senate Bill S3892A

2011-2012 Legislative Session

Reduces rebate of the stock transfer tax to 80% and provides for appropriation of the balance of such tax: 25% to the city of New York and 75% to the state

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to investigations and government operations
Dec 21, 2011 print number 3892a
amend and recommit to investigations and government operations
Mar 08, 2011 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

S3892 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §280-a, Tax L; amd §92-b, St Fin L

S3892 - Bill Texts

view summary

Reduces rebate of the stock transfer tax to 80% and provides for appropriation of the balance of such tax: 25% to the city of New York and 75% to the state.

view sponsor memo
BILL NUMBER:S3892

TITLE OF BILL:
An act
to amend the tax law and the state finance law, in relation to the stock
transfer tax

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to reduce the rebate of the stock
transfer tax to 80% and provides for appropriation of the balance of
such tax 25% to the city of New York and 75% to the state.

SUMMARY OF PROVISIONS:
Section 1 amends subdivision 1 of section 280-a of the tax law, as
amended by chapter 578 of the laws of 1981, by adding that on or
before September 30th, 2011, 80% of the tax incurred and paid shall
be allowed as a rebate on the stock transfer tax paid.

Section 2 amends subdivision 3 and 4 of section 92-b of the state
finance law, subdivision 3 as amended by chapter 878 of the laws of
1977 and subdivision 4 as amended by chapter 724 of the laws of 1979,
to appropriate 25% of the balance of the stock transfer tax to the
city of New York and 75% of the balance of the stock transfer tax to
the state

Section 3 provides for this act to take effect September 1, 2011.

JUSTIFICATION:
New York faces a devastating budget deficit this year with a shortfall
estimated at nearly $10 billion and growing. As a result, NYS will
make dramatic cuts to schools, health care, energy and environmental
programs and a drastic reduction in the state workforce. While
spending cuts are necessary to address the severe budget shortfall
and shared sacrifices are called for from all sectors· of our
communities, it is incumbent upon the legislature to look for ways to
increase revenue in a responsible and legitimate way as well. Shared
sacrifice must come in the form of not only budget cuts but revenue
generating prospects as well.

A responsible approach to looking at potential revenue sources should
necessarily involve reviewing current revenue sources that may not be
utilized as efficiently as possible. One such existing source of
revenue is the "Stock Transfer Tax It that imposes a small fee on the
sale or transfer of stocks, bonds and other financial assets.
The New York State "Stock Transfer Tax" has been in existence since
1915, and was used as a revenue source by the State for many years
until it was slowly reduced by virtue of rebates. Since 1981 the tax
has been rebated at a rate of 100%, therefore every year $16 billion
in stock transfer taxes (at a nickel a share) is collected by the
state and immediately returned to Wall Street. Rolling back a small
proportion of the Stock Transfer Tax rebate on financial transactions
to an 80%, as opposed to 100%, rebate will help to significantly
address the deficit by raising a substantial amount of revenue. It
will also continue to provide a substantial rebate of this tax to
investors and is a fair and reasonable shared sacrifice.


PRIOR LEGISLATIVE HISTORY:
None.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.

EFFECTIVE DATE:
This act shall take effect September 1, 2011.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3892

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 8, 2011
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law and the state finance law,  in  relation  to
  the stock transfer tax

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of section 280-a of the tax law,  as  amended
by chapter 578 of the laws of 1981, is amended to read as follows:
  1.  Except  as  otherwise  provided  in  subdivision  fifteen  of this
section, where a tax shall have been paid under this article  a  portion
of  the  amount paid shall be allowed as a rebate and such portion shall
be paid to the taxpayer but only to the extent that moneys are available
for the payment of such rebates in the  stock  transfer  incentive  fund
established  pursuant  to section ninety-two-i of the state finance law.
The portion of the amount of tax paid which is to be allowed as a rebate
shall be thirty percent of the tax incurred  and  paid  on  transactions
subject  to the stock transfer tax occurring on and after October first,
nineteen hundred seventy-nine and  on  or  before  September  thirtieth,
nineteen  hundred  eighty and sixty percent of the tax incurred and paid
on such transactions occurring on  and  after  October  first,  nineteen
hundred  eighty  and  on or before September thirtieth, nineteen hundred
eighty-one and all of the amount of  tax  incurred  and  paid  shall  be
allowed  as  a  rebate on transactions subject to the stock transfer tax
occurring on and after October first, nineteen hundred eighty-one AND ON
OR BEFORE SEPTEMBER THIRTIETH, TWO THOUSAND ELEVEN, AND  EIGHTY  PERCENT
OF THE TAX INCURRED AND PAID SHALL BE ALLOWED AS A REBATE ON SUCH TRANS-
ACTIONS OCCURRING ON AND AFTER OCTOBER FIRST, TWO THOUSAND ELEVEN.
  S  2.  Subdivision  3  and 4 of section 92-b of the state finance law,
subdivision 3 as amended by chapter 878 of the laws of 1977 and subdivi-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09580-01-1

S. 3892                             2

sion 4 as amended by chapter 724 of the laws of  1979,  are  amended  to
read as follows:
  3.  The  moneys received from such tax and other sources in such fund,
after deducting the amount the  commissioner  of  taxation  and  finance
shall  determine  to  be necessary for reasonable costs of the state tax
commission in  administering,  collecting  and  distributing  such  tax,
commencing  with  the  fiscal  year  ending March thirty-first, nineteen
hundred seventy-seven,  shall  be  appropriated  to  (i)  the  municipal
assistance  corporation  for  the  city  of New York created pursuant to
title three of article ten of the public authorities  law  in  order  to
enable such corporation to fulfill the terms of any agreements made with
the  holders  of  its  notes  and  bonds  and to carry out its corporate
purposes including the maintenance of the capital reserve fund and  (ii)
to  the  extent  such  moneys  are  not  required by such corporation as
provided in subdivision seven of section ninety-two-d of this  [chapter]
ARTICLE  and,  after deducting the amount such commissioner shall deter-
mine to be necessary for reasonable costs of the state tax commission in
administering and making distributions in accordance with the provisions
of section two hundred eighty-a of the tax law from the  stock  transfer
incentive fund, to the stock transfer incentive fund created pursuant to
section  ninety-two-i  of this [chapter] ARTICLE to enable rebates to be
made from such fund under the provisions of section two hundred eighty-a
of the tax law and (iii) to the extent such moneys are not  required  by
such  fund,  as  certified  by the commissioner of taxation and finance,
TWENTY-FIVE PERCENT OF the balance shall be appropriated to the city  of
New  York,  for the support of local government AND SEVENTY-FIVE PERCENT
OF THE BALANCE SHALL BE PAID INTO THE GENERAL FUND OF THE STATE TREASURY
TO THE CREDIT OF THE STATE PURPOSES FUND THEREIN.
  4. After the deduction of such costs of the state  tax  commission  in
administering, collecting and distributing such tax, the balances in the
stock transfer tax fund so appropriated shall be distributed and paid on
the  last  business  day of September, December, March and June into the
special account established for the municipal assistance corporation for
the city of New York in the municipal assistance  tax  fund  established
pursuant  to  subdivision  one of section ninety-two-d of this [chapter]
ARTICLE, unless and to the extent the balances in such fund on each such
payment day are not required by such corporation  as  provided  in  said
subdivision seven of said section ninety-two-d in which case the balance
not  so required, if any, after the deduction of such costs of the state
tax commission in administering and making distributions  in  accordance
with  the provisions of section two hundred eighty-a of the tax law from
the stock transfer incentive fund shall be distributed and paid  to  the
stock  transfer  incentive  fund  in  the custody of the commissioner of
taxation and finance established pursuant  to  section  ninety-two-i  of
this [chapter] ARTICLE and unless and to the extent that the balances in
the stock transfer tax fund on each such payment day are not required by
the  stock  transfer  incentive fund as provided in such section ninety-
two-i of this [chapter] ARTICLE in which case TWENTY-FIVE PERCENT OF the
balance not so required, if any, shall be distributed and  paid  to  the
chief  fiscal officer of the city of New York to be paid into the treas-
ury of the city to the credit of  the  general  fund  [or  paid  by  the
commissioner  of  taxation  and finance to such other account or fund as
may be designated in writing by such chief fiscal officer at  least  ten
business  days  prior  to  such  last day and on each such day, the] AND
SEVENTY-FIVE PERCENT OF THE BALANCE NOT SO REQUIRED, SHALL BE PAID  INTO
THE  GENERAL  FUND  OF  THE  STATE  TREASURY  TO THE CREDIT OF THE STATE

S. 3892                             3

PURPOSES FUND THEREIN. THE commissioner of taxation  and  finance  shall
certify  to  the  comptroller  the  amount  deducted  for administering,
collecting and distributing such tax during such  quarterly  period  and
shall pay such amount into the general fund of the state treasury to the
credit  of the state purposes fund therein. In no event shall any amount
(other than the amount to be deducted for administering, collecting  and
distributing  such  tax)  be distributed or paid from the stock transfer
tax fund to any person other than the municipal  assistance  corporation
for  the city of New York unless and until the aggregate of all payments
certified to the comptroller as required by such corporation in order to
comply with its agreements with the holders of its notes and  bonds  and
to  carry  out  its corporate purposes, including the maintenance of the
capital reserve fund, which remain  unappropriated  or  unpaid  to  such
corporation  shall  have been appropriated to such corporation and shall
have been paid in full provided, however, that no person, including such
corporation or the holders of its notes or bonds shall have any lien  on
such  tax  and  such agreements shall be executory only to the extent of
the balances available to the state in such fund.  If  the  balances  in
such  fund  are  not  required  by  such  corporation  pursuant  to  the
provisions of this subdivision,  on  each  such  last  business  day  of
September,  December,  March  and June, the commissioner of taxation and
finance shall certify to the comptroller the amount deducted for  admin-
istering  and  making distributions in accordance with the provisions of
section two hundred eighty-a of the tax  law  from  the  stock  transfer
incentive fund during such quarterly period and he shall pay such amount
into  the  general fund of the state treasury to the credit of the state
purposes fund therein.  To the extent such moneys are  not  required  by
such  corporation,  as  provided in subdivision seven of section ninety-
two-d of this [chapter] ARTICLE, no  amount  thereof  (other  than  such
amount  to  be  deducted  for administering, collecting and distributing
such tax and such costs in administering  and  making  distributions  in
accordance  with  the  provisions of section two hundred eighty-a of the
tax law from the stock transfer incentive fund) shall be distributed  or
paid  from the stock transfer tax fund other than to such stock transfer
incentive fund in the  custody  of  the  commissioner  of  taxation  and
finance  unless and until the aggregate of all payments certified to the
comptroller by such commissioner pursuant  to  the  provisions  of  such
incentive  fund  as  necessary to provide payments on account of rebates
authorized pursuant to section two hundred eighty-a of the tax law which
remain unappropriated or unpaid to such fund shall have  been  appropri-
ated  to  such  fund and shall have been paid in full provided, however,
that no person, including any taxpayer under article twelve of  the  tax
law or any member or dealer referred to in subdivisions two-a and six of
section  two  hundred  eighty-a of such law, shall have any lien on this
fund or the stock transfer incentive fund.
  S 3. This act shall take effect September 1, 2011.

S3892A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §280-a, Tax L; amd §92-b, St Fin L

S3892A (ACTIVE) - Bill Texts

view summary

Reduces rebate of the stock transfer tax to 80% and provides for appropriation of the balance of such tax: 25% to the city of New York and 75% to the state.

view sponsor memo
BILL NUMBER:S3892A

TITLE OF BILL:

An act
to amend the tax law and the state finance law, in relation to the stock
transfer tax

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to reduce the rebate of the stock transfer
tax to 80% and provides for appropriation of the balance of such tax
25% to the city of New York and 75% to the state.

SUMMARY OF PROVISIONS:

Section 1 amends subdivision 1 of section 280-a of the tax law, as
amended by chapter 578 of the laws of 1981, by adding that on or
before September 30, 2012, 80% of the tax incurred and paid shall be
allowed as a rebate on the stock transfer tax paid.

Section 2 amends subdivision 3 and 4 of section 92-b of the state
finance law, subdivision 3 as amended by chapter 878 of the laws of
1977 and subdivision 4 as amended by chapter 724 of the laws of 1979,
to appropriate 25% of the balance of the stock transfer tax to the
city of New York and 75% of the balance of the stock transfer tax to
the state

Section 3 provides for this act to take effect September 1, 2012.

JUSTIFICATION:

New York faces a devastating budget deficit this year with a shortfall
estimated at nearly $10 billion and growing. As a result, NYS will
make dramatic cuts to schools, health care, energy and environmental
programs and a drastic reduction in the state workforce. While
spending cuts are necessary to address the severe budget shortfall
and shared sacrifices are called for from all sectors of our
communities, it is incumbent upon the legislature to look for ways to
increase revenue in a responsible and legitimate way as well. Shared
sacrifice must come in the form of not only budget cuts but revenue
generating prospects as well.

A responsible approach to looking at potential revenue sources should
necessarily involve reviewing current revenue sources that may not be
utilized as efficiently as possible. One such existing source of
revenue is the "Stock Transfer Tax" that imposes a small fee on the
sale or transfer of stocks, bonds and other financial assets.
The New York State "Stock Transfer Tax" has been in existence since
1915, and was used as a revenue source by the State for many years
until it was slowly reduced by virtue of rebates. Since 1981 the tax
has been rebated at a rate of 100%, therefore every year $16 billion
in stock transfer taxes (at a nickel a share) is collected by the
state and immediately returned to Wall Street. Rolling back a small
proportion of the Stock Transfer Tax rebate on financial transactions
to an 80%, as opposed to 100%, rebate will help to significantly


address the deficit by raising a substantial amount of revenue. It
will also continue to provide a substantial rebate of this tax to
investors and is a fair and reasonable shared sacrifice.

PRIOR LEGISLATIVE HISTORY:

None.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

EFFECTIVE DATE:

This act shall take effect September 1, 2012.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3892--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 8, 2011
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend the tax law and the state finance law, in relation to
  the stock transfer tax

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision 1 of section 280-a of the tax law, as amended
by chapter 578 of the laws of 1981, is amended to read as follows:
  1. Except  as  otherwise  provided  in  subdivision  fifteen  of  this
section,  where  a tax shall have been paid under this article a portion
of the amount paid shall be allowed as a rebate and such  portion  shall
be paid to the taxpayer but only to the extent that moneys are available
for  the  payment  of  such rebates in the stock transfer incentive fund
established pursuant to section ninety-two-i of the state  finance  law.
The portion of the amount of tax paid which is to be allowed as a rebate
shall  be  thirty  percent  of the tax incurred and paid on transactions
subject to the stock transfer tax occurring on and after October  first,
nineteen  hundred  seventy-nine  and  on  or before September thirtieth,
nineteen hundred eighty and sixty percent of the tax incurred  and  paid
on  such  transactions  occurring  on  and after October first, nineteen
hundred eighty and on or before September  thirtieth,  nineteen  hundred
eighty-one  and  all  of  the  amount  of tax incurred and paid shall be
allowed as a rebate on transactions subject to the  stock  transfer  tax
occurring on and after October first, nineteen hundred eighty-one AND ON
OR  BEFORE  SEPTEMBER THIRTIETH, TWO THOUSAND TWELVE, AND EIGHTY PERCENT
OF THE TAX INCURRED AND PAID SHALL BE ALLOWED AS A REBATE ON SUCH TRANS-
ACTIONS OCCURRING ON AND AFTER OCTOBER FIRST, TWO THOUSAND TWELVE.
  S 2. Subdivisions 3 and 4 of section 92-b of the  state  finance  law,
subdivision 3 as amended by chapter 878 of the laws of 1977 and subdivi-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09580-02-1

S. 3892--A                          2

sion  4  as  amended  by chapter 724 of the laws of 1979, are amended to
read as follows:
  3.  The  moneys received from such tax and other sources in such fund,
after deducting the amount the  commissioner  of  taxation  and  finance
shall  determine  to  be necessary for reasonable costs of the state tax
commission in  administering,  collecting  and  distributing  such  tax,
commencing  with  the  fiscal  year  ending March thirty-first, nineteen
hundred seventy-seven,  shall  be  appropriated  to  (i)  the  municipal
assistance  corporation  for  the  city  of New York created pursuant to
title three of article ten of the public authorities  law  in  order  to
enable such corporation to fulfill the terms of any agreements made with
the  holders  of  its  notes  and  bonds  and to carry out its corporate
purposes including the maintenance of the capital reserve fund and  (ii)
to  the  extent  such  moneys  are  not  required by such corporation as
provided in subdivision seven of section ninety-two-d of this  [chapter]
ARTICLE  and,  after deducting the amount such commissioner shall deter-
mine to be necessary for reasonable costs of the state tax commission in
administering and making distributions in accordance with the provisions
of section two hundred eighty-a of the tax law from the  stock  transfer
incentive fund, to the stock transfer incentive fund created pursuant to
section  ninety-two-i  of this [chapter] ARTICLE to enable rebates to be
made from such fund under the provisions of section two hundred eighty-a
of the tax law and (iii) to the extent such moneys are not  required  by
such  fund,  as  certified  by the commissioner of taxation and finance,
TWENTY-FIVE PERCENT OF the balance shall be appropriated to the city  of
New  York,  for the support of local government AND SEVENTY-FIVE PERCENT
OF THE BALANCE SHALL BE PAID INTO THE GENERAL FUND OF THE STATE TREASURY
TO THE CREDIT OF THE STATE PURPOSES FUND THEREIN.
  4. After the deduction of such costs of the state  tax  commission  in
administering, collecting and distributing such tax, the balances in the
stock transfer tax fund so appropriated shall be distributed and paid on
the  last  business  day of September, December, March and June into the
special account established for the municipal assistance corporation for
the city of New York in the municipal assistance  tax  fund  established
pursuant  to  subdivision  one of section ninety-two-d of this [chapter]
ARTICLE, unless and to the extent the balances in such fund on each such
payment day are not required by such corporation  as  provided  in  said
subdivision seven of said section ninety-two-d in which case the balance
not  so required, if any, after the deduction of such costs of the state
tax commission in administering and making distributions  in  accordance
with  the provisions of section two hundred eighty-a of the tax law from
the stock transfer incentive fund shall be distributed and paid  to  the
stock  transfer  incentive  fund  in  the custody of the commissioner of
taxation and finance established pursuant  to  section  ninety-two-i  of
this [chapter] ARTICLE and unless and to the extent that the balances in
the stock transfer tax fund on each such payment day are not required by
the  stock  transfer  incentive fund as provided in such section ninety-
two-i of this [chapter] ARTICLE in which case TWENTY-FIVE PERCENT OF the
balance not so required, if any, shall be distributed and  paid  to  the
chief  fiscal officer of the city of New York to be paid into the treas-
ury of the city to the credit of  the  general  fund  [or  paid  by  the
commissioner  of  taxation  and finance to such other account or fund as
may be designated in writing by such chief fiscal officer at  least  ten
business  days  prior  to  such  last day and on each such day, the] AND
SEVENTY-FIVE PERCENT OF THE BALANCE NOT SO REQUIRED, SHALL BE PAID  INTO
THE  GENERAL  FUND  OF  THE  STATE  TREASURY  TO THE CREDIT OF THE STATE

S. 3892--A                          3

PURPOSES FUND THEREIN. THE commissioner of taxation  and  finance  shall
certify  to  the  comptroller  the  amount  deducted  for administering,
collecting and distributing such tax during such  quarterly  period  and
shall pay such amount into the general fund of the state treasury to the
credit  of the state purposes fund therein. In no event shall any amount
(other than the amount to be deducted for administering, collecting  and
distributing  such  tax)  be distributed or paid from the stock transfer
tax fund to any person other than the municipal  assistance  corporation
for  the city of New York unless and until the aggregate of all payments
certified to the comptroller as required by such corporation in order to
comply with its agreements with the holders of its notes and  bonds  and
to  carry  out  its corporate purposes, including the maintenance of the
capital reserve fund, which remain  unappropriated  or  unpaid  to  such
corporation  shall  have been appropriated to such corporation and shall
have been paid in full provided, however, that no person, including such
corporation or the holders of its notes or bonds shall have any lien  on
such  tax  and  such agreements shall be executory only to the extent of
the balances available to the state in such fund.  If  the  balances  in
such  fund  are  not  required  by  such  corporation  pursuant  to  the
provisions of this subdivision,  on  each  such  last  business  day  of
September,  December,  March  and June, the commissioner of taxation and
finance shall certify to the comptroller the amount deducted for  admin-
istering  and  making distributions in accordance with the provisions of
section two hundred eighty-a of the tax  law  from  the  stock  transfer
incentive fund during such quarterly period and he shall pay such amount
into  the  general fund of the state treasury to the credit of the state
purposes fund therein.  To the extent such moneys are  not  required  by
such  corporation,  as  provided in subdivision seven of section ninety-
two-d of this [chapter] ARTICLE, no  amount  thereof  (other  than  such
amount  to  be  deducted  for administering, collecting and distributing
such tax and such costs in administering  and  making  distributions  in
accordance  with  the  provisions of section two hundred eighty-a of the
tax law from the stock transfer incentive fund) shall be distributed  or
paid  from the stock transfer tax fund other than to such stock transfer
incentive fund in the  custody  of  the  commissioner  of  taxation  and
finance  unless and until the aggregate of all payments certified to the
comptroller by such commissioner pursuant  to  the  provisions  of  such
incentive  fund  as  necessary to provide payments on account of rebates
authorized pursuant to section two hundred eighty-a of the tax law which
remain unappropriated or unpaid to such fund shall have  been  appropri-
ated  to  such  fund and shall have been paid in full provided, however,
that no person, including any taxpayer under article twelve of  the  tax
law or any member or dealer referred to in subdivisions two-a and six of
section  two  hundred  eighty-a of such law, shall have any lien on this
fund or the stock transfer incentive fund.
  S 3. This act shall take effect September 1, 2012.

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