senate Bill S6523

Amended

Provides for the application of the veterans' real property tax exemptions in cities having a population of one million or more

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 23 / Feb / 2012
    • REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS
  • 06 / Jun / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 14 / Jun / 2012
    • AMEND AND RECOMMIT TO FINANCE
  • 14 / Jun / 2012
    • PRINT NUMBER 6523A

Summary

Provides for the application of the veterans' real property tax exemptions in cities having a population of one million or more.

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Bill Details

See Assembly Version of this Bill:
A9377
Versions:
S6523
S6523A
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Real Property Tax Law
Laws Affected:
Amd ยงยง458 & 458-a, RPT L

Votes

11
0
11
Aye
0
Nay
2
aye with reservations
0
absent
0
excused
1
abstained
show Veterans, Homeland Security and Military Affairs committee vote details

Sponsor Memo

BILL NUMBER:S6523

TITLE OF BILL:
An act
to amend the real property tax law, in relation to real property tax
exemptions for property in cities having a population of one million or
more and owned by certain veterans or their family members

PURPOSE:
Provides for the application of the veterans' real property tax
exemptions in cities having a population of one million or more

SUMMARY OF PROVISIONS:
Section one amends paragraphs 2 and 3 of subdivision 1 of section 458
of the real property tax law, paragraph 2 as amended by chapter 488
of the laws of 1998 and paragraph 3 as amended by chapter 733 of the
laws of 1959.

Section two amends subdivisions 2 of section 458 of the real property
tax law, as amended by chapter 63 of the laws of 1976.

Section three a mends subdivision 2 of section 458-a of the real
property tax law.

Section four grants an exemption pursuant to section 458 and 458-a of
the real property tax law.

Section five is the effective date.

JUSTIFICATION:
The Veterans Property Tax Exemption is different from other property
tax breaks in the system. With most exemptions, the exempted value
is fully excluded from the property tax. However, with the current
Veterans exemption, the exempted value is
only partially non-taxable:
the property owner must still pay the School Tax Rate on the
exempted value.

This School Tax Rate is the share of the Property Tax that pays for
public schools (DOE).
This means the more money the City pays for its schools, the closer
the School Tax Rate will be to the Property Tax Rate. And so the closer
the School Tax Rate is to the Property
Tax Rate, the less a Veterans Property Tax Exemption will be worth.
The School Rate varies from year to year, which causes the relative
value of a Veterans Exemption to fluctuate year to year as well. In
the last two fiscal years, as the City has increased its local share
of spending on DOE in response to reductions in State and Federal
education aid, the value of the Veterans Exemption has decreased.

To eliminate these fluctuations in the exemptions value, this bill
would make the Veterans Exemption like the others and exempt that
value from the School Tax. That means the Veterans Exemption will go
from being only partially nontaxable, to fully nontaxable. This would
also mean that the value of the exemption would rise consistent with
increases in assessed value and/or the appropriate class property tax
rate. (1)

In order to maintain the value of the exemption at approximately its
recent historical level while fully eliminating taxation of the
exempt portion, the nominal value of the exemption will be set at 40
percent of their current values (2). Thus, a 15% exemption under
current law would be set at 6% under the proposed amended law. Chart
1 shows an illustrative example of the value of the exemption under
current law and as it would have been under the proposed amendments.

CHART 1
EXAMPLE OF EXEMPTION UNDER CURRENT LAW AND PROPOSED AMENDMENTS

CURRENT LAW PROPOSED
2008 $191 $232
2009 $237 $243
2010 $286 $256
2011 $268 $260
2012 $248 $273

Example based on $15.000 assessed value and 25% exemption (10% under
proposed amendment)

FISCAL IMPLICATIONS:
Undetermined.

LEGISLATIVE HISTORY:
New Bill.

EFFECTIVE DATE:
This act shall take effect immediately and apply to assessment rolls
based upon the taxable status date occurring on or after the fifth day
of January next succeeding the date on which it shall have become a law.

FOOTNOTES:
(1) Some class tax rates have risen as a function of shifts in the share
of total market value of taxable property attributable to the different
classes. The individual tax class rates are determined by formula and
not by legislative action of the City Councilor the State.

(2) The one exception to this is the "Eligible Funds" exemption for
seriously disabled veterans. The value of that exemption will remain
unchanged as it is already exempted from the School Tax and therefore
needs no reform.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6523

                            I N  S E N A T E

                            February 23, 2012
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Veterans, Homeland Securi-
  ty and Military Affairs

AN ACT to amend the real property tax law, in relation to real  property
  tax  exemptions  for  property  in  cities  having a population of one
  million or more and owned by certain veterans or their family members

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraphs 2 and 3 of subdivision 1 of section 458 of the
real property tax law, paragraph 2 as amended by chapter 488 of the laws
of 1998 and paragraph 3 as amended by chapter 733 of the laws  of  1959,
are amended to read as follows:
  (2)  Except  as  provided in subdivision five of this section, no such
exemption on account of eligible funds paid on account  of  military  or
naval  services  rendered by an individual shall be allowed in excess of
five thousand dollars; PROVIDED, HOWEVER, IN A CITY WITH A POPULATION OF
ONE MILLION OR MORE, NO EXEMPTION  ON  ACCOUNT  OF  ANY  GIFT  SHALL  BE
ALLOWED  IN  EXCESS  OF  TWO  THOUSAND DOLLARS. For the purposes of this
subdivision any established exemption, or newly claimed exemption, or an
aggregate thereof, as the case may be, in  excess  of  any  multiple  of
fifty  dollars  shall be regarded as being the nearest multiple of fifty
dollars and allowed in such amount. If the amount of such exemption  has
no  nearest multiple of fifty dollars, it shall be regarded as being the
next higher multiple of fifty dollars and allowed in  such  amount.  The
mingling  of  such eligible funds with other funds or their retention by
the United States for insurance premiums shall not bar the granting of a
claim for such exemption.
  (3) If the assessors are satisfied that the applicant is  entitled  to
any  exemption, they shall make appropriate entries upon the assessment-
roll opposite the description of such property and  subtract  the  total
amount  of such exemption from the total amount assessed pursuant to the
provisions of paragraph one of this subdivision. Such entries  shall  be
made  and  continued in each assessment of the property so long as it is
exempt from taxation for any purpose. Such real property, to the  extent

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14766-01-2

S. 6523                             2

of  the  exemption entered by the assessors, shall be exempt from state,
county and general municipal taxation, but shall be  taxable  for  local
school purposes; PROVIDED, HOWEVER, IN ANY CITY WITH A POPULATION OF ONE
MILLION  OR  MORE,  SUCH  REAL  PROPERTY, TO THE EXTENT OF THE EXEMPTION
ENTERED BY THE ASSESSORS, SHALL BE EXEMPT FROM STATE, COUNTY AND GENERAL
MUNICIPAL TAXATION AND SHALL NOT BE TAXABLE FOR LOCAL  SCHOOL  PURPOSES.
The provisions herein, relating to the assessment and exemption of prop-
erty  purchased  with eligible funds apply and shall be enforced in each
municipal corporation authorized to levy taxes.
  S 2. Subdivision 2 of section 458 of the real  property  tax  law,  as
amended  by  chapter  63  of  the  laws  of  1976, is amended to read as
follows:
  2.  Real  property  purchased  with  moneys   collected   by   popular
subscription  in  partial recognition of extraordinary services rendered
by any honorably discharged veteran of world war one, world war two,  or
of the hostilities which commenced June twenty-seventh, nineteen hundred
fifty, who sustained permanent disability while on military duty, either
total  or  partial, and owned by the person who sustained such injuries,
or by his or her spouse or unremarried surviving  spouse,  or  dependent
father  or mother, is subject to taxation as herein provided. Such prop-
erty shall be assessed in the same manner as other real property in  the
tax  district.  At  the  meeting  of  the  assessors  to hear complaints
concerning the assessments, a verified application for the exemption  of
such  real  property  from  taxation  may  be presented to them by or on
behalf of the owner thereof, which application must show  the  facts  on
which the exemption is claimed, including the amount of moneys so raised
and  used  in  or  toward the purchase of such property. No exemption on
account of any such gift shall be allowed in  excess  of  five  thousand
dollars; PROVIDED, HOWEVER, IN ANY CITY WITH A POPULATION OF ONE MILLION
OR  MORE, NO EXEMPTION ON ACCOUNT OF ANY GIFT SHALL BE ALLOWED IN EXCESS
OF  TWO  THOUSAND  DOLLARS.  The  application  for  exemption  shall  be
presented and action thereon taken in the manner provided by subdivision
one  of  this  section.  If no application for exemption be granted, the
property shall be subject to taxation for all purposes.  The  provisions
herein,  relating  to the assessment and exemption of property purchased
with moneys raised by popular subscription, apply and shall be  enforced
in each municipal corporation authorized to levy taxes.
  S  3.  Subdivision 2 of section 458-a of the real property tax law, as
added by chapter 525 of the laws of 1984, paragraph (a)  as  amended  by
chapter 899 of the laws of 1985, paragraph (b) as amended by chapter 473
of the laws of 2004, paragraph (c) as amended by chapter 100 of the laws
of 1988, subparagraph (ii) of paragraph (d) as amended by chapter 256 of
the  laws of 2005 and as further amended by subdivision (b) of section 1
of part W of chapter 56 of the laws of  2010,  is  amended  to  read  as
follows:
  2. (a) Qualifying residential real property shall be exempt from taxa-
tion  to  the  extent  of  fifteen percent of the assessed value of such
property; provided, however, that such exemption shall not exceed twelve
thousand dollars or the product of twelve thousand dollars multiplied by
the latest state equalization rate for the assessing  unit,  or  in  the
case  of  a special assessing unit, the latest class ratio, whichever is
less; PROVIDED, HOWEVER, IN ANY CITY WITH A POPULATION OF ONE MILLION OR
MORE, QUALIFYING RESIDENTIAL REAL PROPERTY SHALL BE EXEMPT FROM TAXATION
TO THE EXTENT OF SIX PERCENT OF THE ASSESSED  VALUE  OF  SUCH  PROPERTY;
PROVIDED,  FURTHER,  THAT  SUCH EXEMPTION SHALL NOT EXCEED FOUR THOUSAND

S. 6523                             3

EIGHT HUNDRED DOLLARS OR THE PRODUCT  OF  FOUR  THOUSAND  EIGHT  HUNDRED
DOLLARS MULTIPLIED BY THE LATEST CLASS RATIO, WHICHEVER IS LESS.
  (b)  In  addition  to  the exemption provided by paragraph (a) of this
subdivision, where the veteran served in a combat theatre or combat zone
of operations, as documented by the award of a  United  States  campaign
ribbon  or  service medal, or the armed forces expeditionary medal, navy
expeditionary medal, marine corps expeditionary medal, or global war  on
terrorism expeditionary medal, qualifying residential real property also
shall  be  exempt  from  taxation  to  the  extent of ten percent of the
assessed value of such property; provided, however, that such  exemption
shall not exceed eight thousand dollars or the product of eight thousand
dollars multiplied by the latest state equalization rate for the assess-
ing  unit,  or in the case of a special assessing unit, the class ratio,
whichever is less; PROVIDED FURTHER, THAT, IN ANY CITY WITH A POPULATION
OF ONE MILLION OR MORE, WHERE THE VETERAN SERVED IN A COMBAT THEATRE  OR
COMBAT ZONE OF OPERATIONS, AS DOCUMENTED BY THE AWARD OF A UNITED STATES
CAMPAIGN  RIBBON  OR  SERVICE  MEDAL,  OR THE ARMED FORCES EXPEDITIONARY
MEDAL, NAVY EXPEDITIONARY MEDAL, MARINE CORPS  EXPEDITIONARY  MEDAL,  OR
GLOBAL WAR ON TERRORISM EXPEDITIONARY MEDAL, QUALIFYING RESIDENTIAL REAL
PROPERTY  ALSO  SHALL  BE  EXEMPT  FROM  TAXATION  TO THE EXTENT OF FOUR
PERCENT OF THE ASSESSED VALUE OF SUCH PROPERTY; PROVIDED  FURTHER,  THAT
SUCH  EXEMPTION  SHALL  NOT EXCEED THREE THOUSAND TWO HUNDRED DOLLARS OR
THE PRODUCT OF THREE THOUSAND TWO  HUNDRED  DOLLARS  MULTIPLIED  BY  THE
CLASS RATIO, WHICHEVER IS LESS.
  (c)  In  addition to the exemptions provided by paragraphs (a) and (b)
of this subdivision, where the veteran received  a  compensation  rating
from  the  United  States  veteran's  administration  or from the United
States department of defense because of a service connected  disability,
qualifying  residential  real  property shall be exempt from taxation to
the extent of the product of the assessed value of such property  multi-
plied  by  fifty  percent  of the veteran's disability rating; provided,
however, that such exemption shall not exceed forty thousand dollars  or
the  product  of  forty  thousand dollars multiplied by the latest state
equalization rate for the assessing unit, or in the case  of  a  special
assessing  unit, the latest class ratio, whichever is less. For purposes
of this paragraph, where a person who served  in  the  active  military,
naval or air service during a period of war died in service of a service
connected  disability, such person shall be deemed to have been assigned
a compensation rating of one hundred percent; PROVIDED, HOWEVER, IN  ANY
CITY  WITH  A  POPULATION  OF  ONE  MILLION  OR MORE, IN ADDITION TO THE
EXEMPTIONS PROVIDED BY PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION, WHERE
THE VETERAN RECEIVED A COMPENSATION RATING FROM THE UNITED STATES VETER-
AN'S ADMINISTRATION OR FROM THE  UNITED  STATES  DEPARTMENT  OF  DEFENSE
BECAUSE  OF  A SERVICE CONNECTED DISABILITY, QUALIFYING RESIDENTIAL REAL
PROPERTY SHALL BE EXEMPT FROM TAXATION TO THE EXTENT OF THE  PRODUCT  OF
THE  ASSESSED VALUE OF SUCH PROPERTY MULTIPLIED BY TWENTY PERCENT OF THE
VETERAN'S DISABILITY RATING; PROVIDED FURTHER, THAT SUCH EXEMPTION SHALL
NOT EXCEED SIXTEEN THOUSAND DOLLARS OR THE PRODUCT OF  SIXTEEN  THOUSAND
DOLLARS MULTIPLIED BY THE LATEST CLASS RATIO, WHICHEVER IS LESS.
  (d)  Limitations.  (i)  The  exemption  from taxation provided by this
subdivision shall be applicable to county, city, town and village  taxa-
tion,  but  shall not be applicable to taxes levied for school purposes;
PROVIDED, HOWEVER, IN ANY CITY WITH A POPULATION OF ONE MILLION OR MORE,
THE EXEMPTION FROM TAXATION PROVIDED BY THIS SUBDIVISION SHALL BE APPLI-
CABLE TO CITY TAXES AND TAXES LEVIED FOR LOCAL SCHOOL PURPOSES.

S. 6523                             4

  (ii) Each county, city, town or village  may  adopt  a  local  law  to
reduce the maximum exemption allowable in paragraphs (a), (b) and (c) of
this  subdivision  to  nine  thousand  dollars, six thousand dollars and
thirty thousand dollars, respectively, or  six  thousand  dollars,  four
thousand dollars and twenty thousand dollars, respectively. Each county,
city,  town,  or  village  is  also  authorized  to adopt a local law to
increase the maximum exemption allowable in paragraphs (a), (b) and  (c)
of  this  subdivision  to fifteen thousand dollars, ten thousand dollars
and fifty thousand dollars,  respectively;  eighteen  thousand  dollars,
twelve  thousand dollars and sixty thousand dollars, respectively; twen-
ty-one thousand dollars, fourteen thousand dollars, and seventy thousand
dollars, respectively; twenty-four thousand  dollars,  sixteen  thousand
dollars,  and  eighty thousand dollars, respectively; twenty-seven thou-
sand dollars, eighteen thousand dollars, and  ninety  thousand  dollars,
respectively;  thirty thousand dollars, twenty thousand dollars, and one
hundred thousand dollars, respectively; thirty-three  thousand  dollars,
twenty-two  thousand  dollars,  and  one  hundred  ten thousand dollars,
respectively; thirty-six thousand dollars, twenty-four thousand dollars,
and one hundred twenty thousand dollars, respectively.  In  addition,  a
county,  city,  town  or  village  which is a "high-appreciation munici-
pality" as defined in this subparagraph is authorized to adopt  a  local
law  to  increase the maximum exemption allowable in paragraphs (a), (b)
and (c) of this subdivision to thirty-nine thousand dollars,  twenty-six
thousand dollars, and one hundred thirty thousand dollars, respectively;
forty-two  thousand  dollars,  twenty-eight  thousand  dollars,  and one
hundred  forty  thousand  dollars,  respectively;  forty-five   thousand
dollars, thirty thousand dollars and one hundred fifty thousand dollars,
respectively;  forty-eight thousand dollars, thirty-two thousand dollars
and one hundred sixty thousand dollars, respectively; fifty-one thousand
dollars, thirty-four thousand dollars and one hundred  seventy  thousand
dollars,  respectively; fifty-four thousand dollars, thirty-six thousand
dollars and one hundred eighty thousand dollars, respectively; PROVIDED,
HOWEVER, A HIGH APPRECIATION MUNICIPALITY THAT IS  A  SPECIAL  ASSESSING
UNIT THAT IS A CITY WITH A POPULATION OF ONE MILLION OR MORE, IS AUTHOR-
IZED TO ADOPT A LOCAL LAW TO INCREASE THE MAXIMUM EXEMPTION ALLOWABLE IN
PARAGRAPHS  (A), (B) AND (C) OF THIS SUBDIVISION TO FIFTEEN THOUSAND SIX
HUNDRED DOLLARS, TEN THOUSAND FOUR HUNDRED DOLLARS, AND FIFTY-TWO  THOU-
SAND  DOLLARS,  RESPECTIVELY;  SIXTEEN  THOUSAND  EIGHT HUNDRED DOLLARS,
ELEVEN THOUSAND TWO HUNDRED DOLLARS,  AND  FIFTY-SIX  THOUSAND  DOLLARS,
RESPECTIVELY;  EIGHTEEN  THOUSAND  DOLLARS, TWELVE THOUSAND DOLLARS, AND
SIXTY THOUSAND DOLLARS,  RESPECTIVELY;  NINETEEN  THOUSAND  TWO  HUNDRED
DOLLARS,  TWELVE THOUSAND EIGHT HUNDRED DOLLARS, AND SIXTY-FOUR THOUSAND
DOLLARS, RESPECTIVELY; TWENTY THOUSAND FOUR  HUNDRED  DOLLARS,  THIRTEEN
THOUSAND  SIX HUNDRED DOLLARS, AND SIXTY-EIGHT THOUSAND DOLLARS, RESPEC-
TIVELY; TWENTY-ONE THOUSAND SIX HUNDRED DOLLARS, FOURTEEN THOUSAND  FOUR
HUNDRED  DOLLARS,  AND  SEVENTY-TWO THOUSAND DOLLARS, RESPECTIVELY.  For
purposes of this subparagraph, a "high-appreciation municipality" means:
(A) a special assessing unit that is a city, (B) a county for which  the
commissioner  has  established  a  sales  price  differential factor for
purposes of the STAR exemption authorized by section four hundred  twen-
ty-five  of  this title in three consecutive years, and (C) a city, town
or village which is wholly or partly located within such a county.
  S 4. An exemption granted pursuant to section 458 or 458-a of the real
property tax law that precedes the effective date of this act  shall  be
calculated  on  subsequent assessment rolls as if the original exemption

S. 6523                             5

had been granted pursuant to the provisions of such section, as  amended
by this act.
  S  5.  This  act shall take effect immediately and apply to assessment
rolls based upon the taxable status date occurring on or after the fifth
day of January next succeeding the date on which it shall have become  a
law.

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