senate Bill S5985

Establishes an income tax credit for flood victims in certain counties

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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

  • 15 / Nov / 2013
    • REFERRED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 13 / Jan / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 13 / Jan / 2014
    • ORDERED TO THIRD READING CAL.3
  • 27 / Jan / 2014
    • PASSED SENATE
  • 27 / Jan / 2014
    • DELIVERED TO ASSEMBLY
  • 27 / Jan / 2014
    • REFERRED TO WAYS AND MEANS

Summary

Establishes an income tax credit for flood victims in certain counties in the amount of property taxes paid on property which sustained substantial damage as a result of flooding in the period from June 20, 2013 to and including August 9, 2013.

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Bill Details

Versions:
S5985
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L

Sponsor Memo

BILL NUMBER:S5985

TITLE OF BILL: An act to amend the tax law, in relation to
establishing a tax credit for certain flood victims

PURPOSE:

The purpose of this legislation is to provide income tax credits for
victims of recent flooding in various counties throughout upstate New
York. The credit would equal the amount of real property taxes paid or
incurred on any property which received substantial damage as a result
of the storms.

SUMMARY OF PROVISIONS:

The legislation adds a new subsection xx to section 606 of the tax law
to provide a qualified taxpayer an income tax credit equal to his
school real property taxes paid in taxable year 2013 and January
2014's municipal taxes, with respect to any property that received
substantial damage due to flooding occurring during designated
periods. The credit is only available to those whose businesses or
residences were affected and is based on the amount of property taxes
paid.

"Substantial damage" is defined as damage wherein the cost of
restoring the structure to its previous condition would equal or
exceed fifty percent of the market value of the structure before the
damage occurred. The legislation also provides that the income tax
credit is fully refundable.

JUSTIFICATION:

Home and business owners in several counties in upstate New York,
enumerated in the text of the bill, suffered damage to their
properties and dwellings in various rain and flooding events in
June-August of 2013. High waters caused the loss of homes, properties,
public infrastructure, businesses and income. Individuals and families
are struggling to recover after having experienced significant damage.
The struggle is compounded by the tax bills based on the assessments
finalized on July 1 - prior to the floods - taxes paid on homes or
business structures that may be in disrepair. The legislation will
help to ease the tax burden on these struggling families by providing
an income tax credit that is equal to the amount of taxes incurred on
any property which received substantial damage as a result of the
storms, subject to criteria specified in the legislation.

LEGISLATIVE HISTORY:

Similar to S. 6060A of 2012.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

Immediately.


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

                                  5985

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            November 15, 2013
                               ___________

Introduced  by  Sens.  SEWARD,  FARLEY,  GRIFFO, MAZIARZ, O'MARA -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Rules

AN  ACT  to  amend the tax law, in relation to establishing a tax credit
  for certain flood victims

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

  Section  1.   Subsections (yy) and (zz) of section 606 of the tax law,
as relettered by section 5 of part H of chapter 1 of the laws  of  2003,
are  relettered subsections (yyy) and (zzz) and a new subsection (xx) is
added to read as follows:
  (XX) TAX CREDIT FOR VICTIMS OF  FLOODING  IN  THE  FOLLOWING  COUNTIES
DURING  THE  PERIOD  FROM  JUNE  TWENTIETH, TWO THOUSAND THIRTEEN TO AND
INCLUDING AUGUST NINTH, TWO THOUSAND THIRTEEN: ONEIDA,  HERKIMER,  MADI-
SON,  MONTGOMERY,  TOMPKINS,  CORTLAND,  CHEMUNG, SCHUYLER, STEUBEN, AND
NIAGARA.
  (1) ALLOWANCE OF CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CRED-
IT FOR TAXABLE YEARS TWO THOUSAND THIRTEEN AND TWO THOUSAND FOURTEEN, TO
BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE  TAX  IMPOSED  BY  THIS
ARTICLE.  FOR  PURPOSES OF THIS PARAGRAPH, THE TERM "QUALIFIED TAXPAYER"
MEANS A BUSINESS OR RESIDENT TAXPAYER.
  (2) AMOUNT OF CREDIT. (A) THE AMOUNT OF THE CREDIT SHALL BE  EQUAL  TO
THE AMOUNT OF SCHOOL TAXES PAID FOR THE TWO THOUSAND THIRTEEN--TWO THOU-
SAND  FOURTEEN SCHOOL YEAR AND THE AMOUNT OF ANY CITY, VILLAGE, TOWN AND
COUNTY TAXES PAID IN TAXABLE YEAR TWO THOUSAND FOURTEEN WITH RESPECT  TO
ANY  PROPERTY  WHICH  RECEIVED  SUBSTANTIAL DAMAGE AS A RESULT OF SEVERE
FLOODING DURING THE PERIOD OF JUNE TWENTIETH, TWO THOUSAND  THIRTEEN  TO
AUGUST NINTH, TWO THOUSAND THIRTEEN, INCLUSIVE.
  (B)  FOR  PURPOSES  OF  THIS SUBSECTION, THE TERM "SUBSTANTIAL DAMAGE"
MEANS DAMAGE OF ANY ORIGIN SUSTAINED BY A STRUCTURE WHEREBY THE COST  OF
RESTORING  THE  STRUCTURE TO ITS BEFORE DAMAGED CONDITION WOULD EQUAL OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11936-02-3

S. 5985                             2

EXCEED FIFTY PERCENT OF THE MARKET VALUE OF  THE  STRUCTURE  BEFORE  THE
DAMAGE OCCURRED.
  (3)  ELIGIBILITY.  (A)  THE  CREDIT  SHALL  ONLY  BE ALLOWED WHERE THE
AFFECTED PROPERTY IS LOCATED  IN  A  COUNTY  IN  THIS  STATE  WHICH  WAS
DECLARED  BY  THE  GOVERNOR TO BE A STATE DISASTER EMERGENCY DECLARATION
AREA OR HAS SOUGHT OR IS ELIGIBLE TO RECEIVE FEDERAL AID  OR  ASSISTANCE
FROM  THE  FEDERAL  EMERGENCY  MANAGEMENT  AGENCY  AS A RESULT OF SEVERE
FLOODING DURING THE PERIOD OF JUNE TWENTIETH, TWO THOUSAND  THIRTEEN  TO
AUGUST NINTH, TWO THOUSAND THIRTEEN, INCLUSIVE.
  (B)  THE  CREDIT  UNDER  THIS  SUBSECTION SHALL ONLY BE ALLOWED IF THE
PROPERTY IS CONSIDERED THE TAXPAYER'S PRIMARY RESIDENCE.
  (4) APPLICATION OF CREDIT. IF THE AMOUNT OF CREDIT ALLOWED UNDER  THIS
SUBSECTION  SHALL  EXCEED  THE  TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 2. This act shall take effect immediately.

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