Bill Text: NY S01297 | 2023-2024 | General Assembly | Amended

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 17-0)

Status: (Introduced) 2024-09-30 - PRINT NUMBER 1297A [S01297 Detail]

Download: New_York-2023-S01297-Amended.html

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                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.