Relates to extending the benefits of the STAR program to small businesses; defines small business as a business which employs one hundred persons or less.
STATE OF NEW YORK
________________________________________________________________________
1122
2025-2026 Regular Sessions
IN SENATE
January 8, 2025
___________
Introduced by Sens. OBERACKER, BORRELLO, RHOADS -- read twice and
ordered printed, and when printed to be committed to the Committee on
Local Government
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 (b-1) as amended by section 1 of part RR of chapter 59 of the laws of
5 2019, paragraph (d) as amended by chapter 564 of the laws of 2015 and
6 paragraph (e) as added by section 2 of part W of chapter 57 of the laws
7 of 2008, is amended to read as follows:
8 3. Eligibility requirements. (a) Property use. To qualify for
9 exemption pursuant to this section, the property must be a one, two or
10 three family residence, a farm dwelling, small business or residential
11 property held in condominium or cooperative form of ownership. If the
12 property is not an eligible type of property, but a portion of the prop-
13 erty is partially used by the owner as a primary residence, that portion
14 which is so used shall be entitled to the exemption provided by this
15 section; provided that in no event shall the exemption exceed the
16 assessed value attributable to that portion.
17 (b) Primary residence. The property must serve as the primary resi-
18 dence of one or more of the owners thereof, unless such property is
19 owned by a small business as defined in paragraph (f) of this subdivi-
20 sion.
21 (b-1) Income. For final assessment rolls to be used for the levy of
22 taxes for the two thousand eleven-two thousand twelve through two thou-
23 sand eighteen-two thousand nineteen school years, the parcel's affil-
24 iated income may be no greater than five hundred thousand dollars, as
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03497-01-5
S. 1122 2
1 determined by the commissioner pursuant to subdivision fourteen of this
2 section or section one hundred seventy-one-u of the tax law, in order to
3 be eligible for the basic exemption authorized by this section. Begin-
4 ning with the two thousand nineteen-two thousand twenty school year, for
5 purposes of the exemption authorized by this section, the parcel's
6 affiliated income may be no greater than two hundred fifty thousand
7 dollars, as so determined. As used herein, the term "affiliated income"
8 shall mean the combined income of all of the owners of the parcel who
9 resided primarily thereon on the applicable taxable status date, and of
10 any owners' spouses residing primarily thereon. For exemptions on final
11 assessment rolls to be used for the levy of taxes for the two thousand
12 eleven-two thousand twelve school year, affiliated income shall be
13 determined based upon the parties' incomes for the income tax year
14 ending in two thousand nine. In each subsequent school year, the appli-
15 cable income tax year shall be advanced by one year. The term "income"
16 as used herein shall have the same meaning as in subdivision four of
17 this section.
18 (c) Trusts. If legal title to the property is held by one or more
19 trustees, the beneficial owner or owners shall be deemed to own the
20 property for purposes of this subdivision.
21 (d) Farm dwellings not owned by the resident. (i) If legal title to
22 the farm dwelling is held by an S-corporation or by a C-corporation, the
23 exemption shall be granted if the property serves as the primary resi-
24 dence of a shareholder of such corporation.
25 (ii) If the legal title to the farm dwelling is held by a partnership,
26 the exemption shall be granted if the property serves as the primary
27 residence of one or more of the partners.
28 (iii) If the legal title to the farm dwelling is held by a limited
29 liability company, the exemption shall be granted if the property serves
30 as the primary residence of one or more of the owners.
31 (iv) Any information deemed necessary to establish shareholder, part-
32 ner or owner status for eligibility purposes shall be considered confi-
33 dential and exempt from the freedom of information law.
34 (e) Dwellings owned by limited partnerships. (i) If legal title to a
35 dwelling is held by a limited partnership, the exemption shall be grant-
36 ed if the property serves as the primary residence of one or more of the
37 partners, provided that the limited partnership which holds title to the
38 property does not engage in any commercial activity, that the limited
39 partnership was lawfully created to hold title solely for estate plan-
40 ning and asset protection purposes, and that the partner or partners who
41 primarily reside thereon personally pay all of the real property taxes
42 and other costs associated with the property's ownership.
43 (ii) Any information deemed necessary to establish partner status for
44 eligibility purposes shall be considered confidential and exempt from
45 the freedom of information law.
46 (f) For the purposes of this subdivision, the term "small business"
47 shall mean a business which employs one hundred persons or less.
48 § 2. This act shall take effect immediately and shall apply to all
49 taxable years beginning on and after January 1, 2025.
