N.Y. Comp. Codes R. & Regs. tit. 9 § 463.7

Current through Register Vol. 46, No. 45, November 2, 2024

Section 463.7 - "in lieu of" moving expenses for business or farm occupants

In lieu of actual, reasonable and necessary moving expenses, searching fees and actual direct losses of tangible personal property, a business or farm operation is eligible for a payment equal to the average annual net earnings of the displaced business or farm, except such payment shall not be less than $2,500 nor more than $10,000, providing the following requirements are met:

(a) Business. The owner of the business eligible for relocation expenses must submit a written application as prescribed by the commissioner with eligibility for payment contingent upon the State's determination that the business:

(1) cannot be relocated without a substantial loss of patronage, herein defined as the average dollar volume of business transacted during the two taxable years immediately preceding the year in which the business is relocated;

(2) is not part of a commercial enterprise having at least one other establishment which is not being acquired by the State or the United States and which is engaged in the same or similar business; and

(3) the business contributes materially to the income of the displaced owner.

(b) Farm. The owner of a displaced farm operation must submit a written application as prescribed by the commissioner with eligibility for payment contingent upon the State's determination that:

(1) the farm operator has discontinued or relocated his entire operation at the present location; and

(2) in the case of a partial taking, the property remaining after the acquisition is no longer an economic unit as determined by the State in its appraisal process.

(c) The office will calculate a payment in lieu of moving expenses equivalent to the average annual net earnings. The term average annual net earnings means one half of any net earnings of the business or farm before Federal, State and local income taxes during the two taxable years immediately preceding the taxable year in which the business or farm is relocated. Such earnings shall include any compensation paid by the business or farm to the owner and his immediate family during the base-year period. In the case of a corporation, earnings shall include any compensation paid by the corporation to the owner of a majority interest in the corporation. For purposes of determining majority ownership, stock held by a husband and his immediate family shall be treated as one unit.

(d) If the business or farm affected can show that it was in business 12 consecutive months during the two taxable years prior to the taxable year in which it is required to relocate; had income during such period and is otherwise eligible, the owner of a business is eligible to receive the "in lieu of" payment. Where the business was in operation during the entire two preceding taxable years, the payment shall be computed by dividing the net earnings by the number of months the business was operated and multiplying by 12. A taxable year is defined as any 12-month period used by the business in filing income tax returns.

(e) For the owner of a business or farm to be entitled to this payment, the business or farm must provide information to support the net earnings. State or Federal income tax returns for the years in question are acceptable as evidence of earnings. Any commonly accepted method of verifying earnings may be offered, provided it grants the State the right to review the records and accounts of the business or farm. The eligible person will be notified in writing by the office regarding his eligibility, and the amount of the "in lieu of" payment, if any, will be set forth therein.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 463.7