STATE OF NEW YORK
________________________________________________________________________
5348
2009-2010 Regular Sessions
IN ASSEMBLY
February 13, 2009
___________
Introduced by M. of A. KOON, ABBATE, LUPARDO, MAGEE, J. RIVERA, ROBIN-
SON, SCHIMMINGER, ZEBROWSKI, GUNTHER, COOK -- Multi-Sponsored by -- M.
of A. COLTON, DESTITO, GREENE, LIFTON, V. LOPEZ, McENENY, PHEFFER,
N. RIVERA, SCHROEDER, SWEENEY, WRIGHT -- read once and referred to the
Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to extending the
benefits of the STAR program to small businesses
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 as added by section 1 of part B of chapter 389 of the laws of 1997,
3 paragraph (a) as amended by chapter 264 of the laws of 2000, paragraph
4 (d) as added by chapter 443 of the laws of 2003, paragraph (e) as added
5 by section 2 of part W of chapter 57 of the laws of 2008, is amended to
6 read as follows:
7 3. Eligibility requirements. (a) Property use. To qualify for
8 exemption pursuant to this section, the property must be a one, two or
9 three family residence, a farm dwelling, a small business or residential
10 property held in condominium or cooperative form of ownership. If the
11 property is not an eligible type of property, but a portion of the prop-
12 erty is partially used by the owner as a primary residence, that portion
13 which is so used shall be entitled to the exemption provided by this
14 section; provided that in no event shall the exemption exceed the
15 assessed value attributable to that portion.
16 (b) Primary residence. The property must serve as the primary resi-
17 dence of one or more of the owners thereof, unless such property is
18 owned by a small business as defined in paragraph (f) of this subdivi-
19 sion.
20 (c) Trusts. If legal title to the property is held by one or more
21 trustees, the beneficial owner or owners shall be deemed to own the
22 property for purposes of this subdivision.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02289-01-9
A. 5348 2
1 (d) Farm dwellings not owned by the resident. (i) If legal title to
2 the farm dwelling is held by an S-corporation or by a C-corporation, the
3 exemption shall be granted if the property serves as the primary resi-
4 dence of a shareholder of such corporation.
5 (ii) If the legal title to the farm dwelling is held by a partnership,
6 the exemption shall be granted if the property serves as the primary
7 residence of one or more of the partners.
8 (iii) Any information deemed necessary to establish shareholder or
9 partner status for eligibility purposes shall be considered confidential
10 and exempt from the freedom of information law.
11 (e) Dwellings owned by limited partnerships. (i) If legal title to a
12 dwelling is held by a limited partnership, the exemption shall be grant-
13 ed if the property serves as the primary residence of one or more of the
14 partners, provided that the limited partnership which holds title to the
15 property does not engage in any commercial activity, that the limited
16 partnership was lawfully created to hold title solely for estate plan-
17 ning and asset protection purposes, and that the partner or partners who
18 primarily reside thereon personally pay all of the real property taxes
19 and other costs associated with the property's ownership.
20 (ii) Any information deemed necessary to establish partner status for
21 eligibility purposes shall be considered confidential and exempt from
22 the freedom of information law.
23 (f) For the purposes of this subdivision the term "small business"
24 shall mean a business which employs twenty persons or less.
25 § 2. This act shall take effect immediately and shall apply to all
26 taxable years beginning on and after January 1, 2010.
