Bill Text: NY A03353 | 2021-2022 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Repeals the rebates for stock transfer tax paid; dedicates funds of the stock transfer tax fund and stock transfer incentive fund to various funds; establishes the safe water and infrastructure action program.

Spectrum: Partisan Bill (Democrat 58-0)

Status: (Introduced) 2021-02-23 - print number 3353a [A03353 Detail]

Download: New_York-2021-A03353-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          3353

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 22, 2021
                                       ___________

        Introduced  by  M.  of  A.  STECK, JACOBSON, STIRPE, ENGLEBRIGHT, BURKE,
          GOTTFRIED, EPSTEIN, PERRY, SIMON, LUPARDO,  HUNTER,  REYES,  ABINANTI,
          WILLIAMS, BARRON, KIM, BENEDETTO, L. ROSENTHAL, JOYNER, WALLACE, FAHY,
          DINOWITZ,  CRUZ, J. RIVERA, TAYLOR, DICKENS, GUNTHER, SEAWRIGHT, RICH-
          ARDSON, DE LA ROSA, CARROLL, GLICK, DAVILA, FERNANDEZ, COOK,  BRONSON,
          BICHOTTE HERMELYN,  DARLING,  ANDERSON,  NIOU,  WALKER,  O'DONNELL  --
          Multi-Sponsored by -- M. of A. AUBRY -- read once and referred to  the
          Committee on Ways and Means

        AN  ACT to amend the state finance law, in relation to the repeal of the
          rebate for stock transfer tax paid and the funds of the stock transfer
          tax fund and the dedicated infrastructure investment  fund;  to  amend
          the  environmental  conservation  law, in relation to establishing the
          safe water infrastructure action program for  the  purpose  of  making
          payments  toward  the replacement and rehabilitation of existing local
          municipally-owned and funded drinking water, storm water and  sanitary
          sewer  systems;  to amend the tax law, in relation to taxes imposed in
          certain transactions; to repeal section 280-a of the tax law  relating
          to  the  rebate for stock transfer tax paid; to repeal section 92-i of
          the state finance law relating to the stock transfer  incentive  fund;
          and  to  repeal  certain  provisions of the administrative code of the
          city of New York relating thereto

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. Section 280-a of the tax law is REPEALED.
     2    § 2. Section 92-i of the state finance law is REPEALED.
     3    §  3. Section 92-b of the state finance law, as added by chapter 91 of
     4  the laws of 1965, subdivision 3 as amended by chapter 878 of the laws of
     5  1977, subdivision 4 as amended by chapter  724  of  the  laws  of  1979,
     6  subdivision  5  as added and subdivision 6 as renumbered by section 2 of
     7  chapter 3 of the laws of 1966, subdivision 7 as added by section  10  of
     8  part  SS1  of  chapter 57 of the laws of 2008 and such section as renum-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04222-03-1

        A. 3353                             2

     1  bered by section 1 of chapter 3 of the laws of 1966, is amended to  read
     2  as follows:
     3    § 92-b. Stock transfer tax fund. 1. There is hereby established in the
     4  custody  of  the commissioner of taxation and finance a special fund, to
     5  be known as the stock transfer tax fund.
     6    2. Such fund shall consist of the  revenues  derived  from  the  stock
     7  transfer  tax  imposed  by  article  twelve of the tax law and all other
     8  moneys credited or transferred thereto from any  other  fund  or  source
     9  pursuant to law.
    10    3.  The moneys received from such tax and other sources in such fund[,
    11  after deducting the amount the  commissioner  of  taxation  and  finance
    12  shall  determine to be necessary for] shall be used to cover the reason-
    13  able costs of the state tax commission in administering, collecting  and
    14  distributing  [such]  the stock transfer tax, commencing with the fiscal
    15  year ending March thirty-first,  [nineteen  hundred  seventy-seven]  two
    16  thousand  twenty-three,  [shall  be  appropriated  to  (i) the municipal
    17  assistance corporation for the city of  New  York  created  pursuant  to
    18  title  three  of  article  ten of the public authorities law in order to
    19  enable such corporation to fulfill the terms of any agreements made with
    20  the holders of its notes and  bonds  and  to  carry  out  its  corporate
    21  purposes  including the maintenance of the capital reserve fund and (ii)
    22  to the extent such moneys  are  not  required  by  such  corporation  as
    23  provided  in  subdivision  seven of section ninety-two-d of this chapter
    24  and, after deducting the amount such commissioner shall determine to  be
    25  necessary  for  reasonable costs of the state tax commission in adminis-
    26  tering and making distributions in accordance  with  the  provisions  of
    27  section  two  hundred  eighty-a  of  the tax law from the stock transfer
    28  incentive fund, to the stock transfer incentive fund created pursuant to
    29  section ninety-two-i of this chapter to enable rebates to be  made  from
    30  such  fund  under  the provisions of section two hundred eighty-a of the
    31  tax law and (iii) to the extent such moneys are  not  required  by  such
    32  fund,  as  certified  by  the  commissioner of taxation and finance, the
    33  balance shall be appropriated to the city of New York, for  the  support
    34  of  local  government.]  and  the  remainder shall be deposited into the
    35  state general fund. Commencing with the fiscal year ending  March  thir-
    36  ty-first,  two  thousand twenty-three, such remainder shall be deposited
    37  into the following funds:
    38    (i) twenty-five percent shall be directed to the  metropolitan  trans-
    39  portation  authority  financial  assistance fund established pursuant to
    40  section ninety-two-ff of this article, of which fifty percent  shall  be
    41  used  for  the purpose of operations and fifty percent shall be used for
    42  the purpose of capital projects;
    43    (ii) ten percent shall be directed to  the  division  of  housing  and
    44  community renewal for the purpose of capital projects and other improve-
    45  ments to address issues relating to conditions of governance and habita-
    46  bility,  including but not limited to, heating, mold, or lead, and other
    47  such conditions affecting the health and safety of  tenants  at  housing
    48  developments owned or operated by the New York city housing authority;
    49    (iii)  fifteen  percent  shall  be  directed to the highway and bridge
    50  capital account in the dedicated highway and bridge  trust  fund  estab-
    51  lished pursuant to section eighty-nine-b of this article;
    52    (iv)  nine  percent  shall  be  directed  to the dedicated highway and
    53  bridge trust fund established pursuant to section eighty-nine-b of  this
    54  article,  to  be  directed  towards  the infrastructure, maintenance and
    55  development of rail lines for AMTRAK in the northeast corridor;

        A. 3353                             3

     1    (v) five percent shall be directed to the local infrastructure account
     2  of the general fund established pursuant to section seventy-two of  this
     3  article  to  be  directed  to  the Consolidated Local Street and Highway
     4  Improvement Program (CHIPS);
     5    (vi)  five  percent  shall  be  directed  to  the local infrastructure
     6  account of the general fund to  be  dedicated  to  the  safe  water  and
     7  infrastructure  action  program  as established by section 3-0323 of the
     8  environmental conservation law;
     9    (vii) five percent shall be directed to the municipal assistance state
    10  aid fund established pursuant to section ninety-two-e of this article;
    11    (viii) four percent shall be directed to the dedicated mass  transpor-
    12  tation  trust  fund  to the credit of the non-MTA account for payment to
    13  downstate transit systems other than those transit systems  operated  by
    14  the metropolitan transportation authority;
    15    (ix)  four percent shall be directed to the dedicated mass transporta-
    16  tion trust fund to the credit of the  non-MTA  account  for  payment  to
    17  upstate transit systems;
    18    (x) thirteen percent shall be directed to the energy research develop-
    19  ment  operating  fund  pursuant  to  the  provisions of section eighteen
    20  hundred fifty-nine of the public authorities law, to be directed to  the
    21  clean energy fund and shall be divided equally among the four investment
    22  portfolios that make up such fund;
    23    xi.  two and one-half percent shall be directed to the city university
    24  of New York, of which fifty percent shall be used  for  the  purpose  of
    25  capital improvements and infrastructure projects and fifty percent shall
    26  be  used  for the purpose of supporting academic programs at city of New
    27  York institutions; and
    28    xii. two and one-half percent shall be directed to the state universi-
    29  ty of New York institutions, of which fifty percent shall  be  used  for
    30  the  purposes  of  supporting  and  expanding services and care at state
    31  university of New York hospitals, state university of New York  academic
    32  medical  centers  and  fifty  percent  shall  be used for the purpose of
    33  supporting academic programs at state  university  of  New  York  insti-
    34  tutions.
    35    4.  [After  the deduction of such costs of the state tax commission in
    36  administering, collecting and distributing such tax, the balances in the
    37  stock transfer tax fund so appropriated shall be distributed and paid on
    38  the last business day of September, December, March and  June  into  the
    39  special account established for the municipal assistance corporation for
    40  the  city  of  New York in the municipal assistance tax fund established
    41  pursuant to subdivision one of section  ninety-two-d  of  this  chapter,
    42  unless  and to the extent the balances in such fund on each such payment
    43  day are not required by such corporation as provided in said subdivision
    44  seven of said section ninety-two-d in which  case  the  balance  not  so
    45  required,  if  any,  after  the deduction of such costs of the state tax
    46  commission in administering and making distributions in accordance  with
    47  the  provisions  of section two hundred eighty-a of the tax law from the
    48  stock transfer incentive fund shall be distributed and paid to the stock
    49  transfer incentive fund in the custody of the commissioner  of  taxation
    50  and finance established pursuant to section ninety-two-i of this chapter
    51  and unless and to the extent that the balances in the stock transfer tax
    52  fund  on  each  such  payment day are not required by the stock transfer
    53  incentive fund as provided in such section ninety-two-i of this  chapter
    54  in  which case the balance not so required, if any, shall be distributed
    55  and paid to the chief fiscal officer of the city of New York to be  paid
    56  into  the treasury of the city to the credit of the general fund or paid

        A. 3353                             4

     1  by the commissioner of taxation and finance to  such  other  account  or
     2  fund  as  may  be  designated in writing by such chief fiscal officer at
     3  least ten business days prior to such last day and on each such day, the
     4  commissioner  of  taxation  and finance shall certify to the comptroller
     5  the amount deducted for administering, collecting and distributing  such
     6  tax  during  such  quarterly  period  and shall pay such amount into the
     7  general fund of the state treasury to the credit of the  state  purposes
     8  fund  therein. In no event shall any amount (other than the amount to be
     9  deducted for administering, collecting and  distributing  such  tax)  be
    10  distributed or paid from the stock transfer tax fund to any person other
    11  than  the  municipal  assistance  corporation  for  the city of New York
    12  unless and until the aggregate of all payments certified  to  the  comp-
    13  troller  as  required  by  such  corporation in order to comply with its
    14  agreements with the holders of its notes and bonds and to carry out  its
    15  corporate  purposes,  including  the  maintenance of the capital reserve
    16  fund, which remain unappropriated or unpaid to  such  corporation  shall
    17  have  been  appropriated to such corporation and shall have been paid in
    18  full provided, however, that no person, including  such  corporation  or
    19  the  holders  of  its notes or bonds shall have any lien on such tax and
    20  such agreements shall be executory only to the extent  of  the  balances
    21  available  to  the  state in such fund. If the balances in such fund are
    22  not required by such corporation pursuant  to  the  provisions  of  this
    23  subdivision,  on  each  such  last  business day of September, December,
    24  March and June, the commissioner of taxation and finance  shall  certify
    25  to  the  comptroller  the  amount  deducted for administering and making
    26  distributions in accordance with the provisions of section  two  hundred
    27  eighty-a  of  the  tax law from the stock transfer incentive fund during
    28  such quarterly period and he shall pay such amount into the general fund
    29  of the state treasury to the credit of the state purposes fund  therein.
    30  To  the  extent  such  moneys  are  not required by such corporation, as
    31  provided in subdivision seven of section ninety-two-d of  this  chapter,
    32  no amount thereof (other than such amount to be deducted for administer-
    33  ing,  collecting and distributing such tax and such costs in administer-
    34  ing and making  distributions  in  accordance  with  the  provisions  of
    35  section  two  hundred  eighty-a  of  the tax law from the stock transfer
    36  incentive fund) shall be distributed or paid from the stock transfer tax
    37  fund other than to such stock transfer incentive fund in the custody  of
    38  the  commissioner of taxation and finance unless and until the aggregate
    39  of all payments certified to the comptroller by such commissioner pursu-
    40  ant to the provisions of such incentive fund  as  necessary  to  provide
    41  payments  on  account  of  rebates  authorized  pursuant  to section two
    42  hundred eighty-a of the tax law which remain unappropriated or unpaid to
    43  such fund shall have been appropriated to such fund and shall have  been
    44  paid  in  full provided, however, that no person, including any taxpayer
    45  under article twelve of the tax law or any member or dealer referred  to
    46  in  subdivisions  two-a  and six of section two hundred eighty-a of such
    47  law, shall have any lien on this fund or the  stock  transfer  incentive
    48  fund.
    49    5.  In no fiscal year shall the total amount paid from the fund exceed
    50  the total collections during such fiscal year from  the  stock  transfer
    51  tax  pursuant  to the provisions of article twelve of the tax law and as
    52  deposited to the credit of the stock transfer tax fund.
    53    6.] All payments from the stock transfer tax fund shall be made on the
    54  audit and warrant of the comptroller on vouchers approved by the commis-
    55  sioner of taxation and finance.

        A. 3353                             5

     1    [7. When all the notes and bonds of the  municipal  assistance  corpo-
     2  ration  for  the  city  of New York have been fully paid and discharged,
     3  together with interest thereon and interest on  unpaid  installments  of
     4  interest,  and  the  chairman of the corporation makes the final certif-
     5  ication  required  by  subdivision seven of section ninety-two-d of this
     6  article, the comptroller must notify the commissioner  of  taxation  and
     7  finance  that  all  remaining  funds held in the stock transfer tax fund
     8  must be released to the stock transfer incentive fund.  From  that  time
     9  forward,  all  funds previously deposited in the stock transfer tax fund
    10  pursuant to subdivision two of this section will be  deposited  directly
    11  into  the stock transfer incentive fund pursuant to all the rules, regu-
    12  lations or instructions  that  the  commissioner  may  prescribe,  after
    13  deducting  the  amount  the  commissioner determines to be necessary for
    14  reasonable costs of the  department  in  administering,  collecting  and
    15  distributing  the tax imposed by article twelve of the tax law. Notwith-
    16  standing any other provisions of  this  article,  to  the  extent  those
    17  moneys  are  not  required  by the stock transfer incentive fund for the
    18  purpose of administering and making distributions in accordance with the
    19  provisions of section two hundred eighty-a of the tax law, as  certified
    20  by  the commissioner of taxation and finance, the balance will be appro-
    21  priated to the city of New York for the support of local government.]
    22    § 4. Paragraph (c) of subdivision 1  of  section  93-b  of  the  state
    23  finance  law,  as added by section 1 of part H of chapter 60 of the laws
    24  of 2015, is amended to read as follows:
    25    (c) Sources of funds. The sources of funds shall consist of all moneys
    26  collected therefor, or  moneys  credited,  appropriated  or  transferred
    27  thereto  from  any  other  fund  or  source pursuant to law or any other
    28  moneys made available for the purposes of the fund,  including  but  not
    29  limited  to  funds transferred from the stock transfer tax fund pursuant
    30  to subdivision three of section ninety-two-b of this article  and  funds
    31  transferred  from  the  stock  transfer  incentive  fund  established by
    32  section ninety-two-i of this article and repealed by a  chapter  of  the
    33  laws  of  two  thousand  twenty-one, which amended this paragraph.   Any
    34  interest received by the comptroller  on  moneys  on  deposit  shall  be
    35  retained and become part of the fund, unless otherwise directed by law.
    36    §  5.  Subdivision (c) of section 11-503 of the administrative code of
    37  the city of New York is REPEALED.
    38    § 6. Subdivision 12 of section 11-604 of the  administrative  code  of
    39  the city of New York is REPEALED.
    40    §  7.  All  monies  accumulated  in  the stock transfer incentive fund
    41  established pursuant to section 92-i of the state  finance  law  on  the
    42  effective date of this act shall be transferred to the dedicated infras-
    43  tructure  investment  fund  as  established by section 93-b of the state
    44  finance law for the purposes set forth in such section.
    45    § 8. The environmental conservation law is amended  by  adding  a  new
    46  section 3-0323 to read as follows:
    47  § 3-0323. Safe water and infrastructure action program.
    48    1.  Notwithstanding  any other provisions of this chapter or any other
    49  law and subject to an appropriation made therefor and in accordance with
    50  the provisions of this  section  and  with  the  rules  and  regulations
    51  promulgated  by  the  commissioner in connection therewith, on and after
    52  the first day of April, two thousand twenty-two,  a  consolidated  local
    53  infrastructure  program  is hereby established for the purpose of making
    54  payments toward the replacement and  rehabilitation  of  existing  local
    55  municipally-owned  and  funded  drinking water, storm water and sanitary
    56  sewer systems. For purposes of this section, such program shall apply to

        A. 3353                             6

     1  any county, city, town or village drinking  water  system,  storm  water
     2  system  or  sanitary sewer system within the state that is not under the
     3  maintenance and/or operational jurisdiction of the state nor any private
     4  entity.  The commissioner, in conjunction with the environmental facili-
     5  ties corporation, shall promulgate all necessary rules  and  regulations
     6  to  carry out the program so that an equitable distribution of aid shall
     7  be made for the general operation  and/or  general  maintenance  of  any
     8  existing  county,  city,  town  and village drinking water system, storm
     9  water system or sanitary sewer system.
    10    2. On or before the twenty-fifth day of  April,  June,  September  and
    11  November of each state fiscal year commencing with the state fiscal year
    12  beginning  on  April  first,  two  thousand twenty-three, there shall be
    13  distributed and paid to counties, cities, towns and villages  an  amount
    14  equal  to  the  moneys  appropriated  for  the  purposes of this section
    15  divided by the number of payment dates in that state fiscal  year.  Such
    16  amounts  shall  be distributed and paid pursuant to subdivision three of
    17  this section.
    18    3. Amounts shall be distributed for local drinking water, storm  water
    19  and  sanitary sewer systems based upon the total length and width of all
    20  pipelines and mains owned and operated by the municipality.
    21    4. Monies made available may be used to match other state and  federal
    22  funds  made  available for such projects.  The funds may also be used to
    23  support special improvement districts created to provide drinking water,
    24  waste water and storm water services under  articles  twelve,  twelve-A,
    25  twelve-C  and thirteen of the town law.  The remainder of the apportion-
    26  ment may be used for any existing drinking water, storm water  or  sewer
    27  system purchases, including but not limited to, the acquisition of mate-
    28  rials for the replacement or rehabilitation.
    29    5.  For  any  city,  town,  or  village  which proposes infrastructure
    30  consolidation under this section or merges  with  another  municipality,
    31  the funds appropriated under this section may fund costs associated with
    32  such consolidation.
    33    6.  For each fiscal year, starting in two thousand twenty-three, funds
    34  are to be made available to the local infrastructure assistance  account
    35  of  the  general  fund,  and distributed from that account, in an amount
    36  that is at least equal to those appropriated and made available  in  the
    37  Consolidated Local Street and Highway Improvement Program (CHIPS).
    38    § 9. Section 270 of the tax law is amended by adding a new subdivision
    39  9 to read as follows:
    40    9.  Notwithstanding any other provision to the contrary, a transaction
    41  referred to in subdivision one of this section is subject to tax if  any
    42  activity in furtherance of the transaction occurs within the state or if
    43  a  party  involved  in  the  transaction satisfies a nexus with New York
    44  state which shall be defined as broadly as is permitted under the United
    45  States Constitution.
    46    § 10. This act shall take effect immediately.
feedback