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 §3-0323, 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.
STATE OF NEW YORK
________________________________________________________________________
1406--A
2021-2022 Regular Sessions
IN SENATE
January 11, 2021
___________
Introduced by Sens. SANDERS, BIAGGI, COMRIE, HOYLMAN, JACKSON, MAY,
MYRIE, RAMOS, RIVERA, SALAZAR, SEPULVEDA, SERRANO, STAVISKY -- read
twice and ordered printed, and when printed to be committed to the
Committee on Finance -- 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 Section 280-a of the tax law is REPEALED.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 Section 92-i of the state finance law is REPEALED.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
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:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04222-07-1
S. 1406--A 2
1 § 92-b. Stock transfer tax fund. 1. There is hereby established in the
2 custody of the commissioner of taxation and finance a special fund, to
3 be known as the stock transfer tax fund.
4 2. Such fund shall consist of the revenues derived from the stock
5 transfer tax imposed by article twelve of the tax law and all other
6 moneys credited or transferred thereto from any other fund or source
7 pursuant to law.
8 3. The moneys received from such tax and other sources in such fund[,
9 after deducting the amount the commissioner of taxation and finance
10 shall determine to be necessary for] shall be used to cover the reason-
11 able costs of the state tax commission in administering, collecting and
12 distributing [such] the stock transfer tax, commencing with the fiscal
13 year ending March thirty-first, [nineteen hundred seventy-seven] two
14 thousand twenty-three, [shall be appropriated to (i) the municipal
15 assistance corporation for the city of New York created pursuant to
16 title three of article ten of the public authorities law in order to
17 enable such corporation to fulfill the terms of any agreements made with
18 the holders of its notes and bonds and to carry out its corporate
19 purposes including the maintenance of the capital reserve fund and (ii)
20 to the extent such moneys are not required by such corporation as
21 provided in subdivision seven of section ninety-two-d of this chapter
22 and, after deducting the amount such commissioner shall determine to be
23 necessary for reasonable costs of the state tax commission in adminis-
24 tering and making distributions in accordance with the provisions of
25 section two hundred eighty-a of the tax law from the stock transfer
26 incentive fund, to the stock transfer incentive fund created pursuant to
27 section ninety-two-i of this chapter to enable rebates to be made from
28 such fund under the provisions of section two hundred eighty-a of the
29 tax law and (iii) to the extent such moneys are not required by such
30 fund, as certified by the commissioner of taxation and finance, the
31 balance shall be appropriated to the city of New York, for the support
32 of local government.] and the remainder shall be deposited into the
33 state general fund. Commencing with the fiscal year ending March thir-
34 ty-first, two thousand twenty-three, such remainder shall be deposited
35 into the following funds:
36 (i) twenty-five percent shall be directed to the metropolitan trans-
37 portation authority financial assistance fund established pursuant to
38 section ninety-two-ff of this article, of which fifty percent shall be
39 used for the purpose of operations and fifty percent shall be used for
40 the purpose of capital projects;
41 (ii) ten percent shall be directed to the division of housing and
42 community renewal for the purpose of capital projects and other improve-
43 ments to address issues relating to conditions of governance and habita-
44 bility, including but not limited to, heating, mold, or lead, and other
45 such conditions affecting the health and safety of tenants at housing
46 developments owned or operated by the New York city housing authority;
47 (iii) fifteen percent shall be directed to the highway and bridge
48 capital account in the dedicated highway and bridge trust fund estab-
49 lished pursuant to section eighty-nine-b of this article;
50 (iv) nine percent shall be directed to the dedicated highway and
51 bridge trust fund established pursuant to section eighty-nine-b of this
52 article, to be directed towards the infrastructure, maintenance and
53 development of rail lines for AMTRAK in the northeast corridor;
54 (v) five percent shall be directed to the local infrastructure account
55 of the general fund established pursuant to section seventy-two of this
S. 1406--A 3
1 article to be directed to the Consolidated Local Street and Highway
2 Improvement Program (CHIPS);
3 (vi) five percent shall be directed to the local infrastructure
4 account of the general fund to be dedicated to the safe water and
5 infrastructure action program as established by section 3-0323 of the
6 environmental conservation law;
7 (vii) five percent shall be directed to the municipal assistance state
8 aid fund established pursuant to section ninety-two-e of this article;
9 (viii) four percent shall be directed to the dedicated mass transpor-
10 tation trust fund to the credit of the non-MTA account for payment to
11 downstate transit systems other than those transit systems operated by
12 the metropolitan transportation authority;
13 (ix) four percent shall be directed to the dedicated mass transporta-
14 tion trust fund to the credit of the non-MTA account for payment to
15 upstate transit systems;
16 (x) thirteen percent shall be directed to the energy research develop-
17 ment operating fund pursuant to the provisions of section eighteen
18 hundred fifty-nine of the public authorities law, to be directed to the
19 clean energy fund and shall be divided equally among the four investment
20 portfolios that make up such fund;
21 (xi) two and one-half percent shall be directed to the city university
22 of New York, of which fifty percent shall be used for the purpose of
23 capital improvements and infrastructure projects and fifty percent shall
24 be used for the purpose of supporting academic programs at city of New
25 York institutions; and
26 (xii) two and one-half percent shall be directed to the state univer-
27 sity of New York institutions, of which fifty percent shall be used for
28 the purposes of supporting and expanding services and care at state
29 university of New York hospitals, state university of New York academic
30 medical centers and fifty percent shall be used for the purpose of
31 supporting academic programs at state university of New York insti-
32 tutions.
33 4. [After the deduction of such costs of the state tax commission in
34 administering, collecting and distributing such tax, the balances in the
35 stock transfer tax fund so appropriated shall be distributed and paid on
36 the last business day of September, December, March and June into the
37 special account established for the municipal assistance corporation for
38 the city of New York in the municipal assistance tax fund established
39 pursuant to subdivision one of section ninety-two-d of this chapter,
40 unless and to the extent the balances in such fund on each such payment
41 day are not required by such corporation as provided in said subdivision
42 seven of said section ninety-two-d in which case the balance not so
43 required, if any, after the deduction of such costs of the state tax
44 commission in administering and making distributions in accordance with
45 the provisions of section two hundred eighty-a of the tax law from the
46 stock transfer incentive fund shall be distributed and paid to the stock
47 transfer incentive fund in the custody of the commissioner of taxation
48 and finance established pursuant to section ninety-two-i of this chapter
49 and unless and to the extent that the balances in the stock transfer tax
50 fund on each such payment day are not required by the stock transfer
51 incentive fund as provided in such section ninety-two-i of this chapter
52 in which case the balance not so required, if any, shall be distributed
53 and paid to the chief fiscal officer of the city of New York to be paid
54 into the treasury of the city to the credit of the general fund or paid
55 by the commissioner of taxation and finance to such other account or
56 fund as may be designated in writing by such chief fiscal officer at
S. 1406--A 4
1 least ten business days prior to such last day and on each such day, the
2 commissioner of taxation and finance shall certify to the comptroller
3 the amount deducted for administering, collecting and distributing such
4 tax during such quarterly period and shall pay such amount into the
5 general fund of the state treasury to the credit of the state purposes
6 fund therein. In no event shall any amount (other than the amount to be
7 deducted for administering, collecting and distributing such tax) be
8 distributed or paid from the stock transfer tax fund to any person other
9 than the municipal assistance corporation for the city of New York
10 unless and until the aggregate of all payments certified to the comp-
11 troller as required by such corporation in order to comply with its
12 agreements with the holders of its notes and bonds and to carry out its
13 corporate purposes, including the maintenance of the capital reserve
14 fund, which remain unappropriated or unpaid to such corporation shall
15 have been appropriated to such corporation and shall have been paid in
16 full provided, however, that no person, including such corporation or
17 the holders of its notes or bonds shall have any lien on such tax and
18 such agreements shall be executory only to the extent of the balances
19 available to the state in such fund. If the balances in such fund are
20 not required by such corporation pursuant to the provisions of this
21 subdivision, on each such last business day of September, December,
22 March and June, the commissioner of taxation and finance shall certify
23 to the comptroller the amount deducted for administering and making
24 distributions in accordance with the provisions of section two hundred
25 eighty-a of the tax law from the stock transfer incentive fund during
26 such quarterly period and he shall pay such amount into the general fund
27 of the state treasury to the credit of the state purposes fund therein.
28 To the extent such moneys are not required by such corporation, as
29 provided in subdivision seven of section ninety-two-d of this chapter,
30 no amount thereof (other than such amount to be deducted for administer-
31 ing, collecting and distributing such tax and such costs in administer-
32 ing and making distributions in accordance with the provisions of
33 section two hundred eighty-a of the tax law from the stock transfer
34 incentive fund) shall be distributed or paid from the stock transfer tax
35 fund other than to such stock transfer incentive fund in the custody of
36 the commissioner of taxation and finance unless and until the aggregate
37 of all payments certified to the comptroller by such commissioner pursu-
38 ant to the provisions of such incentive fund as necessary to provide
39 payments on account of rebates authorized pursuant to section two
40 hundred eighty-a of the tax law which remain unappropriated or unpaid to
41 such fund shall have been appropriated to such fund and shall have been
42 paid in full provided, however, that no person, including any taxpayer
43 under article twelve of the tax law or any member or dealer referred to
44 in subdivisions two-a and six of section two hundred eighty-a of such
45 law, shall have any lien on this fund or the stock transfer incentive
46 fund.
47 5. In no fiscal year shall the total amount paid from the fund exceed
48 the total collections during such fiscal year from the stock transfer
49 tax pursuant to the provisions of article twelve of the tax law and as
50 deposited to the credit of the stock transfer tax fund.
51 6.] All payments from the stock transfer tax fund shall be made on the
52 audit and warrant of the comptroller on vouchers approved by the commis-
53 sioner of taxation and finance.
54 [7. When all the notes and bonds of the municipal assistance corpo-
55 ration for the city of New York have been fully paid and discharged,
56 together with interest thereon and interest on unpaid installments of
S. 1406--A 5
1 interest, and the chairman of the corporation makes the final certif-
2 ication required by subdivision seven of section ninety-two-d of this
3 article, the comptroller must notify the commissioner of taxation and
4 finance that all remaining funds held in the stock transfer tax fund
5 must be released to the stock transfer incentive fund. From that time
6 forward, all funds previously deposited in the stock transfer tax fund
7 pursuant to subdivision two of this section will be deposited directly
8 into the stock transfer incentive fund pursuant to all the rules, regu-
9 lations or instructions that the commissioner may prescribe, after
10 deducting the amount the commissioner determines to be necessary for
11 reasonable costs of the department in administering, collecting and
12 distributing the tax imposed by article twelve of the tax law. Notwith-
13 standing any other provisions of this article, to the extent those
14 moneys are not required by the stock transfer incentive fund for the
15 purpose of administering and making distributions in accordance with the
16 provisions of section two hundred eighty-a of the tax law, as certified
17 by the commissioner of taxation and finance, the balance will be appro-
18 priated to the city of New York for the support of local government.]
19 § 4. Paragraph (c) of subdivision 1 of section 93-b of the state
20 finance law, as added by section 1 of part H of chapter 60 of the laws
21 of 2015, is amended to read as follows:
22 (c) Sources of funds. The sources of funds shall consist of all moneys
23 collected therefor, or moneys credited, appropriated or transferred
24 thereto from any other fund or source pursuant to law or any other
25 moneys made available for the purposes of the fund, including but not
26 limited to funds transferred from the stock transfer tax fund pursuant
27 to subdivision three of section ninety-two-b of this article and funds
28 transferred from the stock transfer incentive fund established by
29 section ninety-two-i of this article and repealed by a chapter of the
30 laws of two thousand twenty-one, which amended this paragraph. Any
31 interest received by the comptroller on moneys on deposit shall be
32 retained and become part of the fund, unless otherwise directed by law.
33 § 5. Subdivision (c) of section 11-503 of the administrative code of
34 the city of New York is REPEALED.
35 § 6. Subdivision 12 of section 11-604 of the administrative code of
36 the city of New York is REPEALED.
37 § 7. All monies accumulated in the stock transfer incentive fund
38 established pursuant to section 92-i of the state finance law on the
39 effective date of this act shall be transferred to the dedicated infras-
40 tructure investment fund as established by section 93-b of the state
41 finance law for the purposes set forth in such section.
42 § 8. The environmental conservation law is amended by adding a new
43 section 3-0323 to read as follows:
44 § 3-0323. Safe water and infrastructure action program.
45 1. Notwithstanding any other provisions of this chapter or any other
46 law and subject to an appropriation made therefor and in accordance with
47 the provisions of this section and with the rules and regulations
48 promulgated by the commissioner in connection therewith, on and after
49 the first day of April, two thousand twenty-two, a consolidated local
50 infrastructure program is hereby established for the purpose of making
51 payments toward the replacement and rehabilitation of existing local
52 municipally-owned and funded drinking water, storm water and sanitary
53 sewer systems. For purposes of this section, such program shall apply to
54 any county, city, town or village drinking water system, storm water
55 system or sanitary sewer system within the state that is not under the
56 maintenance and/or operational jurisdiction of the state nor any private
S. 1406--A 6
1 entity. The commissioner, in conjunction with the environmental facili-
2 ties corporation, shall promulgate all necessary rules and regulations
3 to carry out the program so that an equitable distribution of aid shall
4 be made for the general operation and/or general maintenance of any
5 existing county, city, town and village drinking water system, storm
6 water system or sanitary sewer system.
7 2. On or before the twenty-fifth day of April, June, September and
8 November of each state fiscal year commencing with the state fiscal year
9 beginning on April first, two thousand twenty-three, there shall be
10 distributed and paid to counties, cities, towns and villages an amount
11 equal to the moneys appropriated for the purposes of this section
12 divided by the number of payment dates in that state fiscal year. Such
13 amounts shall be distributed and paid pursuant to subdivision three of
14 this section.
15 3. Amounts shall be distributed for local drinking water, storm water
16 and sanitary sewer systems based upon the total length and width of all
17 pipelines and mains owned and operated by the municipality.
18 4. Monies made available may be used to match other state and federal
19 funds made available for such projects. The funds may also be used to
20 support special improvement districts created to provide drinking water,
21 waste water and storm water services under articles twelve, twelve-A,
22 twelve-C and thirteen of the town law. The remainder of the apportion-
23 ment may be used for any existing drinking water, storm water or sewer
24 system purchases, including but not limited to, the acquisition of mate-
25 rials for the replacement or rehabilitation.
26 5. For any city, town, or village which proposes infrastructure
27 consolidation under this section or merges with another municipality,
28 the funds appropriated under this section may fund costs associated with
29 such consolidation.
30 6. For each fiscal year, starting in two thousand twenty-three, funds
31 are to be made available to the local infrastructure assistance account
32 of the general fund, and distributed from that account, in an amount
33 that is at least equal to those appropriated and made available in the
34 Consolidated Local Street and Highway Improvement Program (CHIPS).
35 § 9. Subdivision 3 of section 270 of the tax law, as amended by chap-
36 ter 301 of the laws of 1967, is amended and two new subdivisions 3-a and
37 9 are added to read as follows:
38 3. It shall be the duty of the person or persons [making or effectu-
39 ating the sale or transfer, including the person or persons] to whom the
40 sale or transfer is made, to pay the tax provided by this article,
41 unless the parties to the sale or transfer agree to otherwise allocate
42 the cost of such tax among themselves; provided, however, that this
43 subdivision shall not apply to any sale or transfer wherein the vendor
44 or transferor is a governmental entity or international organization
45 which is not subject to the tax.
46 3-a. No purchaser of a stock or other certificate in a transaction
47 covered under this article shall have legal title or ownership of such
48 stock or certificate unless such purchaser has proof of purchase demon-
49 strating that such tax has been paid. Such proof of purchase shall
50 consist of either: (a) a receipt for the transaction showing that such
51 tax has been paid, the amount of such tax paid, and a representation
52 that such amount constitutes payment in full; or (b) a stamp required
53 pursuant to subdivision four of this section.
54 9. Notwithstanding any other provision to the contrary, a transaction
55 referred to in subdivision one of this section is subject to tax if any
56 activity in furtherance of the transaction occurs within the state or if
S. 1406--A 7
1 a party involved in the transaction satisfies a nexus with New York
2 state which shall be defined as broadly as is permitted under the United
3 States Constitution.
4 § 10. This act shall take effect immediately.
