senate Bill S5660

Relates to the qualification of payments made by the taxpayer as eligible real property tax payments for purposes of the QEZE Tax Credit

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jun / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 02 / May / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 15 / May / 2012
    • 1ST REPORT CAL.802
  • 16 / May / 2012
    • 2ND REPORT CAL.
  • 21 / May / 2012
    • ADVANCED TO THIRD READING
  • 12 / Jun / 2012
    • PASSED SENATE
  • 12 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 12 / Jun / 2012
    • REFERRED TO REAL PROPERTY TAXATION

Summary

Relates to the qualification of payments made by taxpayer as eligible real property tax payments for purposes of the QEZE Tax Credit.

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Bill Details

Versions:
S5660
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Taxation

Sponsor Memo

BILL NUMBER:S5660 REVISED 01/31/12

TITLE OF BILL:
An act
relating to the qualification of payments made by
the taxpayer as eligible
real property tax payments for purposes of the QEZE Tax Credit

PURPOSE:
To mitigate the reversal of a decision made by the NYS Department of
Tax and Finance which negatively impacted a taxpayer.

SUMMARY OF PROVISIONS:
Section 1. Any payment in lieu of taxes made by a QEZE to the state,
municipal corporation, or public benefit corporation pursuant to a
lease agreement with a landlord that is party to a payment in lieu of
taxes agreement between the landlord and the state, municipal
corporation, or public benefit corporation shall be deemed to have
been made pursuant to a payment in lieu of taxes agreement and such
QEZE shall be eligible to claim the real property tax credit provided
that for each of such periods, the landlord has not filed a claim for
the real property tax credit for such payments nor made a payment in
lieu of taxes to the state, municipal corporation, or public benefit
corporation pursuant to its agreement with the state, municipal
corporation, or public benefit corporation for such payments.
Section 2. Effective date.

JUSTIFICATION:
Hammer Packaging Corporation's (HPC) facility at 230-234 Wallace Way,
Gates, NY (Rochester Tech Park) was designated a Qualified Empire
Zone Enterprise (QEZE) effective March 6, 2006. HPC increased/created
jobs in the Zone and in New York State. HPC was recertified and
received an Empire Zone Retention Certificate in the statewide review
process in 2009, as it met all employment and investment criteria.
HPC is a tenant at Rochester Tech Park. Per the term of its lease,
HPC is responsible for payment of all property taxes. Under NYS tax
law, a QEZE tenant that is responsible for property taxes under its
lease is eligible for a tax incentive, a refund for property taxes it
pays. Under NYS tax law, payments under a PILOT Program qualify as
property taxes eligible for the refund. HPC's landlord at Rochester
Tech Park has a PILOT Agreement with County Of Monroe Industrial
Development Agency (COMIDA).

HPC filed a refund claim for property taxes paid at Rochester Tech
Park in 2008 for $58,800 and in 2009 for $57,500. New York State Tax
Department of Finance (NYSDTF) audited the 2008 claim in a desk audit
and initially allowed the claim, refunding the $58,800. In late 2010,
NYSTDF audited the 2009 claim, denied it, and filed an assessment for
a return of the previous 2008 refund of $58,800, plus interest. The
stated reason
for denial of the claim is that HPC is not "party to" the existing

PILOT Agreement between the tax jurisdiction and the landlord. COMIDA
Board has amended the PILOT Agreement t.o include HPC. Results of the
NYSTDF policy is that HPC, a recertified QEZE, does not get the
credit for property taxes it paid. The landlord does not claim the
credit. The tax incentive for investing and increasing employment in
the Rochester Tech Park location is being disallowed based on the
form of this documentation.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2008.

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

                                  5660

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 9, 2011
                               ___________

Introduced  by  Sen.  ALESI  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT relating to the qualification of payments made by the taxpayer as
  eligible real property tax payments for purposes of the QEZE Tax Cred-
  it

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Notwithstanding  the  provisions  of  subdivision  (e) of
section 15 of the tax law, any payment in lieu of taxes made by  a  QEZE
to  the  state,  municipal  corporation,  or  public benefit corporation
pursuant to its lease agreement for  property  located  at  230  to  234
Wallace  Way,  Gates,  New  York  with  a  landlord that is a party to a
payment in lieu of taxes agreement between the landlord and  the  state,
municipal  corporation,  or  public benefit corporation shall be deemed,
for the purposes of subdivision (e) of section 15 of  the  tax  law,  to
have been made pursuant to a payment in lieu of taxes agreement and such
QEZE shall be eligible to claim the real property tax credit provided by
section  15  of  the tax law provided that for each of such periods, the
landlord has not filed a claim for the real property tax credit for such
payments nor made a payment in lieu of taxes  to  the  state,  municipal
corporation,  or  public  benefit  corporation pursuant to its agreement
with the state, municipal corporation, or public benefit corporation for
such payments.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2008.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13026-01-1

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