A9466 Rules (Silver)
RULES COM (Request of Silver, Farrell, Tokasz, Abbate, Aubry, Boyland,
Brennan, Brodsky, Cahill, Canestrari,
Christensen, A. Cohen, Colman, Colton, Cook, Cymbrowitz, Davis, Destito,
DiNapoli, Dinowitz
Add Art 18-D SS971 - 971-e, Gen Muni L; add S21, Tax L
Establishes the liberty and resurgence zones program in order to expedite
rebuilding and foster economic revival in New York
city after the terrorism attacks; provides businesses displaced with
assistance; certifies zone of business; and further entitles the
duration of liberty zone benefits.
STATUS:
General Municipal Law
TITLE....Establishes the liberty and resurgence zones program
11/01/01
referred to economic
development
BILL TEXT:
STATE OF NEW YORK
________________________________________________________________________
9466
2001-2002 Regular Sessions
IN ASSEMBLY
November 1, 2001
___________
Introduced by COMMITTEE
ON RULES -- (at request of M. of A. Silver,
Farrell, Tokasz, Abbate,
Aubry, Boyland, Brodsky, Cahill, Canestrari,
Christensen, A. Cohen,
Colman, Colton, Cook, Cymbrowitz, Davis, Desti-
to, DiNapoli,
Dinowitz, Eddington, Englebright, Espaillat, Gianaris,
Glick, Gordon, Gottfried,
Grannis, Green, Greene, Gromack, Gunther,
Heastie, Higgins,
Hooper, Jacobs, John, Klein, Koon, Lafayette,
Lavelle, Lentol, Lopez,
Luster, Magnarelli, Matusow, McEneny, McLaugh-
lin, Nolan,
Norman, Ortiz, Pheffer, Powell, Pretlow,
J. Rivera,
P. Rivera, Robach,
Sanders, Scarborough, Schimminger, Seddio, Smith,
Stringer, Sweeney,
Towns, Vann, Vitaliano, Weinstein, Weisenberg,
Weprin, Wright) --
read once and referred to the Committee on Economic
Development, Job Creation,
Commerce and Industry
AN ACT to amend the
general municipal law and the tax law, in relation
to the liberty and
resurgence zones program
The People of the
State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. The general
municipal law is amended by adding a new arti-
2 cle 18-D to read as follows:
3
ARTICLE 18-D
4
LIBERTY AND RESURGENCE ZONES PROGRAM
5 Section 971. Short title.
6
971-a. Statement of legislative findings and declaration.
7
971-b. Definitions.
8
971-c. Certification of zone businesses.
9
971-d. Duration of zone benefits.
10
971-e. Annual report.
11 § 971. Short
title. This article shall be known and may be cited as
12 the "Liberty and Resurgence Zones Program".
EXPLANATION--Matter in italics
(underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13905-04-1
A. 9466
2
1 § 971-a. Statement of legislative
findings and declaration. The legis-
2 lature finds and declares that the
unspeakable attacks of terrorism
3 launched against the United States of America
on September eleventh, two
4 thousand one, took the lives
of thousands of New Yorkers, other Ameri-
5 cans, and foreign nationals.
The legislature further finds that these
6 atrocities have destroyed, displaced
or otherwise impacted numerous
7 businesses in lower Manhattan. This
extraordinary disaster requires the
8 state of New York to provide assistance
for those businesses impacted,
9 in order to expedite their rebuilding
and foster an economic revival to
10 this devastated area. Therefore,
the legislature hereby creates the
11 liberty and resurgence zones
program in order to meet these ends; to
12 provide businesses displaced or otherwise affected
by this disaster with
13 the assistance necessary to retain normal operating
conditions, and to
14 ensure that the economy
of New York state not only survives this
15 national tragedy, but comes back stronger than
ever.
16 § 971-b. Definitions. As used
in this article, the following words and
17 terms shall have the following meanings unless
the context shall indi-
18 cate another or different meaning or intent:
19 1. "Authority" shall mean the
lower Manhattan resurgence authority as
20 established by title twelve-A of article eight
of the public authorities
21 law.
22 2. "Program" shall mean the liberty
and resurgence zones program.
23 3. "Liberty zone" shall mean the
area of lower Manhattan as described
24 in subdivision twelve of section
four hundred eighty-nine-aaaaa of the
25 real property tax law, and the area comprised
of Battery Park city.
26 4. "Zone eligible business" shall
mean any business that is located in
27 either the liberty zone or the resurgence zone
on November first, two
28 thousand one, or a business which locates within
the liberty zone or the
29 resurgence zone after such date.
30 5. "Zone certified business" shall
mean any liberty or resurgence zone
31 eligible business which the authority has
certified pursuant to section
32 nine hundred seventy-one-c of this article.
33 6. "Resurgence zone" shall mean the
area as defined in section one of
34 part A of a chapter of the
laws of two thousand one directing the New
35 York power authority to provide
low-cost electricity to businesses
36 dislocated as a result of the destruction of
the World Trade Center.
37 § 971-c. Certification
of zone businesses. 1. All certifications of
38 zone eligible businesses shall be administered
by the authority.
39 2. Certification of zone eligible
businesses. (a) Zone eligible busi-
40 nesses shall be designated zone certified
businesses prior to receiving
41 any benefits pursuant to section twenty-one of
the tax law. In certify-
42 ing a zone eligible business, the
authority shall consider whether the
43 business has suffered economic hardship as a
result of the terrorist
44 attacks of September eleventh, two
thousand one and whether such bene-
45 fits will promote the economic revitalization
of the liberty and resur-
46 gence zones. Such consideration may
include: (i) whether such business
47 is reasonably likely to retain its
current, or regain its former,
48 employment level; or (ii) whether
such business is likely to increase
49 its employment level.
50 (b) In order for zone eligible businesses
to be designated as zone
51 certified businesses, such zone eligible
businesses shall show proof of
52 its location in either the liberty zone or the
resurgence zone on or
53 after November first, two thousand one.
54 (c) Such proof of location
for certification shall include but shall
55 not be limited to a rental agreement, sub-lease,
lease, certificate of
56 occupancy, title of ownership in an owner-occupied
business, or a signed
A. 9466
3
1 contract pertaining to such
eligible business locating in such liberty
2 zone or resurgence zone.
3 § 971-d. Duration
of zone benefits. 1. Any zone eligible business
4 which has obtained certification by the
authority, shall be entitled to
5 receive all zone benefits provided
that such business is located within
6 the area of lower Manhattan
as described in subdivision twelve of
7 section four hundred eighty-nine-aaaaa of
the real property tax law, the
8 area comprised of Battery Park city or within
the resurgence zone.
9 2. Such zone eligible business
shall have until December thirty-first,
10 two thousand eleven to apply for
such zone certification. Such certif-
11 ication shall not exceed fifteen years.
12 § 971-e. Annual report. 1.
The authority shall deliver an annual
13 report on the performance of the program
on January first, two thousand
14 three and every year thereafter to the governor,
the department of taxa-
15 tion and finance, the temporary president of
the senate and the speaker
16 of the assembly.
17 2. Such annual report shall include
but shall not be limited to:
18 (a) a complete
list of property within the liberty and resurgence
19 zones;
20 (b) the number of businesses certified;
21 (c) the location of the certified
businesses;
22 (d) the current levels of employment
in the zone businesses;
23 (e) the number of jobs forecasted
to be created in the liberty and
24 resurgence zones; and
25 (f) all construction activities that
have occurred in the liberty zone
26 and in the resurgence zone.
27 3. The authority
shall cooperate with the city of New York, and any
28 state agency or public authority in the preparation
of the report.
29 § 2. The tax law is amended
by adding a new section 21 to read as
30 follows:
31 § 21. Liberty and
resurgence zones program. (a) Eligible business. A
32 business which has been certified as an eligible
business pursuant to
33 article eighteen-D of the general municipal law
shall be considered as a
34 qualified empire zone enterprise
for purposes of sections fourteen and
35 sixteen of this article. Provided, however:
36 (1) for purposes of subdivision (e)
of section fourteen of this arti-
37 cle, the term "test date"
shall mean the date on which the business
38 enterprise was so certified as a zone eligible
business;
39 (2) for purposes of sections fourteen
and sixteen of this article, the
40 term "empire zones" shall be read as the liberty
zone and the resurgence
41 zone;
42 (3) the employment test of subdivision
(b) of section fourteen of this
43 article for employment outside the zones shall
be considered met;
44 (4) the employment increase factor
to be applied for purposes of
45 section sixteen of this article shall exclude
paragraph two of subdivi-
46 sion (d) of section fifteen of this article;
and
47 (5) the exemptions described in subdivision
(z) of section eleven
48 hundred fifteen of this
chapter or any like exemptions from taxes
49 imposed pursuant to the authority of article
twenty-nine of this chapter
50 shall apply only to the extent purchases are
unreimbursed by insurance
51 or otherwise.
52 (b) Certification. This section
shall only be applicable as long as a
53 business is certified under article eighteen-D
of the general municipal
54 law.
A. 9466
4
1 § 3. This act shall take
effect immediately and shall apply to taxable
2 years beginning on or
after January 1, 2002 and to sales tax quarters
3 beginning on or after December 1, 2001.
SPONSORS MEMO:
NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(e)
BILL NUMBER: A9466
SPONSOR: Rules (Silver)
TITLE OF BILL: An act to amend the general municipal law and
the tax
law, in relation to the liberty and resurgence zones program
PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is
to
provide economic assistance to businesses located in lower Manhattan
that were impacted by the terrorist attacks of September 11, 2001.
SUMMARY OF SPECIFIC PROVISIONS: Section 1: Provides definitions
for
terms used in this article. Outlines the process by which liberty
zone
eligible businesses shall become certified by the Authority. Establishes
a time structure in applying for liberty zone certified business status,
and the duration of zone benefits for such certified businesses.
Requires the Authority to submit an annual report on the performance
of
the program to the governor, the department of taxation and finance,
the
temporary president of the senate and the speaker of the assembly.
Section 2: Amends the tax law by providing liberty zone certified busi-
nesses with tax credits for creating jobs and sales tax exemptions
for
the purchase of goods and services used in the zone.
EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER: Adds a new
arti-
cle 18-d to the general municipal law, and adds a new section 21 to
the
tax law.
JUSTIFICATION: The Legislature finds and declares that the unspeaka-
ble attacks of terrorism launched against the United States of America
on September 11, 2001, took the lives of thousands of New Yorkers,
other
Americans, and foreign nationals. The Legislature further finds that
these atrocities have destroyed, displaced or otherwise impacted numer-
ous business in lower Manhattan. This extraordinary disaster requires
the state of New York to provide assistance for those businesses
impacted, in order to expedite their rebuilding and foster an economic
revival to this devastated area. Therefore, the Legislature hereby
creates the Liberty Zone Program in order to meet these ends; to provide
businesses displaced or otherwise affected by this disaster with the
assistance necessary to retain normal operating conditions, and to
ensure that the economy of New York State not only survives this
national tragedy, but comes back stronger than ever.
PRIOR LEGISLATIVE HISTORY: This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Unknown.
EFFECTIVE DATE: This act shall take effect immediately and shall
apply to taxable years beginning on or after January 1, 2002, and to
sales tax quarters beginning on or after December 1, 2001.