senate Bill S6347

2013-2014 Legislative Session

Relates to a real property tax exemption for property owned by a limited liability company

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 17, 2014 referred to local government

S6347 - Bill Details

See Assembly Version of this Bill:
A8624
Current Committee:
Senate Local Government
Law Section:
Real Property Tax Law
Laws Affected:
Amd ยง425, RPT L

S6347 - Bill Texts

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Permits a STAR exemption for property owned by a limited liability company where the limited liability company is owned by a person to whom the exemption would have otherwise been granted.

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BILL NUMBER:S6347

TITLE OF BILL: An act to amend the real property tax law, in relation
to a real property tax exemption for property owned by a limited
liability company

PURPOSE: To allow an otherwise qualified property owner to receive
the STAR (School Tax Relief) exemption on his or her primary residence
if the residence is owned by a limited liability company (LLC) which
is owned by the property owner.

SUMMARY OF PROVISIONS:

Section 1 amends subdivision 3 of Section 425 of the Real Property Tax
Law, which provides for the STAR exemption, by adding a new paragraph
e-1 which adds a primary residence owned by a limited liability
company to the type of property eligible for the STAR exemption. It
also provides that such property must serve as the primary residence
of one or more of the members of the LLC and that those members who
reside thereon personally pay the real property taxes associated with
the property's ownership,

EXISTING LAW: Real property owned by a LLC is not eligible for a STAR
exemption

JUSTIFICATION: New York State's School Tax Relief (STAR) Program
provides an exemption from school taxes for most owner-occupied,
primary residences. It is unfair to deny this benefit to an otherwise
qualified taxpayer because his or her residence is owned by a LLC of
which the qualified property taxpayer is the owner.

Under interpretation of current law when an individual who otherwise
would be entitled to a STAR exemption owns his or her primary
residence as part of a LLC, the individual may not receive the STAR
exemption.

In addition, current law allows that if the taxpayer's primary
residence is not an eligible type of property (i.e. one, two or three
family residence, a farm dwelling or residential property held in
condominium or cooperative form of ownership), but a portion of the
property is partially used by the owner as a primary residence, that
portion which is used as the primary residence may be entitled to the
STAR exemption. However, this is not currently allowed if the person
owns the property through a LLC.

The nature of the ownership of the primary residence should not
disqualify an otherwise qualified taxpayer from receiving the STAR
exemption. This legislation eliminates this inequity by allowing the
STAR exemption on that part of the property owned by a LLC which
serves as the primary residence of the owner(s) of the LLC.

LEGISLATIVE HISTORY: This is a new bill

FISCAL IMPLICATIONS: Minimal to the State.

LOCAL FISCAL IMPLICATIONS: None.


EFFECTIVE DATE: Immediately.

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

                                  6347

                            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 Local Government

AN ACT to amend the real property tax law, in relation to a real proper-
  ty tax exemption for property 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.  Subdivision 3 of section 425 of the real property tax law
is amended by adding a new paragraph (e-1) to read as follows:
  (E-1) DWELLINGS OWNED BY A LIMITED LIABILITY COMPANY. IF  LEGAL  TITLE
TO  A  DWELLING  IS  HELD  BY A LIMITED LIABILITY COMPANY, THE EXEMPTION
SHALL BE GRANTED IF THE PROPERTY SERVES AS THE PRIMARY RESIDENCE OF  ONE
OR  MORE  OF THE MEMBERS OF THE LIMITED LIABILITY COMPANY, PROVIDED THAT
THE MEMBER OR MEMBERS WHO PRIMARILY RESIDE THEREON PERSONALLY PAY ALL OF
THE REAL PROPERTY TAXES AND OTHER COSTS ASSOCIATED WITH  THE  PROPERTY'S
OWNERSHIP.
  S 2. This act shall take effect immediately.







 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13122-02-4

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