Bill Text: NY A00373 | 2019-2020 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2019-03-25 - enacting clause stricken [A00373 Detail]

Download: New_York-2019-A00373-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           373
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                       (Prefiled)
                                     January 9, 2019
                                       ___________
        Introduced by M. of A. STECK, GOTTFRIED -- read once and referred to the
          Committee on Ways and Means
        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 twenty and sixty percent of
    20  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 twenty.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03609-01-9
        A. 373                              2
     1    § 2. Section 92-b of the state finance law, as added by chapter 91  of
     2  the laws of 1965 and as renumbered and subdivision 5 as added by chapter
     3  3  of  the  laws of 1966, subdivision 3 as amended by chapter 878 of the
     4  laws of 1977, subdivision 4 as amended by chapter 724  of  the  laws  of
     5  1979  and subdivision 7 as added by section 10 of part SS1 of chapter 57
     6  of the laws of 2008, is amended to read as follows:
     7    § 92-b. Stock transfer tax fund. 1. There is hereby established in the
     8  custody of the commissioner of taxation and finance a special  fund,  to
     9  be known as the stock transfer tax fund.
    10    2.  Such  fund  shall  consist  of the revenues derived from the stock
    11  transfer tax imposed by article twelve of the  tax  law  and  all  other
    12  moneys  credited  or  transferred  thereto from any other fund or source
    13  pursuant to law.
    14    3. The moneys received from such tax and other sources in such  fund[,
    15  after  deducting  the  amount  the  commissioner of taxation and finance
    16  shall determine to be necessary for] shall be used to cover the  reason-
    17  able  costs of the state tax commission in administering, collecting and
    18  distributing [such] the stock transfer tax, commencing with  the  fiscal
    19  year  ending  March  thirty-first,  [nineteen hundred seventy-seven] two
    20  thousand twenty, [shall be appropriated to (i) the municipal  assistance
    21  corporation  for the city of New York created pursuant to title three of
    22  article ten of the public authorities law in order to enable such corpo-
    23  ration to fulfill the terms of any agreements made with the  holders  of
    24  its  notes  and  bonds and to carry out its corporate purposes including
    25  the maintenance of the capital reserve fund and (ii) to the extent  such
    26  moneys  are  not required by such corporation as provided in subdivision
    27  seven of section ninety-two-d of this chapter and, after  deducting  the
    28  amount  such commissioner shall determine to be necessary for reasonable
    29  costs of the state tax commission in administering and  making  distrib-
    30  utions in accordance with the provisions of section two hundred eighty-a
    31  of  the  tax  law  from  the stock transfer incentive fund, to the stock
    32  transfer incentive fund created pursuant to section ninety-two-i of this
    33  chapter to enable rebates to be made from such fund under the provisions
    34  of section two hundred eighty-a of the tax law and (iii) to  the  extent
    35  such  moneys  are not required by such fund, as certified by the commis-
    36  sioner of taxation and finance, the balance shall be appropriated to the
    37  city of New York, for the support of local government] and the remainder
    38  shall be deposited into the account  for  the  dedicated  infrastructure
    39  investment  fund  as  established  by  section  ninety-three-b  of  this
    40  article.
    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
        A. 373                              3

     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
        A. 373                              4

     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    § 3. 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. Any inter-
    36  est received by the comptroller on moneys on deposit shall  be  retained
    37  and become part of the fund, unless otherwise directed by law.
    38    § 4. This act shall take effect immediately.