What's happening
This bill requires new multiple dwellings seeking property tax exemptions to comply with minority and women-owned business participation goals.
Why it matters
Links tax benefits to equitable contracting. By making property tax exemptions for new multiple dwellings contingent on meeting minority and women-owned business enterprise (MWBE) participation goals, the bill uses tax incentives to drive more inclusive economic opportunities in real estate development.
Expands accountability in development. Local housing agencies must now verify and certify that applicants are in full compliance with MWBE participation requirements before granting tax exemptions, adding an extra layer of oversight to the process.
Allows for flexibility through waivers. The bill explicitly states that applicants retain the ability to seek waivers from the MWBE participation goals, acknowledging that there may be circumstances where full compliance is not feasible and preserving a path for exceptions.
Aims to address broader economic disparities. By tying public benefits to MWBE participation, the legislation seeks to leverage public resources to help close racial and gender gaps in access to lucrative construction and contracting opportunities.
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Who cares
Headline styles
Tie Tax Breaks to MWBE Goals
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
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.
Link Tax Breaks to MWBEs
In Assembly Committee · Real Property Taxation · Sponsor Rodneyse Bichotte Hermelyn
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2843
2017-2018 Regular Sessions
IN SENATE
January 17, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
AN ACT to amend the real property tax law, in relation to a minority and women-owned business enterprise participation goal requirement in order to receive exemption of new multiple dwellings from local taxation for the purpose of fixing economic disparity
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 421-a of the real property tax law is amended by adding a new closing paragraph to read as follows:
Any new multiple dwelling otherwise eligible for an exemption from taxation under this section must also be in compliance with the goals for minority and women-owned business enterprise participation pursuant to sections three hundred twelve and three hundred thirteen of the executive law. Nothing in this section shall supersede an applicant's ability to use a waiver as prescribed by such sections.
§ 2. The opening paragraph of paragraph a of subdivision 3 of section 421-a of the real property tax law, as amended by section 63-g of part A of chapter 20 of the laws of 2015, is amended to read as follows:
Application forms for exemption under this section shall be filed with the assessors between February first and March fifteenth and, based on the certification of the local housing agency as herein provided, the assessors shall certify to the collecting officer the amount of taxes to be abated. If there be in a city of one million population or more a department of housing preservation and development, the term "housing agency" shall mean only such department of housing preservation and development. No such application shall be accepted by the assessors unless accompanied by a certificate of the local housing agency certifying the applicant's eligibility pursuant to subdivisions two and four of this section. No such certification of eligibility shall be issued by
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01526-01-7
S. 2843 2
the local housing agency until such agency determines whether the applicant is in full compliance with the provisions of sections three hundred twelve and three hundred thirteen of the executive law, and the initial adjusted monthly rent to be paid by tenants residing in rental dwelling units contained within the multiple dwelling and the comparative adjusted monthly rent that would have to be paid by such tenants if no tax exemption were applicable as provided by this section. The initial adjusted monthly rent will be certified by the local housing agency as the first rent for the subject dwelling units. A copy of such certification with respect to such units shall be attached by the applicant to the first effective lease or occupancy agreement. The initial adjusted monthly rent shall reflect the full tax exemption benefits as approved by the agency.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to a minority and women-owned business enterprise participation goal requirement in order to receive exemption of new multiple dwellings from local taxation for the purpose of fixing economic disparity
Purpose or general idea of bill
To increase economic opportunities of Minority Women-Owned Business Enterprises by having them participate in real estate development related projects.
Summary of specific provisions
Section 1. Subdivision 2 of section 421-a of the real property tax law is amended by adding a new closing paragraph to read as follows: any new multiple dwelling otherwise eligible for an exemption from taxation under this section must also be in compliance with the goals from minority and women-owned business enterprise.
Justification
Currently, affordable housing developers profit from being able to take advantage of the 421-a tax exemption program. The proposed amendment for the real property tax law would significantly increase the ability of MWBEs to benefit from this program.
Prior legislative history
2015-16: S.7243 - Referred to Housing, Construction and Community Development
Fiscal implications for state and local governments
None
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.