Relates to tax abatements, general corporation tax in NYC, conversion of residential property to condominiums and loft authorizations, and the Lower Manhattan commercial revitalization program; extends provisions relating to rent control and rent stabilized buildings.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8312
SPONSOR: Heastie (MS) TITLE OF BILL: An act to amend the real property tax law, in relation
to extending provisions of law relating to tax abatements for certain
multiple dwellings (Part A); to amend the real property tax law, in
relation to extending certain abatements (Part B); to amend the adminis-
trative code of the city of New York, in relation to extending the cred-
it for general corporation tax paid (Part C); to amend the multiple
dwelling law, in relation to application for coverage of interim multi-
ple dwellings and residential units; and to repeal subdivision (h) of
section 27 of chapter 4 of the laws of 2013 amending the real property
tax law, relating to exemption from taxation to alterations and improve-
ments to multiple dwellings to eliminate fire and health hazards relat-
ing thereto (Part D); to amend chapter 555 of the laws of 1982 amending
the general business law and the administrative code of the city of New
York relating to conversion of residential property to cooperative or
condominium ownership in the city of New York, in relation to extending
the effectiveness thereof; to amend chapter 402 of the laws of 1983
amending the general business law relating to conversion of rental resi-
dential property to cooperative or condominium ownership in certain
municipalities in the counties of Nassau, Westchester and Rockland, in
relation to extending the effectiveness thereof (Part E); and to amend
the tax law, in relation to the temporary exemption from sales and use
taxes for premises used for commercial office space in Lower Manhattan;
and to amend part C of chapter 2 of the laws of 2005 amending the tax
law relating to exemptions from sales and use taxes, in relation to the
effectiveness thereof (Subpart A); to amend the general city law and the
administrative code of the city of New York, in relation to extending
the relocation and employment assistance program and the Lower Manhattan
relocation and employment assistance program (Subpart B); to amend the
general city law and the administrative code of the city of New York, in
relation to extending the special rebates and discounts provided pursu-
ant to the energy cost savings program and the Lower Manhattan energy
program (Subpart C); to amend the administrative code of the city of New
York, in relation to the amount of special reduction allowed (Subpart
D); and to amend the real property tax law and the administrative code
of the city of New York, in relation to extending the lower Manhattan
commercial revitalization program (Subpart E) (Part F); to amend chapter
576 of the laws of 1974 amending the emergency housing rent control law
relating to the control of and stabilization of rent in certain cases,
the emergency housing rent control law, chapter 329 of the laws of 1963
amending the emergency housing rent control law relating to recontrol of
rents in Albany, and the rent regulation reform act of 1997, in relation
to extending the effectiveness thereof (Part G); to amend the tax law,
in relation to the imposition of sales and compensating use taxes by the
county of Albany (Subpart A); to amend the tax law, in relation to
extending the expiration of the provisions authorizing the county of
Allegany to impose an additional one and one-half percent sales and
compensating use taxes (Subpart B); to amend the tax law, in relation to
extending the expiration of provisions authorizing the county of Catta-
raugus to impose an additional one percent of sales and compensating use
taxes (Subpart C); to amend the tax law, in relation to extending the
authorization of the county of Cayuga to impose an additional one
percent of sales and compensating use taxes (Subpart D); to amend the
tax law, in relation to extending the expiration of and amending the
provisions authorizing the county of Chautauqua to impose additional
sales and compensating use taxes (Subpart E); to amend the tax law, in
relation to extending the authorization of the county of Chemung to
impose an additional one percent of sales and compensating use taxes
(Subpart F); to amend the tax law, in relation to authorizing the county
of Clinton to impose an additional rate of sales and compensating use
tax (Subpart G); to amend the tax law, in relation to sales and compen-
sating use tax in Columbia county (Subpart H); to amend the tax law, in
relation to extending the authorization of the county of Delaware to
impose an additional one percent of sales and compensating use taxes
(Subpart I); to amend the tax law, in relation to sales and compensating
use tax in Dutchess county (Subpart J); to amend the tax law, in
relation to the imposition of additional rates of sales and compensating
use taxes by Erie county (Subpart K); to amend the tax law, in relation
to extending the expiration of the authority granted to the county of
Franklin to impose an additional one percent of sales and compensating
use taxes (Subpart L); to amend the tax law, in relation to the imposi-
tion of additional sales and compensating use tax in Fulton county
(Subpart M); to amend the tax law, in relation to extending the expira-
tion of the authorization to the county of Genesee to impose an addi-
tional one percent of sales and compensating use taxes (Subpart N); to
amend the tax law, in relation to extending the authorization of the
county of Hamilton to impose an additional one percent of sales and
compensating use taxes (Subpart O); to amend the tax law, in relation to
authorizing Jefferson county to impose an additional one percent rate of
sales and compensating use taxes (Subpart P); to amend the tax law, in
relation to authorizing the county of Lewis to impose an additional one
percent of sales and compensating use taxes (Subpart Q); to amend the
tax law, in relation to authorizing the county of Livingston to impose
an additional one percent sales tax (Subpart R); to amend the tax law,
in relation to extending the authorization of the county of Madison to
impose an additional rate of sales and compensating use taxes (Subpart
S); to amend the tax law, in relation to the imposition of sales and
compensating use taxes by the county of Monroe (Subpart T); to amend the
tax law, in relation to the imposition of sales and compensating use
taxes in Montgomery county (Subpart U); to amend the tax law, in
relation to extending the authority of the county of Nassau to impose
additional sales and compensating use taxes, and extending local govern-
ment assistance programs in Nassau county (Subpart V); to amend the tax
law, in relation to continuing to authorize Niagara county to impose an
additional rate of sales and compensating use taxes (Subpart W); to
amend the tax law, in relation to authorizing Oneida county to impose
additional rates of sales and compensating use taxes and providing for
allocation and distribution of a portion of net collections from such
additional rates (Subpart X); to amend the tax law, in relation to
extending the authorization of the county of Onondaga to impose an addi-
tional rate of sales and compensating use taxes (Subpart Y); to amend
the tax law, in relation to extending the authorization for Ontario
county to impose additional rates of sales and compensating use taxes
(Subpart Z); to amend the tax law, in relation to extending the authori-
ty of the county of Orange to impose an additional rate of sales and
compensating use taxes (Subpart AA); to amend the tax law, in relation
to extending the period during which the county of Orleans is authorized
to impose additional rates of sales and compensating use taxes (Subpart
BB); to amend the tax law, in relation to extending the authorization of
the county of Oswego to impose an additional one percent sales and
compensating use tax (Subpart CC); to amend the tax law, in relation to
the imposition of sales and compensating use taxes in Putnam county
(Subpart DD); to amend the tax law, in relation to extending the author-
ization of the county of Rensselaer to impose an additional one percent
of sales and compensating use taxes (Subpart EE); to amend the tax law,
in relation to authorizing the county of Rockland to impose an addi-
tional rate of sales and compensating use taxes (Subpart FF); to amend
the tax law, in relation to extending the authority of St. Lawrence
county to impose sales tax (Subpart GG); to amend the tax law, in
relation to the imposition of sales and compensating use tax in Schenec-
tady county (Subpart HH); to amend the tax law, in relation to extending
the authorization for imposition of additional sales tax in the county
of Schoharie (Subpart II); to amend the tax law, in relation to extend-
ing the authorization of the county of Schuyler to impose an additional
one percent of sales and compensating use taxes (Subpart JJ); to amend
the tax law, in relation to extending the expiration of the authori-
zation to the county of Seneca to impose an additional one percent sales
and compensating use tax (Subpart KK); to amend the tax law, in relation
to extending the authorization of the county of Steuben to impose an
additional one percent of sales and compensating use taxes (Subpart LL);
to amend the tax law, in relation to extending the authority of the
county of Suffolk to impose an additional one percent of sales and
compensating use tax (Subpart MM); to amend the tax law, in relation to
extending authorization to impose certain taxes in the county of Sulli-
van (Subpart NN); to amend the tax law, in relation to extending the
authorization of the county of Tioga to impose an additional one percent
of sales and compensating use taxes (Subpart OO); to amend the tax law
and chapter 200 of the laws of 2002 amending the tax law relating to
certain tax rates imposed by the county of Ulster, in relation to
extending the authority of the county of Ulster to impose an additional
1 percent sales and compensating use tax (Subpart PP); to amend the tax
law, in relation to extending the additional one percent sales tax for
Wayne county (Subpart QQ); to amend the tax law, in relation to extend-
ing the expiration of the authorization to the county of Wyoming to
impose an additional one percent sales and compensating use tax (Subpart
RR); to amend the tax law, in relation to extending the authorization of
the county of Yates to impose an additional one percent of sales and
compensating use taxes (Subpart SS); to amend the tax law, in relation
to extending the authorization of the city of Oswego to impose an addi-
tional rate of sales and compensating use taxes (Subpart TT); to amend
chapter 89 of the laws of 2009 amending the tax law relating to the
imposition of an occupancy tax in the city of Rye, in relation to
extending the effectiveness thereof (Subpart UU); to amend chapter 405
of the laws of 2007, amending the tax law relating to increasing
hotel/motel taxes in Chautauqua county, in relation to extending the
expiration of such provisions (Subpart VV); to amend the tax law, in
relation to extending the authority of the county of Nassau to impose
hotel and motel taxes in Nassau county; and to amend chapter 179 of the
laws of 2000, amending the tax law, relating to hotel and motel taxes in
Nassau county and a surcharge on tickets to places of entertainment in
such county, in relation to extending certain provisions thereof
(Subpart WW); to amend the tax law, in relation to extending the expira-
tion of the authority granted to the county of Suffolk to impose hotel
and motel taxes (Subpart XX); to amend chapter 98 of the laws of 2009,
amending the tax law relating to authorizing the county of Cattaraugus
to impose an additional mortgage recording tax, in relation to extending
the expiration thereof (Subpart YY); to amend chapter 489 of the laws of
2004, amending the tax law relating to the mortgage recording tax in the
county of Fulton, in relation to the effectiveness of such chapter
(Subpart ZZ); and to amend chapter 556 of the laws of 2007, amending the
tax law, relating to the imposition of an additional real estate trans-
fer tax within the county of Columbia, in relation to the effectiveness
thereof (Subpart AAA) (Part H); and to amend chapter 91 of the laws of
2002 amending the education law and other laws relating to the reorgan-
ization of the New York city school construction authority, board of
education and community boards, in relation to the effectiveness there-
of; and to amend chapter 345 of the laws of 2009 amending the education
law relating to the New York city board of education, chancellor, commu-
nity councils and community superintendents, in relation to the effec-
tiveness thereof (Part I)
PURPOSE: The purpose of this legislation is to continue to provide an
incentive to owners to rehabilitate and upgrade existing multiple dwell-
ings in New York City. Additionally, this legislation would continue a
real property tax abatement program for qualifying condominiums and
cooperatives in New York City as well as an S-corp tax credit for an
additional two years. It would also extend certain provisions of the
Loft Law and provisions related to the the conversion of residential
property to cooperative or condominium ownership in the city of New
York. It would amend provisions of the Tax Law, the Administrative Code
of the City of New York, and the General City Law to extend the sunset
dates of the Lower Manhattan State and Local Sales Tax Exemptions, the
New York City and Lower Manhattan Relocation and Employment Assistance
Programs, the New York City Energy Cost Savings Program, the Lower
Manhattan Energy Program, the Commercial Rent Special Reduction, the New
York City Commercial Expansion Program, and the Commercial Revitaliza-
tion Program. It would also extend several local sales, occupancy, mort-
gage recording, and real estate tax expirations for two or three years.
This bill would extend for two years various provisions of the laws
relating to rent regulations. Finally, this bill will also extend the
current provisions of Chapter 345 of the Laws of 2009 related to the
operation and management of the New York City school district.
SUMMARY OF PROVISIONS:
Part A
This part would extend from January 1, 2015, until January 1, 2017, the
deadline for local legislative action providing J-51 tax incentives for
the rehabilitation and upgrading of multiple dwellings, and extend the
completion date from June 30, 2015 to June 30, 2017.
Part B
This part would extend for two years a real property tax abatement
program for condominiums and cooperative units in New York City. Bene-
fits are available to dwelling units that serve as the primary residence
of their unit owner and up to two additional units located within the
same property that are also owned by such owner. In fiscal years
commencing in 2015 and 2016, qualifying dwelling units in property with
an average unit assessed value that is less than or equal to $50,000
would receive a partial abatement of 28.1%. Qualifying dwelling units
in property with an average unit assessed value that is more than
$50,000, but less than or equal to $55,000, would receive a partial
abatement of 25.2%. Qualifying dwelling units in property with an aver-
age unit assessed value that is more than $55,000, but less than or
equal to $60,000, would receive a partial abatement of 22.5%. Qualifying
dwelling units in property with an average unit assessed value that is
more than $60,000, would receive a partial abatement of 17.5%.
Part C
This part would extend for two years an S-Corporation tax credit against
the NYC local personal income taxes for city residents for S-Corpora-
tions with city taxable incomes of less than one hundred thousand
dollars.
Part D
This part would open the window during which applications for registra-
tion as an interim multiple dwelling or for coverage for an additional
two years, starting from the effective date of the bill. This section
would also make permanent provisions of Chapter 4 of the Laws of 2013
pertaining to lofts. These provisions included: the reduction of minimum
unit size required to be covered; the prohibition of coverage on units
in a building with hazardous activities that are continuing on the date
of submission for coverage; the reduction in the percent of rent
increases allowed for coming into various stages of compliance for fire
and safety standards; and allowing the Loft Board to make cases by case
determination on incompatible uses in the building.
Part E
Section 1 of this part would amend the General Business Law and the
Administrative Code of the City of New York relating to the conversion
of residential property to cooperative or condominium ownership in New
York City to provide that such provisions shall remain in effect until,
and including, June 15, 2017.
Section 2 of this part would amend the General Business Law relating to
the conversion of residential property to cooperative or condominium
ownership in Nassau, Westchester, and Rockland counties to provide that
such provisions shall remain in effect until, and including, June 15,
2017.
Part F
This part would extend the following New York City tax incentive
programs:
*Subpart A extends the Lower Manhattan State and Local Sales Tax
Exemptions. This program exempts goods purchased for the build-out of
commercial office space in Lower Manhattan from State and Local sales
taxes. The program would be extended for two years.
*Subpart B extends the New York City and Lower Manhattan Relocation and
Employment Assistance Programs. This program offers a credit for busi-
nesses that relocate all or part of their operations to eligible prem-
ises. The program would be extended to June 30, 2017.
*Subpart C extends the New York City Energy Cost Savings Program and
Lower Manhattan Energy Program. This energy saving credit is available
to industrial and commercial companies that relocate to new or improved
site. Eligible businesses, which purchase energy from a utility super-
vised by the Public Service Commission, are entitled to receive a
discount on the delivery portion of the electric and gas costs. The
program would be extended to June 30, 2017.
* Subpart D extends the Commercial Rent Tax Special Reduction. This
program provides an exemption from commercial rent or occupancy tax for
premises used for leased space in certain NYC areas. The program extends
the date upon which a lease must be entered to June 30, 2017.
*Subpart E extends the Commercial Revitalization Program. The Commercial
Revitalization. Program (CRP) provides tax incentives through a property
tax abatement and a Commercial Rent Tax Special Reduction for nonresi-
dential or mixed-use buildings built before 1975 that are located within
designated areas. The program would be extended to March 31, 2017.
Part G
Sections 1 and 2 of this part would amend the Emergency Housing Rent
Control Law relating to the control of and stabilization of rent in
certain cases, to provide that such provisions shall remain in effect
until, and including, June 15, 2017; so long as localities determine the
existence of a public emergency.
Section 3 of this part would amend the Emergency Housing Rent Control
Law relating to recontrol of rents in Albany to provide that such
provisions shall remain in effect until, and including, June 15, 2017.
Section 4 of this part would amend the rent regulation reform act of
1997 to provide that such provisions shall continue until, and includ-
ing, June 15, 2017.
Part H
Subparts A to AAA extend by two or three years various local sales,
occupancy, mortgage recording and real estate transfer taxes.
Part I
This part would extend the current provisions of Chapter 345 of the Laws
of the 2009 related to the operation and management of the New York City
school district to June 30, 2018.
JUSTIFICATION: The J-51 benefit program provides incentives for land-
lords to engage in rehabilitation projects to make improvements. Bene-
fits for the program vary depending on the location of the building and
the type of improvements to be made. This legislation would continue to
provide an incentive to owners to rehabilitate and upgrade existing
multiple dwellings
Since 1996, the City of New York has offered, with New York State
authorization, a partial property tax abatement program for co-op and
condo owners. The program was established to address inequities in the
real property tax system in New York City that burden owners of co-op
and condominium units with larger tax bills than the owners of compar-
ably valued one, two and three-family homes. This bill extends the
program for two additional years.
The S-Corporation tax credit was designed to help spur job creation in
small businesses. It targets small businesses by lowering a business
owner's Personal Income Tax (PIT) by allowing them to deduct all, or a
portion of their General Corporation Tax (GCT), depending on their
income. This extension will ensure that newly formed and other small
businesses, where most job creation occurs, continue to receive tax
benefits.
In 2010, legislation was introduced to make the loft law permanent. Its
intent was to bring buildings that had been illegally converted from
manufacturing to residential fire and safety codes. After the bill was
passed, however, amendments were introduced that severely restricted the
spirit of what the bill was trying to accomplish. Another deadline was
put in place which meant that coverage could only be sought for up to
six months after the date that the Loft Board had finished adopting all
the necessary rules and regulations to implement the 2010 law.
Legislation was introduced in the first place to ensure that those resi-
dences that were created illegally could come into code compliance and
allow the landlord to collect rent legally. By allowing this artificial
deadline to remain it ensures that landlords of lofts are not encouraged
to register their properties with the Loft Board, which would ensure
that they are brought up to residential safety and fire standards. If
the occupants of these lofts are evicted these premises will not revert
into manufacturing spaces. All that will occur is that the landlord will
rent the space to another tenant, at a much higher price. The purpose of
this legislation is to provide the best possible situation to bring
these lofts up to residential fire and safety codes.
The provisions of the cooperative and condominium conversion laws create
a process that allows owners to convert rental properties to cooperative
or condominium buildings while offering varying protections to tenants
that live in the building and do not wish to permanently buy into the
building.
The rebuilding of the New York City and the revitalization of Lower
Manhattan are critical to both New York City and New York State, espe-
cially after the devastating damages by Hurricane Sandy. This omnibus
bill assures the continuation of necessary incentives, through the form
of tax exemptions, credits and rent subsidies to reward businesses which
locate operations from outside of New York City or invest in the Lower
Manhattan and New York City areas. The bill would extend successful
programs that have helped revitalize the New York City and Lower Manhat-
tan by encouraging investments to be eligible for the program.
This legislation would also extend the provisions of the rent regulation
laws for an additional two years, to continue to protect and support
over 2 million tenants.
Extending the local sales, hotel, mortgage recording, and real estate
transfer taxes will ensure that localities maintain fiscal balance and
provide vital services to residents.
Chapter 345 of the Laws of 2009 enacted legislation that provided for
greater parental participation and input, transparency, and accountabil-
ity in relation to the management and operation of the New York City
school district. This bill would extend for three years the current
provisions of the management and operation of the New York City school
district, which will continue to ensure accountability and be integral
for future progress and development of the New York City school
district.
LEGISLATIVE HISTORY: This is a New Bill
FISCAL IMPLICATIONS: None to the State
EFFECTIVE DATE: Immediately
