What's happening
This bill reduces the stock transfer tax rebate from 100% to 60% for transactions occurring after October 1, 2019.
Why it matters
Direct financial impact on investors and traders. By reducing the stock transfer tax rebate from 100% to 60%, individuals and institutions buying or selling stocks in New York will see a significant increase in the net cost of transactions, directly affecting their bottom line.
Potential state revenue boost. The decrease in the rebate means New York State will retain a larger share of the stock transfer tax revenue, which could be used to fund public services or address budget shortfalls, rather than returning nearly all of it to taxpayers.
Market competitiveness considerations. This change may make New York a less attractive location for high-volume trading firms and exchanges, potentially encouraging them to shift operations to jurisdictions with lower transaction costs.
Broader economic ripple effects. The increased effective tax burden on stock trades could influence trading volumes, investment strategies, and could have downstream effects on the state's financial sector employment and related industries.
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Who cares
Headline styles
Cut Stock Tax Rebates
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Reduce Stock Tax Rebates
In Assembly Committee · Ways And Means · Sponsor Phil Steck
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1586
2017-2018 Regular Sessions
IN SENATE
January 10, 2017
Introduced by Sen. AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to rebates on stock transfer tax paid
The People of the State of New York, represented in Senate and Assembly, 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 nineteen 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 nineteen.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00868-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to rebates on stock transfer tax paid
Summary of provisions
Section 1 of the bill amends subdivision 1 of section 280-a of the tax law, as amended by chapter 578 of the laws of 1981, by providing for a rebate of 60% of the tax collected. Accordingly, $6.9 billion in revenue would be raised.
Section 2 of the bill sets forth an immediate effective date.
Justification
The tax was essentially repealed as part of the over-exuberance about stimulating the economy through tax cuts and unleashing the financial sector. As Nobel Prize-winning economist Joseph Stiglitz, who has written in favor of the tax, explained in 2013, that economic philosophy encouraged speculation, did not promote investment, led to economic collapse, and simply transferred wealth from the middle class to the top of the economic spectrum, increasing unemployment and income inequality to unprecedented levels.
Stiglitz observed: "A major change occurred in markets around the turn of this century: most trading (some 61 percent in 2009, 53 percent in 2010) on the stock exchange was done by computers trading with other computers, using certain algorithms. Offers to buy and sell were based not on market research, on informed views about the prospects of, say, steel or the efficiency of a particular steel company, but rather in extracting information from the pattern of prices and trades, and on whatever other information a computer could absorb and process on the fly.... The financial sector has imposed enormous externalities (costs it does not pay for) on the rest of society. The total costs of the financial crisis for which they bear significant responsibility is in the trillions of dollars. Flash trading and other speculation may create volatility, but not really create value: the overall efficiency of the market economy may even be reduced.
Through our bail- outs and a myriad of hidden subsidies, we have in fact been effectively subsidizing the financial sector."
Other countries have imposed this tax without any reduction in productivity or efficiency, including Germany, the leading economy in Europe, England, Japan, and Australia, to name only a few. The revenue is needed to fund rebuilding our deteriorating infrastructure, scientific research, and education, all of which have proven historically to cause economic growth, raise the earning power of the middle class, which stimulates the economy, and raise many individuals from the poor into the middle class.
Prior legislative history
2015-16: S.1132-A/A.882-A (Steck) 2014: S.6901/A.8410 (Steck)
Fiscal implications for state and local governments
None other than indicated above.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.