NY State Senate Bill 2015-S2449

Senate Bill S2449

2015-2016 Legislative Session

Relates to a real property tax exemption for property owned by a limited liability company

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Archive: Last Bill Status - In Senate Committee Local Government 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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to local government
Jun 25, 2015	committed to rules
Mar 09, 2015	advanced to third reading
Mar 04, 2015	2nd report cal.
Mar 03, 2015	1st report cal.193
Jan 23, 2015	referred to local government

Votes

- Mar 3, 2015 - Local Government Committee Vote
  S2449
  
  5
  
  Aye
  
  2
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Local Government Committee Vote: Mar 3, 2015
      
      aye (5)
      
      Boyle
      
      Marchione
      
      Murphy
      
      Ritchie
      
      Valesky
      
      nay (2)
      
      Hoylman-Sigal
      
      Panepinto
      
      aye wr (2)
      
      Latimer
      
      Ortt

co-Sponsors

2015-S2449 (ACTIVE) - Details

See Assembly Version of this Bill:: A4805
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §425, RPT L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6347, A8624
2017-2018: A2760
2019-2020: A4820
2021-2022: A2197
2023-2024: A4693

2015-S2449 (ACTIVE) - Summary

Permits a STAR exemption for property owned by a limited liability company where the limited liability company is owned by a person to whom the exemption would have otherwise been granted.

2015-S2449 (ACTIVE) - Sponsor 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.

2015-S2449 (ACTIVE) - Bill Text download pdf

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

                                  2449

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 23, 2015
                               ___________

Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the real property tax law, in relation to a real proper-
  ty tax exemption for property owned by a limited liability company

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

  Section  1.  Subdivision 3 of section 425 of the real property tax law
is amended by adding a new paragraph (e-1) to read as follows:
  (E-1) DWELLINGS OWNED BY A LIMITED LIABILITY COMPANY. IF  LEGAL  TITLE
TO  A  DWELLING  IS  HELD  BY A LIMITED LIABILITY COMPANY, THE EXEMPTION
SHALL BE GRANTED IF THE PROPERTY SERVES AS THE PRIMARY RESIDENCE OF  ONE
OR  MORE  OF THE MEMBERS OF THE LIMITED LIABILITY COMPANY, PROVIDED THAT
THE MEMBER OR MEMBERS WHO PRIMARILY RESIDE THEREON PERSONALLY PAY ALL OF
THE REAL PROPERTY TAXES AND OTHER COSTS ASSOCIATED WITH  THE  PROPERTY'S
OWNERSHIP.
  S 2. This act shall take effect immediately.






 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03598-01-5

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Senate Bill S2449

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Sponsored By

Hugh T. Farley