S952-2011 Actions

• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Mar 2, 2011: PRINT NUMBER 952A
• Mar 2, 2011: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 5, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S952-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          952
 2011-2012 Regular Sessions
 I N  SENATE
 (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
 

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, 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 NONCOMPLI
 ANCE" 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  ADMINISTRATIVE 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 ORDER TO PROMOTE AND ENHANCE HOUSING MAINTENANCE
 ENFORCEMENT EFFORTS IN SUCH LOCALITY.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04408-01-1
 
       S. 952                              2
 

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,  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
 NONCOMPLIANCE  WITH  REGARD  TO RENT IMPAIRING VIOLATIONS SHALL SUBMIT A
 LISTING OF THOSE PERSONS FOUND IN NONCOMPLIANCE TO THE DIVISION OF HOUS
 ING 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) 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 4.

Section 303 of the multiple residence law is amended by adding  a
 new subdivision 7 to read as follows:

 7.  A. WHEN THE COMPLIANCE PERIOD PRESCRIBED BY THE DEPARTMENT FOR THE
 CORRECTION OF: (I) A RENT IMPAIRING  VIOLATION  AS  DEFINED  IN  SECTION
 
       S. 952                              3
 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.

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