Bill Text: NY A09748 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to imposing a tax of one-half of one percent on all corporate stock buybacks of issued shares.

Spectrum: Partisan Bill (Democrat 24-0)

Status: (Introduced - Dead) 2020-02-07 - referred to ways and means [A09748 Detail]

Download: New_York-2019-A09748-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          9748

                   IN ASSEMBLY

                                    February 7, 2020
                                       ___________

        Introduced  by  M. of A. NIOU -- read once and referred to the Committee
          on Ways and Means

        AN ACT to amend the tax law, in relation to imposing a specific  tax  on
          all corporate stock buybacks of issued shares

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivisions 1 and 2 of section 270 of the tax law,  subdi-
     2  vision 1 as amended by chapter 996 of the laws of 1963 and subdivision 2
     3  as  amended  by  chapter  827 of the laws of 1968, are amended and a new
     4  subdivision 2-a is added to read as follows:
     5    1. There is  hereby  imposed  and  shall  immediately  accrue  and  be
     6  collected  a  tax,  as  herein  provided, on all sales, or agreements to
     7  sell, or memoranda of sales and all deliveries or transfers of shares or
     8  certificates of stock, or certificates of rights to  stock,  or  certif-
     9  icates  of  interest  in  property  or accumulations, or certificates of
    10  deposit representing certificates taxable under  this  article,  in  any
    11  domestic or foreign association, company or corporation, or certificates
    12  of  interest  in business conducted by a trustee or trustees, made after
    13  the first day of June, nineteen hundred five, whether made upon or shown
    14  by the books of the association, company, corporation, or trustee, or by
    15  any assignment in blank, or by any delivery, or by any paper  or  agree-
    16  ment or memorandum or other evidence of sale or transfer, whether inter-
    17  mediate  or  final, and whether investing the holder with the beneficial
    18  interest in or legal title to said stock, or other certificates  taxable
    19  hereunder, or merely with the possession or use thereof for any purpose,
    20  or  to secure the future payment of money, or the future transfer of any
    21  such stock, or certificates.  The purchase, redemption or other reacqui-
    22  sition of its own shares by a corporation is subject to tax  under  this
    23  article  [unless]  regardless  of  whether  such shares are cancelled on
    24  reacquisition pursuant to the provisions of section five hundred fifteen
    25  of the business corporation law, or [unless] whether within one year  of
    26  the  date  of  such  purchase,  redemption  or other reacquisition, such
    27  shares are cancelled by an appropriate amendment  to  the  corporation's

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14012-01-9

        A. 9748                             2

     1  certificate  of  incorporation or by action of the board of directors of
     2  such corporation.
     3    2.  Except  as otherwise provided by [section two hundred seventy-a of
     4  this chapter] subdivision two-a of this section, the tax imposed by this
     5  section shall be two and one-half cents for each share, except in  cases
     6  where  the shares or certificates are sold, in which cases the tax shall
     7  be at the rate of one and one-quarter cents for  each  share  where  the
     8  selling  price  is  less  than  five dollars per share; two and one-half
     9  cents for each share where the selling price is five dollars or more per
    10  share and less than ten dollars  per  share;  three  and  three-quarters
    11  cents  for each share where the selling price is ten dollars or more per
    12  share and less than twenty dollars per share and  five  cents  for  each
    13  share where the selling price is twenty dollars or more per share.
    14    2-a.  Notwithstanding  the  provisions  of  subdivision  two  of  this
    15  section, the tax imposed by this section for the purchase, redemption or
    16  other reacquisition of its own shares by a corporation shall be one-half
    17  of one percent of the value paid by such corporation for such shares.
    18    § 2. This act shall take effect immediately.
feedback