Repeals the rebates for stock transfer tax paid; dedicates funds of the stock transfer tax fund and stock transfer incentive fund to various funds; establishes the safe water and infrastructure action program.
This bill repeals the existing stock transfer tax rebate program and eliminates the stock transfer incentive fund, while redirecting the revenues associated with the stock transfer tax into a new distribution structure. It amends state finance law to end the prior framework that supported rebates and certain New York City-related obligations, and instead sends the remaining stock transfer tax proceeds to the state general fund and, beginning in fiscal year 2027, to a series of specified state and local purposes.
The bill also creates a new Safe Water and Infrastructure Action Program in the Environmental Conservation Law. That program would provide payments to counties, cities, towns, and villages for the replacement and rehabilitation of municipally owned drinking water, storm water, and sanitary sewer systems, with distributions based on the size of municipal pipeline and main infrastructure. The bill further revises the stock transfer tax provisions to clarify tax payment responsibility, proof of payment requirements, and nexus rules for transactions subject to the tax.
The bill would substantially revise the disposition of stock transfer tax revenues under the Tax Law and State Finance Law by repealing section 280-a and section 92-i, removing the rebate and incentive-fund structure, and redirecting funds to the general fund and multiple designated programs. It also repeals related provisions of the New York City Administrative Code and transfers any accumulated stock transfer incentive fund balances into the dedicated infrastructure investment fund. In addition, it creates a new section of the Environmental Conservation Law establishing a state-administered local water and sewer infrastructure aid program, and it amends the stock transfer tax rules to address who pays the tax, what proof is required, and when transactions are taxable based on in-state activity or nexus.
No committee transcript or recorded vote information was provided, so there is no direct evidence of floor or committee sentiment. Based on the bill text, the measure appears to reflect a policy preference for redirecting stock transfer tax revenues toward infrastructure, transit, housing, education, health, and environmental uses rather than rebates. The overall framing suggests support for public investment and local aid, but the absence of voting history means the level of legislative support or opposition cannot be determined from the supplied materials.
The main points of contention likely concern the repeal of stock transfer tax rebates and the elimination of the stock transfer incentive fund, which would shift money away from taxpayers and prior funding arrangements. Another likely issue is the new allocation formula for revenue, which spreads funds across many recipients including MTA operations and capital, affordable housing, NYCHA, CHIPS, transit systems, clean energy, education, health care, agriculture, parks, and the new safe water program. The bill also changes tax liability and nexus rules for stock transfer transactions, which could draw concern from market participants, brokers, and taxpayers affected by the broader reach of the tax.