senate Bill S7484A

Signed by Governor

Relates to payments in lieu of taxes made by certain entities for property located at 176 Rinaldi Boulevard, Poughkeepsie, New York

download pdf

Sponsor

Bill Status


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

actions

  • 25 / May / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 18 / Jun / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 18 / Jun / 2012
    • PRINT NUMBER 7484A
  • 21 / Jun / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 21 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1480
  • 21 / Jun / 2012
    • PASSED SENATE
  • 21 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 21 / Jun / 2012
    • REFERRED TO WAYS AND MEANS
  • 21 / Jun / 2012
    • SUBSTITUTED FOR A10732
  • 21 / Jun / 2012
    • ORDERED TO THIRD READING RULES CAL.594
  • 21 / Jun / 2012
    • PASSED ASSEMBLY
  • 21 / Jun / 2012
    • RETURNED TO SENATE
  • 06 / Aug / 2012
    • DELIVERED TO GOVERNOR
  • 17 / Aug / 2012
    • SIGNED CHAP.430
  • 17 / Aug / 2012
    • APPROVAL MEMO.9

Summary

Relates to payments in lieu of taxes made by certain entities for property located at 176 Rinaldi Boulevard, Poughkeepsie, New York.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A10732
Versions:
S7484
S7484A
Legislative Cycle:
2011-2012
Law Section:
Taxation

Sponsor Memo

BILL NUMBER:S7484A

TITLE OF BILL:
An act
in relation to a certain agreement for a payment in lieu of taxes

PURPOSE:
Relates to payments in lieu of taxes made by certain entities for
property located at 176 Rinaldi Boulevard, Poughkeepsie, New York

SUMMARY OF PROVISIONS:
Section 1. Makes provisions for payments in lieu of taxes made by
certain entities for specified properties and relates to eligibility
for real property tax credit.

Section 2. Effective date.

JUSTIFICATION:
Qualified Empire Zone Enterprises (QEZE) are vital businesses within
our communities that encourage job growth and foster economic
development. As an incentive to participate, these entities qualify
for tax exemptions and refunds. For example, under New York State tax
law, a QEZE tenant that is responsible for property taxes under its
lease is eligible for a refund for paid property taxes. Payments by a
lessee made pursuant to a PILOT agreement qualify as property taxes
that are eligible for this refund.

Nevertheless, there has been a recent policy shift within the New York
State Tax Department of Finance (NYSTDF) regarding this type of
agreement. NYSTDF has denied credit for lessee payments as a result
of them not being a "party to" the PILOT agreement between the
landlord and the tax jurisdiction. As a result, lessees who have been
approved for the tax credit, have paid taxes consistent with their
lease agreements, and have been audited by the state during the
relevant time period, are now being assessed for credits awarded in
prior years and face denials in future years.

These entities have complied with the spirit of the law, and have
relied on the tax credit as a significant component of their budgets.
Such a policy not only creates a disincentive for these businesses to
continue their work in our communities, but jeopardizes their current
fiscal integrity.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

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
________________________________________________________________________

                                 7484--A

                            I N  S E N A T E

                              May 25, 2012
                               ___________

Introduced  by  Sen.  SALAND -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted as amended and recommitted to said committee

AN ACT in relation to a certain agreement for a payment in lieu of taxes

  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 quali-
fied  empire zone enterprise to the state, a municipal corporation, or a
public benefit corporation pursuant to its lease agreement for  property
located at 176 Rinaldi Boulevard, Poughkeepsie, 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  corpo-
ration  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 with the state, municipal corporation, or public benefit
corporation.  Such qualified empire zone enterprise 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.   Notwith-
standing  any section of law to the contrary, such credit shall be based
upon the payments in lieu of taxes and employment of the tenant.
  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.
                                                           LBD16007-02-2

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.