Bill Text: NY S04734 | 2021-2022 | General Assembly | Introduced
Bill Title: Enacts the "Made in New York act"; increases the deduction from the federal gross adjusted income of certain small businesses; grants eligibility for the basic STAR exemption to certain small businesses; establishes the 3-D program which grants tax benefits to manufacturers which design, develop and manufacture a new product in the state.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO BUDGET AND REVENUE [S04734 Detail]
Download: New_York-2021-S04734-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4734 2021-2022 Regular Sessions IN SENATE February 10, 2021 ___________ Introduced by Sens. GRIFFO, O'MARA, ORTT -- 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. LBD04319-01-1S. 4734 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 [three7and 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 amended by section 1 41 of part RR of chapter 59 of the laws of 2019, 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 soleS. 4734 3 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 through two thou- 10 sand eighteen-two thousand nineteen school years, the parcel's affil- 11 iated income may be no greater than five hundred thousand dollars, as 12 determined by the commissioner pursuant to subdivision fourteen of this 13 section or section one hundred seventy-one-u of the tax law, in order to 14 be eligible for the basic exemption authorized by this section. Begin- 15 ning with the two thousand nineteen-two thousand twenty school year, for 16 purposes of the exemption authorized by this section, [the] a residen- 17 tial parcel's affiliated income may be no greater than two hundred fifty 18 thousand dollars, as so determined. As used herein, the term "affiliated 19 income" shall mean the combined income of all of the owners of the 20 parcel who resided primarily thereon on the applicable taxable status 21 date, and of any owners' spouses residing primarily thereon. For 22 exemptions on final assessment rolls to be used for the levy of taxes 23 for the two thousand eleven-two thousand twelve school year, affiliated 24 income shall be determined based upon the parties' incomes for the 25 income tax year ending in two thousand nine. In each subsequent school 26 year, the applicable income tax year shall be advanced by one year. The 27 term "income" as used herein shall have the same meaning as in subdivi- 28 sion four of this section. 29 (b-2) Primary place of business. For small businesses, the property 30 shall be property at a single location within the state, upon which the 31 small business carries on its business enterprise. 32 § 3. Paragraph (a) of subdivision 5 of section 425 of the real proper- 33 ty tax law, as amended by section 5 of part E of chapter 83 of the laws 34 of 2002, is amended to read as follows: 35 (a) Generally. Every school district shall notify, or cause to be 36 notified, each person owning residential real property and each small 37 business owning real property in the school district of the provisions 38 of this section. The provisions of this subdivision may be met by a 39 notice sent to such persons in substantially the following form: "Resi- 40 dential and small business real property may qualify for a partial 41 exemption from school district taxes under the New York state school tax 42 relief (STAR) program. To receive such exemption, owners of qualifying 43 property must file an application with their local assessor on or before 44 the applicable taxable status date. For further information, please 45 contact your local assessor." 46 § 4. Paragraph (a) of subdivision 6 of section 425 of the real proper- 47 ty tax law, as amended by section 1 of part A of chapter 60 of the laws 48 of 2016, is amended to read as follows: 49 (a) Generally. All owners of the property who primarily reside thereon 50 and who are not subject to the provisions of subdivision sixteen of this 51 section must jointly or, in the case of a small business, the owner or 52 owners thereof must file an application for exemption with the assessor 53 on or before the appropriate taxable status date. Such application may 54 be filed by mail if it is enclosed in a postpaid envelope properly 55 addressed to the appropriate assessor, deposited in a post office or 56 official depository under the exclusive care of the United States postalS. 4734 4 1 service, and postmarked by the United States postal service on or before 2 the applicable taxable status date. Each such application shall be made 3 on a form prescribed by the commissioner, which shall require the appli- 4 cant or applicants to agree to notify the assessor if their primary 5 residence or primary place of business changes while their property is 6 receiving the exemption. The assessor may request that proof of residen- 7 cy be submitted with the application. If the applicant requests a 8 receipt from the assessor as proof of submission of the application, the 9 assessor shall provide such receipt. If such request is made by other 10 than personal request, the applicant shall provide the assessor with a 11 self-addressed postpaid envelope in which to mail the receipt. 12 § 5. Subdivision 10 of section 425 of the real property tax law, as 13 added by section 1 of part B of chapter 389 of the laws of 1997, para- 14 graph (a) as further amended by subdivision (b) of section 1 of part W 15 of chapter 56 of the laws of 2010, is amended to read as follows: 16 10. Proof of residency. (a) Requests. From time to time, the assessor 17 may request proof of residency or proof of primary place of business 18 from the owner or owners of any property which is exempt pursuant to 19 this section. In addition, the assessor shall request proof of residency 20 or primary place of business from any such owner or owners when 21 requested to do so by the commissioner. 22 (b) Timing. A request for proof of residency or primary place of busi- 23 ness shall be mailed at least sixty days prior to the ensuing taxable 24 status date. The owner or owners shall submit proof of their residency 25 or primary place of business to the assessor on or before the ensuing 26 taxable status date. 27 (c) Review of submission. The burden shall be on the owner or owners 28 to establish that the property is their primary residence or primary 29 place of business. If they submit proof of residency or primary place 30 of business on or before the ensuing taxable status date, and the 31 submission demonstrates to the assessor's satisfaction that the property 32 is the primary residence or primary place of business of one or more of 33 the owners thereof, and if the requirements of this section are other- 34 wise satisfied, the exemption shall continue in effect on the ensuing 35 tentative assessment roll. Otherwise, the assessor shall discontinue 36 the exemption on the next ensuing tentative assessment roll as provided 37 [herein] in this section, and, where appropriate, shall proceed as 38 further provided [herein] in this section. 39 § 6. Subparagraph (i) of paragraph (a) of subdivision 11 of section 40 425 of the real property tax law, as added by section 1 of part B of 41 chapter 389 of the laws of 1997, is amended to read as follows: 42 (i) the property may not be the primary residence or primary place of 43 business of the owner or owners who applied for the exemption, 44 § 7. Subparagraph (iii) of paragraph (b) of subdivision 14 of section 45 425 of the real property tax law, as added by section 1 of part J of 46 chapter 57 of the laws of 2013, is amended to read as follows: 47 (iii) the property does not serve as the primary residence or the 48 primary place of business of any of its owners; 49 § 8. This act shall take effect immediately and shall apply to taxable 50 years beginning on or after January 1, 2022. 51 PART C 52 Section 1. The economic development law is amended by adding a new 53 article 24 to read as follows:S. 4734 5 1 ARTICLE 24 2 3-D PROGRAM 3 Section 500. Short title. 4 501. Eligibility criteria for manufacturers. 5 502. Tax benefits. 6 § 500. Short title. This article shall be known and may be cited as 7 the "Dreamed in New York, Designed in New York and Developed in New York 8 program" or the "3-D program". 9 § 501. Eligibility criteria for manufacturers. 1. In order to partic- 10 ipate in the 3-D program, a business that manufactures a product within 11 the state shall satisfy all of the following criteria: 12 (a) the manufacturer designed and developed a new product within the 13 state; 14 (b) the manufacturer manufactures such new product in this state; 15 (c) the manufacturer's primary place for the manufacture of such new 16 product is in the state; and 17 (d) the commissioner shall have certified that such manufacturer has 18 satisfied the requirements of paragraphs (a), (b) and (c) of this subdi- 19 vision, and shall have certified the location or locations within the 20 state at which the new product is manufactured. 21 2. An eligible business may be organized as a corporation, a partner- 22 ship, a limited liability company or a sole proprietorship. 23 3. A business must be in compliance with all worker protection and 24 environmental laws and regulations. In addition, a business shall not 25 owe any past due federal, state or municipal taxes. 26 § 502. Tax benefits. A business that is certified by the commissioner 27 to be eligible to participate in the 3-D program and its employees shall 28 be entitled to all benefits granted to participants in the START-UP NY 29 program pursuant to article twenty-one of this chapter and any other 30 provision of law related thereto. 31 § 2. This act shall take effect immediately and shall apply to taxes 32 imposed on or after January 1, 2022. 33 § 3. Severability clause. If any clause, sentence, paragraph, subdivi- 34 sion, section or part of this act shall be adjudged by any court of 35 competent jurisdiction to be invalid, such judgment shall not affect, 36 impair, or invalidate the remainder thereof, but shall be confined in 37 its operation to the clause, sentence, paragraph, subdivision, section 38 or part thereof directly involved in the controversy in which such judg- 39 ment shall have been rendered. It is hereby declared to be the intent of 40 the legislature that this act would have been enacted even if such 41 invalid provisions had not been included herein. 42 § 4. This act shall take effect immediately; provided, however, that 43 the applicable effective date of Parts A through C of this act shall be 44 as specifically set forth in the last section of such Parts.
