NY State Senate Bill 2009-S601

Senate Bill S601

2009-2010 Legislative Session

Disallows corporate and personal income tax deductions for property in continued noncompliance with regards to rent impairing violations

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to investigations and government operations
Jan 09, 2009	referred to investigations and government operations

2009-S601 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210 & 612, Tax L; amd §303, Mult Dwell L; amd §303, Mult Res L
Versions Introduced in 2011-2012 Legislative Session:: S952

2009-S601 (ACTIVE) - Summary

Disallows corporate and personal income tax deductions for interest, depreciation, taxes or amortization for persons who own real property offered for lease which is in continued non-compliance with regards to rent impairing violations; requires local housing officials to submit list of such non-compliant landlords to the division of housing and community renewal.

2009-S601 (ACTIVE) - Sponsor Memo

2009-S601 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   601

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             January 9, 2009
                               ___________

Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government Operations

AN ACT to amend the tax law, the multiple dwelling law, and the multiple
  residence  law,  in  relation  to  disallowing  corporate and personal
  income tax deductions for property  in  continued  noncompliance  with
  regards to rent impairing violations

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 210 of the tax law  is  amended  by  adding  a  new
subdivision 24-a to read as follows:
  24-A.  NOTWITHSTANDING  ANY  CONTRARY  PROVISION  OF LAW, NO DEDUCTION
SHALL BE PERMITTED FOR INTEREST, TAXES,  DEPRECIATION,  OR  AMORTIZATION
PAID  OR INCURRED IN THE TAXABLE YEAR FOR ANY PROPERTY OFFERED FOR LEASE
WHICH IS IN CONTINUED  NONCOMPLIANCE  WITH  REGARDS  TO  RENT  IMPAIRING
VIOLATIONS  AS DEFINED BY: (A) LOCAL LAWS, REGULATIONS, OR ORDINANCES OR
(B) PARAGRAPH A OF SUBDIVISION TWO OF SECTION THREE HUNDRED TWO-A OF THE
MULTIPLE DWELLING LAW AND SECTION THREE HUNDRED FIVE-A OF  THE  MULTIPLE
RESIDENCE  LAW.  FOR THE PURPOSES OF THIS SECTION, "CONTINUED NONCOMPLI-
ANCE" SHALL MEAN  THAT  SUCH  VIOLATION  OR  VIOLATIONS  HAVE  NOT  BEEN
CORRECTED  WITHIN  THE  PRESCRIBED  COMPLIANCE  PERIOD,  DESPITE WRITTEN
NOTIFICATION TO THE OWNER BY  THE  LOCAL  DEPARTMENT  CHARGED  WITH  THE
ENFORCEMENT OF SUCH LAWS, REGULATIONS, OR ORDINANCES. WITH THE EXCEPTION
OF  REASONABLE  ADMINISTRATIVE EXPENSES, ALL ADDITIONAL REVENUE REALIZED
AND COLLECTED BY THE DEPARTMENT AS A RESULT OF ANY DEDUCTION  DISALLOWED
IN  ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVISION SHALL BE REMITTED
TO THE LOCALITY IN WHICH THE  PROPERTY  WHICH  IS  THE  SUBJECT  OF  THE
VIOLATION IS LOCATED IN ORDER TO PROMOTE AND ENHANCE HOUSING MAINTENANCE
ENFORCEMENT EFFORTS IN SUCH LOCALITY.
  S 2. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 39 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02710-02-9

S. 601                              2

  (39)  DEDUCTIONS, INCLUDING INTEREST, TAXES, DEPRECIATION, AND AMORTI-
ZATION ALLOWED IN DETERMINING FEDERAL ADJUSTED GROSS INCOME AND INCURRED
IN THE TAXABLE YEAR ON ANY  PROPERTY  OFFERED  FOR  LEASE  WHICH  IS  IN
CONTINUED  NONCOMPLIANCE  WITH  REGARDS  TO RENT IMPAIRING VIOLATIONS AS
DEFINED IN SECTION TWO HUNDRED TEN OF THIS CHAPTER.
  S 3. Section 303 of the multiple dwelling law is amended by adding two
new subdivisions 1-b and 1-c to read as follows:
  1-B.  NOTWITHSTANDING  ANY  CONTRARY  PROVISION  OF LAW, LOCAL HOUSING
ENTITIES OR DEPARTMENTS RESPONSIBLE FOR THE TRACKING AND/OR  MAINTAINING
OF  RECORDS, FILES AND/OR AFFIDAVITS OF PERSONS FOUND TO BE IN CONTINUED
NONCOMPLIANCE WITH REGARDS TO RENT IMPAIRING VIOLATIONS SHALL  SUBMIT  A
LISTING OF THOSE PERSONS FOUND IN NONCOMPLIANCE TO THE DIVISION OF HOUS-
ING  AND  COMMUNITY  RENEWAL WITHIN THIRTY DAYS AFTER THE THIRD RECORDED
VIOLATION. FOR THE PURPOSES OF THIS SECTION,  THE  TERM  "PERSON"  SHALL
INCLUDE  THE OWNER, MORTGAGEE, VENDEE, FIRM OR CORPORATION IN POSSESSION
OF OR DIRECTLY IN CONTROL OF A DWELLING OR PART THEREOF. THE TERM  "RENT
IMPAIRING  VIOLATIONS"  SHALL BE DEFINED BY: (A) LOCAL LAWS, REGULATIONS
OR ORDINANCES, OR (B) PARAGRAPH A OF SUBDIVISION TWO  OF  SECTION  THREE
HUNDRED  TWO-A  OF  THIS ARTICLE AND SECTION THREE HUNDRED FIVE-A OF THE
MULTIPLE RESIDENCE LAW.  "CONTINUED NONCOMPLIANCE", FOR THE PURPOSES  OF
THIS SECTION, SHALL MEAN THAT SUCH VIOLATION OR VIOLATIONS HAVE NOT BEEN
CORRECTED  WITHIN  THE  PRESCRIBED  COMPLIANCE  PERIOD,  DESPITE WRITTEN
NOTIFICATION TO THE OWNER BY  THE  LOCAL  DEPARTMENT  CHARGED  WITH  THE
ENFORCEMENT OF SUCH LAWS, REGULATIONS OR ORDINANCES.
  1-C.  (A)  WHEN THE COMPLIANCE PERIOD PRESCRIBED BY THE DEPARTMENT FOR
THE CORRECTION OF: (1) A RENT IMPAIRING VIOLATION AS DEFINED IN  SECTION
THREE  HUNDRED  TWO-A  OF  THIS  ARTICLE; OR (2) A VIOLATION OF STATE OR
LOCAL LAW, ORDINANCE OR REGULATION, WHICH CONSTITUTES A  THREAT  TO  THE
LIFE,  HEALTH  OR SAFETY OF THE PUBLIC HAS EXPIRED, THE DEPARTMENT SHALL
MAIL TO THE BUILDING OWNER A NOTICE  OF  NONCOMPLIANCE.  THE  NOTICE  OF
NONCOMPLIANCE SHALL BE MAILED BY CERTIFIED MAIL TO THE BUILDING OWNER AT
HIS  OR  HER  LAST  KNOWN ADDRESS, AND SHALL ADVISE SUCH OWNER (A) OF AN
INTENT TO NOTIFY THE DIVISION OF HOUSING AND  COMMUNITY  RENEWAL  WITHIN
THIRTY  DAYS  OF  THE  THIRD  RECORDED  NONCOMPLIANCE AND THE SUBSEQUENT
NOTIFICATION OF THE DEPARTMENT OF TAXATION AND FINANCE BY  THE  DIVISION
AFTER TEN DAYS, AND (B) A GENERAL DESCRIPTION OF THE TAX CONSEQUENCES OF
SUCH FILING WITH THE DEPARTMENT OF TAXATION AND FINANCE. AFTER THE EXPI-
RATION OF SUCH TEN DAY PERIOD, THE DIVISION MAY NOTIFY THE DEPARTMENT OF
TAXATION  AND  FINANCE  OF SUCH NONCOMPLIANCE. SUCH NOTICE SHALL INCLUDE
THE NAME OF THE OWNER OR OWNERS, THE LOCATION OF THE DWELLING, THE  DATE
THE  VIOLATION OR VIOLATIONS WERE RECORDED AND SUCH OTHER INFORMATION AS
THE DEPARTMENT OF TAXATION AND FINANCE MAY REQUEST.   IN THE  EVENT  THE
PERIOD  OF  NONCOMPLIANCE  DOES  NOT  COVER  AN ENTIRE TAXABLE YEAR, THE
DEDUCTIONS SHALL BE DENIED AT THE RATE  OF  ONE-TWELFTH  FOR  EACH  FULL
MONTH OR PART THEREOF DURING THE PERIOD OF NONCOMPLIANCE.
  (B)  FOR PURPOSES OF THIS SUBDIVISION, A NOTICE OF NONCOMPLIANCE SHALL
NOT BE MAILED BY THE ENFORCEMENT DEPARTMENT TO THE DIVISION  OF  HOUSING
AND  COMMUNITY  RENEWAL  IF THE VIOLATION WAS CAUSED SOLELY BY REASON OF
NATURAL DISASTER EXCEPT WHERE SUCH CONDITION REMAINS FOR MORE  THAN  SIX
MONTHS.
  S  4. Section 303 of the multiple residence law is amended by adding a
new subdivision 7 to read as follows:
  7. A. WHEN THE COMPLIANCE PERIOD PRESCRIBED BY THE DEPARTMENT FOR  THE
CORRECTION  OF:  (I)  A  RENT  IMPAIRING VIOLATION AS DEFINED IN SECTION
THREE HUNDRED TWO-A OF THE MULTIPLE DWELLING LAW; OR (II) A VIOLATION OF
STATE OR LOCAL LAW, ORDINANCE OR REGULATION, WHICH CONSTITUTES A  THREAT

S. 601                              3

TO THE LIFE, HEALTH AND SAFETY OF THE PUBLIC HAS EXPIRED, THE DEPARTMENT
SHALL  MAIL  TO THE BUILDING OWNER A NOTICE OF NONCOMPLIANCE. THE NOTICE
OF NONCOMPLIANCE SHALL BE MAILED BY CERTIFIED MAIL TO THE BUILDING OWNER
AT  HIS OR HER LAST KNOWN ADDRESS, AND SHALL ADVISE SUCH OWNER (1) OF AN
INTENT TO NOTIFY THE DIVISION OF HOUSING AND  COMMUNITY  RENEWAL  WITHIN
THIRTY  DAYS  OF  THE  THIRD  RECORDED  NONCOMPLIANCE AND THE SUBSEQUENT
NOTIFICATION OF THE DEPARTMENT OF TAXATION AND FINANCE BY  THE  DIVISION
AFTER TEN DAYS, AND (2) A GENERAL DESCRIPTION OF THE TAX CONSEQUENCES OF
SUCH FILING WITH THE DEPARTMENT OF TAXATION AND FINANCE. AFTER THE EXPI-
RATION OF SUCH TEN DAY PERIOD, THE DIVISION MAY NOTIFY THE DEPARTMENT OF
TAXATION  AND  FINANCE  OF SUCH NONCOMPLIANCE. SUCH NOTICE SHALL INCLUDE
THE NAME OF THE OWNER OR OWNERS, THE LOCATION OF THE DWELLING, THE  DATE
THE  VIOLATION OR VIOLATIONS WERE RECORDED AND SUCH OTHER INFORMATION AS
THE DEPARTMENT OF TAXATION AND FINANCE MAY REQUEST.   IN THE  EVENT  THE
PERIOD  OF  NONCOMPLIANCE  DOES  NOT  COVER  AN ENTIRE TAXABLE YEAR, THE
DEDUCTIONS SHALL BE DENIED AT THE RATE  OF  ONE-TWELFTH  FOR  EACH  FULL
MONTH OR PART THEREOF DURING THE PERIOD OF NONCOMPLIANCE.
  B.  FOR  PURPOSES OF THIS SUBDIVISION, A NOTICE OF NONCOMPLIANCE SHALL
NOT BE MAILED BY THE ENFORCEMENT DEPARTMENT TO THE DIVISION  OF  HOUSING
AND  COMMUNITY  RENEWAL  IF THE VIOLATION WAS CAUSED SOLELY BY REASON OF
NATURAL DISASTER EXCEPT WHERE SUCH CONDITION REMAINS FOR MORE  THAN  SIX
MONTHS.
  S 5. This act shall take effect immediately and shall apply to taxable
years  beginning  on  or after the first of January of the year in which
this act shall have become a law, and to all violations recorded  on  or
after such date.

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