STATE OF NEW YORK
________________________________________________________________________
4755
2019-2020 Regular Sessions
IN SENATE
March 22, 2019
___________
Introduced by Sens. GRIFFO, ORTT, SEWARD -- read twice and ordered
printed, and when printed to be committed to the Committee on Budget
and Revenue
AN ACT to enact the "Made in New York act"; and to amend the tax law, in
relation to increasing the reduction of federal adjusted gross income
granted to certain small businesses (Part A); to amend the real prop-
erty tax law, in relation to extending eligibility for the school tax
relief exemption to certain small businesses (Part B); and to amend
the economic development law, in relation to establishing the 3-D
program (Part C)
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Short title. This act shall be known as the "Made in New
2 York act".
3 § 2. This act enacts into law major components of legislation enabling
4 existing businesses in the state to compete, succeed and create new
5 jobs. Each component is wholly contained within a Part identified as
6 Parts A through C. The effective date for each particular provision
7 contained within such Part is set forth in the last section of such
8 Part. Any provision in any section contained within a Part, including
9 the effective date of the Part, which makes reference to a section "of
10 this act", when used in connection with that particular component, shall
11 be deemed to mean and refer to the corresponding section of the Part in
12 which it is found. Section four of this act sets forth the general
13 effective date of this act.
14 PART A
15 Section 1. Paragraph 39 of subsection (c) of section 612 of the tax
16 law, as added by section 1 of part Y of chapter 59 of the laws of 2013,
17 is amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10843-01-9
S. 4755 2
1 (39) In the case of a taxpayer who is a small business who has busi-
2 ness income and/or farm income as defined in the laws of the United
3 States, an amount equal to three percent of the net items of income,
4 gain, loss and deduction attributable to such business or farm entering
5 into federal adjusted gross income, but not less than zero, for taxable
6 years beginning after two thousand thirteen, an amount equal to [three
7 and three-quarters] five percent of the net items of income, gain, loss
8 and deduction attributable to such business or farm entering into feder-
9 al adjusted gross income, but not less than zero, for taxable years
10 beginning after two thousand fourteen, and an amount equal to [five] ten
11 percent of the net items of income, gain, loss and deduction attribut-
12 able to such business or farm entering into federal adjusted gross
13 income, but not less than zero, for taxable years beginning after two
14 thousand fifteen. For the purposes of this paragraph, the term small
15 business shall mean a sole proprietor or a farm business who employs one
16 or more persons during the taxable year and who has net business income
17 or net farm income of less than two hundred fifty thousand dollars.
18 § 2. This act shall take effect immediately.
19 PART B
20 Section 1. Paragraph (a) of subdivision 2 of section 425 of the real
21 property tax law, as amended by section 1 of part E of chapter 83 of the
22 laws of 2002, is amended to read as follows:
23 (a) Overview. There shall be two variations of the exemption author-
24 ized by this section: an exemption for property owned by persons who
25 satisfy or a small business which satisfies the criteria set forth in
26 subdivision three of this section, which shall be known as the "basic"
27 STAR exemption, and an exemption for property owned by senior citizens
28 who satisfy the criteria set forth in both subdivisions three and four
29 of this section, which shall be known as the "enhanced" STAR exemption.
30 The exempt amount for each assessing unit shall be determined annually
31 as set forth in this subdivision, by multiplying the "base figure" by
32 the locally-applicable "sales price differential factor," if any, multi-
33 plying the product by the appropriate "equalization factor" for the
34 assessing unit, and, if necessary, increasing the result to equal the
35 applicable "floor." The result is then rounded to the nearest multiple
36 of ten dollars.
37 § 2. Paragraphs (a), (b) and (b-1) of subdivision 3 of section 425 of
38 the real property tax law, paragraph (a) as amended by chapter 264 of
39 the laws of 2000, paragraph (b) as added by section 1 of part B of chap-
40 ter 389 of the laws of 1997 and paragraph (b-1) as added by section 1 of
41 part FF of chapter 57 of the laws of 2010, are amended and three new
42 paragraphs (a-1), (a-2) and (b-2) are added to read as follows:
43 (a) Property use. To qualify for exemption pursuant to this section,
44 the property must be a one, two or three family residence, a farm dwell-
45 ing [or], residential property held in condominium or cooperative form
46 of ownership or the primary place of business of a small business. If
47 the property is not an eligible type of property, but a portion of the
48 property is partially used by the owner as a primary residence, that
49 portion which is so used shall be entitled to the exemption provided by
50 this section; provided that in no event shall the exemption exceed the
51 assessed value attributable to that portion.
52 (a-1) Small business. To qualify for an exemption pursuant to this
53 section, a small business must be a business entity, other than a sole
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1 proprietorship, which employs not less than two employees, nor more than
2 fifty employees at its primary place of business.
3 (a-2) Person. For the purposes of this section, "person" or "owner"
4 shall include a small business.
5 (b) Primary residence. The property must serve as the primary resi-
6 dence of one or more of the owners thereof, or as the primary place of
7 business of a small business.
8 (b-1) Income. For final assessment rolls to be used for the levy of
9 taxes for the two thousand eleven-two thousand twelve school year and
10 thereafter, [the] a residential parcel's affiliated income may be no
11 greater than five hundred thousand dollars, as determined by the commis-
12 sioner of taxation and finance pursuant to section one hundred seventy-
13 one-u of the tax law, in order to be eligible for the basic exemption
14 authorized by this section. As used herein, the term "affiliated income"
15 shall mean the combined income of all of the owners of the parcel who
16 resided primarily thereon on the applicable taxable status date, and of
17 any owners' spouses residing primarily thereon. For exemptions on final
18 assessment rolls to be used for the levy of taxes for the two thousand
19 eleven-two thousand twelve school year, affiliated income shall be
20 determined based upon the parties' incomes for the income tax year
21 ending in two thousand nine. In each subsequent school year, the appli-
22 cable income tax year shall be advanced by one year. The term "income"
23 as used herein shall have the same meaning as in subdivision four of
24 this section.
25 (b-2) Primary place of business. For small businesses, the property
26 shall be property at a single location within the state, upon which the
27 small business carries on its business enterprise.
28 § 3. Paragraph (a) of subdivision 5 of section 425 of the real proper-
29 ty tax law, as amended by section 5 of part E of chapter 83 of the laws
30 of 2002, is amended to read as follows:
31 (a) Generally. Every school district shall notify, or cause to be
32 notified, each person owning residential real property and each small
33 business owning real property in the school district of the provisions
34 of this section. The provisions of this subdivision may be met by a
35 notice sent to such persons in substantially the following form: "Resi-
36 dential and small business real property may qualify for a partial
37 exemption from school district taxes under the New York state school tax
38 relief (STAR) program. To receive such exemption, owners of qualifying
39 property must file an application with their local assessor on or before
40 the applicable taxable status date. For further information, please
41 contact your local assessor."
42 § 4. Paragraph (a) of subdivision 6 of section 425 of the real proper-
43 ty tax law, as amended by section 1 of part A of chapter 60 of the laws
44 of 2016, is amended to read as follows:
45 (a) Generally. All owners of the property who primarily reside thereon
46 and who are not subject to the provisions of subdivision sixteen of this
47 section must jointly or, in the case of a small business, the owner or
48 owners thereof must file an application for exemption with the assessor
49 on or before the appropriate taxable status date. Such application may
50 be filed by mail if it is enclosed in a postpaid envelope properly
51 addressed to the appropriate assessor, deposited in a post office or
52 official depository under the exclusive care of the United States postal
53 service, and postmarked by the United States postal service on or before
54 the applicable taxable status date. Each such application shall be made
55 on a form prescribed by the commissioner, which shall require the appli-
56 cant or applicants to agree to notify the assessor if their primary
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1 residence or primary place of business changes while their property is
2 receiving the exemption. The assessor may request that proof of residen-
3 cy be submitted with the application. If the applicant requests a
4 receipt from the assessor as proof of submission of the application, the
5 assessor shall provide such receipt. If such request is made by other
6 than personal request, the applicant shall provide the assessor with a
7 self-addressed postpaid envelope in which to mail the receipt.
8 § 5. Subdivision 10 of section 425 of the real property tax law, as
9 added by section 1 of part B of chapter 389 of the laws of 1997, para-
10 graph (a) as further amended by subdivision (b) of section 1 of part W
11 of chapter 56 of the laws of 2010, is amended to read as follows:
12 10. Proof of residency. (a) Requests. From time to time, the assessor
13 may request proof of residency or proof of primary place of business
14 from the owner or owners of any property which is exempt pursuant to
15 this section. In addition, the assessor shall request proof of residency
16 or primary place of business from any such owner or owners when
17 requested to do so by the commissioner.
18 (b) Timing. A request for proof of residency or primary place of busi-
19 ness shall be mailed at least sixty days prior to the ensuing taxable
20 status date. The owner or owners shall submit proof of their residency
21 or primary place of business to the assessor on or before the ensuing
22 taxable status date.
23 (c) Review of submission. The burden shall be on the owner or owners
24 to establish that the property is their primary residence or primary
25 place of business. If they submit proof of residency or primary place
26 of business on or before the ensuing taxable status date, and the
27 submission demonstrates to the assessor's satisfaction that the property
28 is the primary residence or primary place of business of one or more of
29 the owners thereof, and if the requirements of this section are other-
30 wise satisfied, the exemption shall continue in effect on the ensuing
31 tentative assessment roll. Otherwise, the assessor shall discontinue
32 the exemption on the next ensuing tentative assessment roll as provided
33 [herein] in this section, and, where appropriate, shall proceed as
34 further provided [herein] in this section.
35 § 6. Subparagraph (i) of paragraph (a) of subdivision 11 of section
36 425 of the real property tax law, as added by section 1 of part B of
37 chapter 389 of the laws of 1997, is amended to read as follows:
38 (i) the property may not be the primary residence or primary place of
39 business of the owner or owners who applied for the exemption,
40 § 7. Subparagraph (iii) of paragraph (b) of subdivision 14 of section
41 425 of the real property tax law, as added by section 1 of part J of
42 chapter 57 of the laws of 2013, is amended to read as follows:
43 (iii) the property does not serve as the primary residence or the
44 primary place of business of any of its owners;
45 § 8. This act shall take effect immediately and shall apply to taxable
46 years beginning on or after January 1, 2020.
47 PART C
48 Section 1. The economic development law is amended by adding a new
49 article 24 to read as follows:
50 ARTICLE 24
51 3-D PROGRAM
52 Section 500. Short title.
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1 501. Eligibility criteria for manufacturers.
2 502. Tax benefits.
3 § 500. Short title. This article shall be known and may be cited as
4 the "Dreamed in New York, Designed in New York and Developed in New York
5 program" or the "3-D program".
6 § 501. Eligibility criteria for manufacturers. 1. In order to partic-
7 ipate in the 3-D program, a business that manufactures a product within
8 the state shall satisfy all of the following criteria:
9 (a) the manufacturer designed and developed a new product within the
10 state;
11 (b) the manufacturer manufactures such new product in this state;
12 (c) the manufacturer's primary place for the manufacture of such new
13 product is in the state; and
14 (d) the commissioner shall have certified that such manufacturer has
15 satisfied the requirements of paragraphs (a), (b) and (c) of this subdi-
16 vision, and shall have certified the location or locations within the
17 state at which the new product is manufactured.
18 2. An eligible business may be organized as a corporation, a partner-
19 ship, a limited liability company or a sole proprietorship.
20 3. A business must be in compliance with all worker protection and
21 environmental laws and regulations. In addition, a business shall not
22 owe any past due federal, state or municipal taxes.
23 § 502. Tax benefits. A business that is certified by the commissioner
24 to be eligible to participate in the 3-D program and its employees shall
25 be entitled to all benefits granted to participants in the START-UP NY
26 program pursuant to article twenty-one of this chapter and any other
27 provision of law related thereto.
28 § 2. This act shall take effect immediately and shall apply to taxes
29 imposed on or after January 1, 2020.
30 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
31 sion, section or part of this act shall be adjudged by any court of
32 competent jurisdiction to be invalid, such judgment shall not affect,
33 impair, or invalidate the remainder thereof, but shall be confined in
34 its operation to the clause, sentence, paragraph, subdivision, section
35 or part thereof directly involved in the controversy in which such judg-
36 ment shall have been rendered. It is hereby declared to be the intent of
37 the legislature that this act would have been enacted even if such
38 invalid provisions had not been included herein.
39 § 4. This act shall take effect immediately; provided, however, that
40 the applicable effective date of Parts A through C of this act shall be
41 as specifically set forth in the last section of such Parts.