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
________________________________________________________________________
4574--A
2023-2024 Regular Sessions
IN ASSEMBLY
February 17, 2023
___________
Introduced by M. of A. STECK, JACOBSON, STIRPE, BURKE, EPSTEIN, SIMON,
LUPARDO, HUNTER, REYES, WILLIAMS, KIM, BENEDETTO, L. ROSENTHAL,
WALLACE, FAHY, DINOWITZ, CRUZ, RIVERA, TAYLOR, DICKENS, GUNTHER,
SEAWRIGHT, CARROLL, GLICK, DAVILA, COOK, BRONSON, BICHOTTE HERMELYN,
DARLING, ANDERSON, WALKER, MEEKS, KELLES, LUNSFORD, JEAN-PIERRE,
ZINERMAN, CLARK, BURDICK, FALL, SILLITTI, SEPTIMO, SIMONE, CONRAD --
read once and referred to the Committee on Ways and Means -- recommit-
ted to the Committee on Ways and Means in accordance with Assembly
Rule 3, sec. 2 -- 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 Section 280-a of the tax law is REPEALED.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 Section 92-i of the state finance law is REPEALED.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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04823-02-4
A. 4574--A 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-six, [shall be appropriated to (i) the municipal assist-
19 ance corporation for the city of New York created pursuant to title
20 three of article ten of the public authorities law in order to enable
21 such corporation to fulfill the terms of any agreements made with the
22 holders of its notes and bonds and to carry out its corporate purposes
23 including the maintenance of the capital reserve fund and (ii) to the
24 extent such moneys are not required by such corporation as provided in
25 subdivision seven of section ninety-two-d of this chapter and, after
26 deducting the amount such commissioner shall determine to be necessary
27 for reasonable costs of the state tax commission in administering and
28 making distributions in accordance with the provisions of section two
29 hundred eighty-a of the tax law from the stock transfer incentive fund,
30 to the stock transfer incentive fund created pursuant to section nine-
31 ty-two-i of this chapter to enable rebates to be made from such fund
32 under the provisions of section two hundred eighty-a of the tax law and
33 (iii) to the extent such moneys are not required by such fund, as certi-
34 fied by the commissioner of taxation and finance, the balance shall be
35 appropriated to the city of New York, for the support of local govern-
36 ment.] and the remainder shall be deposited into the state general fund.
37 Commencing with the fiscal year ending March thirty-first, two thousand
38 twenty-six, such remainder shall be deposited into the following funds:
39 (i) ten percent shall be directed to the metropolitan transportation
40 authority financial assistance fund established pursuant to section
41 ninety-two-ff of this article, of which fifty percent shall be used for
42 the purpose of operations and fifty percent shall be used for the
43 purpose of capital projects;
44 (ii) ten percent shall be directed to the division of housing and
45 community renewal for the purpose of capital projects and other improve-
46 ments to address issues relating to conditions of governance and habita-
47 bility, including but not limited to, heating, mold, or lead, and other
48 such conditions affecting the health and safety of tenants at housing
49 developments owned or operated by the New York city housing authority;
50 (iii) five percent shall be directed to the highway and bridge capital
51 account in the dedicated highway and bridge trust fund established
52 pursuant to section eighty-nine-b of this article;
53 (iv) five percent shall be directed to the dedicated highway and
54 bridge trust fund established pursuant to section eighty-nine-b of this
55 article, to be directed towards the infrastructure, maintenance and
56 development of rail lines for AMTRAK in the northeast corridor;
A. 4574--A 3
1 (v) five percent shall be directed to the local infrastructure account
2 of the general fund established pursuant to section seventy-two of this
3 article to be directed to the Consolidated Local Street and Highway
4 Improvement Program (CHIPS);
5 (vi) five percent shall be directed to the local infrastructure
6 account of the general fund to be dedicated to the safe water and
7 infrastructure action program as established by section 3-0323 of the
8 environmental conservation law;
9 (vii) five percent shall be directed to the municipal assistance state
10 aid fund established pursuant to section ninety-two-e of this article;
11 (viii) five percent shall be directed to the dedicated mass transpor-
12 tation trust fund to the credit of the non-MTA account for payment to
13 downstate transit systems other than those transit systems operated by
14 the metropolitan transportation authority;
15 (ix) five percent shall be directed to the dedicated mass transporta-
16 tion trust fund to the credit of the non-MTA account for payment to
17 upstate transit systems;
18 (x) ten percent shall be directed to the energy research development
19 operating fund pursuant to the provisions of section eighteen hundred
20 fifty-nine of the public authorities law, to be directed to the clean
21 energy fund and shall be divided equally among the four investment port-
22 folios that make up such fund;
23 (xi) two and one-half percent shall be directed to the city university
24 of New York, of which fifty percent shall be used for the purpose of
25 capital improvements and infrastructure projects and fifty percent shall
26 be used for the purpose of supporting academic programs at city of New
27 York institutions;
28 (xii) two and one-half percent shall be directed to the state univer-
29 sity of New York institutions, of which fifty percent shall be used for
30 the purposes of supporting and expanding services and care at state
31 university of New York hospitals, state university of New York academic
32 medical centers and fifty percent shall be used for the purpose of
33 supporting academic programs at state university of New York insti-
34 tutions;
35 (xiii) ten percent shall be directed to the department of education
36 for the purpose of supporting foundation aid;
37 (xiv) ten percent shall be directed to the department of health to
38 support health care; and
39 (xv) ten percent shall be directed to the department of agriculture,
40 department of environmental conservation, and office of parks, recre-
41 ation and historic preservation for the purposes of reforestation, soil
42 conservation, sustainable agriculture, local parks and open space.
43 4. [After the deduction of such costs of the state tax commission in
44 administering, collecting and distributing such tax, the balances in the
45 stock transfer tax fund so appropriated shall be distributed and paid on
46 the last business day of September, December, March and June into the
47 special account established for the municipal assistance corporation for
48 the city of New York in the municipal assistance tax fund established
49 pursuant to subdivision one of section ninety-two-d of this chapter,
50 unless and to the extent the balances in such fund on each such payment
51 day are not required by such corporation as provided in said subdivision
52 seven of said section ninety-two-d in which case the balance not so
53 required, if any, after the deduction of such costs of the state tax
54 commission in administering and making distributions in accordance with
55 the provisions of section two hundred eighty-a of the tax law from the
56 stock transfer incentive fund shall be distributed and paid to the stock
A. 4574--A 4
1 transfer incentive fund in the custody of the commissioner of taxation
2 and finance established pursuant to section ninety-two-i of this chapter
3 and unless and to the extent that the balances in the stock transfer tax
4 fund on each such payment day are not required by the stock transfer
5 incentive fund as provided in such section ninety-two-i of this chapter
6 in which case the balance not so required, if any, shall be distributed
7 and paid to the chief fiscal officer of the city of New York to be paid
8 into the treasury of the city to the credit of the general fund or paid
9 by the commissioner of taxation and finance to such other account or
10 fund as may be designated in writing by such chief fiscal officer at
11 least ten business days prior to such last day and on each such day, the
12 commissioner of taxation and finance shall certify to the comptroller
13 the amount deducted for administering, collecting and distributing such
14 tax during such quarterly period and shall pay such amount into the
15 general fund of the state treasury to the credit of the state purposes
16 fund therein. In no event shall any amount (other than the amount to be
17 deducted for administering, collecting and distributing such tax) be
18 distributed or paid from the stock transfer tax fund to any person other
19 than the municipal assistance corporation for the city of New York
20 unless and until the aggregate of all payments certified to the comp-
21 troller as required by such corporation in order to comply with its
22 agreements with the holders of its notes and bonds and to carry out its
23 corporate purposes, including the maintenance of the capital reserve
24 fund, which remain unappropriated or unpaid to such corporation shall
25 have been appropriated to such corporation and shall have been paid in
26 full provided, however, that no person, including such corporation or
27 the holders of its notes or bonds shall have any lien on such tax and
28 such agreements shall be executory only to the extent of the balances
29 available to the state in such fund. If the balances in such fund are
30 not required by such corporation pursuant to the provisions of this
31 subdivision, on each such last business day of September, December,
32 March and June, the commissioner of taxation and finance shall certify
33 to the comptroller the amount deducted for administering and making
34 distributions in accordance with the provisions of section two hundred
35 eighty-a of the tax law from the stock transfer incentive fund during
36 such quarterly period and he shall pay such amount into the general fund
37 of the state treasury to the credit of the state purposes fund therein.
38 To the extent such moneys are not required by such corporation, as
39 provided in subdivision seven of section ninety-two-d of this chapter,
40 no amount thereof (other than such amount to be deducted for administer-
41 ing, collecting and distributing such tax and such costs in administer-
42 ing and making distributions in accordance with the provisions of
43 section two hundred eighty-a of the tax law from the stock transfer
44 incentive fund) shall be distributed or paid from the stock transfer tax
45 fund other than to such stock transfer incentive fund in the custody of
46 the commissioner of taxation and finance unless and until the aggregate
47 of all payments certified to the comptroller by such commissioner pursu-
48 ant to the provisions of such incentive fund as necessary to provide
49 payments on account of rebates authorized pursuant to section two
50 hundred eighty-a of the tax law which remain unappropriated or unpaid to
51 such fund shall have been appropriated to such fund and shall have been
52 paid in full provided, however, that no person, including any taxpayer
53 under article twelve of the tax law or any member or dealer referred to
54 in subdivisions two-a and six of section two hundred eighty-a of such
55 law, shall have any lien on this fund or the stock transfer incentive
56 fund.
A. 4574--A 5
1 5. In no fiscal year shall the total amount paid from the fund exceed
2 the total collections during such fiscal year from the stock transfer
3 tax pursuant to the provisions of article twelve of the tax law and as
4 deposited to the credit of the stock transfer tax fund.
5 6.] All payments from the stock transfer tax fund shall be made on the
6 audit and warrant of the comptroller on vouchers approved by the commis-
7 sioner of taxation and finance.
8 [7. When all the notes and bonds of the municipal assistance corpo-
9 ration for the city of New York have been fully paid and discharged,
10 together with interest thereon and interest on unpaid installments of
11 interest, and the chairman of the corporation makes the final certif-
12 ication required by subdivision seven of section ninety-two-d of this
13 article, the comptroller must notify the commissioner of taxation and
14 finance that all remaining funds held in the stock transfer tax fund
15 must be released to the stock transfer incentive fund. From that time
16 forward, all funds previously deposited in the stock transfer tax fund
17 pursuant to subdivision two of this section will be deposited directly
18 into the stock transfer incentive fund pursuant to all the rules, regu-
19 lations or instructions that the commissioner may prescribe, after
20 deducting the amount the commissioner determines to be necessary for
21 reasonable costs of the department in administering, collecting and
22 distributing the tax imposed by article twelve of the tax law. Notwith-
23 standing any other provisions of this article, to the extent those
24 moneys are not required by the stock transfer incentive fund for the
25 purpose of administering and making distributions in accordance with the
26 provisions of section two hundred eighty-a of the tax law, as certified
27 by the commissioner of taxation and finance, the balance will be appro-
28 priated to the city of New York for the support of local government.]
29 § 4. Paragraph (c) of subdivision 1 of section 93-b of the state
30 finance law, as added by section 1 of part H of chapter 60 of the laws
31 of 2015, is amended to read as follows:
32 (c) Sources of funds. The sources of funds shall consist of all moneys
33 collected therefor, or moneys credited, appropriated or transferred
34 thereto from any other fund or source pursuant to law or any other
35 moneys made available for the purposes of the fund, including but not
36 limited to funds transferred from the stock transfer tax fund pursuant
37 to subdivision three of section ninety-two-b of this article and funds
38 transferred from the stock transfer incentive fund established by
39 section ninety-two-i of this article and repealed by a chapter of the
40 laws of two thousand twenty-four, which amended this paragraph. Any
41 interest received by the comptroller on moneys on deposit shall be
42 retained and become part of the fund, unless otherwise directed by law.
43 § 5. Subdivision (c) of section 11-503 of the administrative code of
44 the city of New York is REPEALED.
45 § 6. Subdivision 12 of section 11-604 of the administrative code of
46 the city of New York is REPEALED.
47 § 7. All monies accumulated in the stock transfer incentive fund
48 established pursuant to section 92-i of the state finance law on the
49 effective date of this act shall be transferred to the dedicated infras-
50 tructure investment fund as established by section 93-b of the state
51 finance law for the purposes set forth in such section.
52 § 8. The environmental conservation law is amended by adding a new
53 section 3-0323 to read as follows:
54 § 3-0323. Safe water and infrastructure action program.
55 1. Notwithstanding any other provisions of this chapter or any other
56 law and subject to an appropriation made therefor and in accordance with
A. 4574--A 6
1 the provisions of this section and with the rules and regulations
2 promulgated by the commissioner in connection therewith, on and after
3 the first day of April, two thousand twenty-five, a consolidated local
4 infrastructure program is hereby established for the purpose of making
5 payments toward the replacement and rehabilitation of existing local
6 municipally-owned and funded drinking water, storm water and sanitary
7 sewer systems. For purposes of this section, such program shall apply to
8 any county, city, town or village drinking water system, storm water
9 system or sanitary sewer system within the state that is not under the
10 maintenance and/or operational jurisdiction of the state nor any private
11 entity. The commissioner, in conjunction with the environmental facili-
12 ties corporation, shall promulgate all necessary rules and regulations
13 to carry out the program so that an equitable distribution of aid shall
14 be made for the general operation and/or general maintenance of any
15 existing county, city, town and village drinking water system, storm
16 water system or sanitary sewer system.
17 2. On or before the twenty-six day of April, June, September and
18 November of each state fiscal year commencing with the state fiscal year
19 beginning on April first, two thousand twenty-six, there shall be
20 distributed and paid to counties, cities, towns and villages an amount
21 equal to the moneys appropriated for the purposes of this section
22 divided by the number of payment dates in that state fiscal year. Such
23 amounts shall be distributed and paid pursuant to subdivision three of
24 this section.
25 3. Amounts shall be distributed for local drinking water, storm water
26 and sanitary sewer systems based upon the total length and width of all
27 pipelines and mains owned and operated by the municipality.
28 4. Monies made available may be used to match other state and federal
29 funds made available for such projects. The funds may also be used to
30 support special improvement districts created to provide drinking water,
31 waste water and storm water services under articles twelve, twelve-A,
32 twelve-C and thirteen of the town law. The remainder of the apportion-
33 ment may be used for any existing drinking water, storm water or sewer
34 system purchases, including but not limited to, the acquisition of mate-
35 rials for the replacement or rehabilitation.
36 5. For any city, town, or village which proposes infrastructure
37 consolidation under this section or merges with another municipality,
38 the funds appropriated under this section may fund costs associated with
39 such consolidation.
40 6. For each fiscal year, starting in two thousand twenty-six, funds
41 shall be made available to the local infrastructure assistance account
42 of the general fund, and distributed from that account, in an amount
43 that is at least equal to those appropriated and made available in the
44 Consolidated Local Street and Highway Improvement Program (CHIPS).
45 § 9. Subdivision 3 of section 270 of the tax law, as amended by chap-
46 ter 301 of the laws of 1967, is amended and two new subdivisions 3-a and
47 9 are added to read as follows:
48 3. It shall be the duty of the person or persons [making or effectu-
49 ating the sale or transfer, including the person or persons] to whom the
50 sale or transfer is made, to pay the tax provided by this article,
51 unless the parties to the sale or transfer agree to otherwise allocate
52 the cost of such tax among themselves; provided, however, that this
53 subdivision shall not apply to any sale or transfer wherein the vendor
54 or transferor is a governmental entity or international organization
55 which is not subject to the tax.
A. 4574--A 7
1 3-a. No purchaser of a stock or other certificate in a transaction
2 covered under this article shall have legal title or ownership of such
3 stock or certificate unless such purchaser has proof of purchase demon-
4 strating that such tax has been paid. Such proof of purchase shall
5 consist of either: (a) a receipt for the transaction showing that such
6 tax has been paid, the amount of such tax paid, and a representation
7 that such amount constitutes payment in full; or (b) a stamp required
8 pursuant to subdivision four of this section.
9 9. Notwithstanding any other provision to the contrary, a transaction
10 referred to in subdivision one of this section is subject to tax if any
11 activity in furtherance of the transaction occurs within the state or if
12 a party involved in the transaction satisfies a nexus with New York
13 state which shall be defined as broadly as is permitted under the United
14 States Constitution.
15 § 10. This act shall take effect immediately.
