S T A T E O F N E W Y O R K
________________________________________________________________________
4734
2021-2022 Regular Sessions
I N S E N A T E
February 10, 2021
___________
Introduced by Sens. GRIFFO, O'MARA, ORTT -- read twice and ordered
printed, and when printed to be committed to the Committee on Budget
and Revenue
AN ACT to enact the "Made in New York act"; and to amend the tax law, in
relation to increasing the reduction of federal adjusted gross income
granted to certain small businesses (Part A); to amend the real prop-
erty tax law, in relation to extending eligibility for the school tax
relief exemption to certain small businesses (Part B); and to amend
the economic development law, in relation to establishing the 3-D
program (Part C)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known as the "Made in New
York act".
§ 2. This act enacts into law major components of legislation enabling
existing businesses in the state to compete, succeed and create new
jobs. Each component is wholly contained within a Part identified as
Parts A through C. The effective date for each particular provision
contained within such Part is set forth in the last section of such
Part. Any provision in any section contained within a Part, including
the effective date of the Part, which makes reference to a section "of
this act", when used in connection with that particular component, shall
be deemed to mean and refer to the corresponding section of the Part in
which it is found. Section four of this act sets forth the general
effective date of this act.
PART A
Section 1. Paragraph 39 of subsection (c) of section 612 of the tax
law, as added by section 1 of part Y of chapter 59 of the laws of 2013,
is amended to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04319-01-1
S. 4734 2
(39) In the case of a taxpayer who is a small business who has busi-
ness income and/or farm income as defined in the laws of the United
States, an amount equal to three percent of the net items of income,
gain, loss and deduction attributable to such business or farm entering
into federal adjusted gross income, but not less than zero, for taxable
years beginning after two thousand thirteen, an amount equal to [three
and three-quarters] FIVE percent of the net items of income, gain, loss
and deduction attributable to such business or farm entering into feder-
al adjusted gross income, but not less than zero, for taxable years
beginning after two thousand fourteen, and an amount equal to [five] TEN
percent of the net items of income, gain, loss and deduction attribut-
able to such business or farm entering into federal adjusted gross
income, but not less than zero, for taxable years beginning after two
thousand fifteen. For the purposes of this paragraph, the term small
business shall mean a sole proprietor or a farm business who employs one
or more persons during the taxable year and who has net business income
or net farm income of less than two hundred fifty thousand dollars.
§ 2. This act shall take effect immediately.
PART B
Section 1. Paragraph (a) of subdivision 2 of section 425 of the real
property tax law, as amended by section 1 of part E of chapter 83 of the
laws of 2002, is amended to read as follows:
(a) Overview. There shall be two variations of the exemption author-
ized by this section: an exemption for property owned by persons who
satisfy OR A SMALL BUSINESS WHICH SATISFIES the criteria set forth in
subdivision three of this section, which shall be known as the "basic"
STAR exemption, and an exemption for property owned by senior citizens
who satisfy the criteria set forth in both subdivisions three and four
of this section, which shall be known as the "enhanced" STAR exemption.
The exempt amount for each assessing unit shall be determined annually
as set forth in this subdivision, by multiplying the "base figure" by
the locally-applicable "sales price differential factor," if any, multi-
plying the product by the appropriate "equalization factor" for the
assessing unit, and, if necessary, increasing the result to equal the
applicable "floor." The result is then rounded to the nearest multiple
of ten dollars.
§ 2. Paragraphs (a), (b) and (b-1) of subdivision 3 of section 425 of
the real property tax law, paragraph (a) as amended by chapter 264 of
the laws of 2000, paragraph (b) as added by section 1 of part B of chap-
ter 389 of the laws of 1997 and paragraph (b-1) as amended by section 1
of part RR of chapter 59 of the laws of 2019, are amended and three new
paragraphs (a-1), (a-2) and (b-2) are added to read as follows:
(a) Property use. To qualify for exemption pursuant to this section,
the property must be a one, two or three family residence, a farm dwell-
ing [or], residential property held in condominium or cooperative form
of ownership OR THE PRIMARY PLACE OF BUSINESS OF A SMALL BUSINESS. If
the property is not an eligible type of property, but a portion of the
property is partially used by the owner as a primary residence, that
portion which is so used shall be entitled to the exemption provided by
this section; provided that in no event shall the exemption exceed the
assessed value attributable to that portion.
(A-1) SMALL BUSINESS. TO QUALIFY FOR AN EXEMPTION PURSUANT TO THIS
SECTION, A SMALL BUSINESS MUST BE A BUSINESS ENTITY, OTHER THAN A SOLE
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PROPRIETORSHIP, WHICH EMPLOYS NOT LESS THAN TWO EMPLOYEES, NOR MORE THAN
FIFTY EMPLOYEES AT ITS PRIMARY PLACE OF BUSINESS.
(A-2) PERSON. FOR THE PURPOSES OF THIS SECTION, "PERSON" OR "OWNER"
SHALL INCLUDE A SMALL BUSINESS.
(b) Primary residence. The property must serve as the primary resi-
dence of one or more of the owners thereof, OR AS THE PRIMARY PLACE OF
BUSINESS OF A SMALL BUSINESS.
(b-1) Income. For final assessment rolls to be used for the levy of
taxes for the two thousand eleven-two thousand twelve through two thou-
sand eighteen-two thousand nineteen school years, the parcel's affil-
iated income may be no greater than five hundred thousand dollars, as
determined by the commissioner pursuant to subdivision fourteen of this
section or section one hundred seventy-one-u of the tax law, in order to
be eligible for the basic exemption authorized by this section. Begin-
ning with the two thousand nineteen-two thousand twenty school year, for
purposes of the exemption authorized by this section, [the] A RESIDEN-
TIAL parcel's affiliated income may be no greater than two hundred fifty
thousand dollars, as so determined. As used herein, the term "affiliated
income" shall mean the combined income of all of the owners of the
parcel who resided primarily thereon on the applicable taxable status
date, and of any owners' spouses residing primarily thereon. For
exemptions on final assessment rolls to be used for the levy of taxes
for the two thousand eleven-two thousand twelve school year, affiliated
income shall be determined based upon the parties' incomes for the
income tax year ending in two thousand nine. In each subsequent school
year, the applicable income tax year shall be advanced by one year. The
term "income" as used herein shall have the same meaning as in subdivi-
sion four of this section.
(B-2) PRIMARY PLACE OF BUSINESS. FOR SMALL BUSINESSES, THE PROPERTY
SHALL BE PROPERTY AT A SINGLE LOCATION WITHIN THE STATE, UPON WHICH THE
SMALL BUSINESS CARRIES ON ITS BUSINESS ENTERPRISE.
§ 3. Paragraph (a) of subdivision 5 of section 425 of the real proper-
ty tax law, as amended by section 5 of part E of chapter 83 of the laws
of 2002, is amended to read as follows:
(a) Generally. Every school district shall notify, or cause to be
notified, each person owning residential real property AND EACH SMALL
BUSINESS OWNING REAL PROPERTY in the school district of the provisions
of this section. The provisions of this subdivision may be met by a
notice sent to such persons in substantially the following form: "Resi-
dential AND SMALL BUSINESS real property may qualify for a partial
exemption from school district taxes under the New York state school tax
relief (STAR) program. To receive such exemption, owners of qualifying
property must file an application with their local assessor on or before
the applicable taxable status date. For further information, please
contact your local assessor."
§ 4. Paragraph (a) of subdivision 6 of section 425 of the real proper-
ty tax law, as amended by section 1 of part A of chapter 60 of the laws
of 2016, is amended to read as follows:
(a) Generally. All owners of the property who primarily reside thereon
and who are not subject to the provisions of subdivision sixteen of this
section must jointly OR, IN THE CASE OF A SMALL BUSINESS, THE OWNER OR
OWNERS THEREOF MUST file an application for exemption with the assessor
on or before the appropriate taxable status date. Such application may
be filed by mail if it is enclosed in a postpaid envelope properly
addressed to the appropriate assessor, deposited in a post office or
official depository under the exclusive care of the United States postal
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service, and postmarked by the United States postal service on or before
the applicable taxable status date. Each such application shall be made
on a form prescribed by the commissioner, which shall require the appli-
cant or applicants to agree to notify the assessor if their primary
residence OR PRIMARY PLACE OF BUSINESS changes while their property is
receiving the exemption. The assessor may request that proof of residen-
cy be submitted with the application. If the applicant requests a
receipt from the assessor as proof of submission of the application, the
assessor shall provide such receipt. If such request is made by other
than personal request, the applicant shall provide the assessor with a
self-addressed postpaid envelope in which to mail the receipt.
§ 5. Subdivision 10 of section 425 of the real property tax law, as
added by section 1 of part B of chapter 389 of the laws of 1997, para-
graph (a) as further amended by subdivision (b) of section 1 of part W
of chapter 56 of the laws of 2010, is amended to read as follows:
10. Proof of residency. (a) Requests. From time to time, the assessor
may request proof of residency OR PROOF OF PRIMARY PLACE OF BUSINESS
from the owner or owners of any property which is exempt pursuant to
this section. In addition, the assessor shall request proof of residency
OR PRIMARY PLACE OF BUSINESS from any such owner or owners when
requested to do so by the commissioner.
(b) Timing. A request for proof of residency OR PRIMARY PLACE OF BUSI-
NESS shall be mailed at least sixty days prior to the ensuing taxable
status date. The owner or owners shall submit proof of their residency
OR PRIMARY PLACE OF BUSINESS to the assessor on or before the ensuing
taxable status date.
(c) Review of submission. The burden shall be on the owner or owners
to establish that the property is their primary residence OR PRIMARY
PLACE OF BUSINESS. If they submit proof of residency OR PRIMARY PLACE
OF BUSINESS on or before the ensuing taxable status date, and the
submission demonstrates to the assessor's satisfaction that the property
is the primary residence OR PRIMARY PLACE OF BUSINESS of one or more of
the owners thereof, and if the requirements of this section are other-
wise satisfied, the exemption shall continue in effect on the ensuing
tentative assessment roll. Otherwise, the assessor shall discontinue
the exemption on the next ensuing tentative assessment roll as provided
[herein] IN THIS SECTION, and, where appropriate, shall proceed as
further provided [herein] IN THIS SECTION.
§ 6. Subparagraph (i) of paragraph (a) of subdivision 11 of section
425 of the real property tax law, as added by section 1 of part B of
chapter 389 of the laws of 1997, is amended to read as follows:
(i) the property may not be the primary residence OR PRIMARY PLACE OF
BUSINESS of the owner or owners who applied for the exemption,
§ 7. Subparagraph (iii) of paragraph (b) of subdivision 14 of section
425 of the real property tax law, as added by section 1 of part J of
chapter 57 of the laws of 2013, is amended to read as follows:
(iii) the property does not serve as the primary residence OR THE
PRIMARY PLACE OF BUSINESS of any of its owners;
§ 8. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2022.
PART C
Section 1. The economic development law is amended by adding a new
article 24 to read as follows:
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ARTICLE 24
3-D PROGRAM
SECTION 500. SHORT TITLE.
501. ELIGIBILITY CRITERIA FOR MANUFACTURERS.
502. TAX BENEFITS.
§ 500. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "DREAMED IN NEW YORK, DESIGNED IN NEW YORK AND DEVELOPED IN NEW YORK
PROGRAM" OR THE "3-D PROGRAM".
§ 501. ELIGIBILITY CRITERIA FOR MANUFACTURERS. 1. IN ORDER TO PARTIC-
IPATE IN THE 3-D PROGRAM, A BUSINESS THAT MANUFACTURES A PRODUCT WITHIN
THE STATE SHALL SATISFY ALL OF THE FOLLOWING CRITERIA:
(A) THE MANUFACTURER DESIGNED AND DEVELOPED A NEW PRODUCT WITHIN THE
STATE;
(B) THE MANUFACTURER MANUFACTURES SUCH NEW PRODUCT IN THIS STATE;
(C) THE MANUFACTURER'S PRIMARY PLACE FOR THE MANUFACTURE OF SUCH NEW
PRODUCT IS IN THE STATE; AND
(D) THE COMMISSIONER SHALL HAVE CERTIFIED THAT SUCH MANUFACTURER HAS
SATISFIED THE REQUIREMENTS OF PARAGRAPHS (A), (B) AND (C) OF THIS SUBDI-
VISION, AND SHALL HAVE CERTIFIED THE LOCATION OR LOCATIONS WITHIN THE
STATE AT WHICH THE NEW PRODUCT IS MANUFACTURED.
2. AN ELIGIBLE BUSINESS MAY BE ORGANIZED AS A CORPORATION, A PARTNER-
SHIP, A LIMITED LIABILITY COMPANY OR A SOLE PROPRIETORSHIP.
3. A BUSINESS MUST BE IN COMPLIANCE WITH ALL WORKER PROTECTION AND
ENVIRONMENTAL LAWS AND REGULATIONS. IN ADDITION, A BUSINESS SHALL NOT
OWE ANY PAST DUE FEDERAL, STATE OR MUNICIPAL TAXES.
§ 502. TAX BENEFITS. A BUSINESS THAT IS CERTIFIED BY THE COMMISSIONER
TO BE ELIGIBLE TO PARTICIPATE IN THE 3-D PROGRAM AND ITS EMPLOYEES SHALL
BE ENTITLED TO ALL BENEFITS GRANTED TO PARTICIPANTS IN THE START-UP NY
PROGRAM PURSUANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER AND ANY OTHER
PROVISION OF LAW RELATED THERETO.
§ 2. This act shall take effect immediately and shall apply to taxes
imposed on or after January 1, 2022.
§ 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 4. This act shall take effect immediately; provided, however, that
the applicable effective date of Parts A through C of this act shall be
as specifically set forth in the last section of such Parts.