Bill Text: NY A03353 | 2021-2022 | General Assembly | Amended
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 - Dead) 2022-01-05 - referred to ways and means [A03353 Detail]
Download: New_York-2021-A03353-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3353--A 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, MEEKS, KELLES, J. D. RIVERA, LUNSFORD, JEAN-PIERRE, ZINERMAN, CLARK, FRONTUS, McDONALD, BURDICK, FALL, SILLITTI -- Multi-Sponsored by -- M. of A. AUBRY, HYNDMAN -- read once and referred to the Committee on Ways and Means -- reported and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 Section 280-a of the tax law is REPEALED. 2 § 2. Section 92-i of the state finance law is REPEALED. 3 § 3.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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04222-06-1A. 3353--A 2 1 1977, subdivision 4 as amended by chapter 724 of the laws of 1979, 2 subdivision 5 as added and subdivision 6 as renumbered by section 2 of 3 chapter 3 of the laws of 1966, subdivision 7 as added by section 10 of 4 part SS1 of chapter 57 of the laws of 2008 and such section as renum- 5 bered by section 1 of chapter 3 of the laws of 1966, is amended to read 6 as follows: 7 § 92-b. Stock transfer tax fund. 1. There is hereby established in the 8 custody of the commissioner of taxation and finance a special fund, to 9 be known as the stock transfer tax fund. 10 2. Such fund shall consist of the revenues derived from the stock 11 transfer tax imposed by article twelve of the tax law and all other 12 moneys credited or transferred thereto from any other fund or source 13 pursuant to law. 14 3. The moneys received from such tax and other sources in such fund[,15after deducting the amount the commissioner of taxation and finance16shall determine to be necessary for] shall be used to cover the reason- 17 able costs of the state tax commission in administering, collecting and 18 distributing [such] the stock transfer tax, commencing with the fiscal 19 year ending March thirty-first, [nineteen hundred seventy-seven] two 20 thousand twenty-three, [shall be appropriated to (i) the municipal21assistance corporation for the city of New York created pursuant to22title three of article ten of the public authorities law in order to23enable such corporation to fulfill the terms of any agreements made with24the holders of its notes and bonds and to carry out its corporate25purposes including the maintenance of the capital reserve fund and (ii)26to the extent such moneys are not required by such corporation as27provided in subdivision seven of section ninety-two-d of this chapter28and, after deducting the amount such commissioner shall determine to be29necessary for reasonable costs of the state tax commission in adminis-30tering and making distributions in accordance with the provisions of31section two hundred eighty-a of the tax law from the stock transfer32incentive fund, to the stock transfer incentive fund created pursuant to33section ninety-two-i of this chapter to enable rebates to be made from34such fund under the provisions of section two hundred eighty-a of the35tax law and (iii) to the extent such moneys are not required by such36fund, as certified by the commissioner of taxation and finance, the37balance shall be appropriated to the city of New York, for the support38of local government.] and the remainder shall be deposited into the 39 state general fund. Commencing with the fiscal year ending March thir- 40 ty-first, two thousand twenty-three, such remainder shall be deposited 41 into the following funds: 42 (i) twenty-five percent shall be directed to the metropolitan trans- 43 portation authority financial assistance fund established pursuant to 44 section ninety-two-ff of this article, of which fifty percent shall be 45 used for the purpose of operations and fifty percent shall be used for 46 the purpose of capital projects; 47 (ii) ten percent shall be directed to the division of housing and 48 community renewal for the purpose of capital projects and other improve- 49 ments to address issues relating to conditions of governance and habita- 50 bility, including but not limited to, heating, mold, or lead, and other 51 such conditions affecting the health and safety of tenants at housing 52 developments owned or operated by the New York city housing authority; 53 (iii) fifteen percent shall be directed to the highway and bridge 54 capital account in the dedicated highway and bridge trust fund estab- 55 lished pursuant to section eighty-nine-b of this article;A. 3353--A 3 1 (iv) nine percent shall be directed to the dedicated highway and 2 bridge trust fund established pursuant to section eighty-nine-b of this 3 article, to be directed towards the infrastructure, maintenance and 4 development of rail lines for AMTRAK in the northeast corridor; 5 (v) five percent shall be directed to the local infrastructure account 6 of the general fund established pursuant to section seventy-two of this 7 article to be directed to the Consolidated Local Street and Highway 8 Improvement Program (CHIPS); 9 (vi) five percent shall be directed to the local infrastructure 10 account of the general fund to be dedicated to the safe water and 11 infrastructure action program as established by section 3-0323 of the 12 environmental conservation law; 13 (vii) five percent shall be directed to the municipal assistance state 14 aid fund established pursuant to section ninety-two-e of this article; 15 (viii) four percent shall be directed to the dedicated mass transpor- 16 tation trust fund to the credit of the non-MTA account for payment to 17 downstate transit systems other than those transit systems operated by 18 the metropolitan transportation authority; 19 (ix) four percent shall be directed to the dedicated mass transporta- 20 tion trust fund to the credit of the non-MTA account for payment to 21 upstate transit systems; 22 (x) thirteen percent shall be directed to the energy research develop- 23 ment operating fund pursuant to the provisions of section eighteen 24 hundred fifty-nine of the public authorities law, to be directed to the 25 clean energy fund and shall be divided equally among the four investment 26 portfolios that make up such fund; 27 (xi) two and one-half percent shall be directed to the city university 28 of New York, of which fifty percent shall be used for the purpose of 29 capital improvements and infrastructure projects and fifty percent shall 30 be used for the purpose of supporting academic programs at city of New 31 York institutions; and 32 (xii) two and one-half percent shall be directed to the state univer- 33 sity of New York institutions, of which fifty percent shall be used for 34 the purposes of supporting and expanding services and care at state 35 university of New York hospitals, state university of New York academic 36 medical centers and fifty percent shall be used for the purpose of 37 supporting academic programs at state university of New York insti- 38 tutions. 39 4. [After the deduction of such costs of the state tax commission in40administering, collecting and distributing such tax, the balances in the41stock transfer tax fund so appropriated shall be distributed and paid on42the last business day of September, December, March and June into the43special account established for the municipal assistance corporation for44the city of New York in the municipal assistance tax fund established45pursuant to subdivision one of section ninety-two-d of this chapter,46unless and to the extent the balances in such fund on each such payment47day are not required by such corporation as provided in said subdivision48seven of said section ninety-two-d in which case the balance not so49required, if any, after the deduction of such costs of the state tax50commission in administering and making distributions in accordance with51the provisions of section two hundred eighty-a of the tax law from the52stock transfer incentive fund shall be distributed and paid to the stock53transfer incentive fund in the custody of the commissioner of taxation54and finance established pursuant to section ninety-two-i of this chapter55and unless and to the extent that the balances in the stock transfer tax56fund on each such payment day are not required by the stock transferA. 3353--A 4 1incentive fund as provided in such section ninety-two-i of this chapter2in which case the balance not so required, if any, shall be distributed3and paid to the chief fiscal officer of the city of New York to be paid4into the treasury of the city to the credit of the general fund or paid5by the commissioner of taxation and finance to such other account or6fund as may be designated in writing by such chief fiscal officer at7least ten business days prior to such last day and on each such day, the8commissioner of taxation and finance shall certify to the comptroller9the amount deducted for administering, collecting and distributing such10tax during such quarterly period and shall pay such amount into the11general fund of the state treasury to the credit of the state purposes12fund therein. In no event shall any amount (other than the amount to be13deducted for administering, collecting and distributing such tax) be14distributed or paid from the stock transfer tax fund to any person other15than the municipal assistance corporation for the city of New York16unless and until the aggregate of all payments certified to the comp-17troller as required by such corporation in order to comply with its18agreements with the holders of its notes and bonds and to carry out its19corporate purposes, including the maintenance of the capital reserve20fund, which remain unappropriated or unpaid to such corporation shall21have been appropriated to such corporation and shall have been paid in22full provided, however, that no person, including such corporation or23the holders of its notes or bonds shall have any lien on such tax and24such agreements shall be executory only to the extent of the balances25available to the state in such fund. If the balances in such fund are26not required by such corporation pursuant to the provisions of this27subdivision, on each such last business day of September, December,28March and June, the commissioner of taxation and finance shall certify29to the comptroller the amount deducted for administering and making30distributions in accordance with the provisions of section two hundred31eighty-a of the tax law from the stock transfer incentive fund during32such quarterly period and he shall pay such amount into the general fund33of the state treasury to the credit of the state purposes fund therein.34To the extent such moneys are not required by such corporation, as35provided in subdivision seven of section ninety-two-d of this chapter,36no amount thereof (other than such amount to be deducted for administer-37ing, collecting and distributing such tax and such costs in administer-38ing and making distributions in accordance with the provisions of39section two hundred eighty-a of the tax law from the stock transfer40incentive fund) shall be distributed or paid from the stock transfer tax41fund other than to such stock transfer incentive fund in the custody of42the commissioner of taxation and finance unless and until the aggregate43of all payments certified to the comptroller by such commissioner pursu-44ant to the provisions of such incentive fund as necessary to provide45payments on account of rebates authorized pursuant to section two46hundred eighty-a of the tax law which remain unappropriated or unpaid to47such fund shall have been appropriated to such fund and shall have been48paid in full provided, however, that no person, including any taxpayer49under article twelve of the tax law or any member or dealer referred to50in subdivisions two-a and six of section two hundred eighty-a of such51law, shall have any lien on this fund or the stock transfer incentive52fund.535. In no fiscal year shall the total amount paid from the fund exceed54the total collections during such fiscal year from the stock transfer55tax pursuant to the provisions of article twelve of the tax law and as56deposited to the credit of the stock transfer tax fund.A. 3353--A 5 16.] All payments from the stock transfer tax fund shall be made on the 2 audit and warrant of the comptroller on vouchers approved by the commis- 3 sioner of taxation and finance. 4 [7. When all the notes and bonds of the municipal assistance corpo-5ration for the city of New York have been fully paid and discharged,6together with interest thereon and interest on unpaid installments of7interest, and the chairman of the corporation makes the final certif-8ication required by subdivision seven of section ninety-two-d of this9article, the comptroller must notify the commissioner of taxation and10finance that all remaining funds held in the stock transfer tax fund11must be released to the stock transfer incentive fund. From that time12forward, all funds previously deposited in the stock transfer tax fund13pursuant to subdivision two of this section will be deposited directly14into the stock transfer incentive fund pursuant to all the rules, regu-15lations or instructions that the commissioner may prescribe, after16deducting the amount the commissioner determines to be necessary for17reasonable costs of the department in administering, collecting and18distributing the tax imposed by article twelve of the tax law. Notwith-19standing any other provisions of this article, to the extent those20moneys are not required by the stock transfer incentive fund for the21purpose of administering and making distributions in accordance with the22provisions of section two hundred eighty-a of the tax law, as certified23by the commissioner of taxation and finance, the balance will be appro-24priated to the city of New York for the support of local government.] 25 § 4. Paragraph (c) of subdivision 1 of section 93-b of the state 26 finance law, as added by section 1 of part H of chapter 60 of the laws 27 of 2015, is amended to read as follows: 28 (c) Sources of funds. The sources of funds shall consist of all moneys 29 collected therefor, or moneys credited, appropriated or transferred 30 thereto from any other fund or source pursuant to law or any other 31 moneys made available for the purposes of the fund, including but not 32 limited to funds transferred from the stock transfer tax fund pursuant 33 to subdivision three of section ninety-two-b of this article and funds 34 transferred from the stock transfer incentive fund established by 35 section ninety-two-i of this article and repealed by a chapter of the 36 laws of two thousand twenty-one, which amended this paragraph. Any 37 interest received by the comptroller on moneys on deposit shall be 38 retained and become part of the fund, unless otherwise directed by law. 39 § 5. Subdivision (c) of section 11-503 of the administrative code of 40 the city of New York is REPEALED. 41 § 6. Subdivision 12 of section 11-604 of the administrative code of 42 the city of New York is REPEALED. 43 § 7. All monies accumulated in the stock transfer incentive fund 44 established pursuant to section 92-i of the state finance law on the 45 effective date of this act shall be transferred to the dedicated infras- 46 tructure investment fund as established by section 93-b of the state 47 finance law for the purposes set forth in such section. 48 § 8. The environmental conservation law is amended by adding a new 49 section 3-0323 to read as follows: 50 § 3-0323. Safe water and infrastructure action program. 51 1. Notwithstanding any other provisions of this chapter or any other 52 law and subject to an appropriation made therefor and in accordance with 53 the provisions of this section and with the rules and regulations 54 promulgated by the commissioner in connection therewith, on and after 55 the first day of April, two thousand twenty-two, a consolidated local 56 infrastructure program is hereby established for the purpose of makingA. 3353--A 6 1 payments toward the replacement and rehabilitation of existing local 2 municipally-owned and funded drinking water, storm water and sanitary 3 sewer systems. For purposes of this section, such program shall apply to 4 any county, city, town or village drinking water system, storm water 5 system or sanitary sewer system within the state that is not under the 6 maintenance and/or operational jurisdiction of the state nor any private 7 entity. The commissioner, in conjunction with the environmental facili- 8 ties corporation, shall promulgate all necessary rules and regulations 9 to carry out the program so that an equitable distribution of aid shall 10 be made for the general operation and/or general maintenance of any 11 existing county, city, town and village drinking water system, storm 12 water system or sanitary sewer system. 13 2. On or before the twenty-fifth day of April, June, September and 14 November of each state fiscal year commencing with the state fiscal year 15 beginning on April first, two thousand twenty-three, there shall be 16 distributed and paid to counties, cities, towns and villages an amount 17 equal to the moneys appropriated for the purposes of this section 18 divided by the number of payment dates in that state fiscal year. Such 19 amounts shall be distributed and paid pursuant to subdivision three of 20 this section. 21 3. Amounts shall be distributed for local drinking water, storm water 22 and sanitary sewer systems based upon the total length and width of all 23 pipelines and mains owned and operated by the municipality. 24 4. Monies made available may be used to match other state and federal 25 funds made available for such projects. The funds may also be used to 26 support special improvement districts created to provide drinking water, 27 waste water and storm water services under articles twelve, twelve-A, 28 twelve-C and thirteen of the town law. The remainder of the apportion- 29 ment may be used for any existing drinking water, storm water or sewer 30 system purchases, including but not limited to, the acquisition of mate- 31 rials for the replacement or rehabilitation. 32 5. For any city, town, or village which proposes infrastructure 33 consolidation under this section or merges with another municipality, 34 the funds appropriated under this section may fund costs associated with 35 such consolidation. 36 6. For each fiscal year, starting in two thousand twenty-three, funds 37 are to be made available to the local infrastructure assistance account 38 of the general fund, and distributed from that account, in an amount 39 that is at least equal to those appropriated and made available in the 40 Consolidated Local Street and Highway Improvement Program (CHIPS). 41 § 9. Subdivision 3 of section 270 of the tax law, as amended by chap- 42 ter 301 of the laws of 1967, is amended and two new subdivisions 3-a and 43 9 are added to read as follows: 44 3. It shall be the duty of the person or persons [making or effectu-45ating the sale or transfer, including the person or persons] to whom the 46 sale or transfer is made, to pay the tax provided by this article, 47 unless the parties to the sale or transfer agree to otherwise allocate 48 the cost of such tax among themselves; provided, however, that this 49 subdivision shall not apply to any sale or transfer wherein the vendor 50 or transferor is a governmental entity or international organization 51 which is not subject to the tax. 52 3-a. No purchaser of a stock or other certificate in a transaction 53 covered under this article shall have legal title or ownership of such 54 stock or certificate unless such purchaser has proof of purchase demon- 55 strating that such tax has been paid. Such proof of purchase shall 56 consist of either: (a) a receipt for the transaction showing that suchA. 3353--A 7 1 tax has been paid, the amount of such tax paid, and a representation 2 that such amount constitutes payment in full; or (b) a stamp required 3 pursuant to subdivision four of this section. 4 9. Notwithstanding any other provision to the contrary, a transaction 5 referred to in subdivision one of this section is subject to tax if any 6 activity in furtherance of the transaction occurs within the state or if 7 a party involved in the transaction satisfies a nexus with New York 8 state which shall be defined as broadly as is permitted under the United 9 States Constitution. 10 § 10. This act shall take effect immediately.