Bill > S01681

This bill amends the New York tax law to impose a new tax specifically targeting corporate stock buybacks, which occur when a company repurchases its own shares from the marketplace. The legislation introduces a tax rate of one-half of one percent on the total value of shares repurchased by a corporation, effectively creating a new financial obligation for companies engaging in stock buybacks. The bill modifies existing tax provisions by removing previous language that exempted certain stock buyback scenarios and replacing it with a comprehensive tax that applies regardless of whether the repurchased shares are cancelled or how they are handled after reacquisition. This change means that corporations will now be required to pay a small but significant tax on the total value of their stock buyback transactions, which could potentially discourage excessive share repurchases or generate additional tax revenue for the state. The tax is designed to be applied immediately upon the purchase, redemption, or reacquisition of shares, and the bill itself is set to take effect immediately upon passage.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S1681