New York Proposes Stock Transfer Tax

New York State Assembly Members have introduced legislation to reinstitute the Stock Transfer Tax (STT), which would impose a $.0125 to $0.05 tax per share of any stock sold or transferred in the State of New York. The STT, originally imposed in 1906, was effectively eliminated in 1981 through a 100% rebate of any tax imposed. Recent proposals would either fully or partially repeal the rebate.

These proposals, aimed to raise revenue in New York, have been strongly opposed by financial institutions. The Securities Industry and Financial Markets Association (SIFMA) recently released a white paper outlining its opposition, arguing that an STT would hurt individual investors and incentivize firms to relocate their trading outside New York.

In response to the STT proposal, U.S. House Financial Services Committee Ranking Member Patrick McHenry (R-NC) and Subcommittee on Investor Protection, Entrepreneurship and Capital Markets Ranking Member Bill Huizenga (R-MI) reintroduced legislation to limit a State’s authority to impose such a tax.

 

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