AB2529 Summary:

BILL NOA02529
 
SAME ASSAME AS S01586
 
SPONSORSteck
 
COSPNSR
 
MLTSPNSR
 
Amd §280-a, Tax L
 
Relates to rebates on stock transfer tax paid; decreases amount to sixty percent.
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AB2529 Actions:

BILL NOA02529
 
01/20/2017referred to ways and means
01/03/2018referred to ways and means
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AB2529 Committee Votes:

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AB2529 Floor Votes:

There are no votes for this bill in this legislative session.
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AB2529 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2529
 
SPONSOR: Steck
  TITLE OF BILL: An act to amend the tax law, in relation to rebates on stock transfer tax paid   PURPOSE OR GENERAL IDEA OF BILL: Since at least 1915, New York has imposed a tax on the sale of securi- ties. Nonetheless, the securities industry flourished in the State. The State began rebating the tax in 1979 so that it is now 100% rebated back to the industry. As explained below, the 100% rebate is no longer justi- fiable.   SUMMARY OF PROVISIONS: The rebate would be 60% of the tax collected. Accordingly, $6.4 billion in revenue would be raised.   JUSTIFICATION: The tax was essentially repealed as part of the over-exuberance about stimulating the economy through tax cuts and unleashing the financial sector. As Nobel Prize-winning economist Joseph Stiglitz, who has writ- ten in favor of the tax, explained in 2013, that economic philosophy encouraged speculation, did not promote investment, led to economic collapse, and simply transferred wealth from the middle class to the top of the economic spectrum, increasing unemployment and income inequality to unprecedented levels. Stiglitz observed: "A major change occurred in markets around the turn of this century: most trading (some 61 percent in 2009, 53 percent in 2010) on the stock exchange was done by computers trading with other computers, using certain algorithms. Offers to buy and sell were based not on market research, on informed views about the prospects of, say, steel or the efficiency of a particular steel compa- ny, but rather in extracting information from the pattern of prices and trades, and on whatever other information a computer could absorb and process on the fly.... The financial sector has imposed enormous exter- nalities costs it does not pay for on the rest of society. The total costs of the financial crisis for which they bear significant responsi- bility is in the trillions of dollars. Flash trading and other specu- lation may create volatility, but not really create value: the overall efficiency of the market economy may even be reduced. Through our bail- outs and a myriad of hidden subsidies, we have in fact been effectively subsidizing the financial sector." Other countries have imposed this tax without any reduction in productivity or efficiency, including Germany, the leading economy in Europe, England, Japan, and Australia, to name only a few. The revenue is needed to fund rebuilding our deteriorating infrastructure, scientific research, and education, all of which have proven historically to cause economic growth, raise the earning power of the middle class, which stimulates the economy, and raise many individ- uals from the poor into the middle class.   LEGISLATIVE HISTORY: As indicated above.   FISCAL IMPLICATIONS: As indicated above.   EFFECTIVE DATE: January 1, 2018.
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AB2529 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2529
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 20, 2017
                                       ___________
 
        Introduced  by M. of A. STECK -- read once and referred to the Committee
          on Ways and Means
 
        AN ACT to amend the tax law, in relation to rebates  on  stock  transfer
          tax paid
 
          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. This act shall take effect immediately.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00868-01-7
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