What's happening
This bill allows certain businesses at 8 Empire Drive, East Greenbush, NY, to claim real property tax credits for payments made in lieu of taxes from 2006 to 2011.
Why it matters
Retroactively expands tax credit eligibility. The bill allows qualified businesses (empire zone enterprises) at 8 Empire Drive to retroactively claim real property tax credits for payments in lieu of taxes (PILOTs) dating back to 2006, potentially resulting in significant refunds or credits for past tax years.
Overrides existing tax law limitations. By explicitly stating that these PILOT payments count as eligible real property taxes (regardless of previous restrictions in the tax law), the legislation removes typical barriers that might have prevented these businesses from accessing the credit.
Addresses landlord-tenant tax credit claims. The bill ensures that tenants (lessees) can claim these credits themselves, as long as the landlord has not already claimed them, clarifying a common point of confusion about who is entitled to tax benefits in PILOT arrangements.
May set a precedent for similar cases. By providing a special exception for this property and period, the bill could encourage other businesses or locations to seek similar legislative remedies for past PILOT payments, potentially impacting future tax policy and administrative practices.
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Who cares
Headline styles
Approve Tax Credit Agreement
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by A8042
- Ordered to third reading cal.1921
- Committee discharged and committed to rules
- Referred to investigations and government operations
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.
Approve Tax Credit Agreement
Signed by Governor · Sponsor John T. McDonald III
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6411
2017-2018 Regular Sessions
IN SENATE
May 17, 2017
Introduced by Sen. MARCHIONE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT in relation to approving a certain agreement for a payment in lieu of taxes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Notwithstanding the provisions of subdivision (e) of section 15 of the tax law, any payment in lieu of taxes made by a qualified empire zone enterprise to the state, a municipal corporation, or a public benefit corporation with respect to property located at 8 Empire Drive, East Greenbush, New York, with a landlord that is a party to a payment in lieu of taxes agreement with the state, municipal corporation, or public benefit corporation shall be deemed, for the purposes of subdivision (e) of section 15 of the tax law, to constitute eligible real property taxes for all purposes and shall not be subject to any limitations set forth in subdivision (e) of section 15 of the tax law, and shall be deemed to satisfy, with respect to such eligible real property taxes, the credit limitation set forth in subdivision (f) of section 15 of the tax law, and shall be deemed to have been made pursuant to a payment in lieu of taxes agreement between the qualified empire zone enterprise and the state, municipal corporation, or public benefit corporation. Such qualified empire zone enterprise shall be eligible to claim the real property tax credit provided by section 15 of the tax law provided that for each of such periods, the landlord has not filed a claim for the real property tax credit for such payments. Notwithstanding any section of law to the contrary, a lessee shall be eligible to claim the real property tax credit for any payment in lieu of taxes it made to the state, a municipal corporation, or a public benefit corporation for the property located at 8 Empire Drive, East Greenbush, New York.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11798-02-7
S. 6411 2
§ 2. Notwithstanding the provisions of section 687 or 1087 of the tax law or any other provision to the contrary, a claim for a credit or refund may be filed by the taxpayer with respect to the property located at 8 Empire Drive, East Greenbush, New York, for taxable years January 1, 2006 through December 31, 2011 where the taxpayer is a qualified empire zone enterprise.
§ 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006 and before January 1, 2012.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act in relation to approving a certain agreement for a payment in lieu of taxes
Purpose
Relates to eligibility of a Qualified Empire Zone Enterprise for real property tax credit for payments in lieu of taxes previously made for a specified property.
Summary of provisions
Section one relates to eligibility for real property tax credits for payments in lieu of taxes made by a Qualified Empire Zone Enterprise for property located at 8 Empire Drive, East Greenbush, New York.
Section two allows a claim for a credit or refund for the property for specific tax years.
Section three is the effective date.
Justification
Qualified Empire Zone Enterprises (QEZE) are vital businesses within our communities that encourage job growth and foster economic development. As an incentive to participate, these entities qualify for certain tax exemptions and refunds. For example, under New York State tax law, a QEZE tenant that is responsible for property taxes under its lease is eligible for a refund for paid property taxes. Payments by a lessee made pursuant to a PILOT agreement qualify as property taxes that are eligible for this refund.
However, a policy shift within the New York State Department of Taxation and Finance resulted in the denial of credit for lessee payments as a result of the lessee not being a "party to" the PILOT agreement between the landlord and the tax jurisdiction. As a result, lessees who have been approved for the tax credit, have paid taxes consistent with their lease agreements, and have been audited by the state during the relevant time period, are now being assessed for credits awarded in prior years or denied credits entirely.
These entities have complied with the intent and spirit of the law, and have relied on the tax credit as a significant component of their economic development projects. Laws were enacted in 2012, 2013, 2014 and 2016 to provide redress for certain affected QEZEs in different parts of the state. This bill would provide similar relief.
Legislative history
Similar to Chapters 404 and 435 of 2016, Chapters 350 and 444 of 2014, Chapters 367 and 508 of 2013, and Chapter 430 of 2012.
Fiscal implications
None - such credits were previously accounted for in the State's financial plan.
Effective date
This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006 and before January 1, 2012.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.