The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4877
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 24, 2023
                                ___________
 
 Introduced  by  M.  of  A.  KELLES,  GLICK, SIMON, FAHY, EPSTEIN, REYES,
   SEAWRIGHT, 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
 reacquisition pursuant to the provisions of section five hundred fifteen
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00472-01-3

 A. 4877                             2
 
 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.