Relates to a certain agreement for a payment in lieu of taxes with respect to a lessee that is a qualified empire zone enterprise of certain real property.
TITLE OF BILL: An act in relation to a certain agreement for a payment in lieu of taxes
PURPOSE: This bill relates to a certain agreement for a payment in lieu of taxes with respect to a lessee that is a qualified empire zone enterprise of certain real property.
SUMMARY OF PROVISIONS:
Section 1 - Makes provisions for payment in lieu of taxes made by entity for specified property.
Section 2 - Effective date
JUSTIFICATION: Qualified Empire Zone Enterprises are vital businesses which encourage job growth and foster economic development. Under New York State Tax Law, these tenants, which are responsible for property taxes under a lease, are eligible for a refund for paid property taxes. Payments made by a lessee made pursuant to a PILOT agreement qualify as property taxes which are eligible for this refund.
A policy change within the NY State Department of Tax and Finance regarding these type agreements now denies credit to the lessee as a result of the business not being a party to the PILOT agreement between the landlord and tax jurisdiction. As a result, a lessee that had been approved for the tax credit and had paid taxes consistent with its' lease agreement and had been audited by the state during the relevant time period, was assessed for credits awarded in prior years.
This business has complied with the law and has relied on the tax credit as a significant component of its operating budget. Therefore, this business should not be penalized for a change in policy and should be granted these property tax credits for the years 2011, 2012 and thereafter.
LEGISLATIVE HISTORY: New bill
EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2005 and before January 1, 2014.
STATE OF NEW YORK ________________________________________________________________________ 6193--A IN SENATE (PREFILED) January 8, 2014 ___________Introduced by Sens. DeFRANCISCO, SMITH -- read twice and ordered print- ed, and when printed to be committed to the Committee on Local Govern- ment -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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, with respect to any payment of taxes imposed on real property with respect to property located at 111 Windsor Place, Islip, New York, with respect to a lessee that is a qualified empire zone enterprise, such taxes shall be deemed to be eligible real property taxes with respect to such lessee and (1) such taxes shall be deemed to have been paid by the lessee pursuant to explicit requirements in a written lease
[executed or amended on or after June first, two thousand five], (2) shall be deemed to become a lien on the real property during a taxable year in which the lessee of the real property is both certi- fied pursuant to article 18-B of the general municipal law and a quali- fied empire zone enterprise, and (3) the lessee shall be deemed to have made direct payment of such taxes to the taxing authority and to have received a receipt for such payment of taxes from the taxing authority. 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. S 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2005 and before January 1, 2014.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13286-02-4