Bill Text: NY A02794 | 2013-2014 | General Assembly | Introduced


Bill Title: Provides school tax exemption relief (STAR) to small business with 100 or fewer employees.

Spectrum: Moderate Partisan Bill (Republican 15-2)

Status: (Introduced - Dead) 2013-04-23 - held for consideration in real property taxation [A02794 Detail]

Download: New_York-2013-A02794-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2794
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 18, 2013
                                      ___________
       Introduced  by M. of A. REILICH, FINCH, RAIA, KOLB -- Multi-Sponsored by
         -- M. of A. CROUCH, DUPREY,  FITZPATRICK,  GIGLIO,  HAWLEY,  P. LOPEZ,
         McDONOUGH,  McKEVITT,  OAKS,  SALADINO, TEDISCO, THIELE, WEISENBERG --
         read once and referred to the Committee on Real Property Taxation
       AN ACT to amend the real property tax law, in relation to extending  the
         benefits of the STAR program to small businesses
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivision 3 of section 425 of the real property tax  law,
    2  as  added  by  section  1  of part B of chapter 389 of the laws of 1997,
    3  paragraph (a) as amended by chapter 264 of the laws of  2000,  paragraph
    4  (b-1)  as  added  by  section  1 of part FF of chapter 57 of the laws of
    5  2010, paragraph (d) as added by chapter 443 of the laws of  2003,  para-
    6  graph  (e)  as added by section 2 of part W of chapter 57 of the laws of
    7  2008 and paragraph (f) as added by section 1 of part B of chapter 59  of
    8  the laws of 2012, is amended to read as follows:
    9    3.   Eligibility  requirements.  (a)  Property  use.  To  qualify  for
   10  exemption pursuant to this section, the property must be a one,  two  or
   11  three family residence, a farm dwelling, A SMALL BUSINESS or residential
   12  property  held  in  condominium or cooperative form of ownership. If the
   13  property is not an eligible type of property, but a portion of the prop-
   14  erty is partially used by the owner as a primary residence, that portion
   15  which is so used shall be entitled to the  exemption  provided  by  this
   16  section;  provided  that  in  no  event  shall  the exemption exceed the
   17  assessed value attributable to that portion.
   18    (b) Primary residence. The property must serve as  the  primary  resi-
   19  dence  of  one  or  more  of the owners thereof, UNLESS SUCH PROPERTY IS
   20  OWNED BY A SMALL BUSINESS AS DEFINED IN PARAGRAPH (G) OF  THIS  SUBDIVI-
   21  SION.
   22    (b-1)  Income.  For  final assessment rolls to be used for the levy of
   23  taxes for the two thousand eleven-two thousand twelve  school  year  and
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01151-01-3
       A. 2794                             2
    1  thereafter,  the  parcel's affiliated income may be no greater than five
    2  hundred thousand dollars, as determined by the commissioner of  taxation
    3  and  finance  pursuant  to  section one hundred seventy-one-u of the tax
    4  law,  in order to be eligible for the basic exemption authorized by this
    5  section. As used herein, the term "affiliated  income"  shall  mean  the
    6  combined income of all of the owners of the parcel who resided primarily
    7  thereon on the applicable taxable status date, and of any owners' spous-
    8  es  residing primarily thereon. For exemptions on final assessment rolls
    9  to be used for the levy of taxes for the two thousand  eleven-two  thou-
   10  sand  twelve  school  year,  affiliated income shall be determined based
   11  upon the parties' incomes for the income tax year ending in two thousand
   12  nine. In each subsequent school year, the  applicable  income  tax  year
   13  shall  be  advanced  by one year. The term "income" as used herein shall
   14  have the same meaning as in subdivision four of this section.
   15    (c) Trusts. If legal title to the property is  held  by  one  or  more
   16  trustees,  the  beneficial  owner  or  owners shall be deemed to own the
   17  property for purposes of this subdivision.
   18    (d) Farm dwellings not owned by the resident. (i) If  legal  title  to
   19  the farm dwelling is held by an S-corporation or by a C-corporation, the
   20  exemption  shall  be granted if the property serves as the primary resi-
   21  dence of a shareholder of such corporation.
   22    (ii) If the legal title to the farm dwelling is held by a partnership,
   23  the exemption shall be granted if the property  serves  as  the  primary
   24  residence of one or more of the partners.
   25    (iii)  Any  information  deemed  necessary to establish shareholder or
   26  partner status for eligibility purposes shall be considered confidential
   27  and exempt from the freedom of information law.
   28    (e) Dwellings owned by limited partnerships. (i) If legal title  to  a
   29  dwelling is held by a limited partnership, the exemption shall be grant-
   30  ed if the property serves as the primary residence of one or more of the
   31  partners, provided that the limited partnership which holds title to the
   32  property  does  not  engage in any commercial activity, that the limited
   33  partnership was lawfully created to hold title solely for  estate  plan-
   34  ning and asset protection purposes, and that the partner or partners who
   35  primarily  reside  thereon personally pay all of the real property taxes
   36  and other costs associated with the property's ownership.
   37    (ii) Any information deemed necessary to establish partner status  for
   38  eligibility  purposes  shall  be considered confidential and exempt from
   39  the freedom of information law.
   40    (f) Compliance with state tax obligations. The property's  eligibility
   41  for  the  STAR  exemption  must not be suspended pursuant to section one
   42  hundred seventy-one-y of the tax law  due  to  the  past-due  state  tax
   43  liabilities  of one or more of its owners. Notwithstanding any provision
   44  of law to the contrary,  where  a  property's  eligibility  for  a  STAR
   45  exemption  has  been  suspended  pursuant to such section, the following
   46  provisions shall be applicable:
   47    (i) The property shall be ineligible for  a  basic  or  enhanced  STAR
   48  exemption effective with the next school year commencing after the issu-
   49  ance  of  notice  by the department of the suspension of its eligibility
   50  for the STAR exemption, even if the notice was issued after the applica-
   51  ble taxable status date. If a STAR exemption has been granted to such  a
   52  property  on a tentative or final assessment roll, the assessor or other
   53  person having custody of that roll is hereby authorized and directed  to
   54  immediately remove that STAR exemption from the roll.
   55    (ii) Any challenge to the factual or legal basis behind the suspension
   56  of a property's eligibility for a STAR exemption pursuant to section one
       A. 2794                             3
    1  hundred seventy-one-y of the tax law must be presented to the department
    2  in  the  manner  prescribed  by  such section. Neither an assessor nor a
    3  board of assessment review has the authority to consider  such  a  chal-
    4  lenge.
    5    (iii)  The  property  shall  remain  ineligible for the STAR exemption
    6  until the department notifies the assessor that the  suspension  of  its
    7  eligibility has been lifted. Once the assessor has been so notified, the
    8  exemption  may be resumed on a prospective basis only, provided that the
    9  eligibility requirements of this section are otherwise satisfied.
   10    (iv) In the case of a cooperative apartment or mobile home receiving a
   11  STAR exemption pursuant to paragraph (k) or (l) of  subdivision  two  of
   12  this section, a suspension of a STAR exemption due to a taxpayer's past-
   13  due  state tax liabilities shall only apply to the STAR exemption on the
   14  cooperative apartment or mobile home owned, or deemed to  be  owned,  by
   15  that taxpayer.
   16    (G) SMALL BUSINESSES.  FOR THE PURPOSES OF THIS SUBDIVISION:
   17    (I) THE TERM  "SMALL BUSINESS" SHALL MEAN A BUSINESS WHICH EMPLOYS ONE
   18  HUNDRED  PERSONS  OR  LESS  AND IS LOCATED ON A NON-RESIDENTIAL PROPERTY
   19  USED PRIMARILY FOR COMMERCIAL  PURPOSES.  SUCH  BUSINESS  WILL  ONLY  BE
   20  ELIGIBLE FOR THE EXEMPTION IF IT DOES NOT RECEIVE EMPIRE ZONE REAL PROP-
   21  ERTY TAX BENEFITS PURSUANT TO SECTION FIFTEEN OF THE TAX LAW OR DOES NOT
   22  MAKE  PAYMENTS  IN  LIEU OF TAXES TO THE PUBLIC SCHOOL DISTRICT IN WHICH
   23  SUCH SMALL BUSINESS IS LOCATED AT A RATE BELOW THE  RATE  APPLICABLE  TO
   24  ALL OTHER PROPERTIES; AND
   25    (II) THE TERM "COMMERCIAL" SHALL HAVE THE SAME MEANING AS SET FORTH IN
   26  SECTION FOUR HUNDRED EIGHTY-NINE-AAA OF THIS ARTICLE.
   27    S  2.  This  act  shall take effect immediately and shall apply to all
   28  taxable years beginning on and after January 1, 2013.
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