Provides that persons residing in property owned by a limited partnership shall be eligible for small claims assessment review.
Ayes (8): Martins, Ball, Little, McDonald, Ritchie, Stewart-Cousins, Oppenheimer, Klein
TITLE OF BILL: An act to amend the real property tax law, in relation to the eligibility of persons residing in property owned by a limited partnership to seek small claims assessment review; and to repeal subdivision 9 of section 730 of the real property tax law relating thereto
PURPOSE OR GENERAL IDEA OF BILL: To allow persons who own their homes through limited partnerships may qualify for Small Claims Assessment Review (SCAR) provided in Section 730 of the Real Property Tax Law.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 of this bill would amend subdivision 1 of Section 730 of the Real Property Tax Law by adding a new closing paragraph to allow persons who own property through limited partnerships may qualify for SCAR provided that the statutory requisites articulated in said subdivision have been satisfied. In addition, it clarifies that property held in trust may qualify for SCAR so long as the aforementioned statutory requirements have been met.
JUSTIFICATION: The purpose of the SCAR process is to allow residential homeowners the right to use a simplified system to have their real property assessments reviewed and save the expense and lengthy and complicated legal procedures of a tax certiorari proceeding. In this era of complex estate planning, many home owners hold title to their property through limited partnerships. This bill would recognize that this form of ownership should not disqualify such home owners from utilizing the SCAR process so long as the limited partnership that owns the property does not engage in any commercial activity and was created solely for estate planning and asset protection purposes. Furthermore, the home must serve as the primary residence of one of the partners and the partner or partners who primarily reside thereon personally pay all of the real property taxes and cost associated with the property's ownership.
Currently, Section 730 does not specify that limited partnerships do not qualify for SCAR, However, assessors, hearing officers and the Office of Court Administration have taken the position that limited partnerships do not qualify. Recently, the Supreme Court in Nassau County held that limited partnerships could qualify. By way of comparison, the qualifications for STAR exemptions have been recently amended to allow residential home owners who are in this situation to qualify for STAR. A new section 425 (2) (e) (ii) state that persons with property owned through limited partnerships may qualify for STAR.
PRIOR LEGISLATIVE HISTORY: A.7095A and S.2528A of 2009/2010
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 7213 IN SENATE May 2, 2012 ___________Introduced by Sen. MARTINS -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the real property tax law, in relation to the eligibil- ity of persons residing in property owned by a limited partnership to seek small claims assessment review; and to repeal subdivision 9 of section 730 of the real property tax law relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 730 of the real property tax law is amended by adding a new closing paragraph to read as follows: AN OWNER OF REAL PROPERTY WHO QUALIFIES UNDER PARAGRAPHS (A) THROUGH (D) OF THIS SUBDIVISION SHALL ALSO INCLUDE: (I) A PERSON OR PERSONS WHOSE REAL PROPERTY IS HELD IN TRUST SOLELY FOR THE BENEFIT OF SUCH PERSON OR PERSONS IF THE PROPERTY SERVES AS THE PRIMARY RESIDENCE OF SUCH PERSON OR PERSONS AND THE TRUST WHICH HOLDS TITLE TO THE PROPERTY WAS LAWFULLY CREATED TO HOLD TITLE SOLELY FOR ESTATE PLANNING AND ASSET PROTECTION PURPOSES; AND (II) A PERSON OR PERSONS WHO RESIDE IN REAL PROPERTY WHICH IS OWNED BY A LIMITED PARTNERSHIP IF THE PROPERTY SERVES AS THE PRIMARY RESIDENCE OF SUCH PERSON OR PERSONS AND SAID LIMITED PARTNERSHIP DOES NOT ENGAGE IN ANY COMMERCIAL ACTIVITY, WAS LAWFULLY CREATED TO HOLD TITLE SOLELY FOR ESTATE PLANNING AND ASSET PROTECTION PURPOSES AND THE PARTNER OR PART- NERS WHO PRIMARILY RESIDE THEREON PERSONALLY PAY ALL OF THE REAL PROPER- TY TAXES AND OTHER COSTS ASSOCIATED WITH THE PROPERTY'S OWNERSHIP. S 2. Subdivision 9 of section 730 of the real property tax law is REPEALED. S 3. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06580-01-1