Rpld §280-a, amd §270, Tax L; rpld §92-i, amd §§92-b & 93-b, St Fin L; rpld §11-503 sub (c), §11-604 sub 12,
NYC Ad Cd; add §3-0323, En Con L
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.
STATE OF NEW YORK
________________________________________________________________________
1494--B
2025-2026 Regular Sessions
IN ASSEMBLY
January 10, 2025
___________
Introduced by M. of A. STECK, JACOBSON, STIRPE, BURKE, EPSTEIN, SIMON,
LUPARDO, HUNTER, REYES, WILLIAMS, KIM, BENEDETTO, ROSENTHAL, DINOWITZ,
CRUZ, RIVERA, TAYLOR, SEAWRIGHT, P. CARROLL, GLICK, DAVILA, COOK,
BRONSON, BICHOTTE HERMELYN, ANDERSON, WALKER, MEEKS, KELLES, LUNSFORD,
ZINERMAN, CLARK, BURDICK, FALL, SEPTIMO, SIMONE, CONRAD, ROMERO,
PEOPLES-STOKES, RAGA -- read once and referred to the Committee on
Ways and Means -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- again
reported from said committee with amendments, ordered reprinted as
amended and recommitted to said committee
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 Section 280-a of the tax law is REPEALED.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 Section 92-i of the state finance law is REPEALED.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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00700-04-5
A. 1494--B 2
1 chapter 3 of the laws of 1966, subdivision 7 as added by section 10 of
2 part SS1 of chapter 57 of the laws of 2008 and such section as renum-
3 bered by section 1 of chapter 3 of the laws of 1966, is amended to read
4 as follows:
5 § 92-b. Stock transfer tax fund. 1. There is hereby established in the
6 custody of the commissioner of taxation and finance a special fund, to
7 be known as the stock transfer tax fund.
8 2. Such fund shall consist of the revenues derived from the stock
9 transfer tax imposed by article twelve of the tax law and all other
10 moneys credited or transferred thereto from any other fund or source
11 pursuant to law.
12 3. The moneys received from such tax and other sources in such fund[,
13 after deducting the amount the commissioner of taxation and finance
14 shall determine to be necessary for] shall be used to cover the reason-
15 able costs of the state tax commission in administering, collecting and
16 distributing [such] the stock transfer tax, commencing with the fiscal
17 year ending March thirty-first, [nineteen hundred seventy-seven] two
18 thousand twenty-seven, [shall be appropriated to (i) the municipal
19 assistance corporation for the city of New York created pursuant to
20 title three of article ten of the public authorities law in order to
21 enable such corporation to fulfill the terms of any agreements made with
22 the holders of its notes and bonds and to carry out its corporate
23 purposes including the maintenance of the capital reserve fund and (ii)
24 to the extent such moneys are not required by such corporation as
25 provided in subdivision seven of section ninety-two-d of this chapter
26 and, after deducting the amount such commissioner shall determine to be
27 necessary for reasonable costs of the state tax commission in adminis-
28 tering and making distributions in accordance with the provisions of
29 section two hundred eighty-a of the tax law from the stock transfer
30 incentive fund, to the stock transfer incentive fund created pursuant to
31 section ninety-two-i of this chapter to enable rebates to be made from
32 such fund under the provisions of section two hundred eighty-a of the
33 tax law and (iii) to the extent such moneys are not required by such
34 fund, as certified by the commissioner of taxation and finance, the
35 balance shall be appropriated to the city of New York, for the support
36 of local government.] and the remainder shall be deposited into the
37 state general fund. Commencing with the fiscal year ending March thir-
38 ty-first, two thousand twenty-seven, such remainder shall be deposited
39 into the following funds:
40 (i) ten percent shall be directed to the metropolitan transportation
41 authority financial assistance fund established pursuant to section
42 ninety-two-ff of this article, of which fifty percent shall be used for
43 the purpose of operations and fifty percent shall be used for the
44 purpose of capital projects;
45 (ii) five percent shall be directed to the division of housing and
46 community renewal for the purpose of affordable housing programs, capi-
47 tal projects and other improvements to address issues relating to
48 affordable housing, conditions of governance and habitability, including
49 but not limited to, heating, mold, or lead, and other such conditions
50 affecting the health and safety of residents;
51 (iii) five percent shall be directed to the New York city housing
52 authority for the sole purpose of section nine housing;
53 (iv) five percent shall be directed to the highway and bridge capital
54 account in the dedicated highway and bridge trust fund established
55 pursuant to section eighty-nine-b of this article;
A. 1494--B 3
1 (v) five percent shall be directed to the dedicated highway and bridge
2 trust fund established pursuant to section eighty-nine-b of this arti-
3 cle, to be directed towards the infrastructure, maintenance and develop-
4 ment of rail lines for AMTRAK in the northeast corridor;
5 (vi) five percent shall be directed to the local infrastructure
6 account of the general fund established pursuant to section seventy-two
7 of this article to be directed to the Consolidated Local Street and
8 Highway Improvement Program (CHIPS);
9 (vii) five percent shall be directed to the local infrastructure
10 account of the general fund to be dedicated to the safe water and
11 infrastructure action program as established by section 3-0323 of the
12 environmental conservation law;
13 (viii) five percent shall be directed to the municipal assistance
14 state aid fund established pursuant to section ninety-two-e of this
15 article;
16 (ix) five percent shall be directed to the dedicated mass transporta-
17 tion trust fund to the credit of the non-MTA account for payment to
18 downstate transit systems other than those transit systems operated by
19 the metropolitan transportation authority;
20 (x) five percent shall be directed to the dedicated mass transporta-
21 tion trust fund to the credit of the non-MTA account for payment to
22 upstate transit systems;
23 (xi) ten percent shall be directed to the energy research development
24 operating fund pursuant to the provisions of section eighteen hundred
25 fifty-nine of the public authorities law, to be directed to the clean
26 energy fund and shall be divided equally among the four investment port-
27 folios that make up such fund;
28 (xii) two and one-half percent shall be directed to the city universi-
29 ty of New York, of which fifty percent shall be used for the purpose of
30 capital improvements and infrastructure projects and fifty percent shall
31 be used for the purpose of supporting academic programs at city of New
32 York institutions;
33 (xiii) two and one-half percent shall be directed to the state univer-
34 sity of New York institutions, of which fifty percent shall be used for
35 the purposes of supporting and expanding services and care at state
36 university of New York hospitals, state university of New York academic
37 medical centers and fifty percent shall be used for the purpose of
38 supporting academic programs at state university of New York insti-
39 tutions;
40 (xiv) ten percent shall be directed to the department of education for
41 the purpose of supporting foundation aid;
42 (xv) ten percent shall be directed to the department of health to
43 support health care; and
44 (xvi) ten percent shall be directed to the department of agriculture,
45 department of environmental conservation, and office of parks, recre-
46 ation and historic preservation for the purposes of reforestation, soil
47 conservation, sustainable agriculture, local parks and open space.
48 4. [After the deduction of such costs of the state tax commission in
49 administering, collecting and distributing such tax, the balances in the
50 stock transfer tax fund so appropriated shall be distributed and paid on
51 the last business day of September, December, March and June into the
52 special account established for the municipal assistance corporation for
53 the city of New York in the municipal assistance tax fund established
54 pursuant to subdivision one of section ninety-two-d of this chapter,
55 unless and to the extent the balances in such fund on each such payment
56 day are not required by such corporation as provided in said subdivision
A. 1494--B 4
1 seven of said section ninety-two-d in which case the balance not so
2 required, if any, after the deduction of such costs of the state tax
3 commission in administering and making distributions in accordance with
4 the provisions of section two hundred eighty-a of the tax law from the
5 stock transfer incentive fund shall be distributed and paid to the stock
6 transfer incentive fund in the custody of the commissioner of taxation
7 and finance established pursuant to section ninety-two-i of this chapter
8 and unless and to the extent that the balances in the stock transfer tax
9 fund on each such payment day are not required by the stock transfer
10 incentive fund as provided in such section ninety-two-i of this chapter
11 in which case the balance not so required, if any, shall be distributed
12 and paid to the chief fiscal officer of the city of New York to be paid
13 into the treasury of the city to the credit of the general fund or paid
14 by the commissioner of taxation and finance to such other account or
15 fund as may be designated in writing by such chief fiscal officer at
16 least ten business days prior to such last day and on each such day, the
17 commissioner of taxation and finance shall certify to the comptroller
18 the amount deducted for administering, collecting and distributing such
19 tax during such quarterly period and shall pay such amount into the
20 general fund of the state treasury to the credit of the state purposes
21 fund therein. In no event shall any amount (other than the amount to be
22 deducted for administering, collecting and distributing such tax) be
23 distributed or paid from the stock transfer tax fund to any person other
24 than the municipal assistance corporation for the city of New York
25 unless and until the aggregate of all payments certified to the comp-
26 troller as required by such corporation in order to comply with its
27 agreements with the holders of its notes and bonds and to carry out its
28 corporate purposes, including the maintenance of the capital reserve
29 fund, which remain unappropriated or unpaid to such corporation shall
30 have been appropriated to such corporation and shall have been paid in
31 full provided, however, that no person, including such corporation or
32 the holders of its notes or bonds shall have any lien on such tax and
33 such agreements shall be executory only to the extent of the balances
34 available to the state in such fund. If the balances in such fund are
35 not required by such corporation pursuant to the provisions of this
36 subdivision, on each such last business day of September, December,
37 March and June, the commissioner of taxation and finance shall certify
38 to the comptroller the amount deducted for administering and making
39 distributions in accordance with the provisions of section two hundred
40 eighty-a of the tax law from the stock transfer incentive fund during
41 such quarterly period and he shall pay such amount into the general fund
42 of the state treasury to the credit of the state purposes fund therein.
43 To the extent such moneys are not required by such corporation, as
44 provided in subdivision seven of section ninety-two-d of this chapter,
45 no amount thereof (other than such amount to be deducted for administer-
46 ing, collecting and distributing such tax and such costs in administer-
47 ing and making distributions in accordance with the provisions of
48 section two hundred eighty-a of the tax law from the stock transfer
49 incentive fund) shall be distributed or paid from the stock transfer tax
50 fund other than to such stock transfer incentive fund in the custody of
51 the commissioner of taxation and finance unless and until the aggregate
52 of all payments certified to the comptroller by such commissioner pursu-
53 ant to the provisions of such incentive fund as necessary to provide
54 payments on account of rebates authorized pursuant to section two
55 hundred eighty-a of the tax law which remain unappropriated or unpaid to
56 such fund shall have been appropriated to such fund and shall have been
A. 1494--B 5
1 paid in full provided, however, that no person, including any taxpayer
2 under article twelve of the tax law or any member or dealer referred to
3 in subdivisions two-a and six of section two hundred eighty-a of such
4 law, shall have any lien on this fund or the stock transfer incentive
5 fund.
6 5. In no fiscal year shall the total amount paid from the fund exceed
7 the total collections during such fiscal year from the stock transfer
8 tax pursuant to the provisions of article twelve of the tax law and as
9 deposited to the credit of the stock transfer tax fund.
10 6.] All payments from the stock transfer tax fund shall be made on the
11 audit and warrant of the comptroller on vouchers approved by the commis-
12 sioner of taxation and finance.
13 [7. When all the notes and bonds of the municipal assistance corpo-
14 ration for the city of New York have been fully paid and discharged,
15 together with interest thereon and interest on unpaid installments of
16 interest, and the chairman of the corporation makes the final certif-
17 ication required by subdivision seven of section ninety-two-d of this
18 article, the comptroller must notify the commissioner of taxation and
19 finance that all remaining funds held in the stock transfer tax fund
20 must be released to the stock transfer incentive fund. From that time
21 forward, all funds previously deposited in the stock transfer tax fund
22 pursuant to subdivision two of this section will be deposited directly
23 into the stock transfer incentive fund pursuant to all the rules, regu-
24 lations or instructions that the commissioner may prescribe, after
25 deducting the amount the commissioner determines to be necessary for
26 reasonable costs of the department in administering, collecting and
27 distributing the tax imposed by article twelve of the tax law. Notwith-
28 standing any other provisions of this article, to the extent those
29 moneys are not required by the stock transfer incentive fund for the
30 purpose of administering and making distributions in accordance with the
31 provisions of section two hundred eighty-a of the tax law, as certified
32 by the commissioner of taxation and finance, the balance will be appro-
33 priated to the city of New York for the support of local government.]
34 § 4. Paragraph (c) of subdivision 1 of section 93-b of the state
35 finance law, as added by section 1 of part H of chapter 60 of the laws
36 of 2015, is amended to read as follows:
37 (c) Sources of funds. The sources of funds shall consist of all moneys
38 collected therefor, or moneys credited, appropriated or transferred
39 thereto from any other fund or source pursuant to law or any other
40 moneys made available for the purposes of the fund, including but not
41 limited to funds transferred from the stock transfer tax fund pursuant
42 to subdivision three of section ninety-two-b of this article and funds
43 transferred from the stock transfer incentive fund established by
44 section ninety-two-i of this article and repealed by a chapter of the
45 laws of two thousand twenty-five, which amended this paragraph. Any
46 interest received by the comptroller on moneys on deposit shall be
47 retained and become part of the fund, unless otherwise directed by law.
48 § 5. Subdivision (c) of section 11-503 of the administrative code of
49 the city of New York is REPEALED.
50 § 6. Subdivision 12 of section 11-604 of the administrative code of
51 the city of New York is REPEALED.
52 § 7. All monies accumulated in the stock transfer incentive fund
53 established pursuant to section 92-i of the state finance law on the
54 effective date of this act shall be transferred to the dedicated infras-
55 tructure investment fund as established by section 93-b of the state
56 finance law for the purposes set forth in such section.
A. 1494--B 6
1 § 8. The environmental conservation law is amended by adding a new
2 section 3-0323 to read as follows:
3 § 3-0323. Safe water and infrastructure action program.
4 1. Notwithstanding any other provisions of this chapter or any other
5 law and subject to an appropriation made therefor and in accordance with
6 the provisions of this section and with the rules and regulations
7 promulgated by the commissioner in connection therewith, on and after
8 the first day of April, two thousand twenty-six, a consolidated local
9 infrastructure program is hereby established for the purpose of making
10 payments toward the replacement and rehabilitation of existing local
11 municipally-owned and funded drinking water, storm water and sanitary
12 sewer systems. For purposes of this section, such program shall apply to
13 any county, city, town or village drinking water system, storm water
14 system or sanitary sewer system within the state that is not under the
15 maintenance and/or operational jurisdiction of the state nor any private
16 entity. The commissioner, in conjunction with the environmental facili-
17 ties corporation, shall promulgate all necessary rules and regulations
18 to carry out the program so that an equitable distribution of aid shall
19 be made for the general operation and/or general maintenance of any
20 existing county, city, town and village drinking water system, storm
21 water system or sanitary sewer system.
22 2. On or before the twenty-six day of April, June, September and
23 November of each state fiscal year commencing with the state fiscal year
24 beginning on April first, two thousand twenty-seven, there shall be
25 distributed and paid to counties, cities, towns and villages an amount
26 equal to the moneys appropriated for the purposes of this section
27 divided by the number of payment dates in that state fiscal year. Such
28 amounts shall be distributed and paid pursuant to subdivision three of
29 this section.
30 3. Amounts shall be distributed for local drinking water, storm water
31 and sanitary sewer systems based upon the total length and width of all
32 pipelines and mains owned and operated by the municipality.
33 4. Monies made available may be used to match other state and federal
34 funds made available for such projects. The funds may also be used to
35 support special improvement districts created to provide drinking water,
36 waste water and storm water services under articles twelve, twelve-A,
37 twelve-C and thirteen of the town law. The remainder of the apportion-
38 ment may be used for any existing drinking water, storm water or sewer
39 system purchases, including but not limited to, the acquisition of mate-
40 rials for the replacement or rehabilitation.
41 5. For any city, town, or village which proposes infrastructure
42 consolidation under this section or merges with another municipality,
43 the funds appropriated under this section may fund costs associated with
44 such consolidation.
45 6. For each fiscal year, starting in two thousand twenty-seven, funds
46 shall be made available to the local infrastructure assistance account
47 of the general fund, and distributed from that account, in an amount
48 that is at least equal to those appropriated and made available in the
49 Consolidated Local Street and Highway Improvement Program (CHIPS).
50 § 9. Subdivision 3 of section 270 of the tax law, as amended by chap-
51 ter 301 of the laws of 1967, is amended and two new subdivisions 3-a and
52 9 are added to read as follows:
53 3. It shall be the duty of the person or persons [making or effectu-
54 ating the sale or transfer, including the person or persons] to whom the
55 sale or transfer is made, to pay the tax provided by this article,
56 unless the parties to the sale or transfer agree to otherwise allocate
A. 1494--B 7
1 the cost of such tax among themselves; provided, however, that this
2 subdivision shall not apply to any sale or transfer wherein the vendor
3 or transferor is a governmental entity or international organization
4 which is not subject to the tax.
5 3-a. No purchaser of a stock or other certificate in a transaction
6 covered under this article shall have legal title or ownership of such
7 stock or certificate unless such purchaser has proof of purchase demon-
8 strating that such tax has been paid. Such proof of purchase shall
9 consist of either: (a) a receipt for the transaction showing that such
10 tax has been paid, the amount of such tax paid, and a representation
11 that such amount constitutes payment in full; or (b) a stamp required
12 pursuant to subdivision four of this section.
13 9. Notwithstanding any other provision to the contrary, a transaction
14 referred to in subdivision one of this section is subject to tax if any
15 activity in furtherance of the transaction occurs within the state or if
16 a party involved in the transaction satisfies a nexus with New York
17 state which shall be defined as broadly as is permitted under the United
18 States Constitution.
19 § 10. This act shall take effect immediately.
