senate Bill S6919

Authorizes real property taxing jurisdictions to grant a partial tax exemption for property purchased by a physician in a physician shortage area

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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

  • 11 / Apr / 2012
    • REFERRED TO LOCAL GOVERNMENT
  • 06 / Jun / 2012
    • 1ST REPORT CAL.1123
  • 11 / Jun / 2012
    • 2ND REPORT CAL.
  • 12 / Jun / 2012
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2012
    • COMMITTED TO RULES

Summary

Authorizes real property taxing jurisdictions to grant a partial tax exemption for property purchased by a physician in a physician shortage area, as determined by the commissioner of health, which will be such physician's primary residence and he or she will practice in such shortage area.

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Bill Details

See Assembly Version of this Bill:
A9810
Versions:
S6919
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
Real Property Tax Law
Laws Affected:
Add ยง439, RPT L

Votes

8
0
8
Aye
0
Nay
0
aye with reservations
0
absent
0
excused
0
abstained
show Local Government committee vote details

Sponsor Memo

BILL NUMBER:S6919

TITLE OF BILL:
An act
to amend
the real property tax law, in relation to authorizing real property
taxing jurisdictions to grant a tax exemption for a primary residence
purchased by a physician in a physician shortage area

PURPOSE:
The purpose of this bill is to provide a partial tax exemption for
real property purchased by a physician for use as primary residence
when the physician works in and the property is located in a
physician shortage area designated by the Commissioner.

SUMMARY OF PROVISIONS:
Section 1 states the legislative findings and intent.

Section 2 authorizes an exemption from local property and school taxes
for primary residential property purchases of physicians residing and
working in areas designated by the Commissioner as experiencing a
physician shortage, conditioned upon the local taxing authority
passing an authorizing law or resolution. The exemption cannot be for
a period longer than 5 years and is for a maximum of 50% of the value
of the real property's assessed value.

Section 3 is the effective date.

EXISTING LAW:
None.

JUSTIFICATION:
Many communities in New York State are experiencing a growing
physician shortage, reaching crisis proportions in some geographic
regions and in some medical special ties. A survey of its members by
the Health Care Association of New York State (HANYS) reported that
104 hospitals outside of New York City had a current need for 1,400
physicians (almost 40% in primary care). In addition to primary care,
severe shortages exist in general surgery, OB-GYN, urology and
psychiatry. Many areas of the State have seen rapid declines in their
physicians supply and with an average physician age of 52 (almost 30%
are over 60 years of age); the shortage is only expected to worsen.

On the demand side for physician services, New York's population age
65 and over increased 25% between 1980 and 2000 and, the population
over age 80 (who use the most health resources) is expected to double
by the year 2020.

Clearly, both the health care community and state government must
focus on physician supply issue and work together to implement a
multi-faceted plan to address the problem. The "Doctors Across New

York" Program was a strong step forward with awards made in March of
2009 after the program was enacted as part of the 2008-2009 State.
However, additional initiatives are vital to the continued viability
of rural New York State.

By exempting part of a physician's residence from real property tax
when the local taxing authority chooses to grant the exemption, the
legislation provides New York State's medically underserved
communities with another tool to attract physicians.

This physician shortage is an imminent threat to the health, safety
and the economic viability of these communities and their residents.
While this legislation will have a financial impact on the local
governments and school districts via foregone tax revenue, the
severity of the problem requires aggressive action and justifies
these expenditures even in this fiscally difficult period.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
Local taxing authorities would have an undetermined fiscal impact from
real property exempted from property taxes; however this exemption is
at their discretion. Furthermore, the presence of an adequate health
care system has been demonstrated to be a significant factor in
driving economic investment and growth within communities.

EFFECTIVE DATE:
This bill take effects immediately and applies to tax years on and
after March first next succeeding the date on which it shall have
become law, or in the case of municipal taxing authorities who have a
taxable status date other than March first established by charter,
then this act shall take effect with the first establishment of the
taxable status of real property in the municipality, next succeeding
the date on which it shall have become law.

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

    S. 6919                                                  A. 9810

                      S E N A T E - A S S E M B L Y

                             April 11, 2012
                               ___________

IN  SENATE  -- Introduced by Sens. YOUNG, O'MARA, VALESKY -- (at request
  of the Legislative Commission on Rural Resources) --  read  twice  and
  ordered  printed, and when printed to be committed to the Committee on
  Local Government

IN ASSEMBLY -- Introduced by M. of A. GUNTHER -- Multi-Sponsored  by  --
  M.  of  A. BURLING, LIFTON, PALMESANO -- read once and referred to the
  Committee on Real Property Taxation

AN ACT to amend the real property tax law, in  relation  to  authorizing
  real  property  taxing  jurisdictions  to  grant a tax exemption for a
  primary residence purchased by a physician  in  a  physician  shortage
  area

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

  Section 1.  Legislative findings and intent.  The  legislature  hereby
finds  that  several  communities  within  the state, particularly those
located within rural areas, lack adequate access to  physicians.  It  is
well  established  that  ensuring the sufficient availability of general
practitioners and specialists directly  benefits  the  health  of  state
residents, and the legislature has enacted several measures towards that
end.
  Furthermore,  the legislature finds that municipalities are often best
situated to evaluate the needs of their communities.  Therefore,  it  is
the intent of the legislature to offer counties, cities, towns, villages
and school districts the option to provide real property tax exemptions,
should  they  determine  that  such an incentive would aid in attracting
physicians to areas currently underserved by the medical community.
  S 2. The real property tax law is amended by adding a new section  439
to read as follows:
  S  439.  REAL PROPERTY TAX EXEMPTIONS IN DESIGNATED PHYSICIAN SHORTAGE
AREA. 1. A MUNICIPAL CORPORATION OR  SCHOOL  DISTRICT  MAY  EXEMPT  REAL
PROPERTY  PURCHASED  BY A PHYSICIAN FOR USE SOLELY AS HIS OR HER PRIMARY
RESIDENCE, TO THE EXTENT PROVIDED IN THIS SECTION, FROM TAXATION BY SUCH
MUNICIPAL CORPORATION OR SCHOOL DISTRICT IF THE PHYSICIAN RESIDES IN AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14084-02-2

S. 6919                             2                            A. 9810

HAS AN OFFICE LOCATED WITHIN A PHYSICIAN SHORTAGE AREA AS DETERMINED  BY
THE  COMMISSIONER OF HEALTH.  AFTER A PUBLIC HEARING, THE GOVERNING BODY
OF A MUNICIPAL CORPORATION MAY ADOPT A LOCAL LAW, AND  THE  BOARD  OF  A
SCHOOL  DISTRICT, OTHER THAN A SCHOOL DISTRICT SUBJECT TO ARTICLE FIFTY-
TWO OF THE EDUCATION LAW, MAY ADOPT A RESOLUTION, TO GRANT THE EXEMPTION
AUTHORIZED PURSUANT TO THIS SECTION.
  2. ANY LOCAL LAW OR RESOLUTION ADOPTED PURSUANT TO SUBDIVISION ONE  OF
THIS  SECTION  SHALL  ESTABLISH  THE  DURATION AND PERCENTAGE OF SUCH AN
EXEMPTION, WHICH SHALL EXCEED NEITHER A PERIOD OF FIVE YEARS  NOR  FIFTY
PERCENT  OF  THE PROPERTY'S ASSESSED VALUE. SUCH LOCAL LAW OR RESOLUTION
MAY INCLUDE OTHER CONDITIONS OR RESTRICTIONS, INCLUDING BUT NOT  LIMITED
TO  PROVISIONS  REGARDING THE MAXIMUM VALUE OF ELIGIBLE PROPERTY, AT THE
DISCRETION OF THE PROMULGATING MUNICIPAL CORPORATION OR SCHOOL DISTRICT.
  3. A COPY OF SUCH LOCAL LAWS OR RESOLUTIONS SHALL BE  FILED  WITH  THE
STATE  BOARD  AND  THE ASSESSOR FOR SUCH MUNICIPAL CORPORATION OR SCHOOL
DISTRICT WHO PREPARES THE ASSESSMENT ROLL UPON WHICH THE TAXES  OF  SUCH
MUNICIPAL CORPORATION OR SCHOOL DISTRICT ARE LEVIED.
  S  3.  This  act  shall take effect immediately and shall apply to tax
years beginning on or after the first  of  March  next  succeeding  such
effective  date;  or  in  the case of municipal taxing authorities which
have a taxable status date other than March first established  by  char-
ter,  this  act  shall  take  effect with the first establishment of the
taxable status of real property in the municipality next succeeding  the
effective date of this act.

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