Bill Text: NY A04877 | 2023-2024 | General Assembly | Introduced

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Bill Title: Relates to imposing a tax of one-half of one percent on all corporate stock buybacks of issued shares.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A04877 Detail]

Download: New_York-2023-A04877-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4877

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 24, 2023
                                       ___________

        Introduced  by  M.  of  A.  KELLES,  GLICK, SIMON, FAHY, EPSTEIN, REYES,
          SEAWRIGHT, DARLING, L. ROSENTHAL, CARROLL, DICKENS --  read  once  and
          referred to the Committee on Ways and Means

        AN  ACT  to amend the tax law, in relation to imposing a specific tax on
          all corporate stock buybacks of issued shares

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

     1    Section  1. Subdivisions 1 and 2 of section 270 of the tax law, subdi-
     2  vision 1 as amended by chapter 996 of the laws of 1963 and subdivision 2
     3  as amended by chapter 827 of the laws of 1968, are  amended  and  a  new
     4  subdivision 2-a is added to read as follows:
     5    1.  There  is  hereby  imposed  and  shall  immediately  accrue and be
     6  collected a tax, as herein provided, on  all  sales,  or  agreements  to
     7  sell, or memoranda of sales and all deliveries or transfers of shares or
     8  certificates  of  stock,  or certificates of rights to stock, or certif-
     9  icates of interest in property  or  accumulations,  or  certificates  of
    10  deposit  representing  certificates  taxable  under this article, in any
    11  domestic or foreign association, company or corporation, or certificates
    12  of interest in business conducted by a trustee or trustees,  made  after
    13  the first day of June, nineteen hundred five, whether made upon or shown
    14  by the books of the association, company, corporation, or trustee, or by
    15  any  assignment  in blank, or by any delivery, or by any paper or agree-
    16  ment or memorandum or other evidence of sale or transfer, whether inter-
    17  mediate or final, and whether investing the holder with  the  beneficial
    18  interest  in or legal title to said stock, or other certificates taxable
    19  hereunder, or merely with the possession or use thereof for any purpose,
    20  or to secure the future payment of money, or the future transfer of  any
    21  such stock, or certificates.  The purchase, redemption or other reacqui-
    22  sition  of  its own shares by a corporation is subject to tax under this
    23  article [unless] regardless of whether  such  shares  are  cancelled  on
    24  reacquisition pursuant to the provisions of section five hundred fifteen

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00472-01-3
        A. 4877                             2

     1  of  the business corporation law, or [unless] whether within one year of
     2  the date of such  purchase,  redemption  or  other  reacquisition,  such
     3  shares  are  cancelled  by an appropriate amendment to the corporation's
     4  certificate  of  incorporation or by action of the board of directors of
     5  such corporation.
     6    2. Except as otherwise provided by [section two hundred  seventy-a  of
     7  this chapter] subdivision two-a of this section, the tax imposed by this
     8  section  shall be two and one-half cents for each share, except in cases
     9  where the shares or certificates are sold, in which cases the tax  shall
    10  be  at  the  rate  of one and one-quarter cents for each share where the
    11  selling price is less than five dollars  per  share;  two  and  one-half
    12  cents for each share where the selling price is five dollars or more per
    13  share  and  less  than  ten  dollars per share; three and three-quarters
    14  cents for each share where the selling price is ten dollars or more  per
    15  share  and  less  than  twenty dollars per share and five cents for each
    16  share where the selling price is twenty dollars or more per share.
    17    2-a.  Notwithstanding  the  provisions  of  subdivision  two  of  this
    18  section, the tax imposed by this section for the purchase, redemption or
    19  other reacquisition of its own shares by a corporation shall be one-half
    20  of one percent of the value paid by such corporation for such shares.
    21    § 2. This act shall take effect immediately.