Bill S4401-2015

Relates to a certain agreement for a payment in lieu of taxes with respect to a lessee that is a qualified empire zone enterprise of certain real property

Relates to a certain agreement for a payment in lieu of taxes with respect to a lessee that is a qualified empire zone enterprise of certain real property.

Details

Actions

  • May 27, 2015: REPORTED AND COMMITTED TO FINANCE
  • Mar 18, 2015: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - May 27, 2015
Ayes (6): Marcellino, Carlucci, Golden, Nozzolio, O'Mara, Squadron
Ayes W/R (2): Murphy, Hoylman
Excused (1): Diaz

Memo

BILL NUMBER:S4401

TITLE OF BILL:

An act in relation to a certain agreement for a payment in lieu of taxes

PURPOSE OR GENERAL IDEA OF BILL:

This bill relates to a certain agreement for a payment in lieu of taxes with respect to a lessee that is a qualified empire zone enterprise of certain real property.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Makes provisions for payment in lieu of taxes made by entity for a specific property

Section 2. Allows the property owner to make a claim for a credit or refund after three years

Section 3. Effective Date.

JUSTIFICATION:

Qualified Empire Zone Enterprises (QEZE) are vital businesses which encourage job growth and foster economic development. During the relevant years, the property owner had taken a mortgage on his property located at 85 Saxon Ave Bay Shore, NY 11706. The bank paid the property taxes out of an escrow account on behalf of the property owner, using the property owner's payments. Due to an oversight, the Department of Taxation and Finance will not honor the QEZE tax deduction credit because they claim the property owner did not pay the taxes on the property, when in fact, the taxes were paid, by the owner, through the bank. As a result, the property owner who had been approved for a tax credit and had been audited by the state during the relevant time period, was later denied the credit.

The business has complied with the law and has relied on this tax credit for operating expenses. This bill would allow the property owner to receive his tax credit for the years 2009, 2010 and 2011. In 2014, two similar pieces of legislation were signed into law.

PRIOR LEGISLATIVE HISTORY:

New Bill

EFFECTIVE DATE:

Immediately and shall apply to taxable years beginning on or after January 1, 2009 and before January 1, 2012.


Text

STATE OF NEW YORK ________________________________________________________________________ 4401 2015-2016 Regular Sessions IN SENATE March 18, 2015 ___________
Introduced by Sens. BOYLE, CROCI -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT in relation to a certain agreement for a payment in lieu of taxes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Notwithstanding the provisions of subdivision (e) of section 15 of the tax law, with respect to any payment of taxes imposed on real property with respect to property located at 85 Saxon Avenue, Bay Shore, New York, with respect to a lessee that is a qualified empire zone enterprise, such taxes shall be deemed to be eligible real property taxes with respect to such lessee and (1) such taxes shall be deemed to have been paid by the lessee pursuant to explicit requirements in a written lease, (2) shall be deemed to become a lien on the real property during a taxable year in which the lessee of the real property is both certified pursuant to article 18-B of the general municipal law and a qualified empire zone enterprise, and (3) the lessee shall be deemed to have made direct payment of such taxes to the taxing authority and to have received a receipt for such payment of taxes from the taxing authority. Such qualified empire zone enterprise shall be eligible to claim the real property tax credit provided by section 15 of the tax law provided that for each of such periods, the landlord has not filed a claim for the real property tax credit for such payments. S 2. Notwithstanding the provisions of sections 687 or 1087 of the tax law or any other provision to the contrary, a claim for a credit or refund may be filed by the taxpayer with respect to the property located at 85 Saxon Avenue, Bay Shore, New York, for taxable years January 1, 2009 through December 31, 2011 where the taxpayer is a qualified empire zone enterprise. S 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2009 and before January 1, 2012.

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