Relates to the qualification of payments made by taxpayer as eligible real property tax payments for purposes of the QEZE Tax Credit.

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S5660-2011 Actions

• Jun 12, 2012: referred to real property taxation
• Jun 12, 2012: DELIVERED TO ASSEMBLY
• Jun 12, 2012: PASSED SENATE
• May 21, 2012: ADVANCED TO THIRD READING
• May 16, 2012: 2ND REPORT CAL.
• May 15, 2012: 1ST REPORT CAL.802
• May 2, 2012: REPORTED AND COMMITTED TO FINANCE
• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jun 9, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S5660-2011 Meetings

Finance: May 15, 2012, Investigations and Government Operations: May 2, 2012

S5660-2011 Calendars

Active List: Jun 12, 2012 , Floor Calendar: May 16, 2012 , Floor Calendar: May 21, 2012 , Floor Calendar: May 22, 2012 , Floor Calendar: May 23, 2012 , Floor Calendar: May 30, 2012 , Floor Calendar: May 31, 2012 , Floor Calendar: Jun 4, 2012 , Floor Calendar: Jun 5, 2012 , Floor Calendar: Jun 6, 2012 , Floor Calendar: Jun 11, 2012 , Floor Calendar: Jun 12, 2012

S5660-2011 Votes

S5660-2011 Memo

BILL NUMBER:S5660               REVISED 01/31/12

TITLE OF BILL:
An act
relating to the qualification of payments made by
the taxpayer as eligible
real property tax payments for purposes of the QEZE Tax Credit

PURPOSE:
To mitigate the reversal of a decision made by the NYS Department of
Tax and Finance which negatively impacted a taxpayer.

SUMMARY OF PROVISIONS:
Section 1. Any payment in lieu of taxes made by a QEZE to the state,
municipal corporation, or public benefit corporation pursuant to a
lease agreement with a landlord that is party to a payment in lieu of
taxes agreement between the landlord and the state, municipal
corporation, or public benefit corporation shall be deemed to have
been made pursuant to a payment in lieu of taxes agreement and such
QEZE shall be eligible to claim the real property tax credit 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
corporation, or public benefit corporation for such payments.
Section 2. Effective date.

JUSTIFICATION:
Hammer Packaging Corporation's (HPC) facility at 230-234 Wallace Way,
Gates, NY (Rochester Tech Park) was designated a Qualified Empire
Zone Enterprise (QEZE) effective March 6, 2006. HPC increased/created
jobs in the Zone and in New York State. HPC was recertified and
received an Empire Zone Retention Certificate in the statewide review
process in 2009, as it met all employment and investment criteria.
HPC is a tenant at Rochester Tech Park. Per the term of its lease,
HPC is responsible for payment of all property taxes. Under NYS tax
law, a QEZE tenant that is responsible for property taxes under its
lease is eligible for a tax incentive, a refund for property taxes it
pays. Under NYS tax law, payments under a PILOT Program qualify as
property taxes eligible for the refund. HPC's landlord at Rochester
Tech Park has a PILOT Agreement with County Of Monroe Industrial
Development Agency (COMIDA).

HPC filed a refund claim for property taxes paid at Rochester Tech
Park in 2008 for $58,800 and in 2009 for $57,500. New York State Tax
Department of Finance (NYSDTF) audited the 2008 claim in a desk audit
and initially allowed the claim, refunding the $58,800. In late 2010,
NYSTDF audited the 2009 claim, denied it, and filed an assessment for
a return of the previous 2008 refund of $58,800, plus interest. The
stated reason
for denial of the claim is that HPC is not "party to" the existing

PILOT Agreement between the tax jurisdiction and the landlord. COMIDA
Board has amended the PILOT Agreement t.o include HPC. Results of the
NYSTDF policy is that HPC, a recertified QEZE, does not get the
credit for property taxes it paid. The landlord does not claim the
credit. The tax incentive for investing and increasing employment in
the Rochester Tech Park location is being disallowed based on the
form of this documentation.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
To be determined.

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

S5660-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    5660

                         2011-2012 Regular Sessions

                              I N  SENATE

                                June 9, 2011
                                 ___________

  Introduced  by  Sen.  ALESI  -- read twice and ordered printed, and when
    printed to be committed to the Committee on Investigations and Govern-
    ment Operations

  AN ACT relating to the qualification of payments made by the taxpayer as
    eligible real property tax payments for purposes of the QEZE Tax Cred-
    it

    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  QEZE
  to  the  state,  municipal  corporation,  or  public benefit corporation
  pursuant to its lease agreement for  property  located  at  230  to  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 and such
  QEZE 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 corporation, or public benefit corporation for
  such payments.
    S 2. This act shall take effect immediately and shall apply to taxable
  years beginning on and after January 1, 2008.


   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD13026-01-1