Bill Text: NY S01528 | 2017-2018 | General Assembly | Introduced

---

Bill Title: Reduces rebate of the stock transfer tax to 80% and provides for appropriation of the balance of such tax: 25% to the city of New York and 75% to the state.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S01528 Detail]

Download: New_York-2017-S01528-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          1528
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 10, 2017
                                       ___________
        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 and the state finance law,  in  relation  to
          the stock transfer tax
          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 eighteen, and eighty percent
    20  of the tax incurred and paid shall be allowed as a rebate on such trans-
    21  actions occurring on and after October first, two thousand eighteen.
    22    § 2. Subdivisions 3 and 4 of section 92-b of the  state  finance  law,
    23  subdivision 3 as amended by chapter 878 of the laws of 1977 and subdivi-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00615-01-7
        S. 1528                             2
     1  sion  4  as  amended  by chapter 724 of the laws of 1979, are amended to
     2  read as follows:
     3    3.  The  moneys received from such tax and other sources in such fund,
     4  after deducting the amount the  commissioner  of  taxation  and  finance
     5  shall  determine  to  be necessary for reasonable costs of the state tax
     6  commission in  administering,  collecting  and  distributing  such  tax,
     7  commencing  with  the  fiscal  year  ending March thirty-first, nineteen
     8  hundred seventy-seven,  shall  be  appropriated  to  (i)  the  municipal
     9  assistance  corporation  for  the  city  of New York created pursuant to
    10  title three of article ten of the public authorities  law  in  order  to
    11  enable such corporation to fulfill the terms of any agreements made with
    12  the  holders  of  its  notes  and  bonds  and to carry out its corporate
    13  purposes including the maintenance of the capital reserve fund and  (ii)
    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  article  and,  after deducting the amount such commissioner shall deter-
    17  mine to be necessary for reasonable costs of the state tax commission in
    18  administering and making distributions in accordance with the provisions
    19  of section two hundred eighty-a of the tax law from the  stock  transfer
    20  incentive fund, to the stock transfer incentive fund created pursuant to
    21  section  ninety-two-i  of this [chapter] article to enable rebates to be
    22  made from such fund under the provisions of section two hundred eighty-a
    23  of the tax law and (iii) to the extent such moneys are not  required  by
    24  such  fund,  as  certified  by the commissioner of taxation and finance,
    25  twenty-five percent of the balance shall be appropriated to the city  of
    26  New  York,  for the support of local government and seventy-five percent
    27  of the balance shall be paid into the general fund of the state treasury
    28  to the credit of the state purposes fund therein.
    29    4. After the deduction of such costs of the state  tax  commission  in
    30  administering, collecting and distributing such tax, the balances in the
    31  stock transfer tax fund so appropriated shall be distributed and paid on
    32  the  last  business  day of September, December, March and June into the
    33  special account established for the municipal assistance corporation for
    34  the city of New York in the municipal assistance  tax  fund  established
    35  pursuant  to  subdivision  one of section ninety-two-d of this [chapter]
    36  article, unless and to the extent the balances in such fund on each such
    37  payment day are not required by such corporation  as  provided  in  said
    38  subdivision seven of said section ninety-two-d in which case the balance
    39  not  so required, if any, after the deduction of such costs of the state
    40  tax commission in administering and making distributions  in  accordance
    41  with  the provisions of section two hundred eighty-a of the tax law from
    42  the stock transfer incentive fund shall be distributed and paid  to  the
    43  stock  transfer  incentive  fund  in  the custody of the commissioner of
    44  taxation and finance established pursuant  to  section  ninety-two-i  of
    45  this [chapter] article and unless and to the extent that the balances in
    46  the stock transfer tax fund on each such payment day are not required by
    47  the  stock  transfer  incentive fund as provided in such section ninety-
    48  two-i of this [chapter] article in which case twenty-five percent of the
    49  balance not so required, if any, shall be distributed and  paid  to  the
    50  chief  fiscal officer of the city of New York to be paid into the treas-
    51  ury of the city to the credit of  the  general  fund  [or  paid  by  the
    52  commissioner  of  taxation  and finance to such other account or fund as
    53  may be designated in writing by such chief fiscal officer at  least  ten
    54  business  days  prior  to  such  last day and on each such day, the] and
    55  seventy-five percent of the balance not so required, shall be paid  into
    56  the  general  fund  of  the  state  treasury  to the credit of the state
        S. 1528                             3
     1  purposes fund therein. The commissioner of taxation  and  finance  shall
     2  certify  to  the  comptroller  the  amount  deducted  for administering,
     3  collecting and distributing such tax during such  quarterly  period  and
     4  shall pay such amount into the general fund of the state treasury to the
     5  credit  of the state purposes fund therein. In no event shall any amount
     6  (other than the amount to be deducted for administering, collecting  and
     7  distributing  such  tax)  be distributed or paid from the stock transfer
     8  tax fund to any person other than the municipal  assistance  corporation
     9  for  the city of New York unless and until the aggregate of all payments
    10  certified to the comptroller as required by such corporation in order to
    11  comply with its agreements with the holders of its notes and  bonds  and
    12  to  carry  out  its corporate purposes, including the maintenance of the
    13  capital reserve fund, which remain  unappropriated  or  unpaid  to  such
    14  corporation  shall  have been appropriated to such corporation and shall
    15  have been paid in full provided, however, that no person, including such
    16  corporation or the holders of its notes or bonds shall have any lien  on
    17  such  tax  and  such agreements shall be executory only to the extent of
    18  the balances available to the state in such fund.  If  the  balances  in
    19  such  fund  are  not  required  by  such  corporation  pursuant  to  the
    20  provisions of this subdivision,  on  each  such  last  business  day  of
    21  September,  December,  March  and June, the commissioner of taxation and
    22  finance shall certify to the comptroller the amount deducted for  admin-
    23  istering  and  making distributions in accordance with the provisions of
    24  section two hundred eighty-a of the tax  law  from  the  stock  transfer
    25  incentive fund during such quarterly period and he shall pay such amount
    26  into  the  general fund of the state treasury to the credit of the state
    27  purposes fund therein.  To the extent such moneys are  not  required  by
    28  such  corporation,  as  provided in subdivision seven of section ninety-
    29  two-d of this [chapter] article, no  amount  thereof  (other  than  such
    30  amount  to  be  deducted  for administering, collecting and distributing
    31  such tax and such costs in administering  and  making  distributions  in
    32  accordance  with  the  provisions of section two hundred eighty-a of the
    33  tax law from the stock transfer incentive fund) shall be distributed  or
    34  paid  from the stock transfer tax fund other than to such stock transfer
    35  incentive fund in the  custody  of  the  commissioner  of  taxation  and
    36  finance  unless and until the aggregate of all payments certified to the
    37  comptroller by such commissioner pursuant  to  the  provisions  of  such
    38  incentive  fund  as  necessary to provide payments on account of rebates
    39  authorized pursuant to section two hundred eighty-a of the tax law which
    40  remain unappropriated or unpaid to such fund shall have  been  appropri-
    41  ated  to  such  fund and shall have been paid in full provided, however,
    42  that no person, including any taxpayer under article twelve of  the  tax
    43  law or any member or dealer referred to in subdivisions two-a and six of
    44  section  two  hundred  eighty-a of such law, shall have any lien on this
    45  fund or the stock transfer incentive fund.
    46    § 3. This act shall take effect September 1, 2018.