Bill S4753-2013

Relates to payments in lieu of taxes made by certain entities for property located at 230-234 Wallace Way, Gates, New York

Relates to payments in lieu of taxes made by certain entities for property located at 230-234 Wallace Way, Gates, New York.

Details

Actions

  • Nov 13, 2013: APPROVAL MEMO.9
  • Nov 13, 2013: SIGNED CHAP.508
  • Nov 1, 2013: DELIVERED TO GOVERNOR
  • Jun 11, 2013: returned to senate
  • Jun 11, 2013: passed assembly
  • Jun 11, 2013: ordered to third reading rules cal.131
  • Jun 11, 2013: substituted for a6561
  • Jun 11, 2013: referred to ways and means
  • Jun 11, 2013: DELIVERED TO ASSEMBLY
  • Jun 11, 2013: PASSED SENATE
  • Jun 10, 2013: ORDERED TO THIRD READING CAL.1202
  • Jun 10, 2013: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Apr 22, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Votes

Memo

BILL NUMBER:S4753

TITLE OF BILL: An act in relation to a certain agreement for a payment in lieu of taxes

PURPOSE:

Relates to payments in lieu of taxes made by certain entities for property located at 230-234 Wallace Way, Gates, New York.

SUMMARY OF PROVISIONS:

Section 1. Makes provisions for payments in lieu of taxes made by certain entities for specified properties and relates to eligibility for real property tax credit.

Section 2. Effective date.

JUSTIFICATION:

Qualified Empire Zone Enterprises (QEZE) 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. For example, under New York State tax law, a QEZE tenant that is responsible for property taxes under its lease is eligible for a refund for paid property taxes. Payments by a lessee made pursuant to a PILOT agreement qualify as property taxes that are eligible for this refund.

A recent policy shift within the New York State Department of Tax and Finance (NYSDTF) regarding this type of agreement denied credit to this lessee as a result of the business not being a party to the PILOT agreement between the landlord and tax jurisdiction. As a result, the lessee that had been approved for the tax credit, had paid taxes consistent with their lease agreements, and had been audited by the state during the relevant time period, was assessed for credits awarded in prior years. This business is now being assessed for credits awarded in prior years from 2008 to 2010.

This entity has complied with the spirit of the law, and has relied on the tax credit as a significant component of its budget. This business also proactively changed it's PILOT agreement in order to comply moving forward, and should not be penalized for a change in policy within the NYSDTF that would have been followed if it had been policy all along.

PRIOR LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2008.


Text

STATE OF NEW YORK ________________________________________________________________________ 4753 2013-2014 Regular Sessions IN SENATE April 22, 2013 ___________
Introduced by Sen. ROBACH -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment 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, any payment in lieu of taxes made by a quali- fied empire zone enterprise to the state, a municipal corporation, or a public benefit corporation pursuant to its lease agreement for property located at 230-234 Wallace Way, Gates, New York with a landlord that is a party to a payment in lieu of taxes agreement between the landlord and the state, municipal corporation, or public benefit corporation shall be deemed, for the purposes of subdivision (e) of section 15 of the tax law, to have been made pursuant to a payment in lieu of taxes agreement with the state, municipal corporation, or public benefit corporation. 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 nor made a payment in lieu of taxes to the state, municipal corporation, or public benefit corporation pursuant to its agreement with the state, municipal corpo- ration, or public benefit corporation for such payments. Notwithstand- ing any section of law to the contrary, such credit shall be based upon the payments in lieu of taxes and employment of the tenant. S 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2008.

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