Relates to rebates on stock transfer tax paid; decreases amount to sixty percent; dedicates funds of the stock transfer tax fund to the dedicated infrastructure investment fund.
STATE OF NEW YORK
________________________________________________________________________
7670
IN SENATE
February 6, 2018
___________
Introduced by Sen. AVELLA -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to rebates on stock transfer
tax paid; to amend the state finance law, in relation to the funds of
the stock transfer tax fund and the dedicated infrastructure invest-
ment fund
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. Section 92-b of the state finance law, as added by chapter 91 of
24 the laws of 1965 and as renumbered and subdivision 5 as added by chapter
25 3 of the laws of 1966, subdivision 3 as amended by chapter 878 of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14428-03-8
S. 7670 2
1 laws of 1977, subdivision 4 as amended by chapter 724 of the laws of
2 1979 and subdivision 7 as added by section 10 of part SS1 of chapter 57
3 of the laws of 2008, is amended to read as follows:
4 § 92-b. Stock transfer tax fund. 1. There is hereby established in the
5 custody of the commissioner of taxation and finance a special fund, to
6 be known as the stock transfer tax fund.
7 2. Such fund shall consist of the revenues derived from the stock
8 transfer tax imposed by article twelve of the tax law and all other
9 moneys credited or transferred thereto from any other fund or source
10 pursuant to law.
11 3. The moneys received from such tax and other sources in such fund[,
12 after deducting the amount the commissioner of taxation and finance
13 shall determine to be necessary for] shall be used to cover the reason-
14 able costs of the state tax commission in administering, collecting and
15 distributing [such] the stock transfer tax, commencing with the fiscal
16 year ending March thirty-first, [nineteen hundred seventy-seven] two
17 thousand nineteen, [shall be appropriated to (i) the municipal assist-
18 ance corporation for the city of New York created pursuant to title
19 three of article ten of the public authorities law in order to enable
20 such corporation to fulfill the terms of any agreements made with the
21 holders of its notes and bonds and to carry out its corporate purposes
22 including the maintenance of the capital reserve fund and (ii) to the
23 extent such moneys are not required by such corporation as provided in
24 subdivision seven of section ninety-two-d of this chapter and, after
25 deducting the amount such commissioner shall determine to be necessary
26 for reasonable costs of the state tax commission in administering and
27 making distributions in accordance with the provisions of section two
28 hundred eighty-a of the tax law from the stock transfer incentive fund,
29 to the stock transfer incentive fund created pursuant to section nine-
30 ty-two-i of this chapter to enable rebates to be made from such fund
31 under the provisions of section two hundred eighty-a of the tax law and
32 (iii) to the extent such moneys are not required by such fund, as certi-
33 fied by the commissioner of taxation and finance, the balance shall be
34 appropriated to the city of New York, for the support of local govern-
35 ment] and the remainder shall be deposited into the account for the
36 dedicated infrastructure investment fund as established by section nine-
37 ty-three-b of this article.
38 4. [After the deduction of such costs of the state tax commission in
39 administering, collecting and distributing such tax, the balances in the
40 stock transfer tax fund so appropriated shall be distributed and paid on
41 the last business day of September, December, March and June into the
42 special account established for the municipal assistance corporation for
43 the city of New York in the municipal assistance tax fund established
44 pursuant to subdivision one of section ninety-two-d of this chapter,
45 unless and to the extent the balances in such fund on each such payment
46 day are not required by such corporation as provided in said subdivision
47 seven of said section ninety-two-d in which case the balance not so
48 required, if any, after the deduction of such costs of the state tax
49 commission in administering and making distributions in accordance with
50 the provisions of section two hundred eighty-a of the tax law from the
51 stock transfer incentive fund shall be distributed and paid to the stock
52 transfer incentive fund in the custody of the commissioner of taxation
53 and finance established pursuant to section ninety-two-i of this chapter
54 and unless and to the extent that the balances in the stock transfer tax
55 fund on each such payment day are not required by the stock transfer
56 incentive fund as provided in such section ninety-two-i of this chapter
S. 7670 3
1 in which case the balance not so required, if any, shall be distributed
2 and paid to the chief fiscal officer of the city of New York to be paid
3 into the treasury of the city to the credit of the general fund or paid
4 by the commissioner of taxation and finance to such other account or
5 fund as may be designated in writing by such chief fiscal officer at
6 least ten business days prior to such last day and on each such day, the
7 commissioner of taxation and finance shall certify to the comptroller
8 the amount deducted for administering, collecting and distributing such
9 tax during such quarterly period and shall pay such amount into the
10 general fund of the state treasury to the credit of the state purposes
11 fund therein. In no event shall any amount (other than the amount to be
12 deducted for administering, collecting and distributing such tax) be
13 distributed or paid from the stock transfer tax fund to any person other
14 than the municipal assistance corporation for the city of New York
15 unless and until the aggregate of all payments certified to the comp-
16 troller as required by such corporation in order to comply with its
17 agreements with the holders of its notes and bonds and to carry out its
18 corporate purposes, including the maintenance of the capital reserve
19 fund, which remain unappropriated or unpaid to such corporation shall
20 have been appropriated to such corporation and shall have been paid in
21 full provided, however, that no person, including such corporation or
22 the holders of its notes or bonds shall have any lien on such tax and
23 such agreements shall be executory only to the extent of the balances
24 available to the state in such fund. If the balances in such fund are
25 not required by such corporation pursuant to the provisions of this
26 subdivision, on each such last business day of September, December,
27 March and June, the commissioner of taxation and finance shall certify
28 to the comptroller the amount deducted for administering and making
29 distributions in accordance with the provisions of section two hundred
30 eighty-a of the tax law from the stock transfer incentive fund during
31 such quarterly period and he shall pay such amount into the general fund
32 of the state treasury to the credit of the state purposes fund therein.
33 To the extent such moneys are not required by such corporation, as
34 provided in subdivision seven of section ninety-two-d of this chapter,
35 no amount thereof (other than such amount to be deducted for administer-
36 ing, collecting and distributing such tax and such costs in administer-
37 ing and making distributions in accordance with the provisions of
38 section two hundred eighty-a of the tax law from the stock transfer
39 incentive fund) shall be distributed or paid from the stock transfer tax
40 fund other than to such stock transfer incentive fund in the custody of
41 the commissioner of taxation and finance unless and until the aggregate
42 of all payments certified to the comptroller by such commissioner pursu-
43 ant to the provisions of such incentive fund as necessary to provide
44 payments on account of rebates authorized pursuant to section two
45 hundred eighty-a of the tax law which remain unappropriated or unpaid to
46 such fund shall have been appropriated to such fund and shall have been
47 paid in full provided, however, that no person, including any taxpayer
48 under article twelve of the tax law or any member or dealer referred to
49 in subdivisions two-a and six of section two hundred eighty-a of such
50 law, shall have any lien on this fund or the stock transfer incentive
51 fund.
52 5. In no fiscal year shall the total amount paid from the fund exceed
53 the total collections during such fiscal year from the stock transfer
54 tax pursuant to the provisions of article twelve of the tax law and as
55 deposited to the credit of the stock transfer tax fund.
S. 7670 4
1 6.] All payments from the stock transfer tax fund shall be made on the
2 audit and warrant of the comptroller on vouchers approved by the commis-
3 sioner of taxation and finance.
4 [7. When all the notes and bonds of the municipal assistance corpo-
5 ration for the city of New York have been fully paid and discharged,
6 together with interest thereon and interest on unpaid installments of
7 interest, and the chairman of the corporation makes the final certif-
8 ication required by subdivision seven of section ninety-two-d of this
9 article, the comptroller must notify the commissioner of taxation and
10 finance that all remaining funds held in the stock transfer tax fund
11 must be released to the stock transfer incentive fund. From that time
12 forward, all funds previously deposited in the stock transfer tax fund
13 pursuant to subdivision two of this section will be deposited directly
14 into the stock transfer incentive fund pursuant to all the rules, regu-
15 lations or instructions that the commissioner may prescribe, after
16 deducting the amount the commissioner determines to be necessary for
17 reasonable costs of the department in administering, collecting and
18 distributing the tax imposed by article twelve of the tax law. Notwith-
19 standing any other provisions of this article, to the extent those
20 moneys are not required by the stock transfer incentive fund for the
21 purpose of administering and making distributions in accordance with the
22 provisions of section two hundred eighty-a of the tax law, as certified
23 by the commissioner of taxation and finance, the balance will be appro-
24 priated to the city of New York for the support of local government.]
25 § 3. Paragraph (c) of subdivision 1 of section 93-b of the state
26 finance law, as added by section 1 of part H of chapter 60 of the laws
27 of 2015, is amended to read as follows:
28 (c) Sources of funds. The sources of funds shall consist of all moneys
29 collected therefor, or moneys credited, appropriated or transferred
30 thereto from any other fund or source pursuant to law or any other
31 moneys made available for the purposes of the fund, including but not
32 limited to funds transferred from the stock transfer tax fund pursuant
33 to subdivision three of section ninety-two-b of this article. Any inter-
34 est received by the comptroller on moneys on deposit shall be retained
35 and become part of the fund, unless otherwise directed by law.
36 § 4. This act shall take effect immediately.