Concerns primary residences owned by limited liability companies that are occupied by veterans.
TITLE OF BILL: An act to amend the real property tax law, in relation to veteran occupied primary residences owned by a limited liability company
PURPOSE: To allow an otherwise qualified veteran to receive the eligible funds exemption or the alternative veterans property tax exemption on his or her primary residence if the residence is owned by a limited liability company (LLC) which is owned by the veteran.
SUMMARY OF PROVISIONS:
Section 1 amends subdivision 7-a of Section 458 of the Real Property Tax Law, which provides for the eligible funds exemption, to allow its application to property owned by a LLC if the LLC is owned by the person to whom the exemption would be granted had the person owned the property.
Section 2 amends paragraph (c) of subdivision 1 of section 458-a of the Real Property Tax Law, which provides for the alternative funds exemption, to include LLC's in the definition of qualified owners able to receive the exemption.
EXISTING LAW: Real property owned by a LLC is not eligible for an eligible funds or alternative veterans exemption. (See Office of Real Property Tax Services, Opinions of Counsel, Volume 10: Opinions of Counsel SBRPS No. 97.)
JUSTIFICATION: New York State authorizes partial real property tax exemptions to certain veterans on their primary residences in recognition of their special service to our state and country. It is unfair to deny this benefit to an otherwise qualified veteran simply because he or she has chosen to structure the ownership of his or her primary residence through a LLC.
Under interpretation of current law, when a veteran who is otherwise entitled to a veteran's exemption owns his or her primary residence as part of a LLC, the veteran is not eligible to receive the partial real property tax exemption.
The nature of the ownership of the primary residence should not disqualify a veteran from receiving the partial property tax exemption to which he or she would be otherwise entitled.
This legislation eliminates this inequity
LEGISLATIVE HISTORY: This is a new bill
FISCAL IMPLICATIONS: None to the State.
LOCAL FISCAL IMPLICATIONS: Minimal.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 6348 IN SENATE January 17, 2014 ___________Introduced by Sen. FARLEY -- read twice and ordered printed, and when printed to be committed to the Committee on Veterans, Homeland Securi- ty and Military Affairs AN ACT to amend the real property tax law, in relation to veteran occu- pied primary residences owned by a limited liability company THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 458 of the real property tax law is amended by adding a new subdivision 7-a to read as follows: 7-A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE PROVISIONS OF THIS SECTION SHALL APPLY TO ANY REAL PROPERTY OWNED BY A LIMITED LIABILITY COMPANY, AS DEFINED BY SUBDIVISION (M) OF SECTION ONE HUNDRED TWO OF THE LIMITED LIABILITY COMPANY LAW, IF SUCH LIMITED LIABILITY COMPANY IS OWNED BY SUCH PERSON OR PERSONS TO WHOM THE EXEMPTION WOULD BE GRANTED HAD SUCH PERSON OR PERSONS OWNED THE REAL PROPERTY IN QUESTION RATHER THAN THE LIMITED LIABILITY COMPANY. S 2. Paragraph (c) of subdivision 1 of section 458-a of the real prop- erty tax law, as amended by chapter 100 of the laws of 1988, is amended to read as follows: (c) "Qualified owner" means a veteran, the spouse of a veteran
[or], the unremarried surviving spouse of a veteran, OR A LIMITED LIABILITY COMPANY, AS DEFINED BY SUBDIVISION (M) OF SECTION ONE HUNDRED TWO OF THE LIMITED LIABILITY COMPANY LAW, IF SUCH LIMITED LIABILITY COMPANY IS OWNED BY SUCH PERSON OR PERSONS TO WHOM THE EXEMPTION WOULD BE GRANTED HAD SUCH PERSON OR PERSONS OWNED THE REAL PROPERTY IN QUESTION RATHER THAN THE LIMITED LIABILITY COMPANY. Where property is owned by more than one qualified owner, the exemption to which each is entitled may be combined. Where a veteran is also the unremarried surviving spouse of a veteran, such person may also receive any exemption to which the deceased spouse was entitled. S 3. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13101-03-4