Establishes an income tax credit for certain victims of Hurricane Irene and Tropical Storm Lee in the amount of property taxes paid on property which sustained substantial damage as a result of such storms.
TITLE OF BILL: An act to amend the tax law, in relation to establishing a tax credit for victims of Hurricane Irene and Tropical Storm Lee
PURPOSE: The purpose of this legislation is to provide income tax credits for victims of Hurricane Irene and Tropical Storm Lee. The credit would be equal to 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 tt to section 606 of the tax law to provide a qualified taxpayer an income tax credit equal to the total real property taxes paid or incurred in taxable year 2011 with respect to any property that received substantial damage due to Hurricane Irene and/or Tropical Storm Lee. The credit is only available to those whose primary residences were affected and is based on the amount that the property was assessed at prior to the damage caused by the tropical storms.
"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: Hurricane Irene and Tropical Storm Lee caused significant damage to properties across a large swath of New York State, particularly upstate, leading to the loss of homes, properties, public infrastructure, businesses and income. Individuals and families are struggling to recover after having lost everything they own. This grief is compounded by the fact that tax bills are starting to arrive in their mailboxes - taxes that are due on homes that may no longer even exist. This 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.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 6060 IN SENATE (PREFILED) January 4, 2012 ___________Introduced by Sens. SEWARD, BONACIC, FARLEY, JOHNSON, LARKIN, LITTLE, McDONALD -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, in relation to establishing a tax credit for victims of Hurricane Irene and Tropical Storm Lee THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 606 of the tax law is amended by adding a new subsection (tt) to read as follows: (TT) TAX CREDIT FOR VICTIMS OF HURRICANE IRENE AND TROPICAL STORM LEE. (1) ALLOWANCE OF CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT FOR TAXABLE YEAR TWO THOUSAND ELEVEN, 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 TOTAL SCHOOL DISTRICT, COUNTY AND TOWN REAL PROPERTY TAXES PAID OR INCURRED IN TAXABLE YEAR TWO THOUSAND ELEVEN WITH RESPECT TO ANY PROPER- TY WHICH RECEIVED SUBSTANTIAL DAMAGE AS A RESULT OF HURRICANE IRENE OR TROPICAL STORM LEE OF TWO THOUSAND ELEVEN. (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. (C) THE COMPUTATION OF THE CREDIT SHALL BE BASED ON THE AMOUNT THE PROPERTY WAS ASSESSED AT PRIOR TO THE OCCURRENCE OF THE SUBSTANTIAL DAMAGE CAUSED BY HURRICANE IRENE OR TROPICAL STORM LEE IN TWO THOUSAND ELEVEN. (3) ELIGIBILITY. (A) THE CREDIT SHALL ONLY BE ALLOWED WHERE THE AFFECTED PROPERTY IS LOCATED IN A COUNTY IN THIS STATE WHICH WAS DECLARED A FEDERAL DISASTER AREA AND IS ELIGIBLE TO RECEIVE FEDERAL AIDEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13655-02-1 S. 6060 2
OR ASSISTANCE FROM THE FEDERAL EMERGENCY MANAGEMENT AGENCY AS A RESULT OF HURRICANE IRENE OR TROPICAL STORM LEE IN TWO THOUSAND ELEVEN. (B) IN THE CASE OF A RESIDENT TAXPAYER, THE CREDIT UNDER THIS SUBSECTION SHALL ONLY BE ALLOWED IF THE PROPERTY IS CONSIDERED SUCH 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.