S T A T E O F N E W Y O R K
________________________________________________________________________
S. 7229--A A. 9533--A
S E N A T E - A S S E M B L Y
May 6, 2014
___________
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Local Govern-
ment -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred
to the Committee on Real Property Taxation -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT in relation to authorizing towns with a population between
fifty-six thousand seven hundred and fifty-six thousand eight hundred
based upon the two thousand ten federal census to enact a hospitality
business investment real property tax exemption
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Notwithstanding any provision of law to the contrary, real
2 property in towns with a population between fifty-six thousand seven
3 hundred and fifty-six thousand eight hundred based upon the two thousand
4 ten federal census constructed, altered, installed or improved, subse-
5 quent to January 1, 2015 for the purpose of hospitality business activ-
6 ity, as defined in section five of this act, shall be exempt from taxa-
7 tion and special ad valorem levies, except for special ad valorem levies
8 for fire district, fire protection district and fire alarm district
9 purposes, to the extent hereinafter provided.
10 S 2. (a) Such real property shall be exempt for a period of one year
11 to the extent of fifty per centum of the increase in assessed value
12 thereof attributable to such construction, alteration, installation or
13 improvement and for an additional period of nine years provided, howev-
14 er, that the extent of such exemption shall be decreased by five per
15 centum each year during such additional period of nine years and such
16 exemption shall be computed with respect to the "exemption base". The
17 exemption base shall be the increase in assessed value as determined in
18 the initial year of such ten year period following the filing of an
19 original application.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14898-03-4
S. 7229--A 2 A. 9533--A
1 (b) The following table shall illustrate the computation of the tax
2 exemption:
3 Year of exemption Percentage of exemption
4 1 50
5 2 45
6 3 40
7 4 35
8 5 30
9 6 25
10 7 20
11 8 15
12 9 10
13 10 5
14 (c) No such exemption shall be granted unless (1) such construction,
15 alteration, installation or improvement was commenced subsequent to the
16 first day of January, 2015 or such later date as may be specified by
17 local law or resolution; (2) the cost of such construction, alteration,
18 installation or improvement exceeds the sum of one hundred thousand
19 dollars or such greater amount as may be specified by local law or
20 resolution; and (3) such construction, alteration, installation or
21 improvement is completed as may be evidenced by a certificate of occu-
22 pancy or other appropriate documentation as provided by the owner.
23 (d) For purposes of this act the terms construction, alteration,
24 installation and improvement shall not include ordinary maintenance and
25 repairs.
26 S 3. Such exemption shall be granted only upon application by the
27 owner of such real property on a form prescribed by the commissioner of
28 taxation and finance. Such application shall be filed with the assessor
29 of the town on or before the appropriate taxable status date of the town
30 within one year from the date of completion of such construction, alter-
31 ation, installation or improvement.
32 S 4. If the assessor is satisfied that the applicant is entitled to an
33 exemption pursuant to this act, he or she shall approve the application
34 and such real property shall thereafter be exempt from taxation and
35 special ad valorem levies, except for special ad valorem levies for fire
36 district, fire protection district and fire alarm district purposes, as
37 herein provided commencing with the assessment roll prepared after the
38 taxable status date referred to in section three of this act. The
39 assessed value of any exemption granted pursuant to this section shall
40 be entered by the assessor on the assessment roll with the taxable prop-
41 erty, with the amount of the exemption shown in a separate column.
42 S 5. The provisions of this act shall only apply to real property
43 within the town used primarily for hospitality business activity. For
44 the purposes of this act, "hospitality business activity" shall mean the
45 commercial furnishing of accommodations to overnight transient guests,
46 including but not limited to hotels, motels, and bed and breakfasts. A
47 transient guest shall be defined as one whose stay on such property is
48 daily or weekly, but not to exceed 31 days in any calendar year.
49 S 6. In the event that real property granted an exemption pursuant to
50 this section ceases to be used primarily for eligible purposes, the
51 exemption granted pursuant to this section shall cease.
52 S 7. Any local government, by local law, and any school district, by
53 resolution, may reduce the percentum of exemption otherwise allowed
54 pursuant to this act; provided, however, that a project in course of
55 construction and exemptions existing prior in time to passage of any
56 such local law or resolution shall not be subject to any such reduction
S. 7229--A 3 A. 9533--A
1 so effected. Any local government or school district that has reduced
2 the percentum of exemption pursuant to this section may thereafter, by
3 local law or resolution as the case may be, increase the percentum of
4 exemption up to any percentum not exceeding the maximum allowed by
5 section two of this act, whichever is applicable, provided, however,
6 that any such local law or resolution shall apply only to construction,
7 alterations, installations, or improvements commenced subsequent to the
8 effective date of such local law or resolution. A copy of all such local
9 laws or resolutions shall be filed with the assessor of the town and the
10 commissioner of taxation and finance.
11 S 8. This act shall take effect immediately.