Relates to payments in lieu of taxes made by certain entities for property located at 176 Rinaldi Boulevard, Poughkeepsie, New York.
Ayes (58): Adams, Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Duane, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Johnson, Kennedy, Klein, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Storobin, Valesky, Young, Zeldin
Nays (2): Krueger, Rivera
Excused (2): Espaillat, Huntley
TITLE OF BILL: An act in relation to a certain agreement for a payment in lieu of taxes
PURPOSE: Relates to payments in lieu of taxes made by certain entities for property located at 176 Rinaldi Boulevard, Poughkeepsie, New York
SUMMARY OF PROVISIONS: Section 1. Makes provisions for payments in lieu of taxes made by certain entities for specified properties and relates to eligibility for real property tax credit.
Section 2. Effective date.
JUSTIFICATION: 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.
Nevertheless, there has been a recent policy shift within the New York State Tax Department of Finance (NYSTDF) regarding this type of agreement. NYSTDF has denied credit for lessee payments as a result of them not being a "party to" the PILOT agreement between the landlord and the tax jurisdiction. As a result, lessees who have been approved for the tax credit, have paid taxes consistent with their lease agreements, and have been audited by the state during the relevant time period, are now being assessed for credits awarded in prior years and face denials in future years.
These entities have complied with the spirit of the law, and have relied on the tax credit as a significant component of their budgets. Such a policy not only creates a disincentive for these businesses to continue their work in our communities, but jeopardizes their current fiscal integrity.
PRIOR LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2008.
STATE OF NEW YORK ________________________________________________________________________ 7484--A IN SENATE May 25, 2012 ___________Introduced by Sen. SALAND -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- 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, any payment in lieu of taxes made by a quali- fied empire zone enterprise to the state, a municipal corporation, or a public benefit corporation pursuant to its lease agreement for property located at 176 Rinaldi Boulevard, Poughkeepsie, New York with a landlord that is a party to a payment in lieu of taxes agreement between the landlord and the state, municipal corporation, or public benefit corpo- ration shall be deemed, for the purposes of subdivision (e) of section 15 of the tax law, to have been made pursuant to a payment in lieu of taxes agreement with the state, municipal corporation, or public benefit corporation. 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 nor made a payment in lieu of taxes to the state, municipal corporation, or public benefit corporation pursuant to its agreement with the state, municipal corporation, or public benefit corporation for such payments. Notwith- standing any section of law to the contrary, such credit shall be based upon the payments in lieu of taxes and employment of the tenant. S 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2008.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16007-02-2