Bill Text: NY S01944 | 2021-2022 | General Assembly | Introduced


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 2-0)

Status: (Introduced) 2021-01-16 - REFERRED TO LOCAL GOVERNMENT [S01944 Detail]

Download: New_York-2021-S01944-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          1944

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 16, 2021
                                       ___________

        Introduced  by  Sens.  AKSHAR, JORDAN -- read twice and ordered printed,
          and when printed to be committed to the Committee on Local Government

        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  amended  by section 1 of part RR of chapter 59 of the laws of
     5  2019, paragraph (d) as amended by chapter 564 of the laws  of  2015  and
     6  paragraph  (e) as added by section 2 of part W of chapter 57 of the laws
     7  of 2008, is amended and a new paragraph (f) is added to read as follows:
     8    3.  Eligibility  requirements.  (a)  Property  use.  To  qualify   for
     9  exemption  pursuant  to this section, the property must be a one, two or
    10  three family residence, a farm dwelling, small business  or  residential
    11  property  held  in  condominium or cooperative form of ownership. If the
    12  property is not an eligible type of property, but a portion of the prop-
    13  erty is partially used by the owner as a primary residence, that portion
    14  which is so used shall be entitled to the  exemption  provided  by  this
    15  section;  provided  that  in  no  event  shall  the exemption exceed the
    16  assessed value attributable to that portion.
    17    (b) Primary residence. The property must serve as  the  primary  resi-
    18  dence  of  one  or  more  of the owners thereof, unless such property is
    19  owned by a small business as defined in paragraph (f) of  this  subdivi-
    20  sion.
    21    (b-1)  Income.  For  final assessment rolls to be used for the levy of
    22  taxes for the two thousand eleven-two thousand twelve through two  thou-
    23  sand  eighteen-two  thousand  nineteen school years, the parcel's affil-
    24  iated income may be no greater than five hundred  thousand  dollars,  as
    25  determined  by the commissioner pursuant to subdivision fourteen of this

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04196-01-1

        S. 1944                             2

     1  section or section one hundred seventy-one-u of the tax law, in order to
     2  be eligible for the basic exemption authorized by this  section.  Begin-
     3  ning with the two thousand nineteen-two thousand twenty school year, for
     4  purposes  of  the  exemption  authorized  by  this section, the parcel's
     5  affiliated income may be no greater  than  two  hundred  fifty  thousand
     6  dollars, as so determined.  As used herein, the term "affiliated income"
     7  shall  mean  the  combined income of all of the owners of the parcel who
     8  resided primarily thereon on the applicable taxable status date, and  of
     9  any  owners' spouses residing primarily thereon. For exemptions on final
    10  assessment rolls to be used for the levy of taxes for the  two  thousand
    11  eleven-two  thousand  twelve  school  year,  affiliated  income shall be
    12  determined based upon the parties'  incomes  for  the  income  tax  year
    13  ending  in two thousand nine. In each subsequent school year, the appli-
    14  cable income tax year shall be advanced by one year. The  term  "income"
    15  as  used  herein  shall  have the same meaning as in subdivision four of
    16  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) For the purposes of this subdivision, the  term  "small  business"
    46  shall mean a business which employs one hundred persons or less.
    47    §  2.  This  act  shall take effect immediately and shall apply to all
    48  taxable years beginning on and after January 1, 2021.
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