S T A T E   O F   N E W   Y O R K
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                                   1237
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen. SANDERS -- 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 Section 280-a of the tax law is REPEALED.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 Section 92-i of the state finance law is REPEALED.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:
   § 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00700-02-5
 S. 1237                             2
              

 
   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-SEVEN,  [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-SEVEN, SUCH REMAINDER SHALL BE DEPOSITED
 INTO THE FOLLOWING FUNDS:
   (I) TEN PERCENT SHALL BE DIRECTED TO THE  METROPOLITAN  TRANSPORTATION
 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) FIVE PERCENT SHALL BE DIRECTED TO THE  DIVISION  OF  HOUSING  AND
 COMMUNITY RENEWAL AND FIVE PERCENT TO THE NEW YORK CITY HOUSING AUTHORI-
 TY  FOR THE PURPOSE OF AFFORDABLE HOUSING PROGRAMS, CAPITAL PROJECTS AND
 OTHER IMPROVEMENTS TO ADDRESS ISSUES  RELATING  TO  AFFORDABLE  HOUSING,
 CONDITIONS OF GOVERNANCE AND HABITABILITY, INCLUDING BUT NOT LIMITED TO,
 HEATING,  MOLD,  OR LEAD, AND OTHER SUCH CONDITIONS AFFECTING THE HEALTH
 AND SAFETY OF RESIDENTS;
   (III) FIVE PERCENT SHALL BE DIRECTED TO THE HIGHWAY AND BRIDGE CAPITAL
 ACCOUNT IN THE DEDICATED  HIGHWAY  AND  BRIDGE  TRUST  FUND  ESTABLISHED
 PURSUANT TO SECTION EIGHTY-NINE-B OF THIS ARTICLE;
   (IV)  FIVE  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);
 S. 1237                             3
 
   (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)  FIVE 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) FIVE 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) TEN PERCENT SHALL BE DIRECTED TO THE ENERGY  RESEARCH  DEVELOPMENT
 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 PORT-
 FOLIOS 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;
   (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;
   (XIII)  TEN  PERCENT  SHALL BE DIRECTED TO THE DEPARTMENT OF EDUCATION
 FOR THE PURPOSE OF SUPPORTING FOUNDATION AID;
   (XIV) TEN PERCENT SHALL BE DIRECTED TO THE  DEPARTMENT  OF  HEALTH  TO
 SUPPORT HEALTH CARE; AND
   (XV)  TEN  PERCENT SHALL BE DIRECTED TO THE DEPARTMENT OF AGRICULTURE,
 DEPARTMENT OF ENVIRONMENTAL CONSERVATION, AND OFFICE  OF  PARKS,  RECRE-
 ATION  AND HISTORIC PRESERVATION FOR THE PURPOSES OF REFORESTATION, SOIL
 CONSERVATION, SUSTAINABLE AGRICULTURE, LOCAL PARKS AND OPEN SPACE.
   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
 S. 1237                             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.
 S. 1237                             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-FIVE, 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-SIX,  A  CONSOLIDATED  LOCAL
 INFRASTRUCTURE  PROGRAM  IS HEREBY ESTABLISHED FOR THE PURPOSE OF MAKING
 S. 1237                             6
 
 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-SIX  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-SEVEN, 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-SEVEN, FUNDS
 SHALL 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
 S. 1237                             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.