A06884 Summary:

BILL NO    A06884 

SAME AS    SAME AS S04401

SPONSOR    Thiele (MS)

COSPNSR    Garbarino

MLTSPNSR   



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.
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A06884 Actions:

BILL NO    A06884 

04/08/2015 referred to ways and means
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A06884 Memo:

BILL NUMBER:A6884

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.

JUSTIFICATION:

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

EFFECTIVE DATE:

Immediately and shall apply to taxable years beginning on or after Janu-
ary 1, 2009 and before January 1, 2012.
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A06884 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         6884

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                     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    S 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    S 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.
                                                                  LBD09765-01-5
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