senate Bill S6348

Concerns primary residences owned by limited liability companies that are occupied by veterans

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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

  • 17 / Jan / 2014
    • REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS

Summary

Concerns primary residences owned by limited liability companies that are occupied by veterans.

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Bill Details

See Assembly Version of this Bill:
A8626
Versions:
S6348
Legislative Cycle:
2013-2014
Current Committee:
Senate Veterans, Homeland Security And Military Affairs
Law Section:
Real Property Tax Law
Laws Affected:
Amd ยงยง458 & 458-a, RPT L

Sponsor Memo

BILL NUMBER:S6348

TITLE OF BILL: An act to amend the real property tax law, in relation
to veteran occupied primary residences owned by a limited liability
company

PURPOSE: To allow an otherwise qualified veteran to receive the
eligible funds exemption or the alternative veterans property tax
exemption on his or her primary residence if the residence is owned by
a limited liability company (LLC) which is owned by the veteran.

SUMMARY OF PROVISIONS:

Section 1 amends subdivision 7-a of Section 458 of the Real Property
Tax Law, which provides for the eligible funds exemption, to allow its
application to property owned by a LLC if the LLC is owned by the
person to whom the exemption would be granted had the person owned the
property.

Section 2 amends paragraph (c) of subdivision 1 of section 458-a of
the Real Property Tax Law, which provides for the alternative funds
exemption, to include LLC's in the definition of qualified owners able
to receive the exemption.

EXISTING LAW: Real property owned by a LLC is not eligible for an
eligible funds or alternative veterans exemption. (See Office of Real
Property Tax Services, Opinions of Counsel, Volume 10: Opinions of
Counsel SBRPS No. 97.)

JUSTIFICATION: New York State authorizes partial real property tax
exemptions to certain veterans on their primary residences in
recognition of their special service to our state and country. It is
unfair to deny this benefit to an otherwise qualified veteran simply
because he or she has chosen to structure the ownership of his or her
primary residence through a LLC.

Under interpretation of current law, when a veteran who is otherwise
entitled to a veteran's exemption owns his or her primary residence as
part of a LLC, the veteran is not eligible to receive the partial real
property tax exemption.

The nature of the ownership of the primary residence should not
disqualify a veteran from receiving the partial property tax exemption
to which he or she would be otherwise entitled.

This legislation eliminates this inequity

LEGISLATIVE HISTORY: This is a new bill

FISCAL IMPLICATIONS: None to the State.

LOCAL FISCAL IMPLICATIONS: Minimal.

EFFECTIVE DATE: Immediately.


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

                                  6348

                            I N  S E N A T E

                            January 17, 2014
                               ___________

Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Veterans, Homeland Securi-
  ty and Military Affairs

AN ACT to amend the real property tax law, in relation to veteran  occu-
  pied primary residences owned by a limited liability company

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

  Section 1. Section 458 of the real property  tax  law  is  amended  by
adding a new subdivision 7-a to read as follows:
  7-A.  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE
PROVISIONS OF THIS SECTION SHALL APPLY TO ANY REAL PROPERTY OWNED  BY  A
LIMITED  LIABILITY COMPANY, AS DEFINED BY SUBDIVISION (M) OF SECTION ONE
HUNDRED TWO OF THE  LIMITED  LIABILITY  COMPANY  LAW,  IF  SUCH  LIMITED
LIABILITY  COMPANY  IS  OWNED  BY  SUCH  PERSON  OR  PERSONS TO WHOM THE
EXEMPTION WOULD BE GRANTED HAD SUCH PERSON OR  PERSONS  OWNED  THE  REAL
PROPERTY IN QUESTION RATHER THAN THE LIMITED LIABILITY COMPANY.
  S 2. Paragraph (c) of subdivision 1 of section 458-a of the real prop-
erty  tax law, as amended by chapter 100 of the laws of 1988, is amended
to read as follows:
  (c) "Qualified owner" means a veteran, the spouse of a  veteran  [or],
the  unremarried  surviving  spouse of a veteran, OR A LIMITED LIABILITY
COMPANY, AS DEFINED BY SUBDIVISION (M) OF SECTION ONE HUNDRED TWO OF THE
LIMITED LIABILITY COMPANY LAW, IF  SUCH  LIMITED  LIABILITY  COMPANY  IS
OWNED  BY  SUCH PERSON OR PERSONS TO WHOM THE EXEMPTION WOULD BE GRANTED
HAD SUCH PERSON OR PERSONS OWNED THE REAL PROPERTY  IN  QUESTION  RATHER
THAN THE LIMITED LIABILITY COMPANY. Where property is owned by more than
one  qualified  owner,  the  exemption  to which each is entitled may be
combined. Where a veteran is also the unremarried surviving spouse of  a
veteran,  such  person  may  also  receive  any  exemption  to which the
deceased spouse was entitled.
  S 3. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13101-03-4

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