Extends the availability of the STAR exemption to certain business property provided such property is owned by the owner of an unincorporated business having no more than 100 employees or by other non-corporate owners employing a similar number of employees; provides that such exemption shall apply for one year and must be renewed by application to the assessor.
BILL NUMBER: S542
TITLE OF BILL : An act to amend the real property tax law, in relation to extending the school tax relief exemption to certain business property
PURPOSE : This bill extends the benefits of the STAR program to include independent unincorporated businesses with less than one hundred employees. It would allow owners of such real property to claim an annual exemption equal to the applicable percentage of the assessed value.
SUMMARY OF PROVISIONS : Section 1: Amends Section 425(3) of the Real Property Tax Law to establish a STAR exemption for owners of real property used for commercial or industrial purposes. The exemption would equal the applicable percentage of assessed value, which is fifteen percent when the assessed value is two hundred thousand or less and ten percent when such value is over two hundred thousand. To qualify for the above exemption, the property must be owned by the owner of an unincorporated business, on average employ less than one hundred employees within the state, and must be independently owned and operated. Such exemption shall apply for one year and must be renewed by application to the assessor on or before the applicable taxable status date.
Section 2. States the effective date.
EXISTING LAW : Subdivision 3 of section 425 of the real property tax law is amended by adding a new paragraph (e).
JUSTIFICATION : This bill would provide small businesses with school property tax relief in an effort to reduce the property tax burden on New York business to encourage job creation and business location in New York. If enacted, this legislation would help make New York a more attractive business environment. Over time, such legislation would assist in the retention of current New York State based businesses, as well as attract new businesses to the state.
LEGISLATIVE HISTORY : 2005-2006: S.2421 - Local Gov't; 2007-2008 - Local Gov't
FISCAL IMPLICATIONS : To be determined.
EFFECTIVE DATE : This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 542 2009-2010 Regular Sessions IN SENATE (PREFILED) January 7, 2009 ___________Introduced by Sen. ALESI -- 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 school tax relief exemption to certain business property 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 is amended by adding a new paragraph (f) to read as follows: (F) BUSINESS PROPERTY. NOTWITHSTANDING PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION, REAL PROPERTY USED FOR COMMERCIAL AND INDUSTRIAL PURPOSES SHALL BE ENTITLED TO AN EXEMPTION EQUAL TO THE APPLICABLE PERCENTAGE OF ASSESSED VALUE IF SUCH PROPERTY IS OWNED BY THE OWNER OF AN UNINCORPO- RATED BUSINESS HAVING NO MORE THAN ONE HUNDRED EMPLOYEES AND WHICH SO USES SUCH PROPERTY OR BY ANY PARTNERSHIP, LIMITED LIABILITY COMPANY, CORPORATION, OR ANY OTHER BUSINESS ORGANIZATION HAVING NO MORE THAN ONE HUNDRED EMPLOYEES AND WHICH SO USES SUCH PROPERTY. PROVIDED, THAT OVER FIFTY PERCENT OF VOTING CONTROL OF SUCH PARTNERSHIP, LIMITED LIABILITY COMPANY, CORPORATION OR ORGANIZATION IS NOT OWNED OR CONTROLLED, DIRECT- LY OR INDIRECTLY, BY A SINGLE CORPORATION, A SINGLE PARTNERSHIP OR A SINGLE LIMITED LIABILITY COMPANY. FOR PURPOSES OF THIS PARAGRAPH, THE NUMBER OF EMPLOYEES SHALL BE THE AVERAGE NUMBER OF EMPLOYEES WITHIN THE STATE, EXCEPT GENERAL EXECUTIVE OFFICERS, OF SUCH TAXPAYER DURING THE PRECEDING CALENDAR YEAR. SUCH AVERAGE SHALL BE COMPUTED BY ASCERTAINING THE NUMBER OF EMPLOYEES WITHIN THE STATE, EXCEPT GENERAL EXECUTIVE OFFI- CERS, EMPLOYED BY THE TAXPAYER ON THE THIRTY-FIRST DAY OF MARCH, THE THIRTIETH DAY OF JUNE, THE THIRTIETH DAY OF SEPTEMBER AND THE THIRTY-FIRST DAY OF DECEMBER IN SUCH TAXABLE YEAR, BY ADDING TOGETHER THE NUMBER OF EMPLOYEES ASCERTAINED ON EACH OF SUCH DATES AND DIVIDING THE SUM SO OBTAINED BY THE NUMBER OF SUCH ABOVEMENTIONED DATES OCCURRING WITHIN SUCH TAXABLE YEAR. FOR PURPOSES OF THIS PARAGRAPH, THE TERMEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01786-01-9 S. 542 2
"EMPLOYEES WITHIN THE STATE, EXCEPT GENERAL EXECUTIVE OFFICERS" SHALL HAVE THE SAME MEANING AS IT HAS IN SUBPARAGRAPH THREE OF PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION TWO HUNDRED TEN OF THE TAX LAW. THE EXEMPTION AUTHORIZED BY THIS PARAGRAPH SHALL APPLY FOR A TERM OF ONE YEAR. TO RECEIVE SUCH EXEMPTION, AN APPLICATION MUST BE FILED ANNUALLY WITH THE ASSESSOR ON OR BEFORE THE APPLICABLE TAXABLE STATUS DATE ON A FORM, AND IN A MANNER, PRESCRIBED BY THE STATE BOARD. FOR PURPOSES OF THIS PARAGRAPH, THE APPLICABLE PERCENTAGE SHALL BE FIFTEEN PERCENT IN THE CASE OF ASSESSED VALUES OF TWO HUNDRED THOUSAND DOLLARS OR LESS AND TEN PERCENT IN THE CASE OF ASSESSED VALUES OVER TWO HUNDRED THOUSAND DOLLARS. S 2. This act shall take effect immediately.