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
________________________________________________________________________
1297--A
2023-2024 Regular Sessions
IN SENATE
January 11, 2023
___________
Introduced by Sens. SANDERS, BRISPORT, CLEARE, COMRIE, FERNANDEZ,
GIANARIS, HOYLMAN-SIGAL, JACKSON, MAY, MYRIE, PARKER, RAMOS, RIVERA,
SALAZAR, SEPULVEDA, SERRANO, STAVISKY -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Finance --
recommitted to the Committee on Finance in accordance with Senate Rule
6, sec. 8 -- committee discharged, bill amended, 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 Section 280-a of the tax law is REPEALED.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 Section 92-i of the state finance law is REPEALED.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
7 chapter 3 of the laws of 1966, subdivision 7 as added by section 10 of
8 part SS1 of chapter 57 of the laws of 2008 and such section as renum-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04823-03-4
S. 1297--A 2
1 bered by section 1 of chapter 3 of the laws of 1966, is amended to read
2 as follows:
3 § 92-b. Stock transfer tax fund. 1. There is hereby established in the
4 custody of the commissioner of taxation and finance a special fund, to
5 be known as the stock transfer tax fund.
6 2. Such fund shall consist of the revenues derived from the stock
7 transfer tax imposed by article twelve of the tax law and all other
8 moneys credited or transferred thereto from any other fund or source
9 pursuant to law.
10 3. The moneys received from such tax and other sources in such fund[,
11 after deducting the amount the commissioner of taxation and finance
12 shall determine to be necessary for] shall be used to cover the reason-
13 able costs of the state tax commission in administering, collecting and
14 distributing [such] the stock transfer tax, commencing with the fiscal
15 year ending March thirty-first, [nineteen hundred seventy-seven] two
16 thousand twenty-six, [shall be appropriated to (i) the municipal assist-
17 ance corporation for the city of New York created pursuant to title
18 three of article ten of the public authorities law in order to enable
19 such corporation to fulfill the terms of any agreements made with the
20 holders of its notes and bonds and to carry out its corporate purposes
21 including the maintenance of the capital reserve fund and (ii) to the
22 extent such moneys are not required by such corporation as provided in
23 subdivision seven of section ninety-two-d of this chapter and, after
24 deducting the amount such commissioner shall determine to be necessary
25 for reasonable costs of the state tax commission in administering and
26 making distributions in accordance with the provisions of section two
27 hundred eighty-a of the tax law from the stock transfer incentive fund,
28 to the stock transfer incentive fund created pursuant to section nine-
29 ty-two-i of this chapter to enable rebates to be made from such fund
30 under the provisions of section two hundred eighty-a of the tax law and
31 (iii) to the extent such moneys are not required by such fund, as certi-
32 fied by the commissioner of taxation and finance, the balance shall be
33 appropriated to the city of New York, for the support of local govern-
34 ment.] and the remainder shall be deposited into the state general fund.
35 Commencing with the fiscal year ending March thirty-first, two thousand
36 twenty-six, such remainder shall be deposited into the following funds:
37 (i) ten percent shall be directed to the metropolitan transportation
38 authority financial assistance fund established pursuant to section
39 ninety-two-ff of this article, of which fifty percent shall be used for
40 the purpose of operations and fifty percent shall be used for the
41 purpose of capital projects;
42 (ii) ten percent shall be directed to the division of housing and
43 community renewal for the purpose of capital projects and other improve-
44 ments to address issues relating to conditions of governance and habita-
45 bility, including but not limited to, heating, mold, or lead, and other
46 such conditions affecting the health and safety of tenants at housing
47 developments owned or operated by the New York city housing authority;
48 (iii) five percent shall be directed to the highway and bridge capital
49 account in the dedicated highway and bridge trust fund established
50 pursuant to section eighty-nine-b of this article;
51 (iv) five percent shall be directed to the dedicated highway and
52 bridge trust fund established pursuant to section eighty-nine-b of this
53 article, to be directed towards the infrastructure, maintenance and
54 development of rail lines for AMTRAK in the northeast corridor;
55 (v) five percent shall be directed to the local infrastructure account
56 of the general fund established pursuant to section seventy-two of this
S. 1297--A 3
1 article to be directed to the Consolidated Local Street and Highway
2 Improvement Program (CHIPS);
3 (vi) five percent shall be directed to the local infrastructure
4 account of the general fund to be dedicated to the safe water and
5 infrastructure action program as established by section 3-0323 of the
6 environmental conservation law;
7 (vii) five percent shall be directed to the municipal assistance state
8 aid fund established pursuant to section ninety-two-e of this article;
9 (viii) five percent shall be directed to the dedicated mass transpor-
10 tation trust fund to the credit of the non-MTA account for payment to
11 downstate transit systems other than those transit systems operated by
12 the metropolitan transportation authority;
13 (ix) five percent shall be directed to the dedicated mass transporta-
14 tion trust fund to the credit of the non-MTA account for payment to
15 upstate transit systems;
16 (x) ten percent shall be directed to the energy research development
17 operating fund pursuant to the provisions of section eighteen hundred
18 fifty-nine of the public authorities law, to be directed to the clean
19 energy fund and shall be divided equally among the four investment port-
20 folios that make up such fund;
21 (xi) two and one-half percent shall be directed to the city university
22 of New York, of which fifty percent shall be used for the purpose of
23 capital improvements and infrastructure projects and fifty percent shall
24 be used for the purpose of supporting academic programs at city of New
25 York institutions;
26 (xii) two and one-half percent shall be directed to the state univer-
27 sity of New York institutions, of which fifty percent shall be used for
28 the purposes of supporting and expanding services and care at state
29 university of New York hospitals, state university of New York academic
30 medical centers and fifty percent shall be used for the purpose of
31 supporting academic programs at state university of New York insti-
32 tutions;
33 (xiii) ten percent shall be directed to the department of education
34 for the purpose of supporting foundation aid;
35 (xiv) ten percent shall be directed to the department of health to
36 support health care; and
37 (xv) ten percent shall be directed to the department of agriculture,
38 department of environmental conservation, and office of parks, recre-
39 ation and historic preservation for the purposes of reforestation, soil
40 conservation, sustainable agriculture, local parks and open space.
41 4. [After the deduction of such costs of the state tax commission in
42 administering, collecting and distributing such tax, the balances in the
43 stock transfer tax fund so appropriated shall be distributed and paid on
44 the last business day of September, December, March and June into the
45 special account established for the municipal assistance corporation for
46 the city of New York in the municipal assistance tax fund established
47 pursuant to subdivision one of section ninety-two-d of this chapter,
48 unless and to the extent the balances in such fund on each such payment
49 day are not required by such corporation as provided in said subdivision
50 seven of said section ninety-two-d in which case the balance not so
51 required, if any, after the deduction of such costs of the state tax
52 commission in administering and making distributions in accordance with
53 the provisions of section two hundred eighty-a of the tax law from the
54 stock transfer incentive fund shall be distributed and paid to the stock
55 transfer incentive fund in the custody of the commissioner of taxation
56 and finance established pursuant to section ninety-two-i of this chapter
S. 1297--A 4
1 and unless and to the extent that the balances in the stock transfer tax
2 fund on each such payment day are not required by the stock transfer
3 incentive fund as provided in such section ninety-two-i of this chapter
4 in which case the balance not so required, if any, shall be distributed
5 and paid to the chief fiscal officer of the city of New York to be paid
6 into the treasury of the city to the credit of the general fund or paid
7 by the commissioner of taxation and finance to such other account or
8 fund as may be designated in writing by such chief fiscal officer at
9 least ten business days prior to such last day and on each such day, the
10 commissioner of taxation and finance shall certify to the comptroller
11 the amount deducted for administering, collecting and distributing such
12 tax during such quarterly period and shall pay such amount into the
13 general fund of the state treasury to the credit of the state purposes
14 fund therein. In no event shall any amount (other than the amount to be
15 deducted for administering, collecting and distributing such tax) be
16 distributed or paid from the stock transfer tax fund to any person other
17 than the municipal assistance corporation for the city of New York
18 unless and until the aggregate of all payments certified to the comp-
19 troller as required by such corporation in order to comply with its
20 agreements with the holders of its notes and bonds and to carry out its
21 corporate purposes, including the maintenance of the capital reserve
22 fund, which remain unappropriated or unpaid to such corporation shall
23 have been appropriated to such corporation and shall have been paid in
24 full provided, however, that no person, including such corporation or
25 the holders of its notes or bonds shall have any lien on such tax and
26 such agreements shall be executory only to the extent of the balances
27 available to the state in such fund. If the balances in such fund are
28 not required by such corporation pursuant to the provisions of this
29 subdivision, on each such last business day of September, December,
30 March and June, the commissioner of taxation and finance shall certify
31 to the comptroller the amount deducted for administering and making
32 distributions in accordance with the provisions of section two hundred
33 eighty-a of the tax law from the stock transfer incentive fund during
34 such quarterly period and he shall pay such amount into the general fund
35 of the state treasury to the credit of the state purposes fund therein.
36 To the extent such moneys are not required by such corporation, as
37 provided in subdivision seven of section ninety-two-d of this chapter,
38 no amount thereof (other than such amount to be deducted for administer-
39 ing, collecting and distributing such tax and such costs in administer-
40 ing and making distributions in accordance with the provisions of
41 section two hundred eighty-a of the tax law from the stock transfer
42 incentive fund) shall be distributed or paid from the stock transfer tax
43 fund other than to such stock transfer incentive fund in the custody of
44 the commissioner of taxation and finance unless and until the aggregate
45 of all payments certified to the comptroller by such commissioner pursu-
46 ant to the provisions of such incentive fund as necessary to provide
47 payments on account of rebates authorized pursuant to section two
48 hundred eighty-a of the tax law which remain unappropriated or unpaid to
49 such fund shall have been appropriated to such fund and shall have been
50 paid in full provided, however, that no person, including any taxpayer
51 under article twelve of the tax law or any member or dealer referred to
52 in subdivisions two-a and six of section two hundred eighty-a of such
53 law, shall have any lien on this fund or the stock transfer incentive
54 fund.
55 5. In no fiscal year shall the total amount paid from the fund exceed
56 the total collections during such fiscal year from the stock transfer
S. 1297--A 5
1 tax pursuant to the provisions of article twelve of the tax law and as
2 deposited to the credit of the stock transfer tax fund.
3 6.] All payments from the stock transfer tax fund shall be made on the
4 audit and warrant of the comptroller on vouchers approved by the commis-
5 sioner of taxation and finance.
6 [7. When all the notes and bonds of the municipal assistance corpo-
7 ration for the city of New York have been fully paid and discharged,
8 together with interest thereon and interest on unpaid installments of
9 interest, and the chairman of the corporation makes the final certif-
10 ication required by subdivision seven of section ninety-two-d of this
11 article, the comptroller must notify the commissioner of taxation and
12 finance that all remaining funds held in the stock transfer tax fund
13 must be released to the stock transfer incentive fund. From that time
14 forward, all funds previously deposited in the stock transfer tax fund
15 pursuant to subdivision two of this section will be deposited directly
16 into the stock transfer incentive fund pursuant to all the rules, regu-
17 lations or instructions that the commissioner may prescribe, after
18 deducting the amount the commissioner determines to be necessary for
19 reasonable costs of the department in administering, collecting and
20 distributing the tax imposed by article twelve of the tax law. Notwith-
21 standing any other provisions of this article, to the extent those
22 moneys are not required by the stock transfer incentive fund for the
23 purpose of administering and making distributions in accordance with the
24 provisions of section two hundred eighty-a of the tax law, as certified
25 by the commissioner of taxation and finance, the balance will be appro-
26 priated to the city of New York for the support of local government.]
27 § 4. Paragraph (c) of subdivision 1 of section 93-b of the state
28 finance law, as added by section 1 of part H of chapter 60 of the laws
29 of 2015, is amended to read as follows:
30 (c) Sources of funds. The sources of funds shall consist of all moneys
31 collected therefor, or moneys credited, appropriated or transferred
32 thereto from any other fund or source pursuant to law or any other
33 moneys made available for the purposes of the fund, including but not
34 limited to funds transferred from the stock transfer tax fund pursuant
35 to subdivision three of section ninety-two-b of this article and funds
36 transferred from the stock transfer incentive fund established by
37 section ninety-two-i of this article and repealed by a chapter of the
38 laws of two thousand twenty-four, which amended this paragraph. Any
39 interest received by the comptroller on moneys on deposit shall be
40 retained and become part of the fund, unless otherwise directed by law.
41 § 5. Subdivision (c) of section 11-503 of the administrative code of
42 the city of New York is REPEALED.
43 § 6. Subdivision 12 of section 11-604 of the administrative code of
44 the city of New York is REPEALED.
45 § 7. All monies accumulated in the stock transfer incentive fund
46 established pursuant to section 92-i of the state finance law on the
47 effective date of this act shall be transferred to the dedicated infras-
48 tructure investment fund as established by section 93-b of the state
49 finance law for the purposes set forth in such section.
50 § 8. The environmental conservation law is amended by adding a new
51 section 3-0323 to read as follows:
52 § 3-0323. Safe water and infrastructure action program.
53 1. Notwithstanding any other provisions of this chapter or any other
54 law and subject to an appropriation made therefor and in accordance with
55 the provisions of this section and with the rules and regulations
56 promulgated by the commissioner in connection therewith, on and after
S. 1297--A 6
1 the first day of April, two thousand twenty-five, a consolidated local
2 infrastructure program is hereby established for the purpose of making
3 payments toward the replacement and rehabilitation of existing local
4 municipally-owned and funded drinking water, storm water and sanitary
5 sewer systems. For purposes of this section, such program shall apply to
6 any county, city, town or village drinking water system, storm water
7 system or sanitary sewer system within the state that is not under the
8 maintenance and/or operational jurisdiction of the state nor any private
9 entity. The commissioner, in conjunction with the environmental facili-
10 ties corporation, shall promulgate all necessary rules and regulations
11 to carry out the program so that an equitable distribution of aid shall
12 be made for the general operation and/or general maintenance of any
13 existing county, city, town and village drinking water system, storm
14 water system or sanitary sewer system.
15 2. On or before the twenty-six day of April, June, September and
16 November of each state fiscal year commencing with the state fiscal year
17 beginning on April first, two thousand twenty-six, there shall be
18 distributed and paid to counties, cities, towns and villages an amount
19 equal to the moneys appropriated for the purposes of this section
20 divided by the number of payment dates in that state fiscal year. Such
21 amounts shall be distributed and paid pursuant to subdivision three of
22 this section.
23 3. Amounts shall be distributed for local drinking water, storm water
24 and sanitary sewer systems based upon the total length and width of all
25 pipelines and mains owned and operated by the municipality.
26 4. Monies made available may be used to match other state and federal
27 funds made available for such projects. The funds may also be used to
28 support special improvement districts created to provide drinking water,
29 waste water and storm water services under articles twelve, twelve-A,
30 twelve-C and thirteen of the town law. The remainder of the apportion-
31 ment may be used for any existing drinking water, storm water or sewer
32 system purchases, including but not limited to, the acquisition of mate-
33 rials for the replacement or rehabilitation.
34 5. For any city, town, or village which proposes infrastructure
35 consolidation under this section or merges with another municipality,
36 the funds appropriated under this section may fund costs associated with
37 such consolidation.
38 6. For each fiscal year, starting in two thousand twenty-six, funds
39 shall be made available to the local infrastructure assistance account
40 of the general fund, and distributed from that account, in an amount
41 that is at least equal to those appropriated and made available in the
42 Consolidated Local Street and Highway Improvement Program (CHIPS).
43 § 9. Subdivision 3 of section 270 of the tax law, as amended by chap-
44 ter 301 of the laws of 1967, is amended and two new subdivisions 3-a and
45 9 are added to read as follows:
46 3. It shall be the duty of the person or persons [making or effectu-
47 ating the sale or transfer, including the person or persons] to whom the
48 sale or transfer is made, to pay the tax provided by this article,
49 unless the parties to the sale or transfer agree to otherwise allocate
50 the cost of such tax among themselves; provided, however, that this
51 subdivision shall not apply to any sale or transfer wherein the vendor
52 or transferor is a governmental entity or international organization
53 which is not subject to the tax.
54 3-a. No purchaser of a stock or other certificate in a transaction
55 covered under this article shall have legal title or ownership of such
56 stock or certificate unless such purchaser has proof of purchase demon-
S. 1297--A 7
1 strating that such tax has been paid. Such proof of purchase shall
2 consist of either: (a) a receipt for the transaction showing that such
3 tax has been paid, the amount of such tax paid, and a representation
4 that such amount constitutes payment in full; or (b) a stamp required
5 pursuant to subdivision four of this section.
6 9. Notwithstanding any other provision to the contrary, a transaction
7 referred to in subdivision one of this section is subject to tax if any
8 activity in furtherance of the transaction occurs within the state or if
9 a party involved in the transaction satisfies a nexus with New York
10 state which shall be defined as broadly as is permitted under the United
11 States Constitution.
12 § 10. This act shall take effect immediately.
