NY State Senate Bill 2023-S1297

Senate Bill S1297

2023-2024 Legislative Session

Repeals the rebates for stock transfer tax paid; dedicates funds of the stock transfer tax fund and stock transfer incentive fund to various funds

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Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to finance
Jan 11, 2023	referred to finance

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2023-S1297 (ACTIVE) - Details

See Assembly Version of this Bill:: A4574
Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Rpld §280-a, amd §270, Tax L; rpld §92-i, amd §§92-b & 93-b, St Fin L; rpld §11-503 sub (c), §11-604 sub 12, NYC Ad Cd; add §3-0323, En Con L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S6203
2021-2022: S1406, A3353

2023-S1297 (ACTIVE) - Summary

Repeals the rebates for stock transfer tax paid; dedicates funds of the stock transfer tax fund and stock transfer incentive fund to various funds; establishes the safe water and infrastructure action program.

2023-S1297 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1297

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the state finance law, in relation to the repeal of the
rebate for stock transfer tax paid and the funds of the stock transfer
tax fund and the dedicated infrastructure investment fund; to amend the
environmental conservation law, in relation to establishing the safe
water infrastructure action program for the purpose of making payments
toward the replacement and rehabilitation of existing local municipal-
ly-owned and funded drinking water, storm water and sanitary sewer
systems; to amend the tax law, in relation to taxes imposed in certain
transactions; to repeal section 280-a of the tax law relating to the
rebate for stock transfer tax paid; to repeal section 92-i of the state
finance law relating to the stock transfer incentive fund; and to repeal
certain provisions of the administrative code of the city of New York
relating thereto

 
PURPOSE OR GENERAL IDEA OF BILL:

To repeal the electronic rebate of the stock transfer tax, collect 100%
of this tax and dedicate the funds to the state general fund commencing

with the fiscal year and ending March 31, 2025, after which 100% of the
funds collected with the deposited into the following: the Metropolitan
Transportation Authority (MTA), the maintenance and repair of state
highways and bridges (NYSDOT), the New Your City Housing Authority
(NYCHA), the infrastructure, maintenance and development of passenger
rail lines for AMTRAK in the northeast corridor, the Consolidated Local
Street and Highway Improvement Program (CHIPS), the municipal aid and
incentives program, (AIM), the safe water and infrastructure action
program, the downstate and upstate transits systems, the clean energy
fund, CUNY, and SUNY.

 
SUMMARY OF PROVISIONS:

Section 1. To repeal the electronic rebate of the stock transfer tax,
collect 100%. of this tax and dedicate the funds to the state general
fund commencing with the fiscal year and ending March 31, 2025, after
which 100% of the funds collected will be deposited into the following:

i. Twenty-five percent shall be directed to the Metropolitan Transporta-
tion Authority(MTA)Financial Assistance fund

ii. Ten percent shall be directed to the maintenance and repair of the
New York City Housing Authority (NYCHA)

iii. Fifteen percent shall directed to the Highway and Bridge Capital
Account in the dedicated highway and bridge trust fund (NYSDOT)

iv. Nine percent shall be directed towards the infrastructure, mainte-
nance and development of passenger rail lines for AMTRAK in the North-
east Corridor

v. Five percent shall be directed to the Consolidated Local Street and
Highway Improvement Program (CHIPS)

vi. Five percent shall be directed to the safe water and infrastructure
action program (SWAP: as established by section 8)
vii. Five percent shall be directed to the Municipal Assistance State
Aid Fund (AIM)

viii. Four percent shall be directed to the Downstate Transit System

ix. Four percent shall be directed to the Upstate Transit System

x. Thirteen percent shall be directed to the Clean Energy Fund (NYSERDA)

xi. Two and one-half percent to CUNY

xii. Two and one-half percent to SUNY

Section 8: Establishes the Safe Water and Infrastructure Action Program;
a stream of funding to local governments state-wide for the repair,
maintenance and capital improvement of drinking water, storm water and
sewer systems

Section 9: Provides for the stock transfer tax to be collected should
any activity in furtherance of the transaction occur in the State of New
York or if any party involved in the transaction satisfies a nexus with
New York State which shall be defined as broadly as it is permitted
under the United States constitution. Subdivision 3.  Provides for the
purchaser to pay the tax and not the seller, unless the purchaser and
seller agree to allocate the tax amongst themselves.

Subdivision 3-a. Provides that no person shall have legal title or
ownership of any stock or certificates provided for under this article
unless proof of purchase is provided in the form of either a) a receipt
reflecting the amount of the tax, that the tax was paid and that it was
paid in full; or b) the tax was remitted via the tax stamp method
provided for in subdivision 4 of this section.

Section 10: Effective Date.

 
JUSTIFICATION:

From 1905 to 1981, New York State imposed a tax on the sale of securi-
ties. 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.

New York State has failing infrastructure state-wide. Roads, bridges,
the New York City Housing Authority, public transit both upstate and
downstate, passenger rail, water and sewer infrastructure, are all in
massive disrepair.

To transform New York State's failing infrastructure, we must commit to
raising revenue. Conservatively, the stock transfer tax will raise
approximately $13 billion annually (based upon a 10 year average of
collections). There is no other revenue stream, with the exception of
the raising the state income tax, that will immediately raise this level
of revenue.

For years New York State has not committed to raising the revenue neces-
sary to fund such basic programs as CHIPS and AIM to a level that can
actually achieve results. Our passenger rail system is multiple decades
behind those of Europe and our public transportation system in the city
of New York is being supported by fees and taxes on low- and middle-in-
come individuals.

On February 15, 2019, Comptroller DiNapoli issued a statement warning
that state revenue is sagging and released the January revenue numbers
showing a decline in projected revenue to the state of more than $2
billion. In that statement, DiNapoli said the state needs to prepare for
the economy slowing down.

"New York's revenue picture is increasingly challenged. The final Janu-
ary revenue numbers for the state released by my office today confirm
the substantial shortfall the Governor and I announced earlier this
month. In addition, the Division of the Budget's updated financial plan
reduces projected tax receipts in the coming years by billions of
dollars," DiNapoli said in a statement.

"Given the unpredictable revenue environment we now face, we should take
an extremely cautious approach when negotiating next year's budget. As
one step, I urge the Governor and Legislature to make the prudent finan-
cial decision to substantially build up the state's reserves to help
better prepare for an economic downturn." The budget picture worsened
with Covid so that the State is currently running a deficit of about $15
billion per year, hence the need for an immediate infusion into the
general fund.

The stock transfer tax is a revenue generator that operates as an indi-
rect tax, rather than a direct tax like property or income.  Stocks are
also predominantly owned by the wealthiest of Americans.  The top 10% of
American households, as defined by total wealth, now own 84% of all
stocks in 2016, according to a recent paper by NYU economist Edward N.
Wolff. Furthermore, while virtually all (94%) of the very rich reported
having significant stock holdings-as defined as $10,000 or more in
shares-only 27% of the middle class did. (The study framed that middle
class as the group between the poorest 20% and the richest 20% of Ameri-
cans--"The Richest 10% of Americans Now Own 94% of All Stocks" By ROB
WILE Money Magazine December 19, 2017).  The stock transfer tax is
infinitesimal, as the schedule from the New York State Department of
Taxation and Finance shows below:

*Sale or agreement to sell at less than $5 per share has tax rate of 1
1/4 cents

*Sale at $5 or more but less than $10 per share has tax rate of 2 1/2
cents

*Sale at $10 or more but less than $20 per share has tax rate of 3 3/4
cents

*Sale at $20 or more per share has tax rate of 5 cents

*Transfers of stock or certificates of interest other than by sale has
tax rate of 2 1/2 cents While the tax itself is infinitesimal, the
volume of trading is what drives this revenue stream to at least $11
billion. During financial crises, trading volume increases (thus
increasing the stock transfer tax revenue), while income and property
tax revenues decrease. This revenue will offset decreased state income
tax collections and local property tax collections and has the potential
to stabilize our state budget when our direct tax revenues are falling.
Which, according to Comptroller DiNapoli, is happening now. Due to
recent global events, New York State finds itself in a fiscal crisis
that must be addressed, and makes this legislation is all the more
necessary, Additional benefits of this legislation would be the economic
boom created by this revenue stream in employment, construction materi-
als and other ancillary businesses. With significant investment in
infrastructure, property values increase benefitting local governments
including school districts. Unlike the temporary federal investment in
infrastructure following the Great Recession of 2008, this would be an
annual collection and investment.  This legislation also directs i
nvestment into the Clean Energy Fund, which would. spur dramatic growth
in the renewables sector with the goal of ending our dependence on
fossil fuels.

To prevent retirees from paying the tax when selling their stock, the
payment of the tax is limited to those making the purchase, unless there
is an agreement between the purchaser and the seller to allocate the tax
amongst themselves. Additionally, no person shall have title or owner-
ship of the stock or certificate unless they have a receipt documenting
the amount of the tax paid and the amount was paid in full or remitted
the tax stamp method provided for in subdivision 4 of this section.

 
LEGISLATIVE HISTORY:

2019: S.6203 Referred to Senate Budget and Revenue A.7791 Referred to
Assembly Ways and Means

2020: S.6203-A Referred to Senate Budget and Revenue A.7791-B Referred
to Assembly Ways and Means

 
FISCAL IMPLICATIONS:

This bill could increase revenue for the state General Fund by at least
$11 billion for the first two state fiscal years. Thereafter, this
revenue would go to various programs listed above.

 
EFFECTIVE DATE:
Immediately

2023-S1297 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1297
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 11, 2023
                                ___________
 
 Introduced  by Sens. SANDERS, BRISPORT, COMRIE, GIANARIS, HOYLMAN-SIGAL,
   JACKSON, MAY, MYRIE, PARKER, RAMOS, RIVERA, SALAZAR, SEPULVEDA, SERRA-
   NO, STAVISKY -- read twice and ordered printed, and when printed to be
   committed to the Committee on Finance
 
 AN ACT to amend the state finance law, in relation to the repeal of  the
   rebate for stock transfer tax paid and the funds of the stock transfer
   tax  fund  and  the dedicated infrastructure investment fund; to amend
   the environmental conservation law, in relation  to  establishing  the
   safe  water  infrastructure  action  program for the purpose of making
   payments toward the replacement and rehabilitation of  existing  local
   municipally-owned  and funded drinking water, storm water and sanitary
   sewer systems; to amend the tax law, in relation to taxes  imposed  in
   certain  transactions; to repeal section 280-a of the tax law relating
   to the rebate for stock transfer tax paid; to repeal section  92-i  of
   the  state  finance law relating to the stock transfer incentive fund;
   and to repeal certain provisions of the  administrative  code  of  the
   city of New York relating thereto

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 280-a of the tax law is REPEALED.
   § 2. Section 92-i of the state finance law is REPEALED.
   § 3. Section 92-b of the state finance law, as added by chapter 91  of
 the laws of 1965, subdivision 3 as amended by chapter 878 of the laws of
 1977,  subdivision  4  as  amended  by  chapter 724 of the laws of 1979,
 subdivision 5 as added and subdivision 6 as renumbered by section  2  of
 chapter  3  of the laws of 1966, subdivision 7 as added by section 10 of
 part SS1 of chapter 57 of the laws of 2008 and such  section  as  renum-
 bered  by section 1 of chapter 3 of the laws of 1966, is amended to read
 as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04823-01-3
 S. 1297                             2

   § 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 TWENTY-FIVE,  [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
 and,  after deducting the amount such commissioner shall determine to be
 necessary for reasonable costs of the state tax commission  in  adminis-
 tering  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 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.] AND THE REMAINDER  SHALL  BE  DEPOSITED  INTO  THE
 STATE  GENERAL  FUND. COMMENCING WITH THE FISCAL YEAR ENDING MARCH THIR-
 TY-FIRST, TWO THOUSAND TWENTY-FIVE, SUCH REMAINDER  SHALL  BE  DEPOSITED
 INTO THE FOLLOWING FUNDS:
   (I)  TWENTY-FIVE  PERCENT SHALL BE DIRECTED TO THE METROPOLITAN TRANS-
 PORTATION AUTHORITY FINANCIAL ASSISTANCE FUND  ESTABLISHED  PURSUANT  TO
 SECTION  NINETY-TWO-FF  OF THIS ARTICLE, OF WHICH FIFTY PERCENT SHALL BE
 USED FOR THE PURPOSE OF OPERATIONS AND FIFTY PERCENT SHALL BE  USED  FOR
 THE PURPOSE OF CAPITAL PROJECTS;
   (II)  TEN  PERCENT  SHALL  BE  DIRECTED TO THE DIVISION OF HOUSING AND
 COMMUNITY RENEWAL FOR THE PURPOSE OF CAPITAL PROJECTS AND OTHER IMPROVE-
 MENTS TO ADDRESS ISSUES RELATING TO CONDITIONS OF GOVERNANCE AND HABITA-
 BILITY, INCLUDING BUT NOT LIMITED TO, HEATING, MOLD, OR LEAD, AND  OTHER
 SUCH  CONDITIONS  AFFECTING  THE HEALTH AND SAFETY OF TENANTS AT HOUSING
 DEVELOPMENTS OWNED OR OPERATED BY THE NEW YORK CITY HOUSING AUTHORITY;
   (III) FIFTEEN PERCENT SHALL BE DIRECTED  TO  THE  HIGHWAY  AND  BRIDGE
 CAPITAL  ACCOUNT  IN  THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND ESTAB-
 LISHED PURSUANT TO SECTION EIGHTY-NINE-B OF THIS ARTICLE;
   (IV) NINE PERCENT SHALL BE  DIRECTED  TO  THE  DEDICATED  HIGHWAY  AND
 BRIDGE  TRUST FUND ESTABLISHED PURSUANT TO SECTION EIGHTY-NINE-B OF THIS
 ARTICLE, TO BE DIRECTED  TOWARDS  THE  INFRASTRUCTURE,  MAINTENANCE  AND
 DEVELOPMENT OF RAIL LINES FOR AMTRAK IN THE NORTHEAST CORRIDOR;
   (V) FIVE PERCENT SHALL BE DIRECTED TO THE LOCAL INFRASTRUCTURE ACCOUNT
 OF  THE GENERAL FUND ESTABLISHED PURSUANT TO SECTION SEVENTY-TWO OF THIS
 S. 1297                             3
 
 ARTICLE TO BE DIRECTED TO THE  CONSOLIDATED  LOCAL  STREET  AND  HIGHWAY
 IMPROVEMENT PROGRAM (CHIPS);
   (VI)  FIVE  PERCENT  SHALL  BE  DIRECTED  TO  THE LOCAL INFRASTRUCTURE
 ACCOUNT OF THE GENERAL FUND TO  BE  DEDICATED  TO  THE  SAFE  WATER  AND
 INFRASTRUCTURE  ACTION  PROGRAM  AS ESTABLISHED BY SECTION 3-0323 OF THE
 ENVIRONMENTAL CONSERVATION LAW;
   (VII) FIVE PERCENT SHALL BE DIRECTED TO THE MUNICIPAL ASSISTANCE STATE
 AID FUND ESTABLISHED PURSUANT TO SECTION NINETY-TWO-E OF THIS ARTICLE;
   (VIII) FOUR PERCENT SHALL BE DIRECTED TO THE DEDICATED MASS  TRANSPOR-
 TATION  TRUST  FUND  TO THE CREDIT OF THE NON-MTA ACCOUNT FOR PAYMENT TO
 DOWNSTATE TRANSIT SYSTEMS OTHER THAN THOSE TRANSIT SYSTEMS  OPERATED  BY
 THE METROPOLITAN TRANSPORTATION AUTHORITY;
   (IX)  FOUR PERCENT SHALL BE DIRECTED TO THE DEDICATED MASS TRANSPORTA-
 TION TRUST FUND TO THE CREDIT OF THE  NON-MTA  ACCOUNT  FOR  PAYMENT  TO
 UPSTATE TRANSIT SYSTEMS;
   (X) THIRTEEN PERCENT SHALL BE DIRECTED TO THE ENERGY RESEARCH DEVELOP-
 MENT  OPERATING  FUND  PURSUANT  TO  THE  PROVISIONS OF SECTION EIGHTEEN
 HUNDRED FIFTY-NINE OF THE PUBLIC AUTHORITIES LAW, TO BE DIRECTED TO  THE
 CLEAN ENERGY FUND AND SHALL BE DIVIDED EQUALLY AMONG THE FOUR INVESTMENT
 PORTFOLIOS THAT MAKE UP SUCH FUND;
   (XI) TWO AND ONE-HALF PERCENT SHALL BE DIRECTED TO THE CITY UNIVERSITY
 OF  NEW  YORK,  OF  WHICH FIFTY PERCENT SHALL BE USED FOR THE PURPOSE OF
 CAPITAL IMPROVEMENTS AND INFRASTRUCTURE PROJECTS AND FIFTY PERCENT SHALL
 BE USED FOR THE PURPOSE OF SUPPORTING ACADEMIC PROGRAMS AT CITY  OF  NEW
 YORK INSTITUTIONS; AND
   (XII)  TWO AND ONE-HALF PERCENT SHALL BE DIRECTED TO THE STATE UNIVER-
 SITY OF NEW YORK INSTITUTIONS, OF WHICH FIFTY PERCENT SHALL BE USED  FOR
 THE  PURPOSES  OF  SUPPORTING  AND  EXPANDING SERVICES AND CARE AT STATE
 UNIVERSITY OF NEW YORK HOSPITALS, STATE UNIVERSITY OF NEW YORK  ACADEMIC
 MEDICAL  CENTERS  AND  FIFTY  PERCENT  SHALL  BE USED FOR THE PURPOSE OF
 SUPPORTING ACADEMIC PROGRAMS AT STATE  UNIVERSITY  OF  NEW  YORK  INSTI-
 TUTIONS.
   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
 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
 S. 1297                             4

 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.
   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
 S. 1297                             5

 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.]
   § 4. 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  AND  FUNDS
 TRANSFERRED  FROM  THE  STOCK  TRANSFER  INCENTIVE  FUND  ESTABLISHED BY
 SECTION NINETY-TWO-I OF THIS ARTICLE AND REPEALED BY A  CHAPTER  OF  THE
 LAWS  OF  TWO  THOUSAND TWENTY-THREE, WHICH AMENDED THIS PARAGRAPH.  Any
 interest received by the comptroller  on  moneys  on  deposit  shall  be
 retained and become part of the fund, unless otherwise directed by law.
   §  5.  Subdivision (c) of section 11-503 of the administrative code of
 the city of New York is REPEALED.
   § 6. Subdivision 12 of section 11-604 of the  administrative  code  of
 the city of New York is REPEALED.
   §  7.  All  monies  accumulated  in  the stock transfer incentive fund
 established pursuant to section 92-i of the state  finance  law  on  the
 effective date of this act shall be transferred to the dedicated infras-
 tructure  investment  fund  as  established by section 93-b of the state
 finance law for the purposes set forth in such section.
   § 8. The environmental conservation law is amended  by  adding  a  new
 section 3-0323 to read as follows:
 § 3-0323. SAFE WATER AND INFRASTRUCTURE ACTION PROGRAM.
   1.  NOTWITHSTANDING  ANY OTHER PROVISIONS OF THIS CHAPTER OR ANY OTHER
 LAW AND SUBJECT TO AN APPROPRIATION MADE THEREFOR AND IN ACCORDANCE WITH
 THE PROVISIONS OF THIS  SECTION  AND  WITH  THE  RULES  AND  REGULATIONS
 PROMULGATED  BY  THE  COMMISSIONER IN CONNECTION THEREWITH, ON AND AFTER
 THE FIRST DAY OF APRIL, TWO THOUSAND TWENTY-FOUR, A  CONSOLIDATED  LOCAL
 INFRASTRUCTURE  PROGRAM  IS HEREBY ESTABLISHED FOR THE PURPOSE OF MAKING
 PAYMENTS TOWARD THE REPLACEMENT AND  REHABILITATION  OF  EXISTING  LOCAL
 MUNICIPALLY-OWNED  AND  FUNDED  DRINKING WATER, STORM WATER AND SANITARY
 SEWER SYSTEMS. FOR PURPOSES OF THIS SECTION, SUCH PROGRAM SHALL APPLY TO
 ANY COUNTY, CITY, TOWN OR VILLAGE DRINKING  WATER  SYSTEM,  STORM  WATER
 SYSTEM  OR  SANITARY SEWER SYSTEM WITHIN THE STATE THAT IS NOT UNDER THE
 MAINTENANCE AND/OR OPERATIONAL JURISDICTION OF THE STATE NOR ANY PRIVATE
 S. 1297                             6
 
 ENTITY. THE COMMISSIONER, IN CONJUNCTION WITH THE ENVIRONMENTAL  FACILI-
 TIES  CORPORATION,  SHALL PROMULGATE ALL NECESSARY RULES AND REGULATIONS
 TO CARRY OUT THE PROGRAM SO THAT AN EQUITABLE DISTRIBUTION OF AID  SHALL
 BE  MADE  FOR  THE  GENERAL  OPERATION AND/OR GENERAL MAINTENANCE OF ANY
 EXISTING COUNTY, CITY, TOWN AND VILLAGE  DRINKING  WATER  SYSTEM,  STORM
 WATER SYSTEM OR SANITARY SEWER SYSTEM.
   2.  ON  OR  BEFORE  THE TWENTY-FIFTH DAY OF APRIL, JUNE, SEPTEMBER AND
 NOVEMBER OF EACH STATE FISCAL YEAR COMMENCING WITH THE STATE FISCAL YEAR
 BEGINNING ON APRIL FIRST,  TWO  THOUSAND  TWENTY-FIVE,  THERE  SHALL  BE
 DISTRIBUTED  AND  PAID TO COUNTIES, CITIES, TOWNS AND VILLAGES AN AMOUNT
 EQUAL TO THE MONEYS  APPROPRIATED  FOR  THE  PURPOSES  OF  THIS  SECTION
 DIVIDED  BY  THE NUMBER OF PAYMENT DATES IN THAT STATE FISCAL YEAR. SUCH
 AMOUNTS SHALL BE DISTRIBUTED AND PAID PURSUANT TO SUBDIVISION  THREE  OF
 THIS SECTION.
   3.  AMOUNTS SHALL BE DISTRIBUTED FOR LOCAL DRINKING WATER, STORM WATER
 AND SANITARY SEWER SYSTEMS BASED UPON THE TOTAL LENGTH AND WIDTH OF  ALL
 PIPELINES AND MAINS OWNED AND OPERATED BY THE MUNICIPALITY.
   4.  MONIES MADE AVAILABLE MAY BE USED TO MATCH OTHER STATE AND FEDERAL
 FUNDS MADE AVAILABLE FOR SUCH PROJECTS.  THE FUNDS MAY ALSO BE  USED  TO
 SUPPORT SPECIAL IMPROVEMENT DISTRICTS CREATED TO PROVIDE DRINKING WATER,
 WASTE  WATER  AND  STORM WATER SERVICES UNDER ARTICLES TWELVE, TWELVE-A,
 TWELVE-C AND THIRTEEN OF THE TOWN LAW.  THE REMAINDER OF THE  APPORTION-
 MENT  MAY  BE USED FOR ANY EXISTING DRINKING WATER, STORM WATER OR SEWER
 SYSTEM PURCHASES, INCLUDING BUT NOT LIMITED TO, THE ACQUISITION OF MATE-
 RIALS FOR THE REPLACEMENT OR REHABILITATION.
   5. FOR ANY  CITY,  TOWN,  OR  VILLAGE  WHICH  PROPOSES  INFRASTRUCTURE
 CONSOLIDATION  UNDER  THIS  SECTION OR MERGES WITH ANOTHER MUNICIPALITY,
 THE FUNDS APPROPRIATED UNDER THIS SECTION MAY FUND COSTS ASSOCIATED WITH
 SUCH CONSOLIDATION.
   6. FOR EACH FISCAL YEAR, STARTING IN TWO THOUSAND  TWENTY-FIVE,  FUNDS
 ARE  TO BE MADE AVAILABLE TO THE LOCAL INFRASTRUCTURE ASSISTANCE ACCOUNT
 OF THE GENERAL FUND, AND DISTRIBUTED FROM THAT  ACCOUNT,  IN  AN  AMOUNT
 THAT  IS  AT LEAST EQUAL TO THOSE APPROPRIATED AND MADE AVAILABLE IN THE
 CONSOLIDATED LOCAL STREET AND HIGHWAY IMPROVEMENT PROGRAM (CHIPS).
   § 9. Subdivision 3 of section 270 of the tax law, as amended by  chap-
 ter 301 of the laws of 1967, is amended and two new subdivisions 3-a and
 9 are added to read as follows:
   3.   It shall be the duty of the person or persons [making or effectu-
 ating the sale or transfer, including the person or persons] to whom the
 sale or transfer is made, to pay  the  tax  provided  by  this  article,
 UNLESS  THE  PARTIES TO THE SALE OR TRANSFER AGREE TO OTHERWISE ALLOCATE
 THE COST OF SUCH TAX AMONG  THEMSELVES;  provided,  however,  that  this
 subdivision  shall  not apply to any sale or transfer wherein the vendor
 or transferor is a governmental  entity  or  international  organization
 which is not subject to the tax.
   3-A.  NO  PURCHASER  OF  A STOCK OR OTHER CERTIFICATE IN A TRANSACTION
 COVERED UNDER THIS ARTICLE SHALL HAVE LEGAL TITLE OR OWNERSHIP  OF  SUCH
 STOCK  OR CERTIFICATE UNLESS SUCH PURCHASER HAS PROOF OF PURCHASE DEMON-
 STRATING THAT SUCH TAX HAS BEEN PAID.   SUCH  PROOF  OF  PURCHASE  SHALL
 CONSIST  OF  EITHER: (A) A RECEIPT FOR THE TRANSACTION SHOWING THAT SUCH
 TAX HAS BEEN PAID, THE AMOUNT OF SUCH TAX  PAID,  AND  A  REPRESENTATION
 THAT  SUCH  AMOUNT  CONSTITUTES PAYMENT IN FULL; OR (B) A STAMP REQUIRED
 PURSUANT TO SUBDIVISION FOUR OF THIS SECTION.
   9. NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY, A  TRANSACTION
 REFERRED  TO IN SUBDIVISION ONE OF THIS SECTION IS SUBJECT TO TAX IF ANY
 ACTIVITY IN FURTHERANCE OF THE TRANSACTION OCCURS WITHIN THE STATE OR IF
 S. 1297                             7

 A PARTY INVOLVED IN THE TRANSACTION SATISFIES  A  NEXUS  WITH  NEW  YORK
 STATE WHICH SHALL BE DEFINED AS BROADLY AS IS PERMITTED UNDER THE UNITED
 STATES CONSTITUTION.
   § 10. This act shall take effect immediately.

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