Senate Bill S7609

                                 BILL NUMBER:  S7609

 TITLE OF BILL :  An act to reinstate certain entities as empire zone
business enterprises

 PURPOSE OF THE BILL :

Relates to payments of taxes made by certain entities reinstated as
empire zone business enterprises after successful appeal of the
Department of Economic Development's June 2009 decertification.

 SUMMARY OF SPECIFIC PROVISIONS :

§ 1- Makes provisions for refunds of overpayment of taxes or refunds
of tax credits to certain entities which were improperly decertified
from the Empire Zones Program.

§ 2- Provides the effective date.

 JUSTIFICATION :

Article 18-B of the General Municipal Law enacted the Economic
Developments Zones Act, later the Empire Zones Program, intended to
stimulate private investment, private business development, and job
creation in certain geographic areas characterized by persistent
poverty, high unemployment, shrinking tax base, and dependence on
              

public assistance. Certified Empire Zone Business Enterprises are
vital businesses within our communities that encourage job growth and
foster economic development. As an incentive to participate, these
entities qualify for tax exemptions and refunds.

Nevertheless, in 2009, the Department of Economic Development was
directed to conduct a review of all certified business enterprises to
determine whether decertification was warranted pursuant to General
Municipal Law § 959(w). A number of businesses were decertified from
the Empire Zones Program and were prohibited from claiming certain
Empire Zone tax credits as a result of the decertification. Some
entities timely appealed and subsequently filed an Article 78
proceeding with the New York State Supreme Court. In 2015, the
Appellate Division determined that certain entities had been
improperly decertified and reinstated the certification of these
entities. Despite the Appellate Division's Decision, the Department of
Taxation and Finance continues to deny refunds of overpayments of tax
and/or refunds of tax credits due to the reinstated entities on the
basis that such refunds were not claimed within the applicable time
period. The Department of Taxation and Finance continues to ignore the
fact that prior to the 2015 Appellate Division's Decision, businesses
improperly decertified from the Empire Zones Program were prohibited
from filing a claim for refund for tax years beginning on or after
January 1, 2009.

 PRIOR LEGISLATIVE HISTORY :

Similar to Chapter 430 of 2012, Chapters 367 and 508 of 2013, and
Chapter 350 of 2014.

 FISCAL IMPLICATIONS :

None - such credits were previously accounted for in the State's
financial plan.

 EFFECTIVE DATE :
This act shall take effect immediately and shall only apply to taxable
years beginning on and after January 1, 2009.