senate Bill S6193

Amended

Relates to a certain agreement for a payment in lieu of taxes with respect to a lessee that is a qualified empire zone enterprise of certain real property

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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

  • 08 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT
  • 09 / Apr / 2014
    • AMEND AND RECOMMIT TO LOCAL GOVERNMENT
  • 09 / Apr / 2014
    • PRINT NUMBER 6193A
  • 13 / May / 2014
    • AMEND AND RECOMMIT TO LOCAL GOVERNMENT
  • 13 / May / 2014
    • PRINT NUMBER 6193B
  • 03 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 03 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1115
  • 10 / Jun / 2014
    • SUBSTITUTED BY A8725A

Summary

Relates to a certain agreement for a payment in lieu of taxes with respect to a lessee that is a qualified empire zone enterprise of certain real property.

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Bill Details

See Assembly Version of this Bill:
A8725
Versions:
S6193
S6193A
S6193B
Legislative Cycle:
2013-2014
Law Section:
Real Property Taxation

Sponsor Memo

BILL NUMBER:S6193

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

PURPOSE:

This bill relates to a certain agreement for a payment in lieu of
taxes with respect to a lessee that is a qualified empire zone
enterprise of certain real property.

SUMMARY OF PROVISIONS:

Section 1 - Makes provisions for payment in lieu of taxes made by
entity for specified property.

Section 2 - Effective date

JUSTIFICATION:

Qualified Empire Zone Enterprises are vital businesses which encourage
job growth and foster economic development. Under New York State Tax
Law, these tenants, which are responsible for property taxes under a
lease, are eligible for a refund for paid property taxes. Payments
made by a lessee made pursuant to a PILOT agreement qualify as
property taxes which are eligible for this refund.

A policy change within the NY State Department of Tax and Finance
regarding these type agreements now denies credit to the lessee as a
result of the business not being a party to the PILOT agreement
between the landlord and tax jurisdiction. As a result, a lessee that
had been approved for the tax credit and had paid taxes consistent
with its' lease agreement and had been audited by the state during the
relevant time period, was assessed for credits awarded in prior years.

This business has complied with the law and has relied on the tax
credit as a significant component of its operating budget. Therefore,
this business should not be penalized for a change in policy and
should be granted these property tax credits for the years 2011, 2012
and thereafter.

LEGISLATIVE HISTORY:

New bill

EFFECTIVE DATE:

This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2011.

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

                                  6193

                            I N  S E N A T E

                               (PREFILED)

                             January 8, 2014
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
  when printed to be committed to the Committee on Local Government

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, with respect to any payment of taxes  imposed
on  real property with respect to property located at 111 Windsor Place,
Islip, New York, with respect to a lessee that  is  a  qualified  empire
zone enterprise, such taxes shall be deemed to be eligible real property
taxes  with respect to such lessee and (1) such taxes shall be deemed to
have been paid by the lessee pursuant  to  explicit  requirements  in  a
written  lease  executed or amended on or after June first, two thousand
five, (2) shall be deemed to become a lien on the real property during a
taxable year in which the lessee of the real property is both  certified
pursuant  to  article  18-B of the general municipal law and a qualified
empire zone enterprise, and (3) the lessee shall be deemed to have  made
direct  payment  of  such  taxes  to  the  taxing  authority and to have
received a receipt for such payment of taxes from the taxing  authority.
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.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2011.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13286-01-4

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