S T A T E O F N E W Y O R K
________________________________________________________________________
3353--A
2021-2022 Regular Sessions
I N A S S E M B L Y
January 22, 2021
___________
Introduced by M. of A. STECK, JACOBSON, STIRPE, ENGLEBRIGHT, BURKE,
GOTTFRIED, EPSTEIN, PERRY, SIMON, LUPARDO, HUNTER, REYES, ABINANTI,
WILLIAMS, BARRON, KIM, BENEDETTO, L. ROSENTHAL, JOYNER, WALLACE, FAHY,
DINOWITZ, CRUZ, J. RIVERA, TAYLOR, DICKENS, GUNTHER, SEAWRIGHT, RICH-
ARDSON, DE LA ROSA, CARROLL, GLICK, DAVILA, FERNANDEZ, COOK, BRONSON,
BICHOTTE HERMELYN, DARLING, ANDERSON, NIOU, WALKER, O'DONNELL, MEEKS,
KELLES, J. D. RIVERA, LUNSFORD, JEAN-PIERRE, ZINERMAN, CLARK, FRONTUS,
McDONALD, BURDICK, FALL, SILLITTI -- Multi-Sponsored by -- M. of A.
AUBRY, HYNDMAN -- read once and referred to the Committee on Ways and
Means -- reported and referred to the Committee on Ways and Means --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
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 Section 280-a of the tax law is REPEALED.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 Section 92-i of the state finance law is REPEALED.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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04222-06-1
A. 3353--A 2
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:
§ 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-THREE, [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-THREE, 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;
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(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
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
A. 3353--A 4
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
tax pursuant to the provisions of article twelve of the tax law and as
deposited to the credit of the stock transfer tax fund.
A. 3353--A 5
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.]
§ 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-ONE, 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-TWO, A CONSOLIDATED LOCAL
INFRASTRUCTURE PROGRAM IS HEREBY ESTABLISHED FOR THE PURPOSE OF MAKING
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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
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-THREE, 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-THREE, 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
A. 3353--A 7
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
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.