Bill Text: NY A04574 | 2023-2024 | General Assembly | Introduced
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 44-0)
Status: (Introduced) 2024-01-03 - referred to ways and means [A04574 Detail]
Download: New_York-2023-A04574-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4574 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, JOYNER, 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 -- read once and referred to the Committee on Ways and Means 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 Section 280-a of the tax law is REPEALED. 2 § 2. Section 92-i of the state finance law is REPEALED. 3 § 3.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. LBD04823-01-3A. 4574 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[,11after deducting the amount the commissioner of taxation and finance12shall 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-five, [shall be appropriated to (i) the municipal17assistance corporation for the city of New York created pursuant to18title three of article ten of the public authorities law in order to19enable such corporation to fulfill the terms of any agreements made with20the holders of its notes and bonds and to carry out its corporate21purposes including the maintenance of the capital reserve fund and (ii)22to the extent such moneys are not required by such corporation as23provided in subdivision seven of section ninety-two-d of this chapter24and, after deducting the amount such commissioner shall determine to be25necessary for reasonable costs of the state tax commission in adminis-26tering and making distributions in accordance with the provisions of27section two hundred eighty-a of the tax law from the stock transfer28incentive fund, to the stock transfer incentive fund created pursuant to29section ninety-two-i of this chapter to enable rebates to be made from30such fund under the provisions of section two hundred eighty-a of the31tax law and (iii) to the extent such moneys are not required by such32fund, as certified by the commissioner of taxation and finance, the33balance shall be appropriated to the city of New York, for the support34of local government.] and the remainder shall be deposited into the 35 state general fund. Commencing with the fiscal year ending March thir- 36 ty-first, two thousand twenty-five, such remainder shall be deposited 37 into the following funds: 38 (i) twenty-five percent shall be directed to the metropolitan trans- 39 portation authority financial assistance fund established pursuant to 40 section ninety-two-ff of this article, of which fifty percent shall be 41 used for the purpose of operations and fifty percent shall be used for 42 the purpose of capital projects; 43 (ii) ten percent shall be directed to the division of housing and 44 community renewal for the purpose of capital projects and other improve- 45 ments to address issues relating to conditions of governance and habita- 46 bility, including but not limited to, heating, mold, or lead, and other 47 such conditions affecting the health and safety of tenants at housing 48 developments owned or operated by the New York city housing authority; 49 (iii) fifteen percent shall be directed to the highway and bridge 50 capital account in the dedicated highway and bridge trust fund estab- 51 lished pursuant to section eighty-nine-b of this article; 52 (iv) nine percent shall be directed to the dedicated highway and 53 bridge trust fund established pursuant to section eighty-nine-b of this 54 article, to be directed towards the infrastructure, maintenance and 55 development of rail lines for AMTRAK in the northeast corridor;A. 4574 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) four 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) four 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) thirteen percent shall be directed to the energy research develop- 19 ment operating fund pursuant to the provisions of section eighteen 20 hundred fifty-nine of the public authorities law, to be directed to the 21 clean energy fund and shall be divided equally among the four investment 22 portfolios 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; and 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 4. [After the deduction of such costs of the state tax commission in36administering, collecting and distributing such tax, the balances in the37stock transfer tax fund so appropriated shall be distributed and paid on38the last business day of September, December, March and June into the39special account established for the municipal assistance corporation for40the city of New York in the municipal assistance tax fund established41pursuant to subdivision one of section ninety-two-d of this chapter,42unless and to the extent the balances in such fund on each such payment43day are not required by such corporation as provided in said subdivision44seven of said section ninety-two-d in which case the balance not so45required, if any, after the deduction of such costs of the state tax46commission in administering and making distributions in accordance with47the provisions of section two hundred eighty-a of the tax law from the48stock transfer incentive fund shall be distributed and paid to the stock49transfer incentive fund in the custody of the commissioner of taxation50and finance established pursuant to section ninety-two-i of this chapter51and unless and to the extent that the balances in the stock transfer tax52fund on each such payment day are not required by the stock transfer53incentive fund as provided in such section ninety-two-i of this chapter54in which case the balance not so required, if any, shall be distributed55and paid to the chief fiscal officer of the city of New York to be paid56into the treasury of the city to the credit of the general fund or paidA. 4574 4 1by the commissioner of taxation and finance to such other account or2fund as may be designated in writing by such chief fiscal officer at3least ten business days prior to such last day and on each such day, the4commissioner of taxation and finance shall certify to the comptroller5the amount deducted for administering, collecting and distributing such6tax during such quarterly period and shall pay such amount into the7general fund of the state treasury to the credit of the state purposes8fund therein. In no event shall any amount (other than the amount to be9deducted for administering, collecting and distributing such tax) be10distributed or paid from the stock transfer tax fund to any person other11than the municipal assistance corporation for the city of New York12unless and until the aggregate of all payments certified to the comp-13troller as required by such corporation in order to comply with its14agreements with the holders of its notes and bonds and to carry out its15corporate purposes, including the maintenance of the capital reserve16fund, which remain unappropriated or unpaid to such corporation shall17have been appropriated to such corporation and shall have been paid in18full provided, however, that no person, including such corporation or19the holders of its notes or bonds shall have any lien on such tax and20such agreements shall be executory only to the extent of the balances21available to the state in such fund. If the balances in such fund are22not required by such corporation pursuant to the provisions of this23subdivision, on each such last business day of September, December,24March and June, the commissioner of taxation and finance shall certify25to the comptroller the amount deducted for administering and making26distributions in accordance with the provisions of section two hundred27eighty-a of the tax law from the stock transfer incentive fund during28such quarterly period and he shall pay such amount into the general fund29of the state treasury to the credit of the state purposes fund therein.30To the extent such moneys are not required by such corporation, as31provided in subdivision seven of section ninety-two-d of this chapter,32no amount thereof (other than such amount to be deducted for administer-33ing, collecting and distributing such tax and such costs in administer-34ing and making distributions in accordance with the provisions of35section two hundred eighty-a of the tax law from the stock transfer36incentive fund) shall be distributed or paid from the stock transfer tax37fund other than to such stock transfer incentive fund in the custody of38the commissioner of taxation and finance unless and until the aggregate39of all payments certified to the comptroller by such commissioner pursu-40ant to the provisions of such incentive fund as necessary to provide41payments on account of rebates authorized pursuant to section two42hundred eighty-a of the tax law which remain unappropriated or unpaid to43such fund shall have been appropriated to such fund and shall have been44paid in full provided, however, that no person, including any taxpayer45under article twelve of the tax law or any member or dealer referred to46in subdivisions two-a and six of section two hundred eighty-a of such47law, shall have any lien on this fund or the stock transfer incentive48fund.495. In no fiscal year shall the total amount paid from the fund exceed50the total collections during such fiscal year from the stock transfer51tax pursuant to the provisions of article twelve of the tax law and as52deposited to the credit of the stock transfer tax fund.536.] All payments from the stock transfer tax fund shall be made on the 54 audit and warrant of the comptroller on vouchers approved by the commis- 55 sioner of taxation and finance.A. 4574 5 1 [7. When all the notes and bonds of the municipal assistance corpo-2ration for the city of New York have been fully paid and discharged,3together with interest thereon and interest on unpaid installments of4interest, and the chairman of the corporation makes the final certif-5ication required by subdivision seven of section ninety-two-d of this6article, the comptroller must notify the commissioner of taxation and7finance that all remaining funds held in the stock transfer tax fund8must be released to the stock transfer incentive fund. From that time9forward, all funds previously deposited in the stock transfer tax fund10pursuant to subdivision two of this section will be deposited directly11into the stock transfer incentive fund pursuant to all the rules, regu-12lations or instructions that the commissioner may prescribe, after13deducting the amount the commissioner determines to be necessary for14reasonable costs of the department in administering, collecting and15distributing the tax imposed by article twelve of the tax law. Notwith-16standing any other provisions of this article, to the extent those17moneys are not required by the stock transfer incentive fund for the18purpose of administering and making distributions in accordance with the19provisions of section two hundred eighty-a of the tax law, as certified20by the commissioner of taxation and finance, the balance will be appro-21priated to the city of New York for the support of local government.] 22 § 4. Paragraph (c) of subdivision 1 of section 93-b of the state 23 finance law, as added by section 1 of part H of chapter 60 of the laws 24 of 2015, is amended to read as follows: 25 (c) Sources of funds. The sources of funds shall consist of all moneys 26 collected therefor, or moneys credited, appropriated or transferred 27 thereto from any other fund or source pursuant to law or any other 28 moneys made available for the purposes of the fund, including but not 29 limited to funds transferred from the stock transfer tax fund pursuant 30 to subdivision three of section ninety-two-b of this article and funds 31 transferred from the stock transfer incentive fund established by 32 section ninety-two-i of this article and repealed by a chapter of the 33 laws of two thousand twenty-three, which amended this paragraph. Any 34 interest received by the comptroller on moneys on deposit shall be 35 retained and become part of the fund, unless otherwise directed by law. 36 § 5. Subdivision (c) of section 11-503 of the administrative code of 37 the city of New York is REPEALED. 38 § 6. Subdivision 12 of section 11-604 of the administrative code of 39 the city of New York is REPEALED. 40 § 7. All monies accumulated in the stock transfer incentive fund 41 established pursuant to section 92-i of the state finance law on the 42 effective date of this act shall be transferred to the dedicated infras- 43 tructure investment fund as established by section 93-b of the state 44 finance law for the purposes set forth in such section. 45 § 8. The environmental conservation law is amended by adding a new 46 section 3-0323 to read as follows: 47 § 3-0323. Safe water and infrastructure action program. 48 1. Notwithstanding any other provisions of this chapter or any other 49 law and subject to an appropriation made therefor and in accordance with 50 the provisions of this section and with the rules and regulations 51 promulgated by the commissioner in connection therewith, on and after 52 the first day of April, two thousand twenty-four, a consolidated local 53 infrastructure program is hereby established for the purpose of making 54 payments toward the replacement and rehabilitation of existing local 55 municipally-owned and funded drinking water, storm water and sanitary 56 sewer systems. For purposes of this section, such program shall apply toA. 4574 6 1 any county, city, town or village drinking water system, storm water 2 system or sanitary sewer system within the state that is not under the 3 maintenance and/or operational jurisdiction of the state nor any private 4 entity. The commissioner, in conjunction with the environmental facili- 5 ties corporation, shall promulgate all necessary rules and regulations 6 to carry out the program so that an equitable distribution of aid shall 7 be made for the general operation and/or general maintenance of any 8 existing county, city, town and village drinking water system, storm 9 water system or sanitary sewer system. 10 2. On or before the twenty-fifth day of April, June, September and 11 November of each state fiscal year commencing with the state fiscal year 12 beginning on April first, two thousand twenty-five, there shall be 13 distributed and paid to counties, cities, towns and villages an amount 14 equal to the moneys appropriated for the purposes of this section 15 divided by the number of payment dates in that state fiscal year. Such 16 amounts shall be distributed and paid pursuant to subdivision three of 17 this section. 18 3. Amounts shall be distributed for local drinking water, storm water 19 and sanitary sewer systems based upon the total length and width of all 20 pipelines and mains owned and operated by the municipality. 21 4. Monies made available may be used to match other state and federal 22 funds made available for such projects. The funds may also be used to 23 support special improvement districts created to provide drinking water, 24 waste water and storm water services under articles twelve, twelve-A, 25 twelve-C and thirteen of the town law. The remainder of the apportion- 26 ment may be used for any existing drinking water, storm water or sewer 27 system purchases, including but not limited to, the acquisition of mate- 28 rials for the replacement or rehabilitation. 29 5. For any city, town, or village which proposes infrastructure 30 consolidation under this section or merges with another municipality, 31 the funds appropriated under this section may fund costs associated with 32 such consolidation. 33 6. For each fiscal year, starting in two thousand twenty-five, funds 34 are to be made available to the local infrastructure assistance account 35 of the general fund, and distributed from that account, in an amount 36 that is at least equal to those appropriated and made available in the 37 Consolidated Local Street and Highway Improvement Program (CHIPS). 38 § 9. Subdivision 3 of section 270 of the tax law, as amended by chap- 39 ter 301 of the laws of 1967, is amended and two new subdivisions 3-a and 40 9 are added to read as follows: 41 3. It shall be the duty of the person or persons [making or effectu-42ating the sale or transfer, including the person or persons] to whom the 43 sale or transfer is made, to pay the tax provided by this article, 44 unless the parties to the sale or transfer agree to otherwise allocate 45 the cost of such tax among themselves; provided, however, that this 46 subdivision shall not apply to any sale or transfer wherein the vendor 47 or transferor is a governmental entity or international organization 48 which is not subject to the tax. 49 3-a. No purchaser of a stock or other certificate in a transaction 50 covered under this article shall have legal title or ownership of such 51 stock or certificate unless such purchaser has proof of purchase demon- 52 strating that such tax has been paid. Such proof of purchase shall 53 consist of either: (a) a receipt for the transaction showing that such 54 tax has been paid, the amount of such tax paid, and a representation 55 that such amount constitutes payment in full; or (b) a stamp required 56 pursuant to subdivision four of this section.A. 4574 7 1 9. Notwithstanding any other provision to the contrary, a transaction 2 referred to in subdivision one of this section is subject to tax if any 3 activity in furtherance of the transaction occurs within the state or if 4 a party involved in the transaction satisfies a nexus with New York 5 state which shall be defined as broadly as is permitted under the United 6 States Constitution. 7 § 10. This act shall take effect immediately.