Bill Text: NY S00270 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to rebates on stock transfer tax paid; decreases amount to sixty percent; dedicates funds of the stock transfer tax fund to the dedicated infrastructure investment fund.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO BUDGET AND REVENUE [S00270 Detail]

Download: New_York-2021-S00270-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           270

                               2021-2022 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 6, 2021
                                       ___________

        Introduced by Sens. MYRIE, BIAGGI, COMRIE, JACKSON, RIVERA -- read twice
          and ordered printed, and when printed to be committed to the Committee
          on Budget and Revenue

        AN  ACT  to  amend the tax law, in relation to rebates on stock transfer
          tax paid; to amend the state finance law, in relation to the funds  of
          the  stock  transfer tax fund and the dedicated infrastructure invest-
          ment fund

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

     1    Section  1.  Subdivision 1 of section 280-a of the tax law, as amended
     2  by chapter 578 of the laws of 1981, is amended to read as follows:
     3    1. Except  as  otherwise  provided  in  subdivision  fifteen  of  this
     4  section,  where  a tax shall have been paid under this article a portion
     5  of the amount paid shall be allowed as a rebate and such  portion  shall
     6  be paid to the taxpayer but only to the extent that moneys are available
     7  for  the  payment  of  such rebates in the stock transfer incentive fund
     8  established pursuant to section ninety-two-i of the state  finance  law.
     9  The portion of the amount of tax paid which is to be allowed as a rebate
    10  shall  be  thirty  percent  of the tax incurred and paid on transactions
    11  subject to the stock transfer tax occurring on and after October  first,
    12  nineteen  hundred  seventy-nine  and  on  or before September thirtieth,
    13  nineteen hundred eighty and sixty percent of the tax incurred  and  paid
    14  on  such  transactions  occurring  on  and after October first, nineteen
    15  hundred eighty and on or before September  thirtieth,  nineteen  hundred
    16  eighty-one  and  all  of  the  amount  of tax incurred and paid shall be
    17  allowed as a rebate on transactions subject to the  stock  transfer  tax
    18  occurring on and after October first, nineteen hundred eighty-one and on
    19  or before September thirtieth, two thousand twenty-two and sixty percent
    20  of  the  amount of tax incurred and paid shall be allowed as a rebate on

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02363-01-1
        S. 270                              2

     1  transactions subject to the stock transfer tax occurring  on  and  after
     2  October first, two thousand twenty-two.
     3    §  2. Section 92-b of the state finance law, as added by chapter 91 of
     4  the laws of 1965 and as renumbered and subdivision 5 as added by chapter
     5  3 of the laws of 1966, subdivision 3 as amended by chapter  878  of  the
     6  laws  of  1977,  subdivision  4 as amended by chapter 724 of the laws of
     7  1979 and subdivision 7 as added by section 10 of part SS1 of chapter  57
     8  of the laws of 2008, is amended to read as follows:
     9    § 92-b. Stock transfer tax fund. 1. There is hereby established in the
    10  custody  of  the commissioner of taxation and finance a special fund, to
    11  be known as the stock transfer tax fund.
    12    2. Such fund shall consist of the  revenues  derived  from  the  stock
    13  transfer  tax  imposed  by  article  twelve of the tax law and all other
    14  moneys credited or transferred thereto from any  other  fund  or  source
    15  pursuant to law.
    16    3.  The moneys received from such tax and other sources in such fund[,
    17  after deducting the amount the  commissioner  of  taxation  and  finance
    18  shall  determine to be necessary for] shall be used to cover the reason-
    19  able costs of the state tax commission in administering, collecting  and
    20  distributing  [such]  the stock transfer tax, commencing with the fiscal
    21  year ending March thirty-first,  [nineteen  hundred  seventy-seven]  two
    22  thousand twenty-two, [shall be appropriated to (i) the municipal assist-
    23  ance  corporation  for  the  city  of New York created pursuant to title
    24  three of article ten of the public authorities law in  order  to  enable
    25  such  corporation  to  fulfill the terms of any agreements made with the
    26  holders of its notes and bonds and to carry out its  corporate  purposes
    27  including  the  maintenance  of the capital reserve fund and (ii) to the
    28  extent such moneys are not required by such corporation as  provided  in
    29  subdivision  seven  of  section  ninety-two-d of this chapter and, after
    30  deducting the amount such commissioner shall determine to  be  necessary
    31  for  reasonable  costs  of the state tax commission in administering and
    32  making distributions in accordance with the provisions  of  section  two
    33  hundred  eighty-a of the tax law from the stock transfer incentive fund,
    34  to the stock transfer incentive fund created pursuant to  section  nine-
    35  ty-two-i  of  this  chapter  to enable rebates to be made from such fund
    36  under the provisions of section two hundred eighty-a of the tax law  and
    37  (iii) to the extent such moneys are not required by such fund, as certi-
    38  fied  by  the commissioner of taxation and finance, the balance shall be
    39  appropriated to the city of New York, for the support of  local  govern-
    40  ment]  and  the  remainder  shall  be deposited into the account for the
    41  dedicated infrastructure investment fund as established by section nine-
    42  ty-three-b of this article.
    43    4. [After the deduction of such costs of the state tax  commission  in
    44  administering, collecting and distributing such tax, the balances in the
    45  stock transfer tax fund so appropriated shall be distributed and paid on
    46  the  last  business  day of September, December, March and June into the
    47  special account established for the municipal assistance corporation for
    48  the city of New York in the municipal assistance  tax  fund  established
    49  pursuant  to  subdivision  one  of section ninety-two-d of this chapter,
    50  unless and to the extent the balances in such fund on each such  payment
    51  day are not required by such corporation as provided in said subdivision
    52  seven  of  said  section  ninety-two-d  in which case the balance not so
    53  required, if any, after the deduction of such costs  of  the  state  tax
    54  commission  in administering and making distributions in accordance with
    55  the provisions of section two hundred eighty-a of the tax law  from  the
    56  stock transfer incentive fund shall be distributed and paid to the stock
        S. 270                              3

     1  transfer  incentive  fund in the custody of the commissioner of taxation
     2  and finance established pursuant to section ninety-two-i of this chapter
     3  and unless and to the extent that the balances in the stock transfer tax
     4  fund  on  each  such  payment day are not required by the stock transfer
     5  incentive fund as provided in such section ninety-two-i of this  chapter
     6  in  which case the balance not so required, if any, shall be distributed
     7  and paid to the chief fiscal officer of the city of New York to be  paid
     8  into  the treasury of the city to the credit of the general fund or paid
     9  by the commissioner of taxation and finance to  such  other  account  or
    10  fund  as  may  be  designated in writing by such chief fiscal officer at
    11  least ten business days prior to such last day and on each such day, the
    12  commissioner of taxation and finance shall certify  to  the  comptroller
    13  the  amount deducted for administering, collecting and distributing such
    14  tax during such quarterly period and shall  pay  such  amount  into  the
    15  general  fund  of the state treasury to the credit of the state purposes
    16  fund therein. In no event shall any amount (other than the amount to  be
    17  deducted  for  administering,  collecting  and distributing such tax) be
    18  distributed or paid from the stock transfer tax fund to any person other
    19  than the municipal assistance corporation  for  the  city  of  New  York
    20  unless  and  until  the aggregate of all payments certified to the comp-
    21  troller as required by such corporation in  order  to  comply  with  its
    22  agreements  with the holders of its notes and bonds and to carry out its
    23  corporate purposes, including the maintenance  of  the  capital  reserve
    24  fund,  which  remain  unappropriated or unpaid to such corporation shall
    25  have been appropriated to such corporation and shall have been  paid  in
    26  full  provided,  however,  that no person, including such corporation or
    27  the holders of its notes or bonds shall have any lien on  such  tax  and
    28  such  agreements  shall  be executory only to the extent of the balances
    29  available to the state in such fund. If the balances in  such  fund  are
    30  not  required  by  such  corporation  pursuant to the provisions of this
    31  subdivision, on each such last  business  day  of  September,  December,
    32  March  and  June, the commissioner of taxation and finance shall certify
    33  to the comptroller the amount  deducted  for  administering  and  making
    34  distributions  in  accordance with the provisions of section two hundred
    35  eighty-a of the tax law from the stock transfer  incentive  fund  during
    36  such quarterly period and he shall pay such amount into the general fund
    37  of  the state treasury to the credit of the state purposes fund therein.
    38  To the extent such moneys are  not  required  by  such  corporation,  as
    39  provided  in  subdivision seven of section ninety-two-d of this chapter,
    40  no amount thereof (other than such amount to be deducted for administer-
    41  ing, collecting and distributing such tax and such costs in  administer-
    42  ing  and  making  distributions  in  accordance  with  the provisions of
    43  section two hundred eighty-a of the tax  law  from  the  stock  transfer
    44  incentive fund) shall be distributed or paid from the stock transfer tax
    45  fund  other than to such stock transfer incentive fund in the custody of
    46  the commissioner of taxation and finance unless and until the  aggregate
    47  of all payments certified to the comptroller by such commissioner pursu-
    48  ant  to  the  provisions  of such incentive fund as necessary to provide
    49  payments on account  of  rebates  authorized  pursuant  to  section  two
    50  hundred eighty-a of the tax law which remain unappropriated or unpaid to
    51  such  fund shall have been appropriated to such fund and shall have been
    52  paid in full provided, however, that no person, including  any  taxpayer
    53  under  article twelve of the tax law or any member or dealer referred to
    54  in subdivisions two-a and six of section two hundred  eighty-a  of  such
    55  law,  shall  have  any lien on this fund or the stock transfer incentive
    56  fund.
        S. 270                              4

     1    5. In no fiscal year shall the total amount paid from the fund  exceed
     2  the  total  collections  during such fiscal year from the stock transfer
     3  tax pursuant to the provisions of article twelve of the tax law  and  as
     4  deposited to the credit of the stock transfer tax fund.
     5    6.] All payments from the stock transfer tax fund shall be made on the
     6  audit and warrant of the comptroller on vouchers approved by the commis-
     7  sioner of taxation and finance.
     8    [7.  When  all  the notes and bonds of the municipal assistance corpo-
     9  ration for the city of New York have been  fully  paid  and  discharged,
    10  together  with  interest  thereon and interest on unpaid installments of
    11  interest, and the chairman of the corporation makes  the  final  certif-
    12  ication  required  by  subdivision seven of section ninety-two-d of this
    13  article, the comptroller must notify the commissioner  of  taxation  and
    14  finance  that  all  remaining  funds held in the stock transfer tax fund
    15  must be released to the stock transfer incentive fund.  From  that  time
    16  forward,  all  funds previously deposited in the stock transfer tax fund
    17  pursuant to subdivision two of this section will be  deposited  directly
    18  into  the stock transfer incentive fund pursuant to all the rules, regu-
    19  lations or instructions  that  the  commissioner  may  prescribe,  after
    20  deducting  the  amount  the  commissioner determines to be necessary for
    21  reasonable costs of the  department  in  administering,  collecting  and
    22  distributing  the tax imposed by article twelve of the tax law. Notwith-
    23  standing any other provisions of  this  article,  to  the  extent  those
    24  moneys  are  not  required  by the stock transfer incentive fund for the
    25  purpose of administering and making distributions in accordance with the
    26  provisions of section two hundred eighty-a of the tax law, as  certified
    27  by  the commissioner of taxation and finance, the balance will be appro-
    28  priated to the city of New York for the support of local government.]
    29    § 3. Paragraph (c) of subdivision 1  of  section  93-b  of  the  state
    30  finance  law,  as added by section 1 of part H of chapter 60 of the laws
    31  of 2015, is amended to read as follows:
    32    (c) Sources of funds. The sources of funds shall consist of all moneys
    33  collected therefor, or  moneys  credited,  appropriated  or  transferred
    34  thereto  from  any  other  fund  or  source pursuant to law or any other
    35  moneys made available for the purposes of the fund,  including  but  not
    36  limited  to  funds transferred from the stock transfer tax fund pursuant
    37  to subdivision three of section ninety-two-b of this article. Any inter-
    38  est received by the comptroller on moneys on deposit shall  be  retained
    39  and become part of the fund, unless otherwise directed by law.
    40    § 4. This act shall take effect immediately.