Bill Text: NY S01116 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to extending the benefits of the STAR program to small businesses; defines small business as a business which employs one hundred persons or less.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2018-05-02 - referred to real property taxation [S01116 Detail]
Download: New_York-2017-S01116-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 1116--A 2017-2018 Regular Sessions IN SENATE January 6, 2017 ___________ Introduced by Sen. AKSHAR -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- recom- mitted to the Committee on Local Government in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 amended by chapter 564 of the laws of 2015, 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, 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. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04175-02-8S. 1116--A 2 1 (b-1) Income. For final assessment rolls to be used for the levy of 2 taxes for the two thousand eleven-two thousand twelve school year and 3 thereafter, the parcel's affiliated income may be no greater than five 4 hundred thousand dollars, as determined by the commissioner of taxation 5 and finance pursuant to section one hundred seventy-one-u of the tax 6 law, in order to be eligible for the basic exemption authorized by this 7 section. As used herein, the term "affiliated income" shall mean the 8 combined income of all of the owners of the parcel who resided primarily 9 thereon on the applicable taxable status date, and of any owners' spous- 10 es residing primarily thereon. For exemptions on final assessment rolls 11 to be used for the levy of taxes for the two thousand eleven-two thou- 12 sand twelve school year, affiliated income shall be determined based 13 upon the parties' incomes for the income tax year ending in two thousand 14 nine. In each subsequent school year, the applicable income tax year 15 shall be advanced by one year. The term "income" as used herein shall 16 have the same meaning as in subdivision four of this section. 17 (c) Trusts. If legal title to the property is held by one or more 18 trustees, the beneficial owner or owners shall be deemed to own the 19 property for purposes of this subdivision. 20 (d) Farm dwellings not owned by the resident. (i) If legal title to 21 the farm dwelling is held by an S-corporation or by a C-corporation, the 22 exemption shall be granted if the property serves as the primary resi- 23 dence of a shareholder of such corporation. 24 (ii) If the legal title to the farm dwelling is held by a partnership, 25 the exemption shall be granted if the property serves as the primary 26 residence of one or more of the partners. 27 (iii) If the legal title to the farm dwelling is held by a limited 28 liability company, the exemption shall be granted if the property serves 29 as the primary residence of one or more of the owners. 30 (iv) Any information deemed necessary to establish shareholder, part- 31 ner or owner status for eligibility purposes shall be considered confi- 32 dential and exempt from the freedom of information law. 33 (e) Dwellings owned by limited partnerships. (i) If legal title to a 34 dwelling is held by a limited partnership, the exemption shall be grant- 35 ed if the property serves as the primary residence of one or more of the 36 partners, provided that the limited partnership which holds title to the 37 property does not engage in any commercial activity, that the limited 38 partnership was lawfully created to hold title solely for estate plan- 39 ning and asset protection purposes, and that the partner or partners who 40 primarily reside thereon personally pay all of the real property taxes 41 and other costs associated with the property's ownership. 42 (ii) Any information deemed necessary to establish partner status for 43 eligibility purposes shall be considered confidential and exempt from 44 the freedom of information law. 45 (f) Compliance with state tax obligations. The property's eligibility 46 for the STAR exemption must not be suspended pursuant to section one 47 hundred seventy-one-y of the tax law due to the past-due state tax 48 liabilities of one or more of its owners. Notwithstanding any provision 49 of law to the contrary, where a property's eligibility for a STAR 50 exemption has been suspended pursuant to such section, the following 51 provisions shall be applicable: 52 (i) The property shall be ineligible for a basic or enhanced STAR 53 exemption effective with the next school year commencing after the issu- 54 ance of notice by the department of the suspension of its eligibility 55 for the STAR exemption, even if the notice was issued after the applica- 56 ble taxable status date. If a STAR exemption has been granted to such aS. 1116--A 3 1 property on a tentative or final assessment roll, the assessor or other 2 person having custody of that roll is hereby authorized and directed to 3 immediately remove that STAR exemption from the roll. 4 (ii) Any challenge to the factual or legal basis behind the suspension 5 of a property's eligibility for a STAR exemption pursuant to section one 6 hundred seventy-one-y of the tax law must be presented to the department 7 in the manner prescribed by such section. Neither an assessor nor a 8 board of assessment review has the authority to consider such a chal- 9 lenge. 10 (iii) The property shall remain ineligible for the STAR exemption 11 until the department notifies the assessor that the suspension of its 12 eligibility has been lifted. Once the assessor has been so notified, the 13 exemption may be resumed on a prospective basis only, provided that the 14 eligibility requirements of this section are otherwise satisfied. 15 (iv) In the case of a cooperative apartment or mobile home receiving a 16 STAR exemption pursuant to paragraph (k) or (l) of subdivision two of 17 this section, a suspension of a STAR exemption due to a taxpayer's past- 18 due state tax liabilities shall only apply to the STAR exemption on the 19 cooperative apartment or mobile home owned, or deemed to be owned, by 20 that taxpayer. 21 (g) For the purposes of this subdivision, the term "small business" 22 shall mean a business which employs one hundred persons or less. 23 § 2. This act shall take effect immediately and shall apply to all 24 taxable years beginning on and after January 1, 2018.
