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A08131 Summary:

BILL NO    A08131 

SAME AS    No same as 

SPONSOR    Lalor (MS)

COSPNSR    Ra

MLTSPNSR   

Rpld Art 21, Ec Dev L; rpld SS39, 39-a, 40, S180 sub 3, S181 sub 3, S210 sub
47, S606 subS (i) 1 sub (b) cl (xxxvi), subS (ww), S612 subS (c) 40, S1405 sub
(b) 11, S1340 subS (d), amd SS803 & 1119, Tax L; rpld Part A S14, Chap 68 of
2013; rpld S11-1712 sub (c) 36, NYC Ad Cd; amd S420-a, RPT L; amd S355, rpld
sub 2 z, S361, Ed L

Repeals the START-UP NY program.
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A08131 Text:

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

                                         8131

                              2013-2014 Regular Sessions

                                 I N  A S S E M B L Y

                                    August 30, 2013
                                      ___________

       Introduced  by  M.  of  A.  LALOR,  RA  -- read once and referred to the
         Committee on Ways and Means

       AN ACT to amend the tax law, the real property tax law and the education
         law, in relation to eliminating the START-UP NY program; and to repeal
         certain provisions of the economic development law, the tax law, chap-
         ter 68 of the laws of 2013, amending the economic development law  and
         other  laws  relating  to  establishing  the  START-UP NY program, the
         administrative code of the city of New York  and  the  education  law,
         relating to the START-UP NY program

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. Article 21 of the economic development law is REPEALED.
    2    S 2. Sections 39, 39-a and 40 of the tax law are REPEALED.
    3    S 3. Subdivision 3 of section 180 of the tax law is REPEALED.
    4    S 4. Subdivision 3 of section 181 of the tax law is REPEALED.
    5    S 5. Subdivision 47 of section 210 of the tax law is REPEALED.
    6    S 6. Clause (xxxvi) of subparagraph (B) of paragraph 1  of  subsection
    7  (i) of section 606 of the tax law is REPEALED.
    8    S 7. Subsection (ww) of section 606 of the tax law is REPEALED.
    9    S  8.  Paragraph 40 of subsection (c) of section 612 of the tax law is
   10  REPEALED.
   11    S 9. Section 803 of the tax law, as amended by section 11 of part A of
   12  chapter 68 of the laws of 2013, is amended to read as follows:
   13    S 803. Exemption override. [(a) Except as provided in subdivision  (b)
   14  of  this section, any] ANY exemption from tax specified in any other New
   15  York state law will not apply to the tax imposed by this article.
   16    [(b) If a tax-free NY area approved  pursuant  to  the  provisions  of
   17  article twenty-one of the economic development law is located within the
   18  MCTD,  the payroll expense in such tax-free NY area of any employer that
   19  is located in such area and accepted into the START-UP NY program  shall
   20  be  exempt from the tax imposed under this article. In addition, the net

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11697-01-3
       A. 8131                             2

    1  earnings from self-employment of an individual from a business  in  such
    2  tax-free  NY area that is accepted into the START-UP NY program shall be
    3  exempt from the tax imposed under this article.]
    4    S 10. Paragraphs 1 and 2 of subdivision (d) of section 1119 of the tax
    5  law,  as  amended  by  section 12 of part A of chapter 68 of the laws of
    6  2013, are amended to read as follows:
    7    (1) Subject to the conditions and limitations  provided  for  in  this
    8  section,  a  refund  or  credit will be allowed for taxes imposed on the
    9  retail sale of tangible personal property described in  subdivision  (a)
   10  of  section  eleven  hundred  five of this article, and on every sale of
   11  services described in subdivisions (b) and  (c)  of  such  section,  and
   12  consideration  given  or  contracted to be given for, or for the use of,
   13  such  tangible  personal  property  or  services,  where  such  tangible
   14  personal property or services are sold to a qualified empire zone enter-
   15  prise or to a qualified entity that is also a tenant in or part of a New
   16  York  state  innovation  hot spot as provided in section thirty-eight of
   17  this chapter [or to a business located in a tax-free  NY  area  approved
   18  pursuant  to  article  twenty-one  of  the  economic  development  law],
   19  provided that (A) such tangible personal property or  tangible  personal
   20  property  upon  which  such a service has been performed or such service
   21  (other than a service described in subdivision  (b)  of  section  eleven
   22  hundred  five  of this article) is directly and predominantly, or such a
   23  service described in clause (A) or (D) of paragraph one of such subdivi-
   24  sion (b) of section eleven hundred five of this article is directly  and
   25  exclusively,  used  or consumed by (i) such qualified empire zone enter-
   26  prise in an area designated as an empire zone pursuant to article  eigh-
   27  teen-B  of  the  general municipal law with respect to which such enter-
   28  prise is certified pursuant to such article  eighteen-B,  or  (ii)  such
   29  qualified entity at its location in or as part of a New York state inno-
   30  vation  hot  spot[,  or (iii) such business at its location in such tax-
   31  free NY area,] or (B) such a service described in clause (B) or  (C)  of
   32  paragraph  one of subdivision (b) of section eleven hundred five of this
   33  article is delivered and billed to (i) such enterprise at an address  in
   34  such  empire zone or (ii) such qualified entity at its location in or as
   35  part of the New York state innovation hot spot[, or (iii) such  business
   36  at its location in such tax-free NY area,] or (C) the enterprise's place
   37  of  primary use of the service described in paragraph two of such subdi-
   38  vision (b) of section eleven hundred five  is  at  an  address  in  such
   39  empire  zone  or at its location in or as part of a New York state inno-
   40  vation hot spot[,  or  at  its  location  in  such  tax-free  NY  area];
   41  provided,  further,  that,  in  order for a motor vehicle, as defined in
   42  subdivision (c) of section eleven hundred seventeen  of  this  [article]
   43  PART,  or  tangible personal property related to such a motor vehicle to
   44  be found to be used predominantly in such a zone, at least fifty percent
   45  of such motor vehicle's use shall be exclusively within such zone or  at
   46  least  fifty  percent of such motor vehicle's use shall be in activities
   47  originating or terminating in such zone, or both;  and  either  or  both
   48  such usages shall be computed either on the basis of mileage or hours of
   49  use, at the discretion of such enterprise. For purposes of this subdivi-
   50  sion,  tangible  personal property related to such a motor vehicle shall
   51  include a battery, diesel motor  fuel,  an  engine,  engine  components,
   52  motor fuel, a muffler, tires and similar tangible personal property used
   53  in or on such a motor vehicle.
   54    (2)  Subject  to  the  conditions and limitations provided for in this
   55  section, a refund or credit will be allowed for  taxes  imposed  on  the
   56  retail  sale  of, and consideration given or contracted to be given for,
       A. 8131                             3

    1  or for the use of, tangible personal  property  sold  to  a  contractor,
    2  subcontractor or repairman for use in (A) erecting a structure or build-
    3  ing  of  a  qualified empire zone enterprise [or a business located in a
    4  tax-free NY area approved pursuant to article twenty-one of the economic
    5  development  law],  (B)  adding to, altering or improving real property,
    6  property or land of such an enterprise [or such business,] or (C)  main-
    7  taining,  servicing or repairing real property, property or land of such
    8  an enterprise [or of such business], as the terms real property, proper-
    9  ty or land are defined in the real property tax law; provided,  however,
   10  no  credit  or  refund  will be allowed under this paragraph unless such
   11  tangible personal property is to become an integral  component  part  of
   12  such  structure, building, real property, property or land located in an
   13  area designated as an empire zone pursuant to article eighteen-B of  the
   14  general  municipal  law in, and with respect to which such enterprise is
   15  certified pursuant to such article eighteen-B[, or in an  area  approved
   16  as  a  tax-free  NY  area pursuant to article twenty-one of the economic
   17  development law where such business is located].
   18    S 11. Paragraph 11 of subdivision (b) of section 1405 of the  tax  law
   19  is REPEALED.
   20    S  12.  Section 14 of part A of chapter 68 of the laws of 2013, amend-
   21  ing the economic development law and other laws relating to establishing
   22  the START-UP NY program, is REPEALED.
   23    S 13. Paragraph 36 of subdivision (c) of section 11-1712 of the admin-
   24  istrative code of the city of New York is REPEALED.
   25    S 14. Subsection (d) of section 1340 of the tax law is REPEALED.
   26    S 15. Subdivision 2 of section 420-a of the real property tax law,  as
   27  amended  by  section  17 of part A of chapter 68 of the laws of 2013, is
   28  amended to read as follows:
   29    2. If any portion of such real property is not so used exclusively  to
   30  carry out thereupon one or more of such purposes but is leased or other-
   31  wise  used for other purposes, such portion shall be subject to taxation
   32  and the remaining portion only shall be exempt; provided, however,  that
   33  such  real property shall be fully exempt from taxation although it or a
   34  portion thereof is used (a) for purposes which are  exempt  pursuant  to
   35  this section or sections four hundred twenty-b, four hundred twenty-two,
   36  four  hundred twenty-four, four hundred twenty-six, four hundred twenty-
   37  eight, four hundred thirty or four hundred fifty of this [chapter] TITLE
   38  by another corporation which owns real  property  exempt  from  taxation
   39  pursuant  to  such sections or whose real property if it owned any would
   40  be exempt from taxation pursuant to  such  sections,  (b)  for  purposes
   41  which  are  exempt  pursuant to section four hundred six or section four
   42  hundred eight of this [chapter] ARTICLE by a corporation which owns real
   43  property exempt from taxation pursuant to such section or  if  it  owned
   44  any  would  be  exempt  from  taxation pursuant to such section, (c) for
   45  purposes which are exempt pursuant to section four  hundred  sixteen  of
   46  this  chapter  by  an  organization which owns real property exempt from
   47  taxation pursuant to such section or whose real property if it owned any
   48  would be exempt from taxation pursuant  to  such  section,  OR  (d)  for
   49  purposes  relating  to  civil  defense  pursuant  to  the New York state
   50  defense emergency act, including but not limited to activities in prepa-
   51  ration for anticipated attack, during attack,  or  following  attack  or
   52  false  warning  thereof,  or in connection with drill or test ordered or
   53  directed by civil defense authorities[, or (e) for purposes  of  a  tax-
   54  free  NY  area  that has been approved pursuant to article twenty-one of
   55  the economic development law, subject to the conditions  that  the  real
   56  property  must  have been owned by the corporation or association organ-
       A. 8131                             4

    1  ized exclusively for educational purposes and exempt  pursuant  to  this
    2  section  on  June  first,  two thousand thirteen, and that the exemption
    3  shall apply only to the portion of such real property that is  used  for
    4  purposes  of  the  START-UP  NY program]; and provided further that such
    5  real property shall be exempt from taxation only so  long  as  it  or  a
    6  portion  thereof, as the case may be, is devoted to such exempt purposes
    7  and so long as any moneys paid for such use do not exceed the amount  of
    8  the  carrying,  maintenance  and depreciation charges of the property or
    9  portion thereof, as the case may be.
   10    S 16. Paragraph a of subdivision 2 of section  355  of  the  education
   11  law,  as  amended  by  section 18 of part A of chapter 68 of the laws of
   12  2013, is amended to read as follows:
   13    a. To take, hold and administer on behalf of the state  university  or
   14  any  institution  therein,  real  and  personal property or any interest
   15  therein and the income thereof either absolutely or  in  trust  for  any
   16  educational  or  other  purpose  within  the  jurisdiction and corporate
   17  purposes of the state university. The trustees may acquire property  for
   18  such  purposes by purchase, appropriation or lease and by the acceptance
   19  of gifts, grants, bequests and devises, and, within appropriations  made
   20  therefor, may equip and furnish buildings and otherwise improve property
   21  owned, used or occupied by the state university or any institution ther-
   22  ein.  The trustees may acquire property by the acceptance of conditional
   23  gifts, grants, devises or bequests, the provisions of section eleven  of
   24  the  state  finance  law  notwithstanding.  Where real property is to be
   25  acquired by purchase or appropriation,  such  acquisition  shall  be  in
   26  accordance  with  the  provisions of section three hundred seven of this
   27  chapter except that the powers and duties in said section  mentioned  to
   28  be performed by the commissioner shall be performed by the state univer-
   29  sity  trustees. [The provisions of section three of the public lands law
   30  notwithstanding, the trustees may provide for the lease  of  state-owned
   31  real  property  under  the  jurisdiction of the state university that is
   32  part of a tax-free NY area approved pursuant to  article  twenty-one  of
   33  the  economic development law, in such manner and upon such terms as the
   34  trustees shall determine, provided such lease  is  consistent  with  the
   35  approved plan for such tax-free NY area.]
   36    S  17.  Paragraph  s  of subdivision 2 of section 355 of the education
   37  law, as amended by section 19 of part A of chapter 68  of  the  laws  of
   38  2013, is amended to read as follows:
   39    s.  To  lease  or  make available to the state university construction
   40  fund, the dormitory authority or other public benefit  corporation,  the
   41  New  York  state  teachers'  retirement  system[,] OR the New York state
   42  employees' retirement system[, or a business that intends to locate in a
   43  tax-free NY area approved pursuant to article twenty-one of the economic
   44  development law,] a portion of the grounds or real property occupied  by
   45  a  state-operated  institution  or statutory or contract college for the
   46  construction, acquisition, reconstruction, rehabilitation or improvement
   47  of academic buildings, dormitories or other facilities thereon  pursuant
   48  to  article  eight-A of this chapter and for the purpose of facilitating
   49  such  construction,  acquisition,  reconstruction,   rehabilitation   or
   50  improvement, to enter into leases and agreements for the use of any such
   51  academic  building,  dormitory  or other facility in accordance with the
   52  provisions of section three  hundred  seventy-eight  of  this  [chapter]
   53  TITLE; provided, however, that nothing herein contained shall affect the
   54  provisions  of  any  lease or agreement heretofore executed by the state
   55  university with the dormitory authority. The state  university  trustees
   56  may  also  enter  into agreements with the state university construction
       A. 8131                             5

    1  fund, the dormitory authority or other public benefit  corporation,  the
    2  New  York  state  teachers'  retirement  system[,] OR the New York state
    3  employees' retirement system [or any business that intends to locate  in
    4  a  tax-free  NY  area  approved  pursuant  to  article twenty-one of the
    5  economic development law,] to furnish heat from a central heating  plant
    6  to any academic building, dormitory or other facility erected by them or
    7  with  moneys  supplied by them. Any such academic building, dormitory or
    8  other facility shall not be subject to taxation for any purpose.
    9    S 18. Paragraph z of subdivision 2 of section 355 of the education law
   10  is REPEALED.
   11    S 19. Section 361 of the education law is REPEALED.
   12    S 20. This act shall take effect immediately; provided, however,  that
   13  the  amendments  to  paragraph  a of subdivision 2 of section 355 of the
   14  education law made by section sixteen of this act shall not  affect  the
   15  expiration and reversion of such paragraph and shall be deemed to expire
   16  therewith.
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