Bill Text: NY A07791 | 2019-2020 | 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 51-0)

Status: (Introduced - Dead) 2020-07-01 - print number 7791b [A07791 Detail]

Download: New_York-2019-A07791-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         7791--B

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      May 22, 2019
                                       ___________

        Introduced  by  M. of A. STECK, JACOBSON, LIFTON, MOSLEY, STIRPE, ENGLE-
          BRIGHT, BURKE, GOTTFRIED,  EPSTEIN,  PERRY,  SIMON,  LUPARDO,  HUNTER,
          REYES,  ABINANTI,  WILLIAMS, BARRON, ARROYO, KIM, BENEDETTO, L. ROSEN-
          THAL, McDONALD, M. G. MILLER, JOYNER -- Multi-Sponsored by -- M. of A.
          AUBRY, LENTOL -- read once and referred to the Committee on  Ways  and
          Means  --  committee  discharged,  bill  amended, ordered reprinted as
          amended and recommitted  to  said  committee  --  recommitted  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.
                                                                   LBD09894-07-0
        A. 7791--B                          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-two, [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-three, such remainder  shall  be  deposited  into  the  following
    39  funds:
    40    (i)  twenty-five  percent shall be directed to the metropolitan trans-
    41  portation authority financial assistance fund  established  pursuant  to
    42  section ninety-two-ff of this article;
    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) ten percent shall be directed to the dedicated highway and bridge
    53  trust fund established pursuant to section eighty-nine-b of  this  arti-
    54  cle, to be directed towards the infrastructure, maintenance and develop-
    55  ment of rail lines for AMTRAK in the northeast corridor;
        A. 7791--B                          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; and
    18    (x)  fifteen  percent  shall  be  directed  to the energy research and
    19  development operating fund pursuant to the provisions of  section  eigh-
    20  teen hundred fifty-nine of the public authorities law, to be directed to
    21  the  clean  energy  fund  and  shall  be  divided equally among the four
    22  investment portfolios that make up such fund.
    23    4. [After the deduction of such costs of the state tax  commission  in
    24  administering, collecting and distributing such tax, the balances in the
    25  stock transfer tax fund so appropriated shall be distributed and paid on
    26  the  last  business  day of September, December, March and June into the
    27  special account established for the municipal assistance corporation for
    28  the city of New York in the municipal assistance  tax  fund  established
    29  pursuant  to  subdivision  one  of section ninety-two-d of this chapter,
    30  unless and to the extent the balances in such fund on each such  payment
    31  day are not required by such corporation as provided in said subdivision
    32  seven  of  said  section  ninety-two-d  in which case the balance not so
    33  required, if any, after the deduction of such costs  of  the  state  tax
    34  commission  in administering and making distributions in accordance with
    35  the provisions of section two hundred eighty-a of the tax law  from  the
    36  stock transfer incentive fund shall be distributed and paid to the stock
    37  transfer  incentive  fund in the custody of the commissioner of taxation
    38  and finance established pursuant to section ninety-two-i of this chapter
    39  and unless and to the extent that the balances in the stock transfer tax
    40  fund on each such payment day are not required  by  the  stock  transfer
    41  incentive  fund as provided in such section ninety-two-i of this chapter
    42  in which case the balance not so required, if any, shall be  distributed
    43  and  paid to the chief fiscal officer of the city of New York to be paid
    44  into the treasury of the city to the credit of the general fund or  paid
    45  by  the  commissioner  of  taxation and finance to such other account or
    46  fund as may be designated in writing by such  chief  fiscal  officer  at
    47  least ten business days prior to such last day and on each such day, the
    48  commissioner  of  taxation  and finance shall certify to the comptroller
    49  the amount deducted for administering, collecting and distributing  such
    50  tax  during  such  quarterly  period  and shall pay such amount into the
    51  general fund of the state treasury to the credit of the  state  purposes
    52  fund  therein. In no event shall any amount (other than the amount to be
    53  deducted for administering, collecting and  distributing  such  tax)  be
    54  distributed or paid from the stock transfer tax fund to any person other
    55  than  the  municipal  assistance  corporation  for  the city of New York
    56  unless and until the aggregate of all payments certified  to  the  comp-
        A. 7791--B                          4

     1  troller  as  required  by  such  corporation in order to comply with its
     2  agreements with the holders of its notes and bonds and to carry out  its
     3  corporate  purposes,  including  the  maintenance of the capital reserve
     4  fund,  which  remain  unappropriated or unpaid to such corporation shall
     5  have been appropriated to such corporation and shall have been  paid  in
     6  full  provided,  however,  that no person, including such corporation or
     7  the holders of its notes or bonds shall have any lien on  such  tax  and
     8  such  agreements  shall  be executory only to the extent of the balances
     9  available to the state in such fund. If the balances in  such  fund  are
    10  not  required  by  such  corporation  pursuant to the provisions of this
    11  subdivision, on each such last  business  day  of  September,  December,
    12  March  and  June, the commissioner of taxation and finance shall certify
    13  to the comptroller the amount  deducted  for  administering  and  making
    14  distributions  in  accordance with the provisions of section two hundred
    15  eighty-a of the tax law from the stock transfer  incentive  fund  during
    16  such quarterly period and he shall pay such amount into the general fund
    17  of  the state treasury to the credit of the state purposes fund therein.
    18  To the extent such moneys are  not  required  by  such  corporation,  as
    19  provided  in  subdivision seven of section ninety-two-d of this chapter,
    20  no amount thereof (other than such amount to be deducted for administer-
    21  ing, collecting and distributing such tax and such costs in  administer-
    22  ing  and  making  distributions  in  accordance  with  the provisions of
    23  section two hundred eighty-a of the tax  law  from  the  stock  transfer
    24  incentive fund) shall be distributed or paid from the stock transfer tax
    25  fund  other than to such stock transfer incentive fund in the custody of
    26  the commissioner of taxation and finance unless and until the  aggregate
    27  of all payments certified to the comptroller by such commissioner pursu-
    28  ant  to  the  provisions  of such incentive fund as necessary to provide
    29  payments on account  of  rebates  authorized  pursuant  to  section  two
    30  hundred eighty-a of the tax law which remain unappropriated or unpaid to
    31  such  fund shall have been appropriated to such fund and shall have been
    32  paid in full provided, however, that no person, including  any  taxpayer
    33  under  article twelve of the tax law or any member or dealer referred to
    34  in subdivisions two-a and six of section two hundred  eighty-a  of  such
    35  law,  shall  have  any lien on this fund or the stock transfer incentive
    36  fund.
    37    5. In no fiscal year shall the total amount paid from the fund  exceed
    38  the  total  collections  during such fiscal year from the stock transfer
    39  tax pursuant to the provisions of article twelve of the tax law  and  as
    40  deposited to the credit of the stock transfer tax fund.
    41    6.] All payments from the stock transfer tax fund shall be made on the
    42  audit and warrant of the comptroller on vouchers approved by the commis-
    43  sioner of taxation and finance.
    44    [7.  When  all  the notes and bonds of the municipal assistance corpo-
    45  ration for the city of New York have been  fully  paid  and  discharged,
    46  together  with  interest  thereon and interest on unpaid installments of
    47  interest, and the chairman of the corporation makes  the  final  certif-
    48  ication  required  by  subdivision seven of section ninety-two-d of this
    49  article, the comptroller must notify the commissioner  of  taxation  and
    50  finance  that  all  remaining  funds held in the stock transfer tax fund
    51  must be released to the stock transfer incentive fund.  From  that  time
    52  forward,  all  funds previously deposited in the stock transfer tax fund
    53  pursuant to subdivision two of this section will be  deposited  directly
    54  into  the stock transfer incentive fund pursuant to all the rules, regu-
    55  lations or instructions  that  the  commissioner  may  prescribe,  after
    56  deducting  the  amount  the  commissioner determines to be necessary for
        A. 7791--B                          5

     1  reasonable costs of the  department  in  administering,  collecting  and
     2  distributing  the tax imposed by article twelve of the tax law. Notwith-
     3  standing any other provisions of  this  article,  to  the  extent  those
     4  moneys  are  not  required  by the stock transfer incentive fund for the
     5  purpose of administering and making distributions in accordance with the
     6  provisions of section two hundred eighty-a of the tax law, as  certified
     7  by  the commissioner of taxation and finance, the balance will be appro-
     8  priated to the city of New York for the support of local government.]
     9    § 4. Paragraph (c) of subdivision 1  of  section  93-b  of  the  state
    10  finance  law,  as added by section 1 of part H of chapter 60 of the laws
    11  of 2015, is amended to read as follows:
    12    (c) Sources of funds. The sources of funds shall consist of all moneys
    13  collected therefor, or  moneys  credited,  appropriated  or  transferred
    14  thereto  from  any  other  fund  or  source pursuant to law or any other
    15  moneys made available for the purposes of the fund,  including  but  not
    16  limited  to  funds transferred from the stock transfer tax fund pursuant
    17  to subdivision three of section ninety-two-b of this article  and  funds
    18  transferred  from  the  stock  transfer  incentive  fund  established by
    19  section ninety-two-i of this article and repealed by a  chapter  of  the
    20  laws of two thousand twenty, which amended this paragraph.  Any interest
    21  received  by  the comptroller on moneys on deposit shall be retained and
    22  become part of the fund, unless otherwise directed by law.
    23    § 5. Subdivision (c) of section 11-503 of the administrative  code  of
    24  the city of New York is REPEALED.
    25    §  6.  Subdivision  12 of section 11-604 of the administrative code of
    26  the city of New York is REPEALED.
    27    § 7. All monies accumulated  in  the  stock  transfer  incentive  fund
    28  established  pursuant  to  section  92-i of the state finance law on the
    29  effective date of this act shall be transferred to the dedicated infras-
    30  tructure investment fund as established by section  93-b  of  the  state
    31  finance law for the purposes set forth in such section.
    32    §  8.  The  environmental  conservation law is amended by adding a new
    33  section 3-0323 to read as follows:
    34  § 3-0323. Safe water and infrastructure action program.
    35    1. Notwithstanding any other provisions of this chapter or  any  other
    36  law and subject to an appropriation made therefor and in accordance with
    37  the  provisions  of  this  section  and  with  the rules and regulations
    38  promulgated by the commissioner in connection therewith,  on  and  after
    39  the  first  day  of April, two thousand twenty-one, a consolidated local
    40  infrastructure program is hereby established for the purpose  of  making
    41  payments  toward  the  replacement  and rehabilitation of existing local
    42  municipally-owned and funded drinking water, storm  water  and  sanitary
    43  sewer systems. For purposes of this section, such program shall apply to
    44  any  county,  city,  town  or village drinking water system, storm water
    45  system or sanitary sewer system within the state that is not  under  the
    46  maintenance and/or operational jurisdiction of the state nor any private
    47  entity.  The commissioner, in conjunction with the environmental facili-
    48  ties corporation, shall promulgate all necessary rules  and  regulations
    49  to  carry out the program so that an equitable distribution of aid shall
    50  be made for the general operation  and/or  general  maintenance  of  any
    51  existing  county,  city,  town  and village drinking water system, storm
    52  water system or sanitary sewer system.
    53    2. On or before the twenty-fifth day of  April,  June,  September  and
    54  November of each state fiscal year commencing with the state fiscal year
    55  beginning  on  April  first,  two  thousand  twenty-one,  there shall be
    56  distributed and paid to counties, cities, towns and villages  an  amount
        A. 7791--B                          6

     1  equal  to  the  moneys  appropriated  for  the  purposes of this section
     2  divided by the number of payment dates in that state fiscal  year.  Such
     3  amounts  shall  be distributed and paid pursuant to subdivision three of
     4  this section.
     5    3.  Amounts shall be distributed for local drinking water, storm water
     6  and sanitary sewer systems based upon the total length and width of  all
     7  pipelines and mains owned and operated by the municipality.
     8    4.  Monies made available may be used to match other state and federal
     9  funds made available for such projects.  The funds may also be  used  to
    10  support special improvement districts created to provide drinking water,
    11  waste  water  and  storm water services under articles twelve, twelve-A,
    12  twelve-C and thirteen of the town law.  The remainder of the  apportion-
    13  ment  may  be used for any existing drinking water, storm water or sewer
    14  system purchases, including but not limited to, the acquisition of mate-
    15  rials for the replacement or rehabilitation.
    16    5. For any  city,  town,  or  village  which  proposes  infrastructure
    17  consolidation  under  this  section or merges with another municipality,
    18  the funds appropriated under this section may fund costs associated with
    19  such consolidation.
    20    6. For each fiscal year, starting in two  thousand  twenty-one,  funds
    21  are  to be made available to the local infrastructure assistance account
    22  of the general fund, and distributed from that  account,  in  an  amount
    23  that  is  at least equal to those appropriated and made available in the
    24  Consolidated Local Street and Highway Improvement Program (CHIPS).
    25    § 9. Section 270 of the tax law is amended by adding a new subdivision
    26  9 to read as follows:
    27    9. Notwithstanding any other provision to the contrary, a  transaction
    28  referred  to in subdivision one of this section is subject to tax if any
    29  activity in furtherance of the transaction occurs within the state or if
    30  a party involved in the transaction satisfies  a  nexus  with  New  York
    31  state which shall be defined as broadly as is permitted under the United
    32  States Constitution.
    33    § 10. This act shall take effect April 1, 2021.