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
________________________________________________________________________
6203--A
2019-2020 Regular Sessions
IN SENATE
May 22, 2019
___________
Introduced by Sens. SANDERS, BIAGGI, HOYLMAN, JACKSON, MYRIE, RAMOS,
RIVERA, SALAZAR -- read twice and ordered printed, and when printed to
be committed to the Committee on Budget and Revenue -- recommitted to
the Committee on Budget and Revenue 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 Section 280-a of the tax law is REPEALED.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 Section 92-i of the state finance law is REPEALED.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-
9 bered by section 1 of chapter 3 of the laws of 1966, is amended to read
10 as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09894-08-0
S. 6203--A 2
1 § 92-b. Stock transfer tax fund. 1. There is hereby established in the
2 custody of the commissioner of taxation and finance a special fund, to
3 be known as the stock transfer tax fund.
4 2. Such fund shall consist of the revenues derived from the stock
5 transfer tax imposed by article twelve of the tax law and all other
6 moneys credited or transferred thereto from any other fund or source
7 pursuant to law.
8 3. The moneys received from such tax and other sources in such fund[,
9 after deducting the amount the commissioner of taxation and finance
10 shall determine to be necessary for] shall be used to cover the reason-
11 able costs of the state tax commission in administering, collecting and
12 distributing [such] the stock transfer tax, commencing with the fiscal
13 year ending March thirty-first, [nineteen hundred seventy-seven] two
14 thousand twenty-two, [shall be appropriated to (i) the municipal assist-
15 ance corporation for the city of New York created pursuant to title
16 three of article ten of the public authorities law in order to enable
17 such corporation to fulfill the terms of any agreements made with the
18 holders of its notes and bonds and to carry out its corporate purposes
19 including the maintenance of the capital reserve fund and (ii) to the
20 extent such moneys are not required by such corporation as provided in
21 subdivision seven of section ninety-two-d of this chapter and, after
22 deducting the amount such commissioner shall determine to be necessary
23 for reasonable costs of the state tax commission in administering and
24 making distributions in accordance with the provisions of section two
25 hundred eighty-a of the tax law from the stock transfer incentive fund,
26 to the stock transfer incentive fund created pursuant to section nine-
27 ty-two-i of this chapter to enable rebates to be made from such fund
28 under the provisions of section two hundred eighty-a of the tax law and
29 (iii) to the extent such moneys are not required by such fund, as certi-
30 fied by the commissioner of taxation and finance, the balance shall be
31 appropriated to the city of New York, for the support of local govern-
32 ment.] and the remainder shall be deposited into the state general fund.
33 Commencing with the fiscal year ending March thirty-first, two thousand
34 twenty-three, such remainder shall be deposited into the following
35 funds:
36 (i) twenty-five percent shall be directed to the metropolitan trans-
37 portation authority financial assistance fund established pursuant to
38 section ninety-two-ff of this article;
39 (ii) ten percent shall be directed to the division of housing and
40 community renewal for the purpose of capital projects and other improve-
41 ments to address issues relating to conditions of governance and habita-
42 bility, including but not limited to, heating, mold, or lead, and other
43 such conditions affecting the health and safety of tenants at housing
44 developments owned or operated by the New York city housing authority;
45 (iii) fifteen percent shall be directed to the highway and bridge
46 capital account in the dedicated highway and bridge trust fund estab-
47 lished pursuant to section eighty-nine-b of this article;
48 (iv) ten percent shall be directed to the dedicated highway and bridge
49 trust fund established pursuant to section eighty-nine-b of this arti-
50 cle, to be directed towards the infrastructure, maintenance and develop-
51 ment of rail lines for AMTRAK in the northeast corridor;
52 (v) five percent shall be directed to the local infrastructure account
53 of the general fund established pursuant to section seventy-two of this
54 article to be directed to the Consolidated Local Street and Highway
55 Improvement Program (CHIPS);
S. 6203--A 3
1 (vi) five percent shall be directed to the local infrastructure
2 account of the general fund to be dedicated to the safe water and
3 infrastructure action program as established by section 3-0323 of the
4 environmental conservation law;
5 (vii) five percent shall be directed to the municipal assistance state
6 aid fund established pursuant to section ninety-two-e of this article;
7 (viii) five percent shall be directed to the dedicated mass transpor-
8 tation trust fund to the credit of the non-MTA account for payment to
9 downstate transit systems other than those transit systems operated by
10 the metropolitan transportation authority;
11 (ix) five percent shall be directed to the dedicated mass transporta-
12 tion trust fund to the credit of the non-MTA account for payment to
13 upstate transit systems; and
14 (x) fifteen percent shall be directed to the energy research and
15 development operating fund pursuant to the provisions of section eigh-
16 teen hundred fifty-nine of the public authorities law, to be directed to
17 the clean energy fund and shall be divided equally among the four
18 investment portfolios that make up such fund.
19 4. [After the deduction of such costs of the state tax commission in
20 administering, collecting and distributing such tax, the balances in the
21 stock transfer tax fund so appropriated shall be distributed and paid on
22 the last business day of September, December, March and June into the
23 special account established for the municipal assistance corporation for
24 the city of New York in the municipal assistance tax fund established
25 pursuant to subdivision one of section ninety-two-d of this chapter,
26 unless and to the extent the balances in such fund on each such payment
27 day are not required by such corporation as provided in said subdivision
28 seven of said section ninety-two-d in which case the balance not so
29 required, if any, after the deduction of such costs of the state tax
30 commission in administering and making distributions in accordance with
31 the provisions of section two hundred eighty-a of the tax law from the
32 stock transfer incentive fund shall be distributed and paid to the stock
33 transfer incentive fund in the custody of the commissioner of taxation
34 and finance established pursuant to section ninety-two-i of this chapter
35 and unless and to the extent that the balances in the stock transfer tax
36 fund on each such payment day are not required by the stock transfer
37 incentive fund as provided in such section ninety-two-i of this chapter
38 in which case the balance not so required, if any, shall be distributed
39 and paid to the chief fiscal officer of the city of New York to be paid
40 into the treasury of the city to the credit of the general fund or paid
41 by the commissioner of taxation and finance to such other account or
42 fund as may be designated in writing by such chief fiscal officer at
43 least ten business days prior to such last day and on each such day, the
44 commissioner of taxation and finance shall certify to the comptroller
45 the amount deducted for administering, collecting and distributing such
46 tax during such quarterly period and shall pay such amount into the
47 general fund of the state treasury to the credit of the state purposes
48 fund therein. In no event shall any amount (other than the amount to be
49 deducted for administering, collecting and distributing such tax) be
50 distributed or paid from the stock transfer tax fund to any person other
51 than the municipal assistance corporation for the city of New York
52 unless and until the aggregate of all payments certified to the comp-
53 troller as required by such corporation in order to comply with its
54 agreements with the holders of its notes and bonds and to carry out its
55 corporate purposes, including the maintenance of the capital reserve
56 fund, which remain unappropriated or unpaid to such corporation shall
S. 6203--A 4
1 have been appropriated to such corporation and shall have been paid in
2 full provided, however, that no person, including such corporation or
3 the holders of its notes or bonds shall have any lien on such tax and
4 such agreements shall be executory only to the extent of the balances
5 available to the state in such fund. If the balances in such fund are
6 not required by such corporation pursuant to the provisions of this
7 subdivision, on each such last business day of September, December,
8 March and June, the commissioner of taxation and finance shall certify
9 to the comptroller the amount deducted for administering and making
10 distributions in accordance with the provisions of section two hundred
11 eighty-a of the tax law from the stock transfer incentive fund during
12 such quarterly period and he shall pay such amount into the general fund
13 of the state treasury to the credit of the state purposes fund therein.
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 no amount thereof (other than such amount to be deducted for administer-
17 ing, collecting and distributing such tax and such costs in administer-
18 ing and making distributions in accordance with the provisions of
19 section two hundred eighty-a of the tax law from the stock transfer
20 incentive fund) shall be distributed or paid from the stock transfer tax
21 fund other than to such stock transfer incentive fund in the custody of
22 the commissioner of taxation and finance unless and until the aggregate
23 of all payments certified to the comptroller by such commissioner pursu-
24 ant to the provisions of such incentive fund as necessary to provide
25 payments on account of rebates authorized pursuant to section two
26 hundred eighty-a of the tax law which remain unappropriated or unpaid to
27 such fund shall have been appropriated to such fund and shall have been
28 paid in full provided, however, that no person, including any taxpayer
29 under article twelve of the tax law or any member or dealer referred to
30 in subdivisions two-a and six of section two hundred eighty-a of such
31 law, shall have any lien on this fund or the stock transfer incentive
32 fund.
33 5. In no fiscal year shall the total amount paid from the fund exceed
34 the total collections during such fiscal year from the stock transfer
35 tax pursuant to the provisions of article twelve of the tax law and as
36 deposited to the credit of the stock transfer tax fund.
37 6.] All payments from the stock transfer tax fund shall be made on the
38 audit and warrant of the comptroller on vouchers approved by the commis-
39 sioner of taxation and finance.
40 [7. When all the notes and bonds of the municipal assistance corpo-
41 ration for the city of New York have been fully paid and discharged,
42 together with interest thereon and interest on unpaid installments of
43 interest, and the chairman of the corporation makes the final certif-
44 ication required by subdivision seven of section ninety-two-d of this
45 article, the comptroller must notify the commissioner of taxation and
46 finance that all remaining funds held in the stock transfer tax fund
47 must be released to the stock transfer incentive fund. From that time
48 forward, all funds previously deposited in the stock transfer tax fund
49 pursuant to subdivision two of this section will be deposited directly
50 into the stock transfer incentive fund pursuant to all the rules, regu-
51 lations or instructions that the commissioner may prescribe, after
52 deducting the amount the commissioner determines to be necessary for
53 reasonable costs of the department in administering, collecting and
54 distributing the tax imposed by article twelve of the tax law. Notwith-
55 standing any other provisions of this article, to the extent those
56 moneys are not required by the stock transfer incentive fund for the
S. 6203--A 5
1 purpose of administering and making distributions in accordance with the
2 provisions of section two hundred eighty-a of the tax law, as certified
3 by the commissioner of taxation and finance, the balance will be appro-
4 priated to the city of New York for the support of local government.]
5 § 4. Paragraph (c) of subdivision 1 of section 93-b of the state
6 finance law, as added by section 1 of part H of chapter 60 of the laws
7 of 2015, is amended to read as follows:
8 (c) Sources of funds. The sources of funds shall consist of all moneys
9 collected therefor, or moneys credited, appropriated or transferred
10 thereto from any other fund or source pursuant to law or any other
11 moneys made available for the purposes of the fund, including but not
12 limited to funds transferred from the stock transfer tax fund pursuant
13 to subdivision three of section ninety-two-b of this article and funds
14 transferred from the stock transfer incentive fund established by
15 section ninety-two-i of this article and repealed by a chapter of the
16 laws of two thousand twenty, which amended this paragraph. Any interest
17 received by the comptroller on moneys on deposit shall be retained and
18 become part of the fund, unless otherwise directed by law.
19 § 5. Subdivision (c) of section 11-503 of the administrative code of
20 the city of New York is REPEALED.
21 § 6. Subdivision 12 of section 11-604 of the administrative code of
22 the city of New York is REPEALED.
23 § 7. All monies accumulated in the stock transfer incentive fund
24 established pursuant to section 92-i of the state finance law on the
25 effective date of this act shall be transferred to the dedicated infras-
26 tructure investment fund as established by section 93-b of the state
27 finance law for the purposes set forth in such section.
28 § 8. The environmental conservation law is amended by adding a new
29 section 3-0323 to read as follows:
30 § 3-0323. Safe water and infrastructure action program.
31 1. Notwithstanding any other provisions of this chapter or any other
32 law and subject to an appropriation made therefor and in accordance with
33 the provisions of this section and with the rules and regulations
34 promulgated by the commissioner in connection therewith, on and after
35 the first day of April, two thousand twenty-one, a consolidated local
36 infrastructure program is hereby established for the purpose of making
37 payments toward the replacement and rehabilitation of existing local
38 municipally-owned and funded drinking water, storm water and sanitary
39 sewer systems. For purposes of this section, such program shall apply to
40 any county, city, town or village drinking water system, storm water
41 system or sanitary sewer system within the state that is not under the
42 maintenance and/or operational jurisdiction of the state nor any private
43 entity. The commissioner, in conjunction with the environmental facili-
44 ties corporation, shall promulgate all necessary rules and regulations
45 to carry out the program so that an equitable distribution of aid shall
46 be made for the general operation and/or general maintenance of any
47 existing county, city, town and village drinking water system, storm
48 water system or sanitary sewer system.
49 2. On or before the twenty-fifth day of April, June, September and
50 November of each state fiscal year commencing with the state fiscal year
51 beginning on April first, two thousand twenty-one, there shall be
52 distributed and paid to counties, cities, towns and villages an amount
53 equal to the moneys appropriated for the purposes of this section
54 divided by the number of payment dates in that state fiscal year. Such
55 amounts shall be distributed and paid pursuant to subdivision three of
56 this section.
S. 6203--A 6
1 3. Amounts shall be distributed for local drinking water, storm water
2 and sanitary sewer systems based upon the total length and width of all
3 pipelines and mains owned and operated by the municipality.
4 4. Monies made available may be used to match other state and federal
5 funds made available for such projects. The funds may also be used to
6 support special improvement districts created to provide drinking water,
7 waste water and storm water services under articles twelve, twelve-A,
8 twelve-C and thirteen of the town law. The remainder of the apportion-
9 ment may be used for any existing drinking water, storm water or sewer
10 system purchases, including but not limited to, the acquisition of mate-
11 rials for the replacement or rehabilitation.
12 5. For any city, town, or village which proposes infrastructure
13 consolidation under this section or merges with another municipality,
14 the funds appropriated under this section may fund costs associated with
15 such consolidation.
16 6. For each fiscal year, starting in two thousand twenty-one, funds
17 are to be made available to the local infrastructure assistance account
18 of the general fund, and distributed from that account, in an amount
19 that is at least equal to those appropriated and made available in the
20 Consolidated Local Street and Highway Improvement Program (CHIPS).
21 § 9. Section 270 of the tax law is amended by adding a new subdivision
22 9 to read as follows:
23 9. Notwithstanding any other provision to the contrary, a transaction
24 referred to in subdivision one of this section is subject to tax if any
25 activity in furtherance of the transaction occurs within the state or if
26 a party involved in the transaction satisfies a nexus with New York
27 state which shall be defined as broadly as is permitted under the United
28 States Constitution.
29 § 10. This act shall take effect April 1, 2021.
