S T A T E   O F   N E W   Y O R K
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                                  5348

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 13, 2009
                               ___________

Introduced  by  M. of A. KOON, ABBATE, LUPARDO, MAGEE, J. RIVERA, ROBIN-
  SON, SCHIMMINGER, ZEBROWSKI, GUNTHER, COOK -- Multi-Sponsored by -- M.
  of A. COLTON, DESTITO, GREENE,  LIFTON,  V. LOPEZ,  McENENY,  PHEFFER,
  N. RIVERA, SCHROEDER, SWEENEY, WRIGHT -- read once and referred to the
  Committee on Real Property Taxation

AN  ACT to amend the real property tax law, in relation to extending the
  benefits of the STAR program to small businesses

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

  Section  1. Subdivision 3 of section 425 of the real property tax law,
as added by section 1 of part B of chapter 389  of  the  laws  of  1997,
paragraph  (a)  as amended by chapter 264 of the laws of 2000, paragraph
(d) as added by chapter 443 of the laws of 2003, paragraph (e) as  added
by  section 2 of part W of chapter 57 of the laws of 2008, is amended to
read as follows:
  3.  Eligibility  requirements.  (a)  Property  use.  To  qualify   for
exemption  pursuant  to this section, the property must be a one, two or
three family residence, a farm dwelling, A SMALL BUSINESS or residential
property held in condominium or cooperative form of  ownership.  If  the
property is not an eligible type of property, but a portion of the prop-
erty is partially used by the owner as a primary residence, that portion
which  is  so  used  shall be entitled to the exemption provided by this
section; provided that in  no  event  shall  the  exemption  exceed  the
assessed value attributable to that portion.
  (b)  Primary  residence.  The property must serve as the primary resi-
dence of one or more of the owners  thereof,  UNLESS  SUCH  PROPERTY  IS
OWNED  BY  A SMALL BUSINESS AS DEFINED IN PARAGRAPH (F) OF THIS SUBDIVI-
SION.
  (c) Trusts. If legal title to the property is  held  by  one  or  more
trustees,  the  beneficial  owner  or  owners shall be deemed to own the
property for purposes of this subdivision.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02289-01-9
              

A. 5348                             2

  (d) Farm dwellings not owned by the resident. (i) If  legal  title  to
the farm dwelling is held by an S-corporation or by a C-corporation, the
exemption  shall  be granted if the property serves as the primary resi-
dence of a shareholder of such corporation.
  (ii) If the legal title to the farm dwelling is held by a partnership,
the  exemption  shall  be  granted if the property serves as the primary
residence of one or more of the partners.
  (iii) Any information deemed necessary  to  establish  shareholder  or
partner status for eligibility purposes shall be considered confidential
and exempt from the freedom of information law.
  (e)  Dwellings  owned by limited partnerships. (i) If legal title to a
dwelling is held by a limited partnership, the exemption shall be grant-
ed if the property serves as the primary residence of one or more of the
partners, provided that the limited partnership which holds title to the
property does not engage in any commercial activity,  that  the  limited
partnership  was  lawfully created to hold title solely for estate plan-
ning and asset protection purposes, and that the partner or partners who
primarily reside thereon personally pay all of the real  property  taxes
and other costs associated with the property's ownership.
  (ii)  Any information deemed necessary to establish partner status for
eligibility purposes shall be considered confidential  and  exempt  from
the freedom of information law.
  (F)  FOR  THE  PURPOSES  OF THIS SUBDIVISION THE TERM "SMALL BUSINESS"
SHALL MEAN A BUSINESS WHICH EMPLOYS TWENTY PERSONS OR LESS.
  S 2. This act shall take effect immediately and  shall  apply  to  all
taxable years beginning on and after January 1, 2010.