NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3486
SPONSOR: Dilan TITLE OF BILL:
An act to amend the tax law, the state finance law and the public
authorities law, in relation to the stock transfer tax
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to reduce the rebate of the stock transfer
tax to 80% and provides for appropriation of the balance of such tax;
80% back to the taxpayers, with the remainder being appropriated to
accounts under the MTA
SUMMARY OF PROVISIONS:
Section 1 amends subdivision 1 of section 280-a of the tax law, as
amended by chapter 578 of the laws of 1981, by adding that on or before
September 30th, 2019, 80% of the tax incurred and paid shall be allowed
as a rebate on the stock transfer tax paid.
Section 2 amends subdivision 3 and 4 of section 92-b of the state
finance law, subdivision 3 as amended by chapter 878 of the laws of 1977
and subdivision 4 as amended by chapter 724 of the laws of 1979, to
appropriate the balances in the stock transfer fund to the metropolitan
transportation authority special assistance fund pursuant to subdivision
one of section twelve hundred seventy of the public authorities law.
Section 3 amends Subdivision 1 of section 1270-a of the public authori-
ties law, as amended by section 14 of part H of chapter 25 of the laws
of 2009 to create and establish a fund known as the "metropolitan trans-
portation authority special assistance fund"
Section 4 provides for this act to take effect on September 1, 2025
JUSTIFICATION:
It is incumbent upon the legislature to look for ways to increase reven-
ue in a responsible and legitimate way. Shared sacrifice must come in
the form of not only budget cuts but revenue generating prospects as
well. A responsible approach to looking at potential revenue sources
should necessarily involve reviewing current revenue sources that may
not be utilized as efficiently as possible. One such existing source of
revenue is the "Stock Transfer Tax" It that imposes a small fee on the
sale or transfer of stocks, bonds and other financial assets. The New
York State "Stock Transfer Tax" has been in existence since 1915, and
was used as a revenue source by the State for many years until it was
slowly reduced by virtue of rebates. Since 1981 the tax has been rebated
at a rate of 100%, therefore every year $16 billion in stock transfer
taxes (at a nickel a share) is collected by the state and immediately
returned to Wall Street. Rolling back a small proportion of the Stock
Transfer Tax rebate on financial transactions to an 80%, as opposed to
100%, rebate will help to significantly address any deficits by raising
a substantial amount of revenue generating at a minimum, 5.8 billion
dollars a year. It will also continue to provide a substantial rebate of
this tax to investors and is a fair and reasonable shared sacrifice.
PRIOR LEGISLATIVE HISTORY:
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
EFFECTIVE DATE:
This act shall take effect September 1, 2025
STATE OF NEW YORK
________________________________________________________________________
3486
2025-2026 Regular Sessions
IN ASSEMBLY
January 28, 2025
___________
Introduced by M. of A. DILAN -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, the state finance law and the public
authorities law, in relation to the stock transfer tax
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-five, and eighty
20 percent of the tax incurred and paid shall be allowed as a rebate on
21 such transactions occurring on and after October first, two thousand
22 twenty-five.
23 § 2. Subdivisions 3 and 4 of section 92-b of the state finance law,
24 subdivision 3 as amended by chapter 878 of the laws of 1977 and subdivi-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07462-01-5
A. 3486 2
1 sion 4 as amended by chapter 724 of the laws of 1979, are amended to
2 read as follows:
3 3. The moneys received from such tax and other sources in such fund,
4 after deducting the amount the commissioner of taxation and finance
5 shall determine to be necessary for reasonable costs of the state tax
6 commission in administering, collecting and distributing such tax,
7 commencing with the fiscal year ending March thirty-first, nineteen
8 hundred seventy-seven, shall be appropriated to (i) the municipal
9 assistance corporation for the city of New York created pursuant to
10 title three of article ten of the public authorities law in order to
11 enable such corporation to fulfill the terms of any agreements made with
12 the holders of its notes and bonds and to carry out its corporate
13 purposes including the maintenance of the capital reserve fund and (ii)
14 to the extent such moneys are not required by such corporation as
15 provided in subdivision seven of section ninety-two-d of this [chapter]
16 article and, after deducting the amount such commissioner shall deter-
17 mine to be necessary for reasonable costs of the state tax commission in
18 administering and making distributions in accordance with the provisions
19 of section two hundred eighty-a of the tax law from the stock transfer
20 incentive fund, to the stock transfer incentive fund created pursuant to
21 section ninety-two-i of this [chapter] article to enable rebates to be
22 made from such fund under the provisions of section two hundred eighty-a
23 of the tax law and (iii) to the extent such moneys are not required by
24 such fund, as certified by the commissioner of taxation and finance, the
25 balance shall be appropriated to the [city of New York, for the support
26 of local government] metropolitan transportation authority special
27 assistance fund pursuant to subdivision one of section twelve hundred
28 seventy-a of the public authorities law.
29 4. After the deduction of such costs of the state tax commission in
30 administering, collecting and distributing such tax, the balances in the
31 stock transfer tax fund so appropriated shall be distributed and paid on
32 the last business day of September, December, March and June into the
33 special account established for the municipal assistance corporation for
34 the city of New York in the municipal assistance tax fund established
35 pursuant to subdivision one of section ninety-two-d of this [chapter]
36 article, unless and to the extent the balances in such fund on each such
37 payment day are not required by such corporation as provided in said
38 subdivision seven of said section ninety-two-d in which case the balance
39 not so required, if any, after the deduction of such costs of the state
40 tax commission in administering and making distributions in accordance
41 with the provisions of section two hundred eighty-a of the tax law from
42 the stock transfer incentive fund shall be distributed and paid to the
43 stock transfer incentive fund in the custody of the commissioner of
44 taxation and finance established pursuant to section ninety-two-i of
45 this [chapter] article and unless and to the extent that the balances in
46 the stock transfer tax fund on each such payment day are not required by
47 the stock transfer incentive fund as provided in such section ninety-
48 two-i of this [chapter] article in which case the balance not so
49 required, if any, shall be distributed and paid to the [chief fiscal
50 officer of the city of New York to be paid into the treasury of the city
51 to the credit of the general fund or paid by the commissioner of taxa-
52 tion and finance to such other account or fund as may be designated in
53 writing by such chief fiscal officer at least ten business days prior to
54 such last day and on each such day, the] metropolitan transportation
55 authority special assistance fund pursuant to subdivision one of section
56 twelve hundred seventy-a of the public authorities law. The commissioner
A. 3486 3
1 of taxation and finance shall certify to the comptroller the amount
2 deducted for administering, collecting and distributing such tax during
3 such quarterly period and shall pay such amount into the general fund of
4 the state treasury to the credit of the state purposes fund therein. In
5 no event shall any amount (other than the amount to be deducted for
6 administering, collecting and distributing such tax) be distributed or
7 paid from the stock transfer tax fund to any person other than the
8 municipal assistance corporation for the city of New York unless and
9 until the aggregate of all payments certified to the comptroller as
10 required by such corporation in order to comply with its agreements with
11 the holders of its notes and bonds and to carry out its corporate
12 purposes, including the maintenance of the capital reserve fund, which
13 remain unappropriated or unpaid to such corporation shall have been
14 appropriated to such corporation and shall have been paid in full
15 provided, however, that no person, including such corporation or the
16 holders of its notes or bonds shall have any lien on such tax and such
17 agreements shall be executory only to the extent of the balances avail-
18 able to the state in such fund. If the balances in such fund are not
19 required by such corporation pursuant to the provisions of this subdivi-
20 sion, on each such last business day of September, December, March and
21 June, the commissioner of taxation and finance shall certify to the
22 comptroller the amount deducted for administering and making distrib-
23 utions in accordance with the provisions of section two hundred eighty-a
24 of the tax law from the stock transfer incentive fund during such quar-
25 terly period and [he] such commissioner shall pay such amount into the
26 general fund of the state treasury to the credit of the state purposes
27 fund therein. To the extent such moneys are not required by such corpo-
28 ration, as provided in subdivision seven of section ninety-two-d of this
29 [chapter] article, no amount thereof (other than such amount to be
30 deducted for administering, collecting and distributing such tax and
31 such costs in administering and making distributions in accordance with
32 the provisions of section two hundred eighty-a of the tax law from the
33 stock transfer incentive fund) shall be distributed or paid from the
34 stock transfer tax fund other than to such stock transfer incentive fund
35 in the custody of the commissioner of taxation and finance unless and
36 until the aggregate of all payments certified to the comptroller by such
37 commissioner pursuant to the provisions of such incentive fund as neces-
38 sary to provide payments on account of rebates authorized pursuant to
39 section two hundred eighty-a of the tax law which remain unappropriated
40 or unpaid to such fund shall have been appropriated to such fund and
41 shall have been paid in full provided, however, that no person, includ-
42 ing any taxpayer under article twelve of the tax law or any member or
43 dealer referred to in subdivisions two-a and six of section two hundred
44 eighty-a of such law, shall have any lien on this fund or the stock
45 transfer incentive fund.
46 § 3. Subdivision 1 of section 1270-a of the public authorities law, as
47 amended by section 7 of part FF of chapter 58 of the laws of 2019, is
48 amended to read as follows:
49 1. The authority shall create and establish a fund to be known as the
50 "metropolitan transportation authority special assistance fund" which
51 shall be kept separate from and shall not be commingled with any other
52 moneys of the authority. The special assistance fund shall consist of
53 three separate accounts: (i) the "transit account", (ii) the "commuter
54 railroad account" and (iii) the "corporate transportation account".
55 The authority shall make deposits in the transit account and the
56 commuter railroad account of the moneys received by it pursuant to the
A. 3486 4
1 provisions of subdivision one of section two hundred eighty-a of the tax
2 law, subdivisions three and four of section ninety-two-b of the state
3 finance law, and subdivision one of section two hundred sixty-one of the
4 tax law in accordance with the provisions thereof, and shall make depos-
5 its in the corporate transportation account of the moneys received by it
6 pursuant to the provisions of subdivision two of section two hundred
7 sixty-one of the tax law and section ninety-two-ff of the state finance
8 law. The comptroller shall deposit, without appropriation, into the
9 corporate transportation account the revenue fees, taxes, interest and
10 penalties collected in accordance with paragraph (b-1) of subdivision
11 two of section five hundred three of the vehicle and traffic law, para-
12 graph (c-3) of subdivision two of section five hundred three of the
13 vehicle and traffic law, article seventeen-C of the vehicle and traffic
14 law, article twenty-nine-A of the tax law and section eleven hundred
15 sixty-six-a of the tax law.
16 § 4. This act shall take effect September 1, 2025.
