The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1944
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 16, 2021
                                ___________
 
 Introduced  by  Sens.  AKSHAR, JORDAN -- 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 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
 (b-1)  as  amended  by section 1 of part RR of chapter 59 of the laws of
 2019, paragraph (d) as amended by chapter 564 of the laws  of  2015  and
 paragraph  (e) as added by section 2 of part W of chapter 57 of the laws
 of 2008, is amended and a new paragraph (f) is added 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, 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.
   (b-1)  Income.  For  final assessment rolls to be used for the levy of
 taxes for the two thousand eleven-two thousand twelve through two  thou-
 sand  eighteen-two  thousand  nineteen school years, the parcel's affil-
 iated income may be no greater than five hundred  thousand  dollars,  as
 determined  by the commissioner pursuant to subdivision fourteen of this
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04196-01-1

 S. 1944                             2
 
 section or section one hundred seventy-one-u of the tax law, in order to
 be eligible for the basic exemption authorized by this  section.  Begin-
 ning with the two thousand nineteen-two thousand twenty school year, for
 purposes  of  the  exemption  authorized  by  this section, the parcel's
 affiliated income may be no greater  than  two  hundred  fifty  thousand
 dollars, as so determined.  As used herein, the term "affiliated income"
 shall  mean  the  combined income of all of the owners of the parcel who
 resided primarily thereon on the applicable taxable status date, and  of
 any  owners' spouses residing primarily thereon. For exemptions on final
 assessment rolls to be used for the levy of taxes for the  two  thousand
 eleven-two  thousand  twelve  school  year,  affiliated  income shall be
 determined based upon the parties'  incomes  for  the  income  tax  year
 ending  in two thousand nine. In each subsequent school year, the appli-
 cable income tax year shall be advanced by one year. The  term  "income"
 as  used  herein  shall  have the same meaning as in subdivision four of
 this section.
   (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.
   (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)  If  the  legal  title to the farm 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 owners.
   (iv) Any information deemed necessary to establish shareholder,  part-
 ner  or owner status for eligibility purposes shall be considered confi-
 dential 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 ONE HUNDRED PERSONS OR LESS.
   §  2.  This  act  shall take effect immediately and shall apply to all
 taxable years beginning on and after January 1, 2021.