S T A T E O F N E W Y O R K
________________________________________________________________________
7670
I N S E N A T E
February 6, 2018
___________
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; to amend the state finance law, in relation to the funds of
the stock transfer tax fund and the dedicated infrastructure invest-
ment 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 NINETEEN 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 NINETEEN.
§ 2. Section 92-b of the state finance law, as added by chapter 91 of
the laws of 1965 and as renumbered and subdivision 5 as added by chapter
3 of the laws of 1966, subdivision 3 as amended by chapter 878 of the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14428-03-8
S. 7670 2
laws of 1977, subdivision 4 as amended by chapter 724 of the laws of
1979 and subdivision 7 as added by section 10 of part SS1 of chapter 57
of the laws of 2008, is amended to read as follows:
§ 92-b. Stock transfer tax fund. 1. There is hereby established in the
custody of the commissioner of taxation and finance a special fund, to
be known as the stock transfer tax fund.
2. Such fund shall consist of the revenues derived from the stock
transfer tax imposed by article twelve of the tax law and all other
moneys credited or transferred thereto from any other fund or source
pursuant to law.
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] SHALL BE USED TO COVER THE reason-
able costs of the state tax commission in administering, collecting and
distributing [such] THE STOCK TRANSFER tax, commencing with the fiscal
year ending March thirty-first, [nineteen hundred seventy-seven] TWO
THOUSAND NINETEEN, [shall be appropriated to (i) the municipal assist-
ance 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 and, after
deducting the amount such commissioner shall determine 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 nine-
ty-two-i of this chapter 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 certi-
fied by the commissioner of taxation and finance, the balance shall be
appropriated to the city of New York, for the support of local govern-
ment] AND THE REMAINDER SHALL BE DEPOSITED INTO THE ACCOUNT FOR THE
DEDICATED INFRASTRUCTURE INVESTMENT FUND AS ESTABLISHED BY SECTION NINE-
TY-THREE-B 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,
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
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
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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 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
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 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,
no amount thereof (other than such amount to be deducted for administer-
ing, collecting and distributing such tax and such costs in administer-
ing 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 pursu-
ant 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 appropriated 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.
5. In no fiscal year shall the total amount paid from the fund exceed
the total collections during such fiscal year from the stock transfer
tax pursuant to the provisions of article twelve of the tax law and as
deposited to the credit of the stock transfer tax fund.
S. 7670 4
6.] All payments from the stock transfer tax fund shall be made on the
audit and warrant of the comptroller on vouchers approved by the commis-
sioner of taxation and finance.
[7. When all the notes and bonds of the municipal assistance corpo-
ration for the city of New York have been fully paid and discharged,
together with interest thereon and interest on unpaid installments of
interest, and the chairman of the corporation makes the final certif-
ication required by subdivision seven of section ninety-two-d of this
article, the comptroller must notify the commissioner of taxation and
finance that all remaining funds held in the stock transfer tax fund
must be released to the stock transfer incentive fund. From that time
forward, all funds previously deposited in the stock transfer tax fund
pursuant to subdivision two of this section will be deposited directly
into the stock transfer incentive fund pursuant to all the rules, regu-
lations or instructions that the commissioner may prescribe, after
deducting the amount the commissioner determines to be necessary for
reasonable costs of the department in administering, collecting and
distributing the tax imposed by article twelve of the tax law. Notwith-
standing any other provisions of this article, to the extent those
moneys are not required by the stock transfer incentive fund for the
purpose of administering and making distributions in accordance with the
provisions of section two hundred eighty-a of the tax law, as certified
by the commissioner of taxation and finance, the balance will be appro-
priated to the city of New York for the support of local government.]
§ 3. Paragraph (c) of subdivision 1 of section 93-b of the state
finance law, as added by section 1 of part H of chapter 60 of the laws
of 2015, is amended to read as follows:
(c) Sources of funds. The sources of funds shall consist of all moneys
collected therefor, or moneys credited, appropriated or transferred
thereto from any other fund or source pursuant to law or any other
moneys made available for the purposes of the fund, INCLUDING BUT NOT
LIMITED TO FUNDS TRANSFERRED FROM THE STOCK TRANSFER TAX FUND PURSUANT
TO SUBDIVISION THREE OF SECTION NINETY-TWO-B OF THIS ARTICLE. Any inter-
est received by the comptroller on moneys on deposit shall be retained
and become part of the fund, unless otherwise directed by law.
§ 4. This act shall take effect immediately.
