Amd Part NN S6, Chap 59 of 2009; amd S612, Tax L; amd S425, RPT L; add Art 22 SS500 - 502, Ec Dev L
Enacts the "New Start New York act"; provides for the repeal, on March 31, 2015, of the temporary state energy and utility service conservation assessment; increases the deduction from the federal gross adjusted income of certain small businesses; grants eligibility for the basic STAR exemption to certain small businesses; and establishes the 3-D program which grants tax benefits to manufacturers which design, develop and manufacture a new product in the state.
STATE OF NEW YORK
________________________________________________________________________
1438
2015-2016 Regular Sessions
IN SENATE
January 12, 2015
___________
Introduced by Sens. GRIFFO, SEWARD -- read twice and ordered printed,
and when printed to be committed to the Committee on Investigations
and Government Operations
AN ACT to enact the "New Start New York act"; to amend chapter 59 of the
laws of 2009, amending the public service law relating to financing
the operations of the department of public service, the public service
commission, department support and energy management services provided
by other state agencies, in relation to accelerating the expiration of
certain provisions thereof (Part A); to amend the tax law, in relation
to increasing the reduction of federal adjusted gross income granted
to certain small businesses (Part B); to amend the real property tax
law, in relation to extending eligibility for the school tax relief
exemption to certain small businesses (Part C); and to amend the
economic development law, in relation to establishing the 3-D program
(Part D)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known as the "New Start New
2 York act".
3 § 2. This act enacts into law major components of legislation enabling
4 existing businesses in the state to compete, succeed and create new
5 jobs. Each component is wholly contained within a Part identified as
6 Parts A through D. The effective date for each particular provision
7 contained within such Part is set forth in the last section of such
8 Part. Any provision in any section contained within a Part, including
9 the effective date of the Part, which makes reference to a section "of
10 this act", when used in connection with that particular component, shall
11 be deemed to mean and refer to the corresponding section of the Part in
12 which it is found. Section four of this act sets forth the general
13 effective date of this act.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03469-01-5
S. 1438 2
1 PART A
2 Section 1. Section 6 of part NN of chapter 59 of the laws of 2009,
3 amending the public service law relating to financing the operations of
4 the department of public service, the public service commission, depart-
5 ment support and energy management services provided by other state
6 agencies, as amended by section 2 of part BB of chapter 59 of the laws
7 of 2013, is amended to read as follows:
8 § 6. This act shall take effect immediately; provided, however, that
9 subdivision 6 of section 18-a of the public service law, as added by
10 section four of this act shall take effect April 1, 2009 and shall
11 expire and be deemed repealed March 31, [2017] 2015; provided, that if
12 section four of this act shall become law after April 1, 2009, it shall
13 take effect immediately and shall be deemed to have been in full force
14 and effect on and after April 1, 2009; and provided, further, that the
15 provisions of subdivision 6 of section 18-a of the public service law
16 shall continue in effect with regard to all such assessments incurred
17 prior to repeal of this section.
18 § 2. This act shall take effect immediately.
19 PART B
20 Section 1. Paragraph 39 of subsection (c) of section 612 of the tax
21 law, as added by section 1 of part Y of chapter 59 of the laws of 2013,
22 is amended to read as follows:
23 (39) In the case of a taxpayer who is a small business who has busi-
24 ness income and/or farm income as defined in the laws of the United
25 States, an amount equal to three percent of the net items of income,
26 gain, loss and deduction attributable to such business or farm entering
27 into federal adjusted gross income, but not less than zero, for taxable
28 years beginning after two thousand thirteen, an amount equal to [three
29 and three-quarters] five percent of the net items of income, gain, loss
30 and deduction attributable to such business or farm entering into feder-
31 al adjusted gross income, but not less than zero, for taxable years
32 beginning after two thousand fourteen, and an amount equal to [five] ten
33 percent of the net items of income, gain, loss and deduction attribut-
34 able to such business or farm entering into federal adjusted gross
35 income, but not less than zero, for taxable years beginning after two
36 thousand fifteen. For the purposes of this paragraph, the term small
37 business shall mean a sole proprietor or a farm business who employs one
38 or more persons during the taxable year and who has net business income
39 or net farm income of less than two hundred fifty thousand dollars.
40 § 2. This act shall take effect immediately.
41 PART C
42 Section 1. Paragraph (a) of subdivision 2 of section 425 of the real
43 property tax law, as amended by section 1 of part E of chapter 83 of the
44 laws of 2002, is amended to read as follows:
45 (a) Overview. There shall be two variations of the exemption author-
46 ized by this section: an exemption for property owned by persons who
47 satisfy or a small business which satisfies the criteria set forth in
48 subdivision three of this section, which shall be known as the "basic"
49 STAR exemption, and an exemption for property owned by senior citizens
50 who satisfy the criteria set forth in both subdivisions three and four
51 of this section, which shall be known as the "enhanced" STAR exemption.
S. 1438 3
1 The exempt amount for each assessing unit shall be determined annually
2 as set forth in this subdivision, by multiplying the "base figure" by
3 the locally-applicable "sales price differential factor," if any, multi-
4 plying the product by the appropriate "equalization factor" for the
5 assessing unit, and, if necessary, increasing the result to equal the
6 applicable "floor." The result is then rounded to the nearest multiple
7 of ten dollars.
8 § 2. Paragraphs (a), (b) and (b-1) of subdivision 3 of section 425 of
9 the real property tax law, paragraph (a) as amended by chapter 264 of
10 the laws of 2000, paragraph (b) as added by section 1 of part B of chap-
11 ter 389 of the laws of 1997 and paragraph (b-1) as added by section 1 of
12 part FF of chapter 57 of the laws of 2010, are amended and three new
13 paragraphs (a-1), (a-2) and (b-2) are added to read as follows:
14 (a) Property use. To qualify for exemption pursuant to this section,
15 the property must be a one, two or three family residence, a farm dwell-
16 ing [or], residential property held in condominium or cooperative form
17 of ownership or the primary place of business of a small business. If
18 the property is not an eligible type of property, but a portion of the
19 property is partially used by the owner as a primary residence, that
20 portion which is so used shall be entitled to the exemption provided by
21 this section; provided that in no event shall the exemption exceed the
22 assessed value attributable to that portion.
23 (a-1) Small business. To qualify for an exemption pursuant to this
24 section, a small business must be a business entity, other than a sole
25 proprietorship, which employs not less than two employees, nor more than
26 fifty employees at its primary place of business.
27 (a-2) Person. For the purposes of this section, "person" or "owner"
28 shall include a small business.
29 (b) Primary residence. The property must serve as the primary resi-
30 dence of one or more of the owners thereof, or as the primary place of
31 business of a small business.
32 (b-1) Income. For final assessment rolls to be used for the levy of
33 taxes for the two thousand eleven-two thousand twelve school year and
34 thereafter, [the] a residential parcel's affiliated income may be no
35 greater than five hundred thousand dollars, as determined by the commis-
36 sioner of taxation and finance pursuant to section one hundred seventy-
37 one-u of the tax law, in order to be eligible for the basic exemption
38 authorized by this section. As used herein, the term "affiliated income"
39 shall mean the combined income of all of the owners of the parcel who
40 resided primarily thereon on the applicable taxable status date, and of
41 any owners' spouses residing primarily thereon. For exemptions on final
42 assessment rolls to be used for the levy of taxes for the two thousand
43 eleven-two thousand twelve school year, affiliated income shall be
44 determined based upon the parties' incomes for the income tax year
45 ending in two thousand nine. In each subsequent school year, the appli-
46 cable income tax year shall be advanced by one year. The term "income"
47 as used herein shall have the same meaning as in subdivision four of
48 this section.
49 (b-2) Primary place of business. For small businesses, the property
50 shall be property at a single location within the state, upon which the
51 small business carries on its business enterprise.
52 § 3. Paragraph (a) of subdivision 5 of section 425 of the real proper-
53 ty tax law, as amended by section 5 of part E of chapter 83 of the laws
54 of 2002, is amended to read as follows:
55 (a) Generally. Every school district shall notify, or cause to be
56 notified, each person owning residential real property and each small
S. 1438 4
1 business owning real property in the school district of the provisions
2 of this section. The provisions of this subdivision may be met by a
3 notice sent to such persons in substantially the following form: "Resi-
4 dential and small business real property may qualify for a partial
5 exemption from school district taxes under the New York state school tax
6 relief (STAR) program. To receive such exemption, owners of qualifying
7 property must file an application with their local assessor on or before
8 the applicable taxable status date. For further information, please
9 contact your local assessor."
10 § 4. Paragraph (a) of subdivision 6 of section 425 of the real proper-
11 ty tax law, as amended by chapter 6 and as further amended by subdivi-
12 sion (b) of section 1 of part W of chapter 56 of the laws of 2010, is
13 amended to read as follows:
14 (a) Generally. All owners of the property who primarily reside thereon
15 must jointly or, in the case of a small business, the owner or owners
16 thereof must file an application for exemption with the assessor on or
17 before the appropriate taxable status date. Such application may be
18 filed by mail if it is enclosed in a postpaid envelope properly
19 addressed to the appropriate assessor, deposited in a post office or
20 official depository under the exclusive care of the United States postal
21 service, and postmarked by the United States postal service on or before
22 the applicable taxable status date. Each such application shall be made
23 on a form prescribed by the commissioner, which shall require the appli-
24 cant or applicants to agree to notify the assessor if their primary
25 residence or primary place of business changes while their property is
26 receiving the exemption. The assessor may request that proof of residen-
27 cy be submitted with the application. If the applicant requests a
28 receipt from the assessor as proof of submission of the application, the
29 assessor shall provide such receipt. If such request is made by other
30 than personal request, the applicant shall provide the assessor with a
31 self-addressed postpaid envelope in which to mail the receipt.
32 § 5. Subdivision 10 of section 425 of the real property tax law, as
33 added by section 1 of part B of chapter 389 of the laws of 1997, para-
34 graph (a) as further amended by subdivision (b) of section 1 of part W
35 of chapter 56 of the laws of 2010, is amended to read as follows:
36 10. Proof of residency. (a) Requests. From time to time, the assessor
37 may request proof of residency or proof of primary place of business
38 from the owner or owners of any property which is exempt pursuant to
39 this section. In addition, the assessor shall request proof of residency
40 or primary place of business from any such owner or owners when
41 requested to do so by the commissioner.
42 (b) Timing. A request for proof of residency or primary place of busi-
43 ness shall be mailed at least sixty days prior to the ensuing taxable
44 status date. The owner or owners shall submit proof of their residency
45 or primary place of business to the assessor on or before the ensuing
46 taxable status date.
47 (c) Review of submission. The burden shall be on the owner or owners
48 to establish that the property is their primary residence or primary
49 place of business. If they submit proof of residency or primary place
50 of business on or before the ensuing taxable status date, and the
51 submission demonstrates to the assessor's satisfaction that the property
52 is the primary residence or primary place of business of one or more of
53 the owners thereof, and if the requirements of this section are other-
54 wise satisfied, the exemption shall continue in effect on the ensuing
55 tentative assessment roll. Otherwise, the assessor shall discontinue
56 the exemption on the next ensuing tentative assessment roll as provided
S. 1438 5
1 [herein] in this section, and, where appropriate, shall proceed as
2 further provided [herein] in this section.
3 § 6. Subparagraph (i) of paragraph (a) of subdivision 11 of section
4 425 of the real property tax law, as added by section 1 of part B of
5 chapter 389 of the laws of 1997, is amended to read as follows:
6 (i) the property may not be the primary residence or primary place of
7 business of the owner or owners who applied for the exemption,
8 § 7. Subparagraph (iii) of paragraph (b) of subdivision 14 of section
9 425 of the real property tax law, as added by section 1 of part J of
10 chapter 57 of the laws of 2013, is amended to read as follows:
11 (iii) the property does not serve as the primary residence or the
12 primary place of business of any of its owners;
13 § 8. This act shall take effect immediately and shall apply to taxable
14 years beginning on or after January 1, 2016.
15 PART D
16 Section 1. The economic development law is amended by adding a new
17 article 22 to read as follows:
18 ARTICLE 22
19 3-D PROGRAM
20 Section 500. Short title.
21 501. Eligibility criteria for manufacturers.
22 502. Tax benefits.
23 § 500. Short title. This article shall be known and may be cited as
24 the "Dreamed in New York, Designed in New York and Developed in New York
25 program" or the "3-D program".
26 § 501. Eligibility criteria for manufacturers. 1. In order to partic-
27 ipate in the 3-D program, a business that manufactures a product within
28 the state shall satisfy all of the following criteria:
29 (a) the manufacturer designed and developed a new product within the
30 state;
31 (b) the manufacturer manufactures such new product in this state;
32 (c) the manufacturer's primary place for the manufacture of such new
33 product is in the state; and
34 (d) the commissioner shall have certified that such manufacturer has
35 satisfied the requirements of paragraphs (a), (b) and (c) of this subdi-
36 vision, and shall have certified the location or locations within the
37 state at which the new product is manufactured.
38 2. An eligible business may be organized as a corporation, a partner-
39 ship, a limited liability company or a sole proprietorship.
40 3. A business must be in compliance with all worker protection and
41 environmental laws and regulations. In addition, a business shall not
42 owe any past due federal, state or municipal taxes.
43 § 502. Tax benefits. A business that is certified by the commissioner
44 to be eligible to participate in the 3-D program and its employees shall
45 be entitled to all benefits granted to participants in the START-UP NY
46 program pursuant to article twenty-one of this chapter and any other
47 provision of law related thereto.
48 § 2. This act shall take effect immediately and shall apply to taxes
49 imposed on or after January 1, 2016.
50 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
51 sion, section or part of this act shall be adjudged by any court of
52 competent jurisdiction to be invalid, such judgment shall not affect,
S. 1438 6
1 impair, or invalidate the remainder thereof, but shall be confined in
2 its operation to the clause, sentence, paragraph, subdivision, section
3 or part thereof directly involved in the controversy in which such judg-
4 ment shall have been rendered. It is hereby declared to be the intent of
5 the legislature that this act would have been enacted even if such
6 invalid provisions had not been included herein.
7 § 4. This act shall take effect immediately; provided, however, that
8 the applicable effective date of Parts A through D of this act shall be
9 as specifically set forth in the last section of such Parts.
