BILL NO A06884
SAME AS S04401
Relates to a certain agreement for a payment in lieu of taxes with respect to a
lessee that is a qualified empire zone enterprise of certain real property.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6884
SPONSOR: Thiele (MS)
TITLE OF BILL:
An act in relation to a certain agreement for a payment in lieu of taxes
PURPOSE OR GENERAL IDEA OF BILL:
This bill relates to a certain agreement for a payment in lieu of taxes
with respect to a lessee that is a qualified empire zone enterprise of
certain real property.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Makes provisions for payment in lieu of taxes made by entity
for a specific property
Section 2. Allows the property owner to make a claim for a credit or
refund after three years
Section 3. Effective Date.
Qualified Empire Zone Enterprises (QEZE) are vital businesses which
encourage job growth and foster economic development. During the rele-
vant years, the property owner had taken a mortgage on his property
located at 85 Saxon Avenue, Bay Shore, NY 11706. The bank paid the prop-
erty taxes out of an escrow account on behalf of the property owner,
using the property owner's payments. Due to an oversight, the Depart-
ment of Taxation and Finance will not honor the QEZE tax deduction cred-
it because they claim the property owner did not pay the taxes on the
property, when in fact, the taxes were paid, by the owner, through the
bank. As a result, the property owner who had been approved for a tax
credit and had been audited by the state during the relevant time period
was later denied the credit.
The business has complied with the law and has relied on this tax credit
for operating expenses. This bill would allow the property owner to
receive his tax credit for the years 2009, 2010 and 2011. In 2014, two
similar pieces of legislation were signed into law.
PRIOR LEGISLATIVE HISTORY:
2015: New Bill
Immediately and shall apply to taxable years beginning on or after Janu-
ary 1, 2009 and before January 1, 2012.
STATE OF NEW YORK
2015-2016 Regular Sessions
April 8, 2015
Introduced by M. of A. THIELE, GARBARINO -- read once and referred to
the Committee on Ways and Means
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:
1 Section 1. Notwithstanding the provisions of subdivision (e) of
2 section 15 of the tax law, with respect to any payment of taxes imposed
3 on real property with respect to property located at 85 Saxon Avenue,
4 Bay Shore, New York, with respect to a lessee that is a qualified empire
5 zone enterprise, such taxes shall be deemed to be eligible real property
6 taxes with respect to such lessee and (1) such taxes shall be deemed to
7 have been paid by the lessee pursuant to explicit requirements in a
8 written lease, (2) shall be deemed to become a lien on the real property
9 during a taxable year in which the lessee of the real property is both
10 certified pursuant to article 18-B of the general municipal law and a
11 qualified empire zone enterprise, and (3) the lessee shall be deemed to
12 have made direct payment of such taxes to the taxing authority and to
13 have received a receipt for such payment of taxes from the taxing
14 authority. Such qualified empire zone enterprise shall be eligible to
15 claim the real property tax credit provided by section 15 of the tax law
16 provided that for each of such periods, the landlord has not filed a
17 claim for the real property tax credit for such payments.
18 § 2. Notwithstanding the provisions of sections 687 or 1087 of the tax
19 law or any other provision to the contrary, a claim for a credit or
20 refund may be filed by the taxpayer with respect to the property located
21 at 85 Saxon Avenue, Bay Shore, New York, for taxable years January 1,
22 2009 through December 31, 2011 where the taxpayer is a qualified empire
23 zone enterprise.
24 § 3. This act shall take effect immediately and shall apply to taxable
25 years beginning on or after January 1, 2009 and before January 1, 2012.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.