S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    270
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced by Sens. MYRIE, BIAGGI, COMRIE, JACKSON, RIVERA -- 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-TWO AND SIXTY PERCENT
 OF  THE  AMOUNT OF TAX INCURRED AND PAID SHALL BE ALLOWED AS A REBATE ON
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02363-01-1

 S. 270                              2
 
 TRANSACTIONS SUBJECT TO THE STOCK TRANSFER TAX OCCURRING  ON  AND  AFTER
 OCTOBER FIRST, TWO THOUSAND TWENTY-TWO.
   §  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-TWO, [shall be appropriated to (i) the municipal assist-
 ance  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 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,
 to the stock transfer incentive fund created pursuant to  section  nine-
 ty-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 certi-
 fied  by  the commissioner of taxation and finance, the balance shall be
 appropriated to the city of New York, for the support of  local  govern-
 ment]  AND  THE  REMAINDER  SHALL  BE DEPOSITED INTO THE ACCOUNT FOR THE
 DEDICATED INFRASTRUCTURE INVESTMENT FUND AS ESTABLISHED BY SECTION NINE-
 TY-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

 S. 270                              3

 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
 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.

 S. 270                              4

   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
 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.