Relates to certain tax credits and exemptions in a city having a population of one million or more

1 Co-sponsor

• Toby Ann Stavisky

BILL NUMBER:S7480

Title of bill

An act to amend the real property tax law and the administrative code of the city of New York, in relation to a partial abatement of real proper- ty taxes for condominiums and cooperatives, a credit for S corporations, and credits and exemptions under the commercial rent or occupancy tax, in a city having a population of one million or more

Summary of provisions

This bill amends section 467-a of the Real property Tax Law to extend and modify a real property tax abatement program for condominiums and cooperatives in the City of New York. Section one of the bill limits the abatement, for fiscal years beginning in 2013, 2014 and 2015, to the primary residence of the property owner. Section two extends the exist- ing program for one year (for the fiscal year beginning in 2012). Section three modifies and extends the program fur three additional years (for fiscal years beginning in 2013, 2014 and 2015). Sections four, five and six relate to applications and the application process for the program. The bill amends section 11-604 of the Administrative Code of the City of New York to allow a credit against the New York City general corporation tax for entities that make the S corporation election on their federal tax returns. Section seven of the bill will reduce the tax liability of S corporations that would, exclusive of other credits, otherwise owe $1600 or less on the general corporation tax. Instead, these S corporation would pay the minimum general corpo- ration tax of $25. The S corporation credit will take effect for taxable years beginning on or after January 1, 2013. This bill amends sections 11-704(h)(2) and 11-704.3 of the Administrative Code of the City of New York to further reduce the tax burden on commercial tenants who remain subject to the commercial rent tax in New York City. The tax, first authorized in 1963, is currently paid by commercial tenants in Manhattan south of 96th Street with base rents of $250,000 or above. Section eight of the bill will reduce the portion of the base rent subject to the tax by increasing the base rent reduction from 35 percent to 40 percent. Sections ten and eleven of the bill will provide tenants who are subject to the tax and whose annual rents are between $250,000 and $300,000 with a partial credit on a sliding scale. These changes will take effect as of June 1, 2013, which is the beginning of the tax year for the purposes of the commercial rent tax.