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S01406 Summary:

BILL NOS01406A
 
SAME ASSAME AS A03353-A
 
SPONSORSANDERS
 
COSPNSRBENJAMIN, BIAGGI, COMRIE, GIANARIS, HOYLMAN, JACKSON, MAY, MYRIE, PARKER, RAMOS, RIVERA, SALAZAR, SEPULVEDA, SERRANO, STAVISKY
 
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 §3-0323, 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.
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S01406 Actions:

BILL NOS01406A
 
01/11/2021REFERRED TO FINANCE
02/23/2021AMEND AND RECOMMIT TO FINANCE
02/23/2021PRINT NUMBER 1406A
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S01406 Text:



 
                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.
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