Authorizes towns with a population between fifty-six thousand seven hundred and fifty-six thousand eight hundred to enact a hospitality business investment real property tax exemption

BILL NUMBER:S7229B

Title of bill

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

Purpose or general idea of bill

To authorize towns with a population between fifty-six thousand seven hundred and fifty-six thousand eight hundred based upon the latest decennial federal census (Town of Southampton, County of Suffolk) to enact a hospitality business investment real property tax exemption

Summary of specific provisions

Section 1. Provides that real property within the Town of Southampton, County of Suffolk construction, altered, installed or improved, subsequent to January 1, 2015 for the purpose of hospitality business activity, as defined in Section 5 of this act, shall be exempt from taxation and special ad valorem levies for town, special district, county and school district purposes, exclusive of special ad valorem levies for fire district, fire protection district and fire alarm district purposes.

Section 2. Provides the year and percentage of exemption.

Section 3. Provides that the exemption shall be granted only upon application by the owner of such real property on a form prescribed by the Commissioner of Taxation and Finance. Requires such application to be filed with the assessor of the town on or before the appropriate taxable status date of the town within one year from the date of completion of such construction, alteration, installation or improvement.

Section 4. Provides that if the assessor is satisfied that the applicant is entitled to an exemption and approves the application, that such real property shall thereafter be exempt from taxation and special ad valorem levies, except for special ad valorem levies for fire district, fire protection district and fire alarm district purposes, commencing with the assessment roll prepared after the taxable status date referred provided for in Section 3 of this act.

Section 5. Limits the provisions of this act to real property within the Town of Southampton used primarily for hospitality business activity. For the purposes of this act, "hospitality business activity" shall mean the commercial furnishing of accommodations to over-night transient guests, including, but not limited to hotels, motels, and bed and breakfasts. A "transient guest" shall be defined as one whose stay on such property is daily or weekly, but not to exceed 31 days in any calendar year.

Section 6. If such real property ceases to be used primarily for eligible purposes, the exemption granted shall cease.

Section 7. Provides guidelines relating to the adjustment of the percentum of the exemption by adoption of a resolution by the Town of Southampton.

Section 8. Immediate effective date.

Justification

Unlike the neighboring Towns of Riverhead, Brookhaven and East Hampton, Southampton has a short supply of suitable hotels, motels and similar hospitality related businesses. This short supply can be blamed on a variety of factors including an over-reliance on private, often illegal, home rentals and the aging, outdated condition of exiting commercial hospitality establishments. If Southampton is to accommodate its thriving, growing tourism industry it must expand and improve its supply of hospitality enterprises, including hotels and motels that cater to transient guests. Through use of this tax exemption, Southampton hopes to attract professionals affiliated with the Hospitality Industry to both update and construct transient guest accommodations. Such enterprise would help fill the Town's void with respect to these establishments and attract new and greater sources of revenue.

Prior legislative history

2014: New Legislation

Fiscal implications

None to the state.

Effective date

This act shall take effect immediately.