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S07229 Summary:

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S07229 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7229--B
 
                    IN SENATE
 
                                       May 6, 2014
                                       ___________
 
        Introduced  by  Sen. LAVALLE -- read twice and ordered printed, and when
          printed to be committed  to  the  Committee  on  Local  Government  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee -- committee discharged,  bill  amended,
          ordered reprinted as amended and recommitted to said committee
 

        AN  ACT  in  relation  to  authorizing  towns  with a population between
          fifty-six thousand seven hundred and fifty-six thousand eight  hundred
          based  upon the latest decennial federal census to enact a hospitality
          business investment real property tax exemption
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Notwithstanding any provision of law to the contrary, real
     2  property in towns with a population  between  fifty-six  thousand  seven
     3  hundred  and  fifty-six  thousand  eight  hundred  based upon the latest
     4  decennial federal census constructed, altered,  installed  or  improved,
     5  subsequent  to  January  1, 2015 for the purpose of hospitality business
     6  activity, as defined in section five of this act, shall be  exempt  from

     7  taxation and special ad valorem levies for town, special district, coun-
     8  ty  and school district purposes, exclusive of special ad valorem levies
     9  for fire district, fire protection  district  and  fire  alarm  district
    10  purposes, to the extent hereinafter provided.
    11    §  2.  (a) Such real property shall be exempt for a period of one year
    12  to the extent of fifty per centum of  the  increase  in  assessed  value
    13  thereof  attributable  to such construction, alteration, installation or
    14  improvement and for an additional period of nine years provided,  howev-
    15  er,  that  the  extent  of such exemption shall be decreased by five per
    16  centum each year during such additional period of nine  years  and  such
    17  exemption  shall  be  computed with respect to the "exemption base". The
    18  exemption base shall be the increase in assessed value as determined  in

    19  the  initial  year  of  such  ten year period following the filing of an
    20  original application.
    21    (b) The following table shall illustrate the computation  of  the  tax
    22  exemption:
    23              Year of exemption          Percentage of exemption
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14898-04-4
        S. 7229--B                          2
 
     1                      1                             50
     2                      2                             45
     3                      3                             40
     4                      4                             35
     5                      5                             30
     6                      6                             25

     7                      7                             20
     8                      8                             15
     9                      9                             10
    10                      10                            5
    11    (c)  No  such exemption shall be granted unless (1) such construction,
    12  alteration, installation or improvement was commenced subsequent to  the
    13  first  day  of  January,  2015 or such later date as may be specified by
    14  local law or resolution; (2) the cost of such construction,  alteration,
    15  installation  or  improvement  exceeds  the  sum of one hundred thousand
    16  dollars or such greater amount as may  be  specified  by  local  law  or
    17  resolution;  and  (3)  such  construction,  alteration,  installation or
    18  improvement is completed as may be evidenced by a certificate  of  occu-
    19  pancy or other appropriate documentation as provided by the owner.

    20    (d)  For  purposes  of  this  act  the terms construction, alteration,
    21  installation and improvement shall not include ordinary maintenance  and
    22  repairs.
    23    §  3.  Such  exemption  shall  be granted only upon application by the
    24  owner of such real property on a form prescribed by the commissioner  of
    25  taxation  and finance. Such application shall be filed with the assessor
    26  of the town on or before the appropriate taxable status date of the town
    27  within one year from the date of completion of such construction, alter-
    28  ation, installation or improvement.
    29    § 4. If the assessor is satisfied that the applicant is entitled to an
    30  exemption pursuant to this act, he or she shall approve the  application
    31  and  such  real  property  shall  thereafter be exempt from taxation and
    32  special ad valorem levies, except for special ad valorem levies for fire

    33  district, fire protection district and fire alarm district purposes,  as
    34  herein  provided  commencing with the assessment roll prepared after the
    35  taxable status date referred to  in  section  three  of  this  act.  The
    36  assessed  value  of any exemption granted pursuant to this section shall
    37  be entered by the assessor on the assessment roll with the taxable prop-
    38  erty, with the amount of the exemption shown in a separate column.
    39    § 5. The provisions of this act shall  only  apply  to  real  property
    40  within  the  town  used primarily for hospitality business activity. For
    41  the purposes of this act, "hospitality business activity" shall mean the
    42  commercial furnishing of accommodations to overnight  transient  guests,
    43  including  but  not limited to hotels, motels, and bed and breakfasts. A
    44  transient guest shall be defined as one whose stay on such  property  is

    45  daily or weekly, but not to exceed 31 days in any calendar year.
    46    §  6. In the event that real property granted an exemption pursuant to
    47  this section ceases to be used  primarily  for  eligible  purposes,  the
    48  exemption granted pursuant to this section shall cease.
    49    §  7.  Any local government, by local law, and any school district, by
    50  resolution, may reduce the  percentum  of  exemption  otherwise  allowed
    51  pursuant  to  this  act;  provided, however, that a project in course of
    52  construction and exemptions existing prior in time  to  passage  of  any
    53  such  local law or resolution shall not be subject to any such reduction
    54  so effected. Any local government or school district  that  has  reduced
    55  the  percentum  of exemption pursuant to this section may thereafter, by
    56  local law or resolution as the case may be, increase  the  percentum  of

        S. 7229--B                          3
 
     1  exemption  up  to  any  percentum  not  exceeding the maximum allowed by
     2  section two of this act, whichever  is  applicable,  provided,  however,
     3  that  any such local law or resolution shall apply only to construction,
     4  alterations,  installations, or improvements commenced subsequent to the
     5  effective date of such local law or resolution. A copy of all such local
     6  laws or resolutions shall be filed with the assessor of the town and the
     7  commissioner of taxation and finance.
     8    § 8. This act shall take effect immediately.