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A04693 Summary:

BILL NOA04693
 
SAME ASNo Same As
 
SPONSORSmullen
 
COSPNSR
 
MLTSPNSR
 
Amd 425, RPT L
 
Permits a STAR exemption for property owned by a limited liability company where the limited liability company is owned by a person to whom the exemption would have otherwise been granted.
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A04693 Actions:

BILL NOA04693
 
02/22/2023referred to real property taxation
01/03/2024referred to real property taxation
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A04693 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A4693
 
SPONSOR: Smullen
  TITLE OF BILL: An act to amend the real property tax law, in relation to a real proper- ty tax exemption for property owned by a limited liability company   PURPOSE OR GENERAL IDEA OF BILL: To allow an otherwise qualified property owner to receive the STAR (School Tax Relief) exemption on his or her primary residence if the residence is owned by a limited liability company (LLC) which is owned by the property owner.   SUMMARY OF PROVISIONS: Section 1 amends subdivision 3 of Section 425 of the Real Property Tax Law, which provides for the STAR exemption, by adding a new paragraph- which adds a primary residence owned by a limited liability company to the type of property eligible for the STAR exemption. It also provides that such property must serve as the primary residence of one or more of the members of the LLC and that those members who reside thereon personally pay the real property taxes associated with the property's ownership.   JUSTIFICATION: New York State's School Tax Relief (STAR) Program provides an exemption from school taxes for most owner-occupied, primary residences. It is unfair to deny this benefit to an otherwise qualified taxpayer because his or her residence is owned by a LLC of which the qualified property taxpayer is the owner. Under interpretation of current law when an indi- vidual who otherwise would be entitled to a STAR exemption owns his or her primary residence as part of a LLC, the individual may not receive the STAR exemption. In addition, current law allows that if the taxpay- er's primary residence is not an eligible type of property (i.e. one, two or three family residence, a farm dwelling or residential property held in condominium or cooperative form of ownership), but a portion of the property is partially used by the owner as a primary residence, that portion which is used as the primary residence may be entitled to the STAR exemption. However, this is not currently allowed if the person owns the property through a LLC. The nature of the ownership of the primary residence should not disqualify an otherwise qualified taxpayer from receiving the STAR exemption. This legislation eliminates this inequity by allowing the STAR exemption on that par t of the property owned by a LLC which serves as the primary residence of the owners) of the LLC.   PRIOR LEGISLATIVE HISTORY: 04/17/18- held for consideration in real property taxation 2019/2020- A.4820- held for consideration in real property taxation 2021/2022- A.2197- referred to real property taxation   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Minimal to the State.   EFFECTIVE DATE: Immediately.
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A04693 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4693
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 22, 2023
                                       ___________
 
        Introduced  by M. of A. SMULLEN -- read once and referred to the Commit-
          tee on Real Property Taxation
 
        AN ACT to amend the real property tax law, in relation to a real proper-
          ty tax exemption for property owned by a limited liability company
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivision 3 of section 425 of the real property tax law
     2  is amended by adding a new paragraph (e-1) to read as follows:
     3    (e-1) Dwellings owned by a limited liability company. If  legal  title
     4  to  a  dwelling  is  held  by a limited liability company, the exemption
     5  shall be granted if the property serves as the primary residence of  one
     6  or  more  of the members of the limited liability company, provided that
     7  the member or members who primarily reside thereon personally pay all of
     8  the real property taxes and other costs associated with  the  property's
     9  ownership.
    10    § 2. This act shall take effect immediately.
 
 
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09602-01-3
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