S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3315
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 5, 2019
                                ___________
 
 Introduced  by  Sen.  MYRIE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 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 TWENTY 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 TWENTY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03609-01-9
              

 S. 3315                             2
 
   §  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
 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 TWENTY, [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 corpo-
 ration 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  distrib-
 utions 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 commis-
 sioner 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 ACCOUNT  FOR  THE  DEDICATED  INFRASTRUCTURE
 INVESTMENT  FUND  AS  ESTABLISHED  BY  SECTION  NINETY-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

 S. 3315                             3

 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
 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

 S. 3315                             4

 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
 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.