Bill > A03064

This bill amends the New York State tax law to impose a new tax of one-half of one percent on corporate stock buybacks, which are transactions where a company purchases its own shares from the open market or directly from shareholders. Currently, stock buybacks are subject to an existing stock transfer tax with rates varying based on share price, but this bill introduces a specific additional tax targeting the total value of shares repurchased by a corporation. The new tax would apply regardless of whether the repurchased shares are cancelled or maintained by the corporation, effectively creating a consistent 0.5% levy on the total value of stock buybacks. This provision is designed to generate additional tax revenue from corporate financial transactions and potentially discourage excessive stock buybacks, which some critics argue can artificially inflate stock prices and benefit shareholders at the expense of long-term corporate investment. The bill would take effect immediately upon passage, signaling a quick implementation of the new tax provision.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A3064