of  two thousand five which added this subdivision, that such
  city be reimbursed for medical assistance expenditures  as  provided  in
  such  section two of such chapter, then the commissioner shall calculate
  the Medicaid amount of such a city. The amount due each month to such  a
  city  with  respect  to  such  taxes  and  certain  other taxes shall be
  reduced; and the amount of each such reduction  shall  instead  be  paid
  into  the  general fund of the state treasury to the credit of the state
  purposes account therein. The calculation  of  such  a  city's  Medicaid
  amount  and  reductions  and the procedure governing the payment of such
  amounts are as follows:
    (1) The commissioner of health shall furnish the commissioner with the
  amount of such a city's "two thousand six-two thousand seven fiscal year
  social  services  district  expenditure  cap  amount,"  as  provided  in
  paragraph  (e) of section one of the chapter of the laws of two thousand
  five which added this subdivision, as soon as practicable but  no  later
  than April first, two thousand seven.
    (2)  The  commissioner shall use or calculate the following amounts in
  respect of such a  city,  which  amounts  shall  be  designated  by  the
  following  symbols,  in order to determine the components of the monthly
  amount described in paragraph three of this subdivision and shall notify
  the chief fiscal officer of such city of the calculated value of "D"  as
  described  in  this  paragraph  and  such  other  information  available

  relating to D, by April thirtieth, two thousand seven, to help such city
  determine whether to exercise such option:
    (A)  "A" shall equal the amount of such a city's "two thousand six-two
  thousand seven fiscal year  social  services  district  expenditure  cap
  amount,"  as  furnished  by  the  commissioner  of  health  pursuant  to
  paragraph one of this subdivision;
    (B)(i) "B1" shall equal the total amount of sales and compensating use
  tax distributions during state fiscal year two thousand six-two thousand
  seven to such city or to a  municipal  assistance  corporation  on  such
  city's  behalf from taxes imposed in such city by section eleven hundred
  seven of this chapter, other than taxes imposed by  subdivision  (c)  of
  such section eleven hundred seven, at the rate of three percent;
    (ii)  "B2"  shall  equal  the  total amount of sales tax distributions
  during state fiscal year two thousand six-two  thousand  seven  to  such
  city or to a municipal assistance corporation on such city's behalf from
  taxes  imposed in such city by subdivision (c) of section eleven hundred
  seven of this chapter, at the rate of three percent;
    (C) "C" shall equal the total amount of sales and compensating use tax
  distributions during state fiscal year  two  thousand  six-two  thousand
  seven  to  such city from its taxes imposed pursuant to the authority of
  section twelve hundred twelve-A of this article; and
    (D) "D" shall be the "Base Year PIT intercept amount" and shall  equal
  A less the sum of B1, B2 and C.
    (3)  (A)  Commencing  in January, two thousand eight, the commissioner
  shall calculate  the  monthly  Medicaid  amount  ("MA")  for  such  city
  according  to  the  following  formula: MA equals (((En/Fn) + (Ep/Fp)) X
  (.03)) + (C/12) X (G) + (D/12) X (G); where C and D  equal  the  amounts
  described  in paragraph two of this subdivision; "En" equals the current
  month's portion of revenues from taxes imposed by section eleven hundred
  seven of this chapter,  excluding  revenues  from  the  tax  on  parking
  imposed by subdivision (c) of such section eleven hundred seven, or from
  taxes  imposed  pursuant  to the authority of subdivision (a) of section
  twelve hundred ten of this article, excluding revenues from the  tax  on
  parking  authorized  by  subdivision  (a) of such section twelve hundred
  ten; "Ep" equals the current month's revenues from either  such  tax  on
  parking,  as  the  case  may be; "Fn" equals the current month's general
  rate of sales and use taxes imposed by such section eleven hundred seven
  or pursuant to the authority of such section twelve hundred  ten,  other
  than  on  parking;  "Fp" equals the current month's rate of sales tax on
  parking under or pursuant  to  the  authority  of  such  section  eleven
  hundred  seven  or  twelve hundred ten, as the case may be; "G" equals a
  growth factor according to  the  formula  G  equals  (En/Fn)  +  (Ep/Fp)
  divided by ((MB1/.04) + (MB2/.06)); "MB1" equals the revenues from taxes
  imposed  by  section  eleven  hundred  seven  of this chapter, excluding
  revenues from such tax on parking imposed by  subdivision  (c)  of  such
  section eleven hundred seven, during the same month of state fiscal year
  two  thousand  six-two thousand seven corresponding to the current month
  described above; and "MB2" equals the revenues from such tax on  parking
  during the same month of state fiscal year two thousand six-two thousand
  seven corresponding to the current month described above.
    (B)  Using  the amount of MA calculated each month in subparagraph (A)
  of this paragraph, the commissioner shall then calculate the amounts  of
  sales  and  use  tax  revenues  (E  + H, where E and H equal the amounts
  described in subparagraph (C) of this paragraph) and personal income tax
  revenues (PIT) of such city which are to be intercepted or billed for as
  described in this subdivision, according to the formula MA equals E +  H
  +  PIT,  as PIT is defined in subparagraph (D) of this paragraph. By the
  twelfth day of each month, commencing in January,  two  thousand  eight,

  the  commissioner shall establish the amount of E and H and certify such
  amounts to the comptroller and by  the  fifteenth  day  of  each  month,
  commencing  in  January,  two  thousand  eight,  the  commissioner shall
  establish the amount of PIT and certify such amount and the amount of MA
  to the comptroller, in the manner set forth in this paragraph.
    (C)  (i)  For the period commencing January first, two thousand eight,
  and ending on the last day of the month in which the  taxes  imposed  in
  such  a  city  by  section  eleven  hundred  seven of this chapter shall
  expire, the sales and use tax component "E" shall equal  the  amount  of
  revenues  from  such  taxes  imposed at the rate of three percent or the
  amount of revenues from such taxes imposed at the rate of  four  percent
  after  payments  to the municipal assistance corporation for such a city
  required under section ninety-two-d of the state finance law  have  been
  made, whichever amount is less, and "H" shall equal net collections from
  taxes imposed by such a city pursuant to the authority of section twelve
  hundred  twelve-A  of  this  article, due such a city in the immediately
  preceding month.
    (ii) For the period commencing on the first day  of  the  first  month
  following  the  period described in clause (i) of this subparagraph, the
  sales and use tax component "E" shall equal net collections  from  sales
  and  compensating  use  taxes  imposed  by  such  city  pursuant  to the
  authority of subdivision (a) of  section  twelve  hundred  ten  of  this
  article  up  to  the  rate  of  three  percent  and  "H" shall equal net
  collections from taxes imposed by such city pursuant to the authority of
  section twelve hundred twelve-A of this article, due such a city in  the
  immediately preceding month.
    (D)  For  the period commencing January first, two thousand eight, the
  PIT component for each month shall be designated "PIT" and  shall  equal
  the  portion of the revenues from taxes imposed by such city pursuant to
  the authority of article thirty of this chapter due such a city  in  the
  immediately  preceding  month,  calculated according to the formula: PIT
  equals MA - E - H.
    (E)(i) During the period that the taxes imposed  in  such  a  city  by
  section  eleven  hundred  seven  of  this  chapter  are  in  effect, the
  comptroller shall each month, after paying amounts certified to  by  the
  chairperson  of  the  municipal assistance corporation created in aid of
  such city, as provided for in section ninety-two-d of the state  finance
  law,  pay  the  relevant  portion  of  the  sales  and use tax component
  relating to such taxes imposed by such section eleven hundred seven  for
  such month equal to E into the general fund of the state treasury to the
  credit of the state purposes account therein.
    (ii)  During the period that the taxes imposed by such a city pursuant
  to the authority of section twelve hundred ten of this  article  are  in
  effect,  the  comptroller shall reduce the amount due each month to such
  city from such taxes provided for in subdivision (c) of this section  by
  the  relevant  portion of the sales and use tax component for such month
  equal to E; and the  comptroller  shall  instead  each  month  pay  such
  portion into the general fund of the state treasury to the credit of the
  state purposes account therein.
    (iii)  The  comptroller shall reduce the amount due each month to such
  city from taxes imposed pursuant to  the  authority  of  section  twelve
  hundred  twelve-A provided for in subdivision (c) of this section by the
  relevant portion of the sales and use tax component for such month equal
  to H; and the comptroller shall instead each month pay such portion into
  the general fund of the state  treasury  to  the  credit  of  the  state
  purposes account therein.
    (iv)  The  comptroller  shall  each month certify to the New York city
  transitional finance authority  the  monthly  amount  of  PIT  and  such

  authority  shall,  after  applying amounts described in section thirteen
  hundred thirteen of this chapter, immediately pay such  monthly  amount,
  or  so  much of which is available after applying such amounts, directly
  and  immediately  to  the  comptroller;  and  the comptroller shall upon
  receipt of such moneys,  subject  to  the  exceptions  in  such  section
  thirteen  hundred  thirteen, pay them into the general fund of the state
  treasury to the credit of the state purposes account therein.
    (4) If for any reason such a city's Medicaid amount in a month (MA) is
  greater than the sum of the amounts of the comptroller's net payments to
  such city for that month under subdivision (c) of  this  section,  under
  section  twelve  hundred  twelve-A  of  this  article  and under section
  thirteen hundred thirteen of this chapter,  after  the  comptroller  has
  made  any  payments  to other entities required by any law and after any
  payment, deposit, appropriation, transfer  or  expenditure  required  or
  authorized  by  any of such sections, the comptroller shall, at the same
  time that the comptroller makes the payments and reductions described in
  paragraph three of this subdivision, bill such city an amount  equal  to
  the  difference  and such city shall pay in full the amount of such bill
  to the comptroller by the twenty-fifth day  of  such  month.  Such  city
  shall  use  any  funds available to it to pay such bill. The comptroller
  shall deposit any such amounts received into the  general  fund  of  the
  state treasury to the credit of the state purposes account therein.
    (5)  If such a city does not pay in full a bill described in paragraph
  four of this subdivision  by  the  twenty-fifth  day  of  the  month  in
  accordance  with  such paragraph four, the comptroller shall, as soon as
  any other moneys payable to the city are available,  either  deduct  any
  amount not paid from the amount of the next payment or payments due such
  city pursuant to subdivision (c) of this section, section twelve hundred
  twelve-A  of  this  article or section thirteen hundred thirteen of this
  chapter, until such amount not  paid  has  been  recovered  or,  in  the
  alternative  and  at the comptroller's discretion, deduct any amount not
  paid from the amount of any other moneys payable to such city  from  the
  comptroller  and  not  subject  to any lien or pledge for the benefit of
  bondholders of the transitional finance authority or  of  the  municipal
  assistance  corporation,  until such amount not paid has been recovered.
  The comptroller shall deposit any amounts so deducted and recovered into
  the general fund of the state  treasury  to  the  credit  of  the  state
  purposes account therein.
    (6)  This subdivision shall apply to payments required in respect of a
  city to be made on January twelfth, two thousand eight, and thereafter.
    (7)(A) If such a city adopts or  amends  a  local  law,  ordinance  or
  resolution  to  repeal  its  sales  and  compensating  use taxes imposed
  pursuant to the authority of subdivision (a) of section  twelve  hundred
  ten of this article, then, effective on the first day of the first month
  on which such repeal takes effect, such city's resolution electing to be
  reimbursed  for  certain  medical  assistance  expenditures  pursuant to
  section two of the chapter of the laws of two thousand five which  added
  this  subdivision  shall also be repealed automatically as of such date;
  and the commissioner shall notify the commissioner  of  health  of  such
  city's  repeal  of such taxes. In that event, as of such date, such city
  shall be treated as if it had never made such election for  purposes  of
  such  expenditures  and  such  commissioner  of health shall thenceforth
  compute the amount due monthly from  such  city  for  such  expenditures
  pursuant  to  section  one  of  such chapter of the laws of two thousand
  five.
    (B) If such city adopts or amends a local law to repeal its  taxes  on
  personal  income  authorized  by  article  thirty  of  this chapter, the
  comptroller shall bill such city  monthly  in  the  manner  provided  in

  paragraph  four  of  this  subdivision  for  any  amounts due under this
  subdivision which otherwise would have been paid out  of  revenues  from
  such  taxes into the general fund of the state treasury pursuant to this
  subdivision,  and such bills shall be paid as provided in paragraph four
  of this subdivision and any bill not paid shall be treated  as  provided
  in paragraph five of this subdivision.