Bill S5985-2013

Establishes an income tax credit for flood victims in certain counties

Establishes an income tax credit for flood victims in certain counties in the amount of property taxes paid on property which sustained substantial damage as a result of flooding in the period from June 20, 2013 to and including August 9, 2013.

Details

Actions

  • Jan 27, 2014: referred to ways and means
  • Jan 27, 2014: DELIVERED TO ASSEMBLY
  • Jan 27, 2014: PASSED SENATE
  • Jan 13, 2014: ORDERED TO THIRD READING CAL.3
  • Jan 13, 2014: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Nov 15, 2013: REFERRED TO RULES

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Rules - Jan 13, 2014
Ayes (22): Skelos, Libous, Bonacic, Carlucci, Farley, Flanagan, Hannon, Larkin, LaValle, Marcellino, Maziarz, Nozzolio, Seward, Valesky, Stewart-Cousins, Breslin, Dilan, Hassell-Thompson, Montgomery, Perkins, Espaillat, Gianaris
Ayes W/R (1): Krueger
Absent (1): Parker

Memo

BILL NUMBER:S5985

TITLE OF BILL: An act to amend the tax law, in relation to establishing a tax credit for certain flood victims

PURPOSE:

The purpose of this legislation is to provide income tax credits for victims of recent flooding in various counties throughout upstate New York. The credit would equal the amount of real property taxes paid or incurred on any property which received substantial damage as a result of the storms.

SUMMARY OF PROVISIONS:

The legislation adds a new subsection xx to section 606 of the tax law to provide a qualified taxpayer an income tax credit equal to his school real property taxes paid in taxable year 2013 and January 2014's municipal taxes, with respect to any property that received substantial damage due to flooding occurring during designated periods. The credit is only available to those whose businesses or residences were affected and is based on the amount of property taxes paid.

"Substantial damage" is defined as damage wherein the cost of restoring the structure to its previous condition would equal or exceed fifty percent of the market value of the structure before the damage occurred. The legislation also provides that the income tax credit is fully refundable.

JUSTIFICATION:

Home and business owners in several counties in upstate New York, enumerated in the text of the bill, suffered damage to their properties and dwellings in various rain and flooding events in June-August of 2013. High waters caused the loss of homes, properties, public infrastructure, businesses and income. Individuals and families are struggling to recover after having experienced significant damage. The struggle is compounded by the tax bills based on the assessments finalized on July 1 - prior to the floods - taxes paid on homes or business structures that may be in disrepair. The legislation will help to ease the tax burden on these struggling families by providing an income tax credit that is equal to the amount of taxes incurred on any property which received substantial damage as a result of the storms, subject to criteria specified in the legislation.

LEGISLATIVE HISTORY:

Similar to S. 6060A of 2012.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5985 2013-2014 Regular Sessions IN SENATE November 15, 2013 ___________
Introduced by Sens. SEWARD, FARLEY, GRIFFO, MAZIARZ, O'MARA -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the tax law, in relation to establishing a tax credit for certain flood victims THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsections (yy) and (zz) of section 606 of the tax law, as relettered by section 5 of part H of chapter 1 of the laws of 2003, are relettered subsections (yyy) and (zzz) and a new subsection (xx) is added to read as follows: (XX) TAX CREDIT FOR VICTIMS OF FLOODING IN THE FOLLOWING COUNTIES DURING THE PERIOD FROM JUNE TWENTIETH, TWO THOUSAND THIRTEEN TO AND INCLUDING AUGUST NINTH, TWO THOUSAND THIRTEEN: ONEIDA, HERKIMER, MADI- SON, MONTGOMERY, TOMPKINS, CORTLAND, CHEMUNG, SCHUYLER, STEUBEN, AND NIAGARA. (1) ALLOWANCE OF CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CRED- IT FOR TAXABLE YEARS TWO THOUSAND THIRTEEN AND TWO THOUSAND FOURTEEN, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE. FOR PURPOSES OF THIS PARAGRAPH, THE TERM "QUALIFIED TAXPAYER" MEANS A BUSINESS OR RESIDENT TAXPAYER. (2) AMOUNT OF CREDIT. (A) THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE AMOUNT OF SCHOOL TAXES PAID FOR THE TWO THOUSAND THIRTEEN--TWO THOU- SAND FOURTEEN SCHOOL YEAR AND THE AMOUNT OF ANY CITY, VILLAGE, TOWN AND COUNTY TAXES PAID IN TAXABLE YEAR TWO THOUSAND FOURTEEN WITH RESPECT TO ANY PROPERTY WHICH RECEIVED SUBSTANTIAL DAMAGE AS A RESULT OF SEVERE FLOODING DURING THE PERIOD OF JUNE TWENTIETH, TWO THOUSAND THIRTEEN TO AUGUST NINTH, TWO THOUSAND THIRTEEN, INCLUSIVE. (B) FOR PURPOSES OF THIS SUBSECTION, THE TERM "SUBSTANTIAL DAMAGE" MEANS DAMAGE OF ANY ORIGIN SUSTAINED BY A STRUCTURE WHEREBY THE COST OF RESTORING THE STRUCTURE TO ITS BEFORE DAMAGED CONDITION WOULD EQUAL OR
EXCEED FIFTY PERCENT OF THE MARKET VALUE OF THE STRUCTURE BEFORE THE DAMAGE OCCURRED. (3) ELIGIBILITY. (A) THE CREDIT SHALL ONLY BE ALLOWED WHERE THE AFFECTED PROPERTY IS LOCATED IN A COUNTY IN THIS STATE WHICH WAS DECLARED BY THE GOVERNOR TO BE A STATE DISASTER EMERGENCY DECLARATION AREA OR HAS SOUGHT OR IS ELIGIBLE TO RECEIVE FEDERAL AID OR ASSISTANCE FROM THE FEDERAL EMERGENCY MANAGEMENT AGENCY AS A RESULT OF SEVERE FLOODING DURING THE PERIOD OF JUNE TWENTIETH, TWO THOUSAND THIRTEEN TO AUGUST NINTH, TWO THOUSAND THIRTEEN, INCLUSIVE. (B) THE CREDIT UNDER THIS SUBSECTION SHALL ONLY BE ALLOWED IF THE PROPERTY IS CONSIDERED THE TAXPAYER'S PRIMARY RESIDENCE. (4) APPLICATION OF CREDIT. IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. S 2. This act shall take effect immediately.

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