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A07791 Summary:

BILL NOA07791
 
SAME ASNo Same As
 
SPONSORSteck
 
COSPNSR
 
MLTSPNSR
 
Rpld 280-a, amd 270, Tax L; rpld 92-i, amd 92-b & 93-b, St Fin L; rpld 11-503 sub (c), 11-604 sub 12, NYC Ad Cd; add 3-0321, En Con L
 
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.
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A07791 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7791
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 22, 2019
                                       ___________
 
        Introduced  by M. of A. STECK -- 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 Section 280-a of the tax law is REPEALED.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 Section 92-i of the state finance law is REPEALED.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-
     9  bered  by section 1 of chapter 3 of the laws of 1966, is amended to read
    10  as follows:
    11    § 92-b. Stock transfer tax fund. 1. There is hereby established in the
    12  custody of the commissioner of taxation and finance a special  fund,  to
    13  be known as the stock transfer tax fund.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09894-04-9

        A. 7791                             2
 
     1    2.  Such  fund  shall  consist  of the revenues derived from the stock
     2  transfer tax imposed by article twelve of the  tax  law  and  all  other
     3  moneys  credited  or  transferred  thereto from any other fund or source
     4  pursuant to law.
     5    3.  The moneys received from such tax and other sources in such fund[,
     6  after deducting the amount the  commissioner  of  taxation  and  finance
     7  shall  determine to be necessary for] shall be used to cover the reason-
     8  able costs of the state tax commission in administering, collecting  and
     9  distributing  [such]  the stock transfer tax, commencing with the fiscal
    10  year ending March thirty-first,  [nineteen  hundred  seventy-seven]  two
    11  thousand twenty-one, [shall be appropriated to (i) the municipal assist-
    12  ance  corporation  for  the  city  of New York created pursuant to title
    13  three of article ten of the public authorities law in  order  to  enable
    14  such  corporation  to  fulfill the terms of any agreements made with the
    15  holders of its notes and bonds and to carry out its  corporate  purposes
    16  including  the  maintenance  of the capital reserve fund and (ii) to the
    17  extent such moneys are not required by such corporation as  provided  in
    18  subdivision  seven  of  section  ninety-two-d of this chapter and, after
    19  deducting the amount such commissioner shall determine to  be  necessary
    20  for  reasonable  costs  of the state tax commission in administering and
    21  making distributions in accordance with the provisions  of  section  two
    22  hundred  eighty-a of the tax law from the stock transfer incentive fund,
    23  to the stock transfer incentive fund created pursuant to  section  nine-
    24  ty-two-i  of  this  chapter  to enable rebates to be made from such fund
    25  under the provisions of section two hundred eighty-a of the tax law  and
    26  (iii) to the extent such moneys are not required by such fund, as certi-
    27  fied  by  the commissioner of taxation and finance, the balance shall be
    28  appropriated to the city of New York, for the support of  local  govern-
    29  ment.] and the remainder shall be deposited into the following funds:
    30    (i)  twenty-five  percent shall be directed to the metropolitan trans-
    31  portation authority financial assistance fund  established  pursuant  to
    32  section ninety-two-ff of this article;
    33    (ii)  ten  percent  shall  be  directed to the division of housing and
    34  community renewal for the purpose of capital projects and other improve-
    35  ments to address issues relating to conditions of governance and habita-
    36  bility, including but not limited to, heating, mold, or lead, and  other
    37  such  conditions  affecting  the health and safety of tenants at housing
    38  developments owned or operated by the New York city housing authority;
    39    (iii) fifteen percent shall be directed  to  the  highway  and  bridge
    40  capital  account  in  the dedicated highway and bridge trust fund estab-
    41  lished pursuant to section eighty-nine-b of this article;
    42    (iv) ten percent shall be directed to the dedicated highway and bridge
    43  trust fund established pursuant to section eighty-nine-b of  this  arti-
    44  cle, to be directed towards the infrastructure, maintenance and develop-
    45  ment of rail lines for AMTRAK in the northeast corridor;
    46    (v) five percent shall be directed to the local infrastructure account
    47  of  the general fund established pursuant to section seventy-two of this
    48  article to be directed to the  Consolidated  Local  Street  and  Highway
    49  Improvement Program (CHIPS);
    50    (vi)  five  percent  shall  be  directed  to  the local infrastructure
    51  account of the general fund to  be  dedicated  to  the  safe  water  and
    52  infrastructure  action  program  as established by section 3-0321 of the
    53  environmental conservation law;
    54    (vii) five percent shall be directed to the municipal assistance state
    55  aid fund established pursuant to section ninety-two-e of this article;

        A. 7791                             3
 
     1    (viii) five percent shall be directed to the dedicated mass  transpor-
     2  tation  trust  fund  to the credit of the non-MTA account for payment to
     3  downstate transit systems other than those transit systems  operated  by
     4  the metropolitan transportation authority;
     5    (ix)  five percent shall be directed to the dedicated mass transporta-
     6  tion trust fund to the credit of the  non-MTA  account  for  payment  to
     7  upstate transit systems; and
     8    (x)  fifteen  percent  shall  be  directed  to the energy research and
     9  development operating fund pursuant to the provisions of  section  eigh-
    10  teen hundred fifty-nine of the public authorities law, to be directed to
    11  the  clean  energy  fund  and  shall  be  divided equally among the four
    12  investment portfolios that make up such fund.
    13    4. [After the deduction of such costs of the state tax  commission  in
    14  administering, collecting and distributing such tax, the balances in the
    15  stock transfer tax fund so appropriated shall be distributed and paid on
    16  the  last  business  day of September, December, March and June into the
    17  special account established for the municipal assistance corporation for
    18  the city of New York in the municipal assistance  tax  fund  established
    19  pursuant  to  subdivision  one  of section ninety-two-d of this chapter,
    20  unless and to the extent the balances in such fund on each such  payment
    21  day are not required by such corporation as provided in said subdivision
    22  seven  of  said  section  ninety-two-d  in which case the balance not so
    23  required, if any, after the deduction of such costs  of  the  state  tax
    24  commission  in administering and making distributions in accordance with
    25  the provisions of section two hundred eighty-a of the tax law  from  the
    26  stock transfer incentive fund shall be distributed and paid to the stock
    27  transfer  incentive  fund in the custody of the commissioner of taxation
    28  and finance established pursuant to section ninety-two-i of this chapter
    29  and unless and to the extent that the balances in the stock transfer tax
    30  fund on each such payment day are not required  by  the  stock  transfer
    31  incentive  fund as provided in such section ninety-two-i of this chapter
    32  in which case the balance not so required, if any, shall be  distributed
    33  and  paid to the chief fiscal officer of the city of New York to be paid
    34  into the treasury of the city to the credit of the general fund or  paid
    35  by  the  commissioner  of  taxation and finance to such other account or
    36  fund as may be designated in writing by such  chief  fiscal  officer  at
    37  least ten business days prior to such last day and on each such day, the
    38  commissioner  of  taxation  and finance shall certify to the comptroller
    39  the amount deducted for administering, collecting and distributing  such
    40  tax  during  such  quarterly  period  and shall pay such amount into the
    41  general fund of the state treasury to the credit of the  state  purposes
    42  fund  therein. In no event shall any amount (other than the amount to be
    43  deducted for administering, collecting and  distributing  such  tax)  be
    44  distributed or paid from the stock transfer tax fund to any person other
    45  than  the  municipal  assistance  corporation  for  the city of New York
    46  unless and until the aggregate of all payments certified  to  the  comp-
    47  troller  as  required  by  such  corporation in order to comply with its
    48  agreements with the holders of its notes and bonds and to carry out  its
    49  corporate  purposes,  including  the  maintenance of the capital reserve
    50  fund, which remain unappropriated or unpaid to  such  corporation  shall
    51  have  been  appropriated to such corporation and shall have been paid in
    52  full provided, however, that no person, including  such  corporation  or
    53  the  holders  of  its notes or bonds shall have any lien on such tax and
    54  such agreements shall be executory only to the extent  of  the  balances
    55  available  to  the  state in such fund. If the balances in such fund are
    56  not required by such corporation pursuant  to  the  provisions  of  this

        A. 7791                             4

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

        A. 7791                             5
 
     1    § 4. Paragraph (c) of subdivision 1  of  section  93-b  of  the  state
     2  finance  law,  as added by section 1 of part H of chapter 60 of the laws
     3  of 2015, is amended to read as follows:
     4    (c) Sources of funds. The sources of funds shall consist of all moneys
     5  collected  therefor,  or  moneys  credited,  appropriated or transferred
     6  thereto from any other fund or source  pursuant  to  law  or  any  other
     7  moneys  made  available  for the purposes of the fund, including but not
     8  limited to funds transferred from the stock transfer tax  fund  pursuant
     9  to  subdivision  three of section ninety-two-b of this article and funds
    10  transferred from  the  stock  transfer  incentive  fund  established  by
    11  section  ninety-two-i  of  this article and repealed by a chapter of the
    12  laws of two thousand nineteen, which amended this paragraph.  Any inter-
    13  est received by the comptroller on moneys on deposit shall  be  retained
    14  and become part of the fund, unless otherwise directed by law.
    15    §  5.  Subdivision (c) of section 11-503 of the administrative code of
    16  the city of New York is REPEALED.
    17    § 6. Subdivision 12 of section 11-604 of the  administrative  code  of
    18  the city of New York is REPEALED.
    19    §  7.  All  monies  accumulated  in  the stock transfer incentive fund
    20  established pursuant to section 92-i of the state  finance  law  on  the
    21  effective date of this act shall be transferred to the dedicated infras-
    22  tructure  investment  fund  as  established by section 93-b of the state
    23  finance law for the purposes set forth in such section.
    24    § 8. The environmental conservation law is amended  by  adding  a  new
    25  section 3-0321 to read as follows:
    26  § 3-0321. Safe water and infrastructure action program.
    27    1.  Notwithstanding  any other provisions of this chapter or any other
    28  law and subject to an appropriation made therefor and in accordance with
    29  the provisions of this  section  and  with  the  rules  and  regulations
    30  promulgated  by  the  commissioner in connection therewith, on and after
    31  the first day of  April,  two  thousand  twenty,  a  consolidated  local
    32  infrastructure  program  is hereby established for the purpose of making
    33  payments toward the replacement and  rehabilitation  of  existing  local
    34  municipally-owned  and  funded  drinking water, storm water and sanitary
    35  sewer systems. For purposes of this section, such program shall apply to
    36  any county, city, town or village drinking  water  system,  storm  water
    37  system  or  sanitary sewer system within the state that is not under the
    38  maintenance and/or operational jurisdiction of the state nor any private
    39  entity. The commissioner, in conjunction with the environmental  facili-
    40  ties  corporation,  shall promulgate all necessary rules and regulations
    41  to carry out the program so that an equitable distribution of aid  shall
    42  be  made  for  the  general  operation and/or general maintenance of any
    43  existing county, city, town and village  drinking  water  system,  storm
    44  water system or sanitary sewer system.
    45    2.  On  or  before  the twenty-fifth day of April, June, September and
    46  November of each state fiscal year commencing with the state fiscal year
    47  beginning on April first, two thousand twenty, there shall  be  distrib-
    48  uted and paid to counties, cities, towns and villages an amount equal to
    49  the  moneys appropriated for the purposes of this section divided by the
    50  number of payment dates in that state fiscal year. Such amounts shall be
    51  distributed and paid pursuant to subdivision three of this section.
    52    3. Amounts shall be distributed for local drinking water, storm  water
    53  and  sanitary sewer systems based upon the total length and width of all
    54  pipelines and mains owned and operated by the municipality.
    55    4. Monies made available may be used to match other state and  federal
    56  funds  made  available for such projects.  The funds may also be used to

        A. 7791                             6
 
     1  support special improvement districts created to provide drinking water,
     2  waste water and storm water services under  articles  twelve,  twelve-A,
     3  twelve-C  and thirteen of the town law.  The remainder of the apportion-
     4  ment  may  be used for any existing drinking water, storm water or sewer
     5  system purchases, including but not limited to, the acquisition of mate-
     6  rials for the replacement or rehabilitation.
     7    5. For any  city,  town,  or  village  which  proposes  infrastructure
     8  consolidation  under  this  section or merges with another municipality,
     9  the funds appropriated under this section may fund costs associated with
    10  such consolidation.
    11    6. For each fiscal year, starting in two thousand twenty, funds are to
    12  be made available to the local infrastructure assistance account of  the
    13  general fund, and distributed from that account, in an amount that is at
    14  least equal to those appropriated and made available in the Consolidated
    15  Local Street and Highway Improvement Program (CHIPS).
    16    § 9. Section 270 of the tax law is amended by adding a new subdivision
    17  9 to read as follows:
    18    9.  Notwithstanding any other provision to the contrary, a transaction
    19  referred to in subdivision one of this section is subject to tax if  any
    20  activity in furtherance of the transaction occurs within the state or if
    21  a  party  involved  in  the  transaction satisfies a nexus with New York
    22  state which shall be defined as broadly as is permitted under the United
    23  States Constitution.
    24    § 10. This act shall take effect April 1, 2020.
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