S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6214

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              March 9, 2011
                               ___________

Introduced  by  M.  of  A.  SCHIMMINGER -- 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:

  Section 1. Subdivision 3 of section 425 of the real property tax  law,
as  added  by  section  1  of part B of chapter 389 of the laws of 1997,
paragraph (a) as amended by chapter 264 of the laws of  2000,  paragraph
(b-1)  as  added  by  section  1 of part FF of chapter 57 of the laws of
2010, paragraph (d) as added by chapter 443 of  the  laws  of  2003  and
paragraph  (e) as added by section 2 of part W of chapter 57 of the laws
of 2008, is amended to read as follows:
  3.  Eligibility  requirements.  (a)  Property  use.  To  qualify   for
exemption  pursuant  to this section, the property must be a one, two or
three family residence, a farm dwelling, A SMALL BUSINESS or residential
property held in condominium or cooperative form of  ownership.  If  the
property is not an eligible type of property, but a portion of the prop-
erty is partially used by the owner as a primary residence, that portion
which  is  so  used  shall be entitled to the exemption provided by this
section; provided that in  no  event  shall  the  exemption  exceed  the
assessed value attributable to that portion.
  (b)  Primary  residence.  The property must serve as the primary resi-
dence of one or more of the owners  thereof,  UNLESS  SUCH  PROPERTY  IS
OWNED  BY  A SMALL BUSINESS AS DEFINED IN PARAGRAPH (F) OF THIS SUBDIVI-
SION.
  (b-1) Income. For final assessment rolls to be used for  the  levy  of
taxes  for  the  two thousand eleven-two thousand twelve school year and
thereafter, the parcel's affiliated income may be no greater  than  five
hundred  thousand dollars, as determined by the commissioner of taxation
and finance pursuant to section one hundred  seventy-one-u  of  the  tax

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05745-01-1
              

A. 6214                             2

law,  in order to be eligible for the basic exemption authorized by this
section. As used herein, the term "affiliated  income"  shall  mean  the
combined income of all of the owners of the parcel who resided primarily
thereon on the applicable taxable status date, and of any owners' spous-
es  residing primarily thereon. For exemptions on final assessment rolls
to be used for the levy of taxes for the two thousand  eleven-two  thou-
sand  twelve  school  year,  affiliated income shall be determined based
upon the parties' incomes for the income tax year ending in two thousand
nine. In each subsequent school year, the  applicable  income  tax  year
shall  be  advanced  by one year. The term "income" as used herein shall
have the same meaning as in subdivision four of this section.
  (c) Trusts. If legal title to the property is  held  by  one  or  more
trustees,  the  beneficial  owner  or  owners shall be deemed to own the
property for purposes of this subdivision.
  (d) Farm dwellings not owned by the resident. (i) If  legal  title  to
the farm dwelling is held by an S-corporation or by a C-corporation, the
exemption  shall  be granted if the property serves as the primary resi-
dence of a shareholder of such corporation.
  (ii) If the legal title to the farm dwelling is held by a partnership,
the exemption shall be granted if the property  serves  as  the  primary
residence of one or more of the partners.
  (iii)  Any  information  deemed  necessary to establish shareholder or
partner status for eligibility purposes shall be considered confidential
and exempt from the freedom of information law.
  (e) Dwellings owned by limited partnerships. (i) If legal title  to  a
dwelling is held by a limited partnership, the exemption shall be grant-
ed if the property serves as the primary residence of one or more of the
partners, provided that the limited partnership which holds title to the
property  does  not  engage in any commercial activity, that the limited
partnership was lawfully created to hold title solely for  estate  plan-
ning and asset protection purposes, and that the partner or partners who
primarily  reside  thereon personally pay all of the real property taxes
and other costs associated with the property's ownership.
  (ii) Any information deemed necessary to establish partner status  for
eligibility  purposes  shall  be considered confidential and exempt from
the freedom of information law.
  (F) FOR THE PURPOSES OF THIS SUBDIVISION  THE  TERM  "SMALL  BUSINESS"
SHALL MEAN A BUSINESS WHICH EMPLOYS TWENTY PERSONS OR LESS.
  S  2.  This  act  shall take effect immediately and shall apply to all
taxable years beginning on and after January 1, 2011.