Bill Text: NY S01297 | 2023-2024 | General Assembly | Introduced
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 17-0)
Status: (Introduced) 2024-01-03 - REFERRED TO FINANCE [S01297 Detail]
Download: New_York-2023-S01297-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1297 2023-2024 Regular Sessions IN SENATE January 11, 2023 ___________ Introduced by Sens. SANDERS, BRISPORT, COMRIE, GIANARIS, HOYLMAN-SIGAL, JACKSON, MAY, MYRIE, PARKER, RAMOS, RIVERA, SALAZAR, SEPULVEDA, SERRA- NO, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Finance 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 Section 280-a of the tax law is REPEALED. 2 § 2. Section 92-i of the state finance law is REPEALED. 3 § 3.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- 9 bered by section 1 of chapter 3 of the laws of 1966, is amended to read 10 as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04823-01-3S. 1297 2 1 § 92-b. Stock transfer tax fund. 1. There is hereby established in the 2 custody of the commissioner of taxation and finance a special fund, to 3 be known as the stock transfer tax fund. 4 2. Such fund shall consist of the revenues derived from the stock 5 transfer tax imposed by article twelve of the tax law and all other 6 moneys credited or transferred thereto from any other fund or source 7 pursuant to law. 8 3. The moneys received from such tax and other sources in such fund[,9after deducting the amount the commissioner of taxation and finance10shall determine to be necessary for] shall be used to cover the reason- 11 able costs of the state tax commission in administering, collecting and 12 distributing [such] the stock transfer tax, commencing with the fiscal 13 year ending March thirty-first, [nineteen hundred seventy-seven] two 14 thousand twenty-five, [shall be appropriated to (i) the municipal15assistance corporation for the city of New York created pursuant to16title three of article ten of the public authorities law in order to17enable such corporation to fulfill the terms of any agreements made with18the holders of its notes and bonds and to carry out its corporate19purposes including the maintenance of the capital reserve fund and (ii)20to the extent such moneys are not required by such corporation as21provided in subdivision seven of section ninety-two-d of this chapter22and, after deducting the amount such commissioner shall determine to be23necessary for reasonable costs of the state tax commission in adminis-24tering and making distributions in accordance with the provisions of25section two hundred eighty-a of the tax law from the stock transfer26incentive fund, to the stock transfer incentive fund created pursuant to27section ninety-two-i of this chapter to enable rebates to be made from28such fund under the provisions of section two hundred eighty-a of the29tax law and (iii) to the extent such moneys are not required by such30fund, as certified by the commissioner of taxation and finance, the31balance shall be appropriated to the city of New York, for the support32of local government.] and the remainder shall be deposited into the 33 state general fund. Commencing with the fiscal year ending March thir- 34 ty-first, two thousand twenty-five, such remainder shall be deposited 35 into the following funds: 36 (i) twenty-five percent shall be directed to the metropolitan trans- 37 portation authority financial assistance fund established pursuant to 38 section ninety-two-ff of this article, of which fifty percent shall be 39 used for the purpose of operations and fifty percent shall be used for 40 the purpose of capital projects; 41 (ii) ten percent shall be directed to the division of housing and 42 community renewal for the purpose of capital projects and other improve- 43 ments to address issues relating to conditions of governance and habita- 44 bility, including but not limited to, heating, mold, or lead, and other 45 such conditions affecting the health and safety of tenants at housing 46 developments owned or operated by the New York city housing authority; 47 (iii) fifteen percent shall be directed to the highway and bridge 48 capital account in the dedicated highway and bridge trust fund estab- 49 lished pursuant to section eighty-nine-b of this article; 50 (iv) nine percent shall be directed to the dedicated highway and 51 bridge trust fund established pursuant to section eighty-nine-b of this 52 article, to be directed towards the infrastructure, maintenance and 53 development of rail lines for AMTRAK in the northeast corridor; 54 (v) five percent shall be directed to the local infrastructure account 55 of the general fund established pursuant to section seventy-two of thisS. 1297 3 1 article to be directed to the Consolidated Local Street and Highway 2 Improvement Program (CHIPS); 3 (vi) five percent shall be directed to the local infrastructure 4 account of the general fund to be dedicated to the safe water and 5 infrastructure action program as established by section 3-0323 of the 6 environmental conservation law; 7 (vii) five percent shall be directed to the municipal assistance state 8 aid fund established pursuant to section ninety-two-e of this article; 9 (viii) four percent shall be directed to the dedicated mass transpor- 10 tation trust fund to the credit of the non-MTA account for payment to 11 downstate transit systems other than those transit systems operated by 12 the metropolitan transportation authority; 13 (ix) four percent shall be directed to the dedicated mass transporta- 14 tion trust fund to the credit of the non-MTA account for payment to 15 upstate transit systems; 16 (x) thirteen percent shall be directed to the energy research develop- 17 ment operating fund pursuant to the provisions of section eighteen 18 hundred fifty-nine of the public authorities law, to be directed to the 19 clean energy fund and shall be divided equally among the four investment 20 portfolios that make up such fund; 21 (xi) two and one-half percent shall be directed to the city university 22 of New York, of which fifty percent shall be used for the purpose of 23 capital improvements and infrastructure projects and fifty percent shall 24 be used for the purpose of supporting academic programs at city of New 25 York institutions; and 26 (xii) two and one-half percent shall be directed to the state univer- 27 sity of New York institutions, of which fifty percent shall be used for 28 the purposes of supporting and expanding services and care at state 29 university of New York hospitals, state university of New York academic 30 medical centers and fifty percent shall be used for the purpose of 31 supporting academic programs at state university of New York insti- 32 tutions. 33 4. [After the deduction of such costs of the state tax commission in34administering, collecting and distributing such tax, the balances in the35stock transfer tax fund so appropriated shall be distributed and paid on36the last business day of September, December, March and June into the37special account established for the municipal assistance corporation for38the city of New York in the municipal assistance tax fund established39pursuant to subdivision one of section ninety-two-d of this chapter,40unless and to the extent the balances in such fund on each such payment41day are not required by such corporation as provided in said subdivision42seven of said section ninety-two-d in which case the balance not so43required, if any, after the deduction of such costs of the state tax44commission in administering and making distributions in accordance with45the provisions of section two hundred eighty-a of the tax law from the46stock transfer incentive fund shall be distributed and paid to the stock47transfer incentive fund in the custody of the commissioner of taxation48and finance established pursuant to section ninety-two-i of this chapter49and unless and to the extent that the balances in the stock transfer tax50fund on each such payment day are not required by the stock transfer51incentive fund as provided in such section ninety-two-i of this chapter52in which case the balance not so required, if any, shall be distributed53and paid to the chief fiscal officer of the city of New York to be paid54into the treasury of the city to the credit of the general fund or paid55by the commissioner of taxation and finance to such other account or56fund as may be designated in writing by such chief fiscal officer atS. 1297 4 1least ten business days prior to such last day and on each such day, the2commissioner of taxation and finance shall certify to the comptroller3the amount deducted for administering, collecting and distributing such4tax during such quarterly period and shall pay such amount into the5general fund of the state treasury to the credit of the state purposes6fund therein. In no event shall any amount (other than the amount to be7deducted for administering, collecting and distributing such tax) be8distributed or paid from the stock transfer tax fund to any person other9than the municipal assistance corporation for the city of New York10unless and until the aggregate of all payments certified to the comp-11troller as required by such corporation in order to comply with its12agreements with the holders of its notes and bonds and to carry out its13corporate purposes, including the maintenance of the capital reserve14fund, which remain unappropriated or unpaid to such corporation shall15have been appropriated to such corporation and shall have been paid in16full provided, however, that no person, including such corporation or17the holders of its notes or bonds shall have any lien on such tax and18such agreements shall be executory only to the extent of the balances19available to the state in such fund. If the balances in such fund are20not required by such corporation pursuant to the provisions of this21subdivision, on each such last business day of September, December,22March and June, the commissioner of taxation and finance shall certify23to the comptroller the amount deducted for administering and making24distributions in accordance with the provisions of section two hundred25eighty-a of the tax law from the stock transfer incentive fund during26such quarterly period and he shall pay such amount into the general fund27of the state treasury to the credit of the state purposes fund therein.28To the extent such moneys are not required by such corporation, as29provided in subdivision seven of section ninety-two-d of this chapter,30no amount thereof (other than such amount to be deducted for administer-31ing, collecting and distributing such tax and such costs in administer-32ing and making distributions in accordance with the provisions of33section two hundred eighty-a of the tax law from the stock transfer34incentive fund) shall be distributed or paid from the stock transfer tax35fund other than to such stock transfer incentive fund in the custody of36the commissioner of taxation and finance unless and until the aggregate37of all payments certified to the comptroller by such commissioner pursu-38ant to the provisions of such incentive fund as necessary to provide39payments on account of rebates authorized pursuant to section two40hundred eighty-a of the tax law which remain unappropriated or unpaid to41such fund shall have been appropriated to such fund and shall have been42paid in full provided, however, that no person, including any taxpayer43under article twelve of the tax law or any member or dealer referred to44in subdivisions two-a and six of section two hundred eighty-a of such45law, shall have any lien on this fund or the stock transfer incentive46fund.475. In no fiscal year shall the total amount paid from the fund exceed48the total collections during such fiscal year from the stock transfer49tax pursuant to the provisions of article twelve of the tax law and as50deposited to the credit of the stock transfer tax fund.516.] All payments from the stock transfer tax fund shall be made on the 52 audit and warrant of the comptroller on vouchers approved by the commis- 53 sioner of taxation and finance. 54 [7. When all the notes and bonds of the municipal assistance corpo-55ration for the city of New York have been fully paid and discharged,56together with interest thereon and interest on unpaid installments ofS. 1297 5 1interest, and the chairman of the corporation makes the final certif-2ication required by subdivision seven of section ninety-two-d of this3article, the comptroller must notify the commissioner of taxation and4finance that all remaining funds held in the stock transfer tax fund5must be released to the stock transfer incentive fund. From that time6forward, all funds previously deposited in the stock transfer tax fund7pursuant to subdivision two of this section will be deposited directly8into the stock transfer incentive fund pursuant to all the rules, regu-9lations or instructions that the commissioner may prescribe, after10deducting the amount the commissioner determines to be necessary for11reasonable costs of the department in administering, collecting and12distributing the tax imposed by article twelve of the tax law. Notwith-13standing any other provisions of this article, to the extent those14moneys are not required by the stock transfer incentive fund for the15purpose of administering and making distributions in accordance with the16provisions of section two hundred eighty-a of the tax law, as certified17by the commissioner of taxation and finance, the balance will be appro-18priated to the city of New York for the support of local government.] 19 § 4. Paragraph (c) of subdivision 1 of section 93-b of the state 20 finance law, as added by section 1 of part H of chapter 60 of the laws 21 of 2015, is amended to read as follows: 22 (c) Sources of funds. The sources of funds shall consist of all moneys 23 collected therefor, or moneys credited, appropriated or transferred 24 thereto from any other fund or source pursuant to law or any other 25 moneys made available for the purposes of the fund, including but not 26 limited to funds transferred from the stock transfer tax fund pursuant 27 to subdivision three of section ninety-two-b of this article and funds 28 transferred from the stock transfer incentive fund established by 29 section ninety-two-i of this article and repealed by a chapter of the 30 laws of two thousand twenty-three, which amended this paragraph. Any 31 interest received by the comptroller on moneys on deposit shall be 32 retained and become part of the fund, unless otherwise directed by law. 33 § 5. Subdivision (c) of section 11-503 of the administrative code of 34 the city of New York is REPEALED. 35 § 6. Subdivision 12 of section 11-604 of the administrative code of 36 the city of New York is REPEALED. 37 § 7. All monies accumulated in the stock transfer incentive fund 38 established pursuant to section 92-i of the state finance law on the 39 effective date of this act shall be transferred to the dedicated infras- 40 tructure investment fund as established by section 93-b of the state 41 finance law for the purposes set forth in such section. 42 § 8. The environmental conservation law is amended by adding a new 43 section 3-0323 to read as follows: 44 § 3-0323. Safe water and infrastructure action program. 45 1. Notwithstanding any other provisions of this chapter or any other 46 law and subject to an appropriation made therefor and in accordance with 47 the provisions of this section and with the rules and regulations 48 promulgated by the commissioner in connection therewith, on and after 49 the first day of April, two thousand twenty-four, a consolidated local 50 infrastructure program is hereby established for the purpose of making 51 payments toward the replacement and rehabilitation of existing local 52 municipally-owned and funded drinking water, storm water and sanitary 53 sewer systems. For purposes of this section, such program shall apply to 54 any county, city, town or village drinking water system, storm water 55 system or sanitary sewer system within the state that is not under the 56 maintenance and/or operational jurisdiction of the state nor any privateS. 1297 6 1 entity. The commissioner, in conjunction with the environmental facili- 2 ties corporation, shall promulgate all necessary rules and regulations 3 to carry out the program so that an equitable distribution of aid shall 4 be made for the general operation and/or general maintenance of any 5 existing county, city, town and village drinking water system, storm 6 water system or sanitary sewer system. 7 2. On or before the twenty-fifth day of April, June, September and 8 November of each state fiscal year commencing with the state fiscal year 9 beginning on April first, two thousand twenty-five, there shall be 10 distributed and paid to counties, cities, towns and villages an amount 11 equal to the moneys appropriated for the purposes of this section 12 divided by the number of payment dates in that state fiscal year. Such 13 amounts shall be distributed and paid pursuant to subdivision three of 14 this section. 15 3. Amounts shall be distributed for local drinking water, storm water 16 and sanitary sewer systems based upon the total length and width of all 17 pipelines and mains owned and operated by the municipality. 18 4. Monies made available may be used to match other state and federal 19 funds made available for such projects. The funds may also be used to 20 support special improvement districts created to provide drinking water, 21 waste water and storm water services under articles twelve, twelve-A, 22 twelve-C and thirteen of the town law. The remainder of the apportion- 23 ment may be used for any existing drinking water, storm water or sewer 24 system purchases, including but not limited to, the acquisition of mate- 25 rials for the replacement or rehabilitation. 26 5. For any city, town, or village which proposes infrastructure 27 consolidation under this section or merges with another municipality, 28 the funds appropriated under this section may fund costs associated with 29 such consolidation. 30 6. For each fiscal year, starting in two thousand twenty-five, funds 31 are to be made available to the local infrastructure assistance account 32 of the general fund, and distributed from that account, in an amount 33 that is at least equal to those appropriated and made available in the 34 Consolidated Local Street and Highway Improvement Program (CHIPS). 35 § 9. Subdivision 3 of section 270 of the tax law, as amended by chap- 36 ter 301 of the laws of 1967, is amended and two new subdivisions 3-a and 37 9 are added to read as follows: 38 3. It shall be the duty of the person or persons [making or effectu-39ating the sale or transfer, including the person or persons] to whom the 40 sale or transfer is made, to pay the tax provided by this article, 41 unless the parties to the sale or transfer agree to otherwise allocate 42 the cost of such tax among themselves; provided, however, that this 43 subdivision shall not apply to any sale or transfer wherein the vendor 44 or transferor is a governmental entity or international organization 45 which is not subject to the tax. 46 3-a. No purchaser of a stock or other certificate in a transaction 47 covered under this article shall have legal title or ownership of such 48 stock or certificate unless such purchaser has proof of purchase demon- 49 strating that such tax has been paid. Such proof of purchase shall 50 consist of either: (a) a receipt for the transaction showing that such 51 tax has been paid, the amount of such tax paid, and a representation 52 that such amount constitutes payment in full; or (b) a stamp required 53 pursuant to subdivision four of this section. 54 9. Notwithstanding any other provision to the contrary, a transaction 55 referred to in subdivision one of this section is subject to tax if any 56 activity in furtherance of the transaction occurs within the state or ifS. 1297 7 1 a party involved in the transaction satisfies a nexus with New York 2 state which shall be defined as broadly as is permitted under the United 3 States Constitution. 4 § 10. This act shall take effect immediately.