AB190 Summary:

BILL NOA00190
 
SAME ASNo Same As
 
SPONSORBuchwald
 
COSPNSR
 
MLTSPNSR
 
Add §281-b, Tax L
 
Authorizes certain taxpayers who are entitled to a one hundred percent rebate of certain stock transfer taxes not to pay such taxes.
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AB190 Actions:

BILL NOA00190
 
01/04/2017referred to ways and means
01/03/2018referred to ways and means
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AB190 Committee Votes:

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AB190 Floor Votes:

There are no votes for this bill in this legislative session.
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AB190 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A190
 
SPONSOR: Buchwald
  TITLE OF BILL: An act to amend the tax law, in relation to authoriz- ing certain taxpayers who are entitled to a one hundred percent rebate of certain stock transfer taxes not to pay such taxes   PURPOSE: To end the rather nonsensical practice of collecting a tax on the sale or transfer of stock when New York State is already obligated to fully rebate the tax payment.   SUMMARY OF PROVISIONS: The Tax Law is amended by adding a new section 281-b which authorizes taxpayers who are entitled to 100% rebate of certain stock transfer taxes not pay such tax.   JUSTIFICATION: Since 1981, New York State has committed to refunding, in its entirety, any stock transfer tax it collects under Article 12 of the Tax Law. Nevertheless, taxpayers are still required to pay for these taxes anytime a stock is sold or transferred within New York State. This tax is paid through the purchasing of tax stamps or through other state authorized procedures. This legislation eliminates the need for taxpay- ers to pay the stock transfer tax in the first place in those circum- stances where they would already be entitled to a 100% rebate of the tax. For example, brokerage houses pay the tax on behalf of their customers and then are immediately reimbursed 100% of the tax they pay. More worrisomely, business transactions involving the transfer of stock are sometimes held up in New York because of the technical need to pay this meaningless tax. Moreover, the Department of Taxation must spend money to oversee this tax collection and rebate program. Taxpayers should not have to pay a tax and collect a rebate, and the State should not have to issue tax stamps and collect forms for a tax where the money goes back to the taxpayer. This bill will relieve administrative burdens on the taxpayer and on the State. In addition, as this bill will make it less cumbersome to transfer and sell stocks, it will help New York State's economic health by encouraging business transactions to occur in the State.   LEGISLATIVE HISTORY: 2015/2016: A. 213 (Buchwald) - Referred to Ways and Means 2014: A.8577 (Buchwald) - Referred to Ways and Means   FISCAL IMPACT: None, except to the extent that taxpayers have been deciding that it is too costly to bother to claim their 100% rebates.   IMPACT ON REGULATION OF BUSINESS AND INDIVIDUALS: Eliminates costs to businesses and individuals which are complying with a tax law that is not designed to raise any money for the State.   EFFECT ON FINES, TERMS OF IMPRISONMENT OR OTHER PENAL SANCTIONS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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AB190 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           190
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 4, 2017
                                       ___________
 
        Introduced by M. of A. BUCHWALD -- read once and referred to the Commit-
          tee on Ways and Means
 
        AN  ACT to amend the tax law, in relation to authorizing certain taxpay-
          ers who are entitled to a one hundred percent rebate of certain  stock
          transfer taxes not to pay such taxes

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The tax law is amended by adding a  new  section  281-b  to
     2  read as follows:
     3    § 281-b. Application of article to certain taxpayers.  Notwithstanding
     4  any  other  provision  of  law to the contrary, a taxpayer that would be
     5  entitled to receive a rebate of one hundred percent of the  tax  imposed
     6  by this article shall not be obligated to pay such taxes.
     7    § 2. This act shall take effect immediately.
 
 
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01585-01-7
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