senate Bill S6193B

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:
A8725A
Versions:
S6193
S6193A
S6193B
Legislative Cycle:
2013-2014
Law Section:
Real Property Taxation

Sponsor Memo

BILL NUMBER:S6193B

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 2005
through 2013.

LEGISLATIVE HISTORY: New bill

EFFECTIVE DATE: This act shall take effect immediately and shall
apply to taxable years beginning on and after January 1, 2005 and
before January 1, 2014.

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

                                 6193--B

                            I N  S E N A T E

                               (PREFILED)

                             January 8, 2014
                               ___________

Introduced  by Sens. DeFRANCISCO, SMITH -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Local Govern-
  ment -- committee  discharged,  bill  amended,  ordered  reprinted  as
  amended  and  recommitted  to  said committee -- 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, 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, (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 or after January 1, 2005 and before January 1, 2014.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13286-04-4

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