Proposed Tax‐Free NY Summary of Provisions in Gov. Cuomo’s June 7, 2013 Draft Legislation
6/15/2013
TaFNY Tax Benefits
• Credit to eliminate income tax (personal/partnership)
• Credit to eliminate corporate franchise tax
• Real property tax exemption (treated as exempt educational institution property). Limited to property with educational exemption as of June 1, 2013.
• Credit/refund of sales and use tax for 120 month period
• Lease is exempt from real estate transfer taxes
• For a period of up to 10 years, eligible employees working at the site are exempt from state/NYC/Yonkers income taxes
• Also an exemption for MCTD payroll tax
Eligible Sites – SUNY/Community Colleges
• SUNY campuses, with the exception of Empire State College (except Saratoga), any property of Downstate Medical Center (except incubator property), the College of Optometry and the Maritime College
• Community colleges, except a community college whose main campus is in NYC
• Sites allowed consists of:
– vacant space and vacant land on campus
– Up to 200,000sf of vacant land owned or leased by the SUNY located within one mile of campus
– Potential certification by ommissioner of ESD of land located more than one mile from campus
Eligible Sites – CUNY
• Five CUNY campuses (one in each borough)
• Limitations on selecting campus located in area with high poverty
• Up to 200,000sf of land adjacent to the campus that is owned or leased by the CUNY
Eligible Sites – Private Colleges/Universities
• Up to 3 million sf of vacant space or vacant land on a campus of a private university or college located outside Nassau, Suffolk, Westchester, or NYC
• However, each of Nassau, Suffolk, Westchester, Brooklyn,Bronx, Queens and Staten Island will have 30,000 sf in high poverty areas
• The locations for the 30,000sf sites must be owned or leased by one of the following:
– Private college or university whose campus is in Nassau, Suffolk, Westchester or NYC
– One of the SUNY institutions excluded from the SUNY category
– A community college whose main campus in is NYC
– A CUNY excluded from the five sites
Eligible Sites – Educational Institutions
• All of the educational institutions are prohibited relocating academic, administrative, housing, dining athletics or any other facilities serving students in order to create vacant space
Eligible Sites – Strategic State Assets
• The TaFNY approval board may designate up to 20 strategic state assets as designated sites
• Each site must be affiliated with and supported by an educational institution]
• No limit on the size of the designated site
• A strategic state asset does not include land or buildings located in NYC
• Includes only land and buildings which are, as of June 15, 2013, closed, vacant or for which notice
of closure has been authorized by law
Eligible Businesses
• Businesses that align with university mission
• Create and maintain net new jobs (including first year of operation)
• If a business has current operations in NYS or had operations in the last 5 years, it must apply for permission from the Commissioner of ESD to participate in TaFNY
• Excluded businesses:
– businesses providing utilities
– businesses engaged in generation or distribution of electricity, the distribution of natural gas, or the production of steam
– Retail/wholesale, restaurants, hotels
– Medical or dental practices
– Real estate brokers, accountants, attorneys
– Personal service businesses
– Finance and financial services
Approval Procedures
• The draft bill would providefor a process by which an educational institution would apply to have some
of its property designated as a TaFNY area
• The application requires a plan for the types of businesses and how these businesses align with the
educational mission of the institution
• A business desiring to participate in the program will apply first to the academic institution, which application, if approved, must be approved by the Commissioner of ESD
