NY
New York Assembly Bill A07943

New York 2025-2026 Regular Session

New York Assembly Bill A07943

Introduced
4/16/25  

Caption

Provides for a real property tax exemption for property owned by single-member limited liability companies where such property serves as the primary residence of such member.

Impact

The impact of A07943 on state laws is significant. It introduces a new categorization within the tax exemption framework that specifically addresses the dynamics of LLCs as property owners. This change could potentially encourage the use of single-member LLCs in property ownership, which may simplify estate planning and asset protection for individuals. However, it also necessitates careful consideration of how this exemption aligns with wider property tax policies and the implications it may have on municipal revenue generated from property taxes.

Summary

Assembly Bill A07943 proposes a modification to the New York Real Property Tax Law, specifically aimed at expanding tax exemptions for residential properties owned by certain limited liability companies (LLCs). This bill introduces a provision that allows single-member LLCs to qualify for a tax exemption if the property in question serves as the primary residence of the LLC member. By making this adjustment, the bill seeks to provide additional financial relief to individuals who utilize LLCs as a means of property ownership, acknowledging such arrangements as a valid alternative for private residences.

Conclusion

Overall, A07943 represents a notable shift in the landscape of property taxation in New York. By extending tax exemptions to single-member LLCs, it supports flexible ownership structures while equally prompting discussions regarding fairness and the long-term effects on local economies.

Contention

Notable points of contention surrounding A07943 may arise from concerns related to equity in the tax system. Critics could argue that providing tax exemptions exclusively to single-member LLCs creates an uneven playing field between individual homeowners and those leveraging corporate structures for real estate ownership. There may be apprehensions regarding the potential for misuse of LLCs to circumvent tax responsibilities that traditional homeowners face, potentially undermining the integrity of the state's tax framework.

Companion Bills

No companion bills found.

Previously Filed As

NY A10490

Provides a real property tax exemption for property owned by active duty service members of the armed forces of the United States in taxing jurisdictions which elect to provide a veterans exemption.

NY A04693

Permits a STAR exemption for property owned by a limited liability company where the limited liability company is owned by a person to whom the exemption would have otherwise been granted.

NY A04652

Establishes a real property tax exemption for the primary residence of a member of the armed forces engaged in hazardous service; provides the state shall compensate municipalities for lost tax revenue resulting from such exemption.

NY A09545

Establishes a tax on certain vacant residential properties in the city of New York; provides exemptions for certain vacant properties.

NY S07352

Relates to the alternative veterans property tax exemption; authorizes active members of the military to apply for such exemption.

NY S08903

Adds a person with a disability who has their primary residence in a special needs trust, or a property owner who has a tenant with a disability whose lease provides them with a life interest in the property as long as the tenant remains in residence as eligible for a real property tax exemption pursuant to section 459-c of the real property tax law.

NY A09948

Adds a person with a disability who has their primary residence in a special needs trust, or a property owner who has a tenant with a disability whose lease provides them with a life interest in the property as long as the tenant remains in residence as eligible for a real property tax exemption pursuant to section 459-c of the real property tax law.

NY S01136

Provides a tax exemption on real property owned by members of volunteer fire companies or voluntary ambulance services in counties with a population of more than 208,000 but less than 220,000.

NY A04666

Provides a tax exemption on real property owned by members of volunteer fire companies or voluntary ambulance services in counties with a population of more than 338,000 but less than 339,000.

NY S08838

Enacts the "homebuyer renovation property tax exemption act" to grant an exemption of up to fifteen thousand dollars from taxation levied by or on behalf of any county, city, town, village or school district in which such residential property is located for a period of five years from the date of purchase of the property; defines "primary residential property".

Similar Bills

No similar bills found.