Progressives riled by stock tax plan
Rick Karlin, Capitol bureau
First it was the bank tax repeal that seems to be moving forward, then it was the Langone-Hitler-Astorino imbroglio. Today progressives are upset with a proposal backed by Gov. Andrew Cuomo tucked into his budget plan that would eliminate the oft-cited but essentially dormant stock transfer tax. The tax on sales of stock has been rebated for years, meaning it’s in one of those legal Twilight Zones that characterizes laws that don’t do what they were originally designed to do.
It’s hard to imagine the Assembly would let this through, but idea, which has been out there since January, is drawing the ire of progressives since it is in the Senate’s budget proposal as well.
Here is the description of the proposed repeal:
Repeal Article 12 of the Tax Law. Tax collections on stock sales transfers from financial service companies are currently not retained by the State, but instead are fully and immediately rebated. This tax has been maintained in statute as an alternative source to repay New York City Municipal Assistance Corporation Bonds, which were retired in 2008. This tax creates unnecessary administrative work for the financial services industry as well as for the Department of Taxation and Finance.
At least one lawmaker, Capital Region Assembly Democrat Phil Steck is proposing a bill to collect part of the tax rather than rebate it, although it’s unclear how far that idea will get.
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