Bill Text: NY S07670 | 2017-2018 | 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 1-0)

Status: (Introduced - Dead) 2018-02-06 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S07670 Detail]

Download: New_York-2017-S07670-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7670
                    IN SENATE
                                    February 6, 2018
                                       ___________
        Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
        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 nineteen and  sixty  percent
    20  of  the  amount of tax incurred and paid shall be allowed as a rebate on
    21  transactions subject to the stock transfer tax occurring  on  and  after
    22  October first, two thousand nineteen.
    23    §  2. Section 92-b of the state finance law, as added by chapter 91 of
    24  the laws of 1965 and as renumbered and subdivision 5 as added by chapter
    25  3 of the laws of 1966, subdivision 3 as amended by chapter  878  of  the
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14428-03-8
        S. 7670                             2
     1  laws  of  1977,  subdivision  4 as amended by chapter 724 of the laws of
     2  1979 and subdivision 7 as added by section 10 of part SS1 of chapter  57
     3  of the laws of 2008, is amended to read as follows:
     4    § 92-b. Stock transfer tax fund. 1. There is hereby established in the
     5  custody  of  the commissioner of taxation and finance a special fund, to
     6  be known as the stock transfer tax fund.
     7    2. Such fund shall consist of the  revenues  derived  from  the  stock
     8  transfer  tax  imposed  by  article  twelve of the tax law and all other
     9  moneys credited or transferred thereto from any  other  fund  or  source
    10  pursuant to law.
    11    3.  The moneys received from such tax and other sources in such fund[,
    12  after deducting the amount the  commissioner  of  taxation  and  finance
    13  shall  determine to be necessary for] shall be used to cover the reason-
    14  able costs of the state tax commission in administering, collecting  and
    15  distributing  [such]  the stock transfer tax, commencing with the fiscal
    16  year ending March thirty-first,  [nineteen  hundred  seventy-seven]  two
    17  thousand  nineteen,  [shall be appropriated to (i) the municipal assist-
    18  ance corporation for the city of New  York  created  pursuant  to  title
    19  three  of  article  ten of the public authorities law in order to enable
    20  such corporation to fulfill the terms of any agreements  made  with  the
    21  holders  of  its notes and bonds and to carry out its corporate purposes
    22  including the maintenance of the capital reserve fund and  (ii)  to  the
    23  extent  such  moneys are not required by such corporation as provided in
    24  subdivision seven of section ninety-two-d of  this  chapter  and,  after
    25  deducting  the  amount such commissioner shall determine to be necessary
    26  for reasonable costs of the state tax commission  in  administering  and
    27  making  distributions  in  accordance with the provisions of section two
    28  hundred eighty-a of the tax law from the stock transfer incentive  fund,
    29  to  the  stock transfer incentive fund created pursuant to section nine-
    30  ty-two-i of this chapter to enable rebates to be  made  from  such  fund
    31  under  the provisions of section two hundred eighty-a of the tax law and
    32  (iii) to the extent such moneys are not required by such fund, as certi-
    33  fied by the commissioner of taxation and finance, the balance  shall  be
    34  appropriated  to  the city of New York, for the support of local govern-
    35  ment] and the remainder shall be deposited  into  the  account  for  the
    36  dedicated infrastructure investment fund as established by section nine-
    37  ty-three-b of this article.
    38    4.  [After  the deduction of such costs of the state tax commission in
    39  administering, collecting and distributing such tax, the balances in the
    40  stock transfer tax fund so appropriated shall be distributed and paid on
    41  the last business day of September, December, March and  June  into  the
    42  special account established for the municipal assistance corporation for
    43  the  city  of  New York in the municipal assistance tax fund established
    44  pursuant to subdivision one of section  ninety-two-d  of  this  chapter,
    45  unless  and to the extent the balances in such fund on each such payment
    46  day are not required by such corporation as provided in said subdivision
    47  seven of said section ninety-two-d in which  case  the  balance  not  so
    48  required,  if  any,  after  the deduction of such costs of the state tax
    49  commission in administering and making distributions in accordance  with
    50  the  provisions  of section two hundred eighty-a of the tax law from the
    51  stock transfer incentive fund shall be distributed and paid to the stock
    52  transfer incentive fund in the custody of the commissioner  of  taxation
    53  and finance established pursuant to section ninety-two-i of this chapter
    54  and unless and to the extent that the balances in the stock transfer tax
    55  fund  on  each  such  payment day are not required by the stock transfer
    56  incentive fund as provided in such section ninety-two-i of this  chapter
        S. 7670                             3

     1  in  which case the balance not so required, if any, shall be distributed
     2  and paid to the chief fiscal officer of the city of New York to be  paid
     3  into  the treasury of the city to the credit of the general fund or paid
     4  by  the  commissioner  of  taxation and finance to such other account or
     5  fund as may be designated in writing by such  chief  fiscal  officer  at
     6  least ten business days prior to such last day and on each such day, the
     7  commissioner  of  taxation  and finance shall certify to the comptroller
     8  the amount deducted for administering, collecting and distributing  such
     9  tax  during  such  quarterly  period  and shall pay such amount into the
    10  general fund of the state treasury to the credit of the  state  purposes
    11  fund  therein. In no event shall any amount (other than the amount to be
    12  deducted for administering, collecting and  distributing  such  tax)  be
    13  distributed or paid from the stock transfer tax fund to any person other
    14  than  the  municipal  assistance  corporation  for  the city of New York
    15  unless and until the aggregate of all payments certified  to  the  comp-
    16  troller  as  required  by  such  corporation in order to comply with its
    17  agreements with the holders of its notes and bonds and to carry out  its
    18  corporate  purposes,  including  the  maintenance of the capital reserve
    19  fund, which remain unappropriated or unpaid to  such  corporation  shall
    20  have  been  appropriated to such corporation and shall have been paid in
    21  full provided, however, that no person, including  such  corporation  or
    22  the  holders  of  its notes or bonds shall have any lien on such tax and
    23  such agreements shall be executory only to the extent  of  the  balances
    24  available  to  the  state in such fund. If the balances in such fund are
    25  not required by such corporation pursuant  to  the  provisions  of  this
    26  subdivision,  on  each  such  last  business day of September, December,
    27  March and June, the commissioner of taxation and finance  shall  certify
    28  to  the  comptroller  the  amount  deducted for administering and making
    29  distributions in accordance with the provisions of section  two  hundred
    30  eighty-a  of  the  tax law from the stock transfer incentive fund during
    31  such quarterly period and he shall pay such amount into the general fund
    32  of the state treasury to the credit of the state purposes fund  therein.
    33  To  the  extent  such  moneys  are  not required by such corporation, as
    34  provided in subdivision seven of section ninety-two-d of  this  chapter,
    35  no amount thereof (other than such amount to be deducted for administer-
    36  ing,  collecting and distributing such tax and such costs in administer-
    37  ing and making  distributions  in  accordance  with  the  provisions  of
    38  section  two  hundred  eighty-a  of  the tax law from the stock transfer
    39  incentive fund) shall be distributed or paid from the stock transfer tax
    40  fund other than to such stock transfer incentive fund in the custody  of
    41  the  commissioner of taxation and finance unless and until the aggregate
    42  of all payments certified to the comptroller by such commissioner pursu-
    43  ant to the provisions of such incentive fund  as  necessary  to  provide
    44  payments  on  account  of  rebates  authorized  pursuant  to section two
    45  hundred eighty-a of the tax law which remain unappropriated or unpaid to
    46  such fund shall have been appropriated to such fund and shall have  been
    47  paid  in  full provided, however, that no person, including any taxpayer
    48  under article twelve of the tax law or any member or dealer referred  to
    49  in  subdivisions  two-a  and six of section two hundred eighty-a of such
    50  law, shall have any lien on this fund or the  stock  transfer  incentive
    51  fund.
    52    5.  In no fiscal year shall the total amount paid from the fund exceed
    53  the total collections during such fiscal year from  the  stock  transfer
    54  tax  pursuant  to the provisions of article twelve of the tax law and as
    55  deposited to the credit of the stock transfer tax fund.
        S. 7670                             4

     1    6.] 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-
     5  ration for the city of New York have been  fully  paid  and  discharged,
     6  together  with  interest  thereon and interest on unpaid installments of
     7  interest, and the chairman of the corporation makes  the  final  certif-
     8  ication  required  by  subdivision seven of section ninety-two-d of this
     9  article, the comptroller must notify the commissioner  of  taxation  and
    10  finance  that  all  remaining  funds held in the stock transfer tax fund
    11  must be released to the stock transfer incentive fund.  From  that  time
    12  forward,  all  funds previously deposited in the stock transfer tax fund
    13  pursuant to subdivision two of this section will be  deposited  directly
    14  into  the stock transfer incentive fund pursuant to all the rules, regu-
    15  lations or instructions  that  the  commissioner  may  prescribe,  after
    16  deducting  the  amount  the  commissioner determines to be necessary for
    17  reasonable costs of the  department  in  administering,  collecting  and
    18  distributing  the tax imposed by article twelve of the tax law. Notwith-
    19  standing any other provisions of  this  article,  to  the  extent  those
    20  moneys  are  not  required  by the stock transfer incentive fund for the
    21  purpose of administering and making distributions in accordance with the
    22  provisions of section two hundred eighty-a of the tax law, as  certified
    23  by  the commissioner of taxation and finance, the balance will be appro-
    24  priated to the city of New York for the support of local government.]
    25    § 3. 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. Any inter-
    34  est received by the comptroller on moneys on deposit shall  be  retained
    35  and become part of the fund, unless otherwise directed by law.
    36    § 4. This act shall take effect immediately.