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Sponsors
1 Co-sponsor
History
- Referred to local government
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.193
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to a real property tax exemption for property owned by a limited liability company
In Assembly Committee · Real Property Taxation · Sponsor Marc Butler
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S2449
Title of bill
An act to amend the real property tax law, in relation to a real property tax exemption for property owned by a limited liability company
Purpose
To allow an otherwise qualified property owner to receive the STAR (School Tax Relief) exemption on his or her primary residence if the residence is owned by a limited liability company (LLC) which is owned by the property owner.
Summary of provisions
Section 1 amends subdivision 3 of Section 425 of the Real Property Tax Law, which provides for the STAR exemption, by adding a new paragraph e-1 which adds a primary residence owned by a limited liability company to the type of property eligible for the STAR exemption. It also provides that such property must serve as the primary residence of one or more of the members of the LLC and that those members who reside thereon personally pay the real property taxes associated with the property's ownership.
Existing law
Real property owned by a LLC is not eligible for a STAR Exemption.
Justification
New York State's School Tax Relief (STAR) Program provides an exemption from school taxes for most owner-occupied, primary residences. It is unfair to deny this benefit to an otherwise qualified taxpayer because his or her residence is owned by a LLC of which the qualified property taxpayer is the owner.
Under interpretation of current law when an individual who otherwise would be entitled to a STAR exemption owns his or her primary residence as part of a LLC, the individual may not receive the STAR exemption.
In addition, current law allows that if the taxpayer's primary residence is not an eligible type of property (i.e. one, two or three family residence, a farm dwelling or residential property held in condominium or cooperative form of ownership), but a portion of the property is partially used by the owner as a primary residence, that portion which is used as the primary residence may be entitled to the STAR exemption.
However, this is not currently allowed if the person owns the property through a LLC.
The nature of the ownership of the primary residence should not disqualify an otherwise qualified taxpayer from receiving the STAR exemption.
This legislation eliminates this inequity by allowing the STAR exemption on that part of the property owned by a LLC which serves as the primary residence of the owner(s) of the LLC.
Legislative history
Senate bill S.6347 of 2014.
Fiscal implications
Minimal to the State.
Local fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.