senate Bill S6901

2013-2014 Legislative Session

Relates to rebates on stock transfer tax paid; decreases amount to sixty percent

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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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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 27, 2014 referred to investigations and government operations

S6901 - Bill Details

See Assembly Version of this Bill:
A8410
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง280-a, Tax L

S6901 - Bill Texts

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Relates to rebates on stock transfer tax paid; decreases amount to sixty percent.

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BILL NUMBER:S6901

TITLE OF BILL: An act to amend the tax law, in relation to rebates on
stock transfer tax paid

GENERAL PURPOSE OF BILL:

Since at least 1915, New York has imposed a tax on the sale of
securities. Nonetheless, the securities industry flourished in the
State. The State began rebating the tax in 1979 so that it is now 100%
rebated back to the industry. As explained below, the 100% rebate is
no longer justifiable.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends subdivision 1 of section 280-a of the tax
law, as amended by chapter 578 of the laws of 1981, by providing for a
rebate of 60% of the tax collected. Accordingly, $6.4 billion in
revenue would be raised.

Section 2 of the bill sets forth an immediate effective date.

JUSTIFICATION:

The tax was essentially repealed as part of the over-exuberance about
stimulating the economy through tax cuts and unleashing the financial
sector. As Nobel Prize-winning economist Joseph Stiglitz, who has
written in favor of the tax, explained in 2013, that economic
philosophy encouraged speculation, did not promote investment, led to
economic collapse, and simply transferred wealth from the middle class
to the top of the economic spectrum, increasing unemployment and
income inequality to unprecedented levels. Stiglitz observed: "A major
change occurred in markets around the turn of this century: most
trading (some 61 percent in 2009, 53 percent in 2010) on the stock
exchange was done by computers trading with other computers, using
certain algorithms. Offers to buy and sell were based not on market
research, on informed views about the prospects of, say, steel or the
efficiency of a particular steel company, but rather in extracting
information from the pattern of prices and trades, and on whatever
other information a computer could absorb and process on the fly....
The financial sector has imposed enormous externalities (costs it does
not pay for) on the rest of society. The total costs of the financial
crisis for which they bear significant responsibility is in the
trillions of dollars. Flash trading and other speculation may create
volatility, but not really create value: the overall efficiency of the
market economy may even be reduced. Through our bailouts and a myriad
of hidden subsidies, we have in fact been effectively subsidizing the
financial sector." Other countries have imposed this tax without any
reduction in productivity or efficiency, including Germany, the
leading economy in Europe, England, Japan, and Australia, to name only
a few. The revenue is needed to fund rebuilding our deteriorating
infrastructure, scientific research, and education, all of which have
proven historically to cause economic growth, raise the earning power
of the middle class, which stimulates the economy, and raise many
individuals from the poor into the middle class.

PRIOR LEGISLATIVE HISTORY:


None.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None other than indicated above.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  6901

                            I N  S E N A T E

                             March 27, 2014
                               ___________

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, in relation to rebates  on  stock  transfer
  tax paid

  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 FIFTEEN AND SIXTY PERCENT 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, TWO THOUSAND FIFTEEN.
  S 2. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13369-01-3

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