The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2422
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 19, 2021
                                ___________
 
 Introduced  by  M.  of A. NIOU, GLICK, ABINANTI, GOTTFRIED, SIMON, FAHY,
   FERNANDEZ,  EPSTEIN,  BARRON,  J. RIVERA,  REYES,  SEAWRIGHT,   QUART,
   DARLING,  L. ROSENTHAL,  CARROLL, DICKENS -- read once and referred to
   the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to imposing a specific  tax  on
   all corporate stock buybacks of issued shares
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 1 and 2 of section 270 of the tax law,  subdi-
 vision 1 as amended by chapter 996 of the laws of 1963 and subdivision 2
 as  amended  by  chapter  827 of the laws of 1968, are amended and a new
 subdivision 2-a is added to read as follows:
   1. There is  hereby  imposed  and  shall  immediately  accrue  and  be
 collected  a  tax,  as  herein  provided, on all sales, or agreements to
 sell, or memoranda of sales and all deliveries or transfers of shares or
 certificates of stock, or certificates of rights to  stock,  or  certif-
 icates  of  interest  in  property  or accumulations, or certificates of
 deposit representing certificates taxable under  this  article,  in  any
 domestic or foreign association, company or corporation, or certificates
 of  interest  in business conducted by a trustee or trustees, made after
 the first day of June, nineteen hundred five, whether made upon or shown
 by the books of the association, company, corporation, or trustee, or by
 any assignment in blank, or by any delivery, or by any paper  or  agree-
 ment or memorandum or other evidence of sale or transfer, whether inter-
 mediate  or  final, and whether investing the holder with the beneficial
 interest in or legal title to said stock, or other certificates  taxable
 hereunder, or merely with the possession or use thereof for any purpose,
 or  to secure the future payment of money, or the future transfer of any
 such stock, or certificates.  The purchase, redemption or other reacqui-
 sition of its own shares by a corporation is subject to tax  under  this
 article  [unless]  REGARDLESS  OF  WHETHER  such shares are cancelled on
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04734-01-1

 A. 2422                             2
 
 reacquisition pursuant to the provisions of section five hundred fifteen
 of the business corporation law, or [unless] WHETHER within one year  of
 the  date  of  such  purchase,  redemption  or other reacquisition, such
 shares  are  cancelled  by an appropriate amendment to the corporation's
 certificate of incorporation or by action of the board of  directors  of
 such corporation.
   2.  Except  as otherwise provided by [section two hundred seventy-a of
 this chapter] SUBDIVISION TWO-A OF THIS SECTION, the tax imposed by this
 section shall be two and one-half cents for each share, except in  cases
 where  the shares or certificates are sold, in which cases the tax shall
 be at the rate of one and one-quarter cents for  each  share  where  the
 selling  price  is  less  than  five dollars per share; two and one-half
 cents for each share where the selling price is five dollars or more per
 share and less than ten dollars  per  share;  three  and  three-quarters
 cents  for each share where the selling price is ten dollars or more per
 share and less than twenty dollars per share and  five  cents  for  each
 share where the selling price is twenty dollars or more per share.
   2-A.  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION  TWO  OF  THIS
 SECTION, THE TAX IMPOSED BY THIS SECTION FOR THE PURCHASE, REDEMPTION OR
 OTHER REACQUISITION OF ITS OWN SHARES BY A CORPORATION SHALL BE ONE-HALF
 OF ONE PERCENT OF THE VALUE PAID BY SUCH CORPORATION FOR SUCH SHARES.
   § 2. This act shall take effect immediately.