Senate Bill S952A

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

                                 952--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government  Operations  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, the multiple dwelling law, and the multiple
  residence law, in  relation  to  disallowing  corporate  and  personal
  income  tax  deductions  for  property in continued noncompliance with
  regard to rent impairing violations

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

  Section  1.  Section  210  of  the  tax law is amended by adding a new
subdivision 24-a to read as follows:
  24-A. NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW AND  EXCEPT  IN  A
CITY  WITH  A  POPULATION  OF ONE MILLION OR MORE, NO DEDUCTION SHALL BE
PERMITTED FOR INTEREST, TAXES, DEPRECIATION,  OR  AMORTIZATION  PAID  OR
INCURRED IN THE TAXABLE YEAR FOR ANY PROPERTY OFFERED FOR LEASE WHICH IS
IN  CONTINUED  NONCOMPLIANCE WITH REGARD TO RENT IMPAIRING VIOLATIONS AS
DEFINED BY: (A) LOCAL LAWS, REGULATIONS, OR ORDINANCES OR (B)  PARAGRAPH
A  OF  SUBDIVISION  TWO  OF  SECTION THREE HUNDRED TWO-A OF THE MULTIPLE
DWELLING LAW AND SECTION THREE HUNDRED FIVE-A OF THE MULTIPLE  RESIDENCE
LAW.  FOR  THE PURPOSES OF THIS SECTION, "CONTINUED NONCOMPLIANCE" SHALL
MEAN THAT SUCH VIOLATION OR VIOLATIONS HAVE NOT  BEEN  CORRECTED  WITHIN
THE  PRESCRIBED  COMPLIANCE  PERIOD, DESPITE WRITTEN NOTIFICATION TO THE
OWNER BY THE LOCAL DEPARTMENT CHARGED WITH THE ENFORCEMENT OF SUCH LAWS,
REGULATIONS, OR ORDINANCES. WITH THE EXCEPTION OF REASONABLE ADMINISTRA-
TIVE EXPENSES, ALL ADDITIONAL REVENUE  REALIZED  AND  COLLECTED  BY  THE
DEPARTMENT  AS  A  RESULT OF ANY DEDUCTION DISALLOWED IN ACCORDANCE WITH
THE PROVISIONS OF THIS SUBDIVISION SHALL BE REMITTED TO THE LOCALITY  IN
WHICH  THE  PROPERTY WHICH IS THE SUBJECT OF THE VIOLATION IS LOCATED IN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04408-02-1
              

S. 952--A                           2

ORDER TO PROMOTE AND ENHANCE HOUSING MAINTENANCE ENFORCEMENT EFFORTS  IN
SUCH LOCALITY.
  S 2. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 40 to read as follows:
  (40)  DEDUCTIONS, INCLUDING INTEREST, TAXES, DEPRECIATION, AND AMORTI-
ZATION ALLOWED IN DETERMINING FEDERAL ADJUSTED GROSS INCOME AND INCURRED
IN THE TAXABLE YEAR ON ANY  PROPERTY  OFFERED  FOR  LEASE  WHICH  IS  IN
CONTINUED  NONCOMPLIANCE  WITH  REGARD  TO  RENT IMPAIRING VIOLATIONS AS
DEFINED IN SECTION TWO HUNDRED TEN OF THIS CHAPTER.
  S 3. Section 303 of the multiple dwelling law is amended by adding two
new subdivisions 1-b and 1-c to read as follows:
  1-B. NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW  AND  EXCEPT  IN  A
CITY WITH A POPULATION OF ONE MILLION OR MORE, LOCAL HOUSING ENTITIES OR
DEPARTMENTS  RESPONSIBLE FOR THE TRACKING AND/OR MAINTAINING OF RECORDS,
FILES AND/OR AFFIDAVITS OF PERSONS FOUND TO BE IN  CONTINUED  NONCOMPLI-
ANCE  WITH REGARD TO RENT IMPAIRING VIOLATIONS SHALL SUBMIT A LISTING OF
THOSE PERSONS FOUND IN NONCOMPLIANCE TO  THE  DIVISION  OF  HOUSING  AND
COMMUNITY RENEWAL WITHIN THIRTY DAYS AFTER THE THIRD RECORDED VIOLATION.
FOR  THE  PURPOSES  OF THIS SECTION, THE TERM "PERSON" SHALL INCLUDE THE
OWNER, MORTGAGEE, VENDEE,  FIRM  OR  CORPORATION  IN  POSSESSION  OF  OR
DIRECTLY  IN  CONTROL  OF  A  DWELLING  OR  PART THEREOF. THE TERM "RENT
IMPAIRING VIOLATIONS" SHALL BE DEFINED BY: (A) LOCAL  LAWS,  REGULATIONS
OR  ORDINANCES,  OR  (B) PARAGRAPH A OF SUBDIVISION TWO OF SECTION THREE
HUNDRED TWO-A OF THIS ARTICLE AND SECTION THREE HUNDRED  FIVE-A  OF  THE
MULTIPLE  RESIDENCE LAW.  "CONTINUED NONCOMPLIANCE", FOR THE PURPOSES OF
THIS SECTION, SHALL MEAN THAT SUCH VIOLATION OR VIOLATIONS HAVE NOT BEEN
CORRECTED WITHIN  THE  PRESCRIBED  COMPLIANCE  PERIOD,  DESPITE  WRITTEN
NOTIFICATION  TO  THE  OWNER  BY  THE  LOCAL DEPARTMENT CHARGED WITH THE
ENFORCEMENT OF SUCH LAWS, REGULATIONS OR ORDINANCES.
  1-C. (A) EXCEPT IN A CITY WITH A POPULATION OF ONE  MILLION  OR  MORE,
WHEN  THE  COMPLIANCE  PERIOD  PRESCRIBED  BY  THE  DEPARTMENT  FOR  THE
CORRECTION OF: (1) A RENT IMPAIRING  VIOLATION  AS  DEFINED  IN  SECTION
THREE  HUNDRED  TWO-A  OF  THIS  ARTICLE; OR (2) A VIOLATION OF STATE OR
LOCAL LAW, ORDINANCE OR REGULATION, WHICH CONSTITUTES A  THREAT  TO  THE
LIFE,  HEALTH  OR SAFETY OF THE PUBLIC HAS EXPIRED, THE DEPARTMENT SHALL
MAIL TO THE BUILDING OWNER A NOTICE  OF  NONCOMPLIANCE.  THE  NOTICE  OF
NONCOMPLIANCE SHALL BE MAILED BY CERTIFIED MAIL TO THE BUILDING OWNER AT
HIS  OR  HER  LAST  KNOWN ADDRESS, AND SHALL ADVISE SUCH OWNER (A) OF AN
INTENT TO NOTIFY THE DIVISION OF HOUSING AND  COMMUNITY  RENEWAL  WITHIN
THIRTY  DAYS  OF  THE  THIRD  RECORDED  NONCOMPLIANCE AND THE SUBSEQUENT
NOTIFICATION OF THE DEPARTMENT OF TAXATION AND FINANCE BY  THE  DIVISION
AFTER TEN DAYS, AND (B) A GENERAL DESCRIPTION OF THE TAX CONSEQUENCES OF
SUCH FILING WITH THE DEPARTMENT OF TAXATION AND FINANCE. AFTER THE EXPI-
RATION OF SUCH TEN DAY PERIOD, THE DIVISION MAY NOTIFY THE DEPARTMENT OF
TAXATION  AND  FINANCE  OF SUCH NONCOMPLIANCE. SUCH NOTICE SHALL INCLUDE
THE NAME OF THE OWNER OR OWNERS, THE LOCATION OF THE DWELLING, THE  DATE
THE  VIOLATION OR VIOLATIONS WERE RECORDED AND SUCH OTHER INFORMATION AS
THE DEPARTMENT OF TAXATION AND FINANCE MAY REQUEST.   IN THE  EVENT  THE
PERIOD  OF  NONCOMPLIANCE  DOES  NOT  COVER  AN ENTIRE TAXABLE YEAR, THE
DEDUCTIONS SHALL BE DENIED AT THE RATE  OF  ONE-TWELFTH  FOR  EACH  FULL
MONTH OR PART THEREOF DURING THE PERIOD OF NONCOMPLIANCE.
  (B)  FOR PURPOSES OF THIS SUBDIVISION, A NOTICE OF NONCOMPLIANCE SHALL
NOT BE MAILED BY THE ENFORCEMENT DEPARTMENT TO THE DIVISION  OF  HOUSING
AND  COMMUNITY  RENEWAL  IF THE VIOLATION WAS CAUSED SOLELY BY REASON OF
NATURAL DISASTER EXCEPT WHERE SUCH CONDITION REMAINS FOR MORE  THAN  SIX
MONTHS.

S. 952--A                           3

  S  4. Section 303 of the multiple residence law is amended by adding a
new subdivision 7 to read as follows:
  7.  A. EXCEPT IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, WHEN
THE COMPLIANCE PERIOD PRESCRIBED BY THE DEPARTMENT  FOR  THE  CORRECTION
OF:  (I)  A RENT IMPAIRING VIOLATION AS DEFINED IN SECTION THREE HUNDRED
TWO-A OF THE MULTIPLE DWELLING LAW; OR (II)  A  VIOLATION  OF  STATE  OR
LOCAL  LAW,  ORDINANCE  OR REGULATION, WHICH CONSTITUTES A THREAT TO THE
LIFE, HEALTH AND SAFETY OF THE PUBLIC HAS EXPIRED, THE DEPARTMENT  SHALL
MAIL  TO  THE  BUILDING  OWNER  A NOTICE OF NONCOMPLIANCE. THE NOTICE OF
NONCOMPLIANCE SHALL BE MAILED BY CERTIFIED MAIL TO THE BUILDING OWNER AT
HIS OR HER LAST KNOWN ADDRESS, AND SHALL ADVISE SUCH  OWNER  (1)  OF  AN
INTENT  TO  NOTIFY  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL WITHIN
THIRTY DAYS OF THE  THIRD  RECORDED  NONCOMPLIANCE  AND  THE  SUBSEQUENT
NOTIFICATION  OF  THE DEPARTMENT OF TAXATION AND FINANCE BY THE DIVISION
AFTER TEN DAYS, AND (2) A GENERAL DESCRIPTION OF THE TAX CONSEQUENCES OF
SUCH FILING WITH THE DEPARTMENT OF TAXATION AND FINANCE. AFTER THE EXPI-
RATION OF SUCH TEN DAY PERIOD, THE DIVISION MAY NOTIFY THE DEPARTMENT OF
TAXATION AND FINANCE OF SUCH NONCOMPLIANCE. SUCH  NOTICE  SHALL  INCLUDE
THE  NAME OF THE OWNER OR OWNERS, THE LOCATION OF THE DWELLING, THE DATE
THE VIOLATION OR VIOLATIONS WERE RECORDED AND SUCH OTHER INFORMATION  AS
THE  DEPARTMENT  OF  TAXATION AND FINANCE MAY REQUEST.  IN THE EVENT THE
PERIOD OF NONCOMPLIANCE DOES NOT  COVER  AN  ENTIRE  TAXABLE  YEAR,  THE
DEDUCTIONS  SHALL  BE  DENIED  AT  THE RATE OF ONE-TWELFTH FOR EACH FULL
MONTH OR PART THEREOF DURING THE PERIOD OF NONCOMPLIANCE.
  B. FOR PURPOSES OF THIS SUBDIVISION, A NOTICE OF  NONCOMPLIANCE  SHALL
NOT  BE  MAILED BY THE ENFORCEMENT DEPARTMENT TO THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL IF THE VIOLATION WAS CAUSED SOLELY  BY  REASON  OF
NATURAL  DISASTER  EXCEPT WHERE SUCH CONDITION REMAINS FOR MORE THAN SIX
MONTHS.
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on or after the first of January of the  year  in  which
this  act  shall have become a law, and to all violations recorded on or
after such date.