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

                                  9261

                          I N  A S S E M B L Y

                              April 4, 2014
                               ___________

Introduced  by  M. of A. PEOPLES-STOKES, JAFFEE, SEPULVEDA, ORTIZ, RYAN,
  SALADINO -- Multi-Sponsored by -- M. of A. SOLAGES --  read  once  and
  referred to the Committee on Ways and Means

AN  ACT  to  amend the tax law and the state finance law, in relation to
  the stock transfer tax and to creating the statewide pre-k fund

  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 FOURTEEN, AND THIRTY 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 FOURTEEN.
  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, subdivision
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

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

                                                           LBD13671-01-4

A. 9261                             2

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, the
balance shall be appropriated to the [city of New York, for the  support
of  local  government]  STATEWIDE  PRE-K  FUND  ESTABLISHED  PURSUANT TO
SECTION NINETY-TWO-O OF THIS ARTICLE.
  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  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 treasury of the city
to the credit of the general fund or paid by the commissioner  of  taxa-
tion  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]  STATEWIDE  PRE-K  FUND  ESTAB-
LISHED  PURSUANT  TO  SECTION NINETY-TWO-O OF THIS ARTICLE.  THE commis-
sioner 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

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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 comp-
troller  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 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 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 OR  THE  STATEWIDE
PRE-K  FUND  in  the custody of the commissioner of taxation and finance
unless and until the aggregate of all payments certified  to  the  comp-
troller  by  such commissioner pursuant to the provisions of such incen-
tive fund as necessary to provide payments on account of rebates author-
ized 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. The state finance law is amended by adding a new section 92-o to
read as follows:
  S 92-O. THE STATEWIDE PRE-K FUND. 1. THERE IS  HEREBY  ESTABLISHED  IN
THE  JOINT  CUSTODY  OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE
COMMISSIONER OF EDUCATION A SPECIAL FUND TO BE KNOWN  AS  THE  STATEWIDE
PRE-K FUND.
  2.  SUCH  FUND  SHALL  CONSIST  OF  MONEYS PAID THERETO FROM THE STOCK
TRANSFER  TAX  FUND  AS  PROVIDED  IN  SUBDIVISION   FOUR   OF   SECTION
NINETY-TWO-B OF THIS ARTICLE AND ALL OTHER MONEYS APPROPRIATED, CREDITED
OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
  3.  THE  MONEYS  IN  THIS  FUND SHALL BE DIRECTED FOR THE EXPANSION OF
PRE-KINDERGARTEN THROUGHOUT THE STATE.
  4. MONIES SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
OF EDUCATION.
  S 4. This act shall take effect September 1, 2014.