Relates to eligible years for payment in lieu of taxes for certain agreements.
Ayes (59): Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousins, Tkaczyk, Valesky, Young, Zeldin
Excused (2): DeFrancisco, Libous
TITLE OF BILL: An act to amend chapter 508 of the laws of 2013, relating to a certain agreement for a payment in lieu of taxes, in relation to eligible years for payments in lieu of taxes
Chapter amendment for Senate Bill S.4753
SUMMARY OF PROVISIONS:
Amends Section 2 to say this act shall take effect immediately and shall apply only to taxable years beginning on and after January 1, 2008 and ending on or before December 31, 2012.
Qualified Empire Zone Enterprises (QEZE) are vital businesses within our communities that encourage job growth and foster economic development. As an incentive to participate, these entities qualify for tax exemptions and refunds. For example, under New York State tax law, a QEZE tenant that is responsible for property taxes under its lease is eligible for a refund for paid property taxes. Payments by a lessee made pursuant to a PILOT agreement qualify as property taxes that are eligible for this refund.
A recent policy shift within the New York State Department of Tax and Finance (NYSDTF) regarding this type of agreement denied credit to this lessee as a result of the business not being a party to the PILOT agreement between the landlord and tax jurisdiction. As a result, the lessee that had been approved for the tax credit, had paid taxes consistent with their lease agreements, and had been audited by the state during the relevant time period, was assessed for credits awarded in prior years. This business is now being assessed for credits awarded in prior years from 2008 to 2010.
This entity has complied with the spirit of the law, and has relied on the tax credit as a significant component of its budget. This business also proactively changed its PILOT agreement in order to comply moving forward, and should not be penalized for a change in policy within the NYSDTF that would have been followed if it had been policy all along.
PRIOR LEGISLATIVE HISTORY:
This act shall take effect immediately and shall be deemed to have been in full force and effect on and after the date Chapter 508 of the laws of 2013 took effect.
STATE OF NEW YORK ________________________________________________________________________ 6248 IN SENATE (PREFILED) January 8, 2014 ___________Introduced by Sen. ROBACH -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend chapter 508 of the laws of 2013, relating to a certain agreement for a payment in lieu of taxes, in relation to eligible years for payments in lieu of taxes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 2 of chapter 508 of the laws of 2013 relating to a certain agreement for a payment in lieu of taxes is amended to read as follows: S 2. This act shall take effect immediately and shall apply ONLY to taxable years beginning on and after January 1, 2008 AND ENDING ON OR BEFORE DECEMBER 31, 2012. S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after the date chapter 508 of the laws of 2013 took effect.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13464-01-4