senate Bill S5991

Amended

Relates to a residential investment exemption in certain cities

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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

  • 22 / Nov / 2013
    • REFERRED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT
  • 24 / Apr / 2014
    • AMEND AND RECOMMIT TO LOCAL GOVERNMENT
  • 24 / Apr / 2014
    • PRINT NUMBER 5991A
  • 20 / May / 2014
    • 1ST REPORT CAL.885
  • 21 / May / 2014
    • 2ND REPORT CAL.
  • 28 / May / 2014
    • ADVANCED TO THIRD READING
  • 11 / Jun / 2014
    • SUBSTITUTED BY A8324A

Summary

Provides a residential investment exemption in cities with a population of at least thirteen thousand five hundred and not more than fourteen thousand for improvements to residential real property of at least thirty thousand dollars.

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Bill Details

Versions:
S5991
S5991A
Legislative Cycle:
2013-2014
Law Section:
Real Property Tax Law
Laws Affected:
Add §485-q, RPT L

Sponsor Memo

BILL NUMBER:S5991

TITLE OF BILL: An act to amend the real property tax law, in relation
to a residential investment exemption in certain cities

PURPOSE:

The measure is intended to authorize the Oneonta City Common Council,
at local option, to grant tax exemptions to those investing in the
city's housing stock.

SUMMARY OF PROVISIONS:

The bill adds a new section of law, § 485-q, to the real property tax
law to authorize the city of Oneonta and similarly sized cities to
grant real property tax exemptions for the construction of residential
real property.

EXISTING LAW:

Current law includes no provision allowing the participation of cities
with more than ten thousand but fewer than twenty thousand residents
to participate in the residential tax benefits offered under various
sections of real property tax law § 485.

JUSTIFICATION:

Cities with more than ten thousand, but fewer than twenty thousand
residents, are currently barred from offering various tax breaks to
property owners who invest in the construction of residential real
properties, as is available to other municipalities under various
subsections of § 485 of the RPTL. The Oneonta City Common Council has
requested the authority, by resolution, to offer such tax exemptions
within their municipal limits subject to approval of a local law.
Approval of the legislation gives cities of a certain size a tool to
help provide, preserve and improve the quality of residential housing
for their residents.

LEGISLATIVE HISTORY:

New bill

FISCAL IMPLICATIONS:

None to the state

EFFECTIVE DATE:

Immediately. The city will be required to enact its own local law.

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

                                  5991

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            November 22, 2013
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the real property tax law, in relation to a  residential
  investment exemption in certain cities

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

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 485-q to read as follows:
  S  485-Q.  RESIDENTIAL INVESTMENT EXEMPTION; CERTAIN CITIES.  1. RESI-
DENTIAL REAL PROPERTY CONSTRUCTED ON OR AFTER THE FIRST DAY OF JULY, TWO
THOUSAND FOURTEEN IN CITIES WITH A POPULATION OF NOT LESS THAN TEN THOU-
SAND AND NOT MORE THAN TWENTY THOUSAND MAY BE EXEMPT FROM CITY  TAXATION
AND SPECIAL AD VALOREM LEVIES AS PROVIDED IN THIS SECTION.
  2. (A) (I) SUCH REAL PROPERTY SHALL BE EXEMPT FOR A PERIOD OF ONE YEAR
TO  THE  EXTENT  OF  FIFTY  PER CENTUM OF THE INCREASE IN ASSESSED VALUE
THEREOF ATTRIBUTABLE TO SUCH CONSTRUCTION AND FOR AN  ADDITIONAL  PERIOD
OF NINE YEARS PROVIDED, HOWEVER, THAT THE EXTENT OF SUCH EXEMPTION SHALL
BE  DECREASED BY FIVE PER CENTUM EACH YEAR DURING SUCH ADDITIONAL PERIOD
OF NINE YEARS AND SUCH EXEMPTION SHALL BE COMPUTED WITH RESPECT  TO  THE
"EXEMPTION  BASE".  THE EXEMPTION BASE SHALL BE THE INCREASE IN ASSESSED
VALUE AS DETERMINED IN THE INITIAL YEAR OF SUCH TEN YEAR PERIOD  FOLLOW-
ING THE FILING OF AN ORIGINAL APPLICATION, EXCEPT AS PROVIDED IN SUBPAR-
AGRAPH (II) OF THIS PARAGRAPH.
  (II)  IN  ANY YEAR IN WHICH A CHANGE IN LEVEL OF ASSESSMENT OF FIFTEEN
PERCENT OR MORE IS CERTIFIED FOR A FINAL ASSESSMENT ROLL PURSUANT TO THE
RULES OF THE COMMISSIONER, THE EXEMPTION BASE SHALL BE MULTIPLIED  BY  A
FRACTION,  THE  NUMERATOR  OF WHICH SHALL BE THE TOTAL ASSESSED VALUE OF
THE PARCEL ON SUCH FINAL ASSESSMENT ROLL (AFTER ACCOUNTING FOR ANY PHYS-
ICAL OR QUANTITY CHANGES TO THE PARCEL SINCE THE  IMMEDIATELY  PRECEDING
ASSESSMENT  ROLL),  AND  THE  DENOMINATOR  OF  WHICH  SHALL BE THE TOTAL
ASSESSED VALUE OF THE PARCEL ON THE IMMEDIATELY PRECEDING FINAL  ASSESS-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11994-02-3

S. 5991                             2

MENT  ROLL.  THE  RESULT  SHALL BE THE NEW EXEMPTION BASE. THE EXEMPTION
SHALL THEREUPON BE RECOMPUTED TO TAKE INTO  ACCOUNT  THE  NEW  EXEMPTION
BASE,  NOTWITHSTANDING  THE  FACT THAT THE ASSESSOR RECEIVES THE CERTIF-
ICATION  OF  THE  CHANGE  IN  LEVEL  OF ASSESSMENT AFTER THE COMPLETION,
VERIFICATION AND FILING OF THE FINAL ASSESSMENT ROLL. IN THE  EVENT  THE
ASSESSOR  DOES  NOT  HAVE CUSTODY OF THE ROLL WHEN SUCH CERTIFICATION IS
RECEIVED, THE ASSESSOR SHALL CERTIFY THE  RECOMPUTED  EXEMPTION  TO  THE
LOCAL  OFFICERS  HAVING  CUSTODY AND CONTROL OF THE ROLL, AND SUCH LOCAL
OFFICERS ARE HEREBY DIRECTED AND  AUTHORIZED  TO  ENTER  THE  RECOMPUTED
EXEMPTION CERTIFIED BY THE ASSESSOR ON THE ROLL. THE ASSESSOR SHALL GIVE
WRITTEN  NOTICE  OF SUCH RECOMPUTED EXEMPTION TO THE PROPERTY OWNER, WHO
MAY, IF HE OR SHE BELIEVES THAT THE EXEMPTION WAS RECOMPUTED  INCORRECT-
LY,  APPLY  FOR  A  CORRECTION  IN THE MANNER PROVIDED BY TITLE THREE OF
ARTICLE FIVE OF THIS CHAPTER FOR THE CORRECTION OF CLERICAL ERRORS.
  (III) THE FOLLOWING TABLE SHALL ILLUSTRATE THE COMPUTATION OF THE CITY
TAX EXEMPTION:

      YEAR OF EXEMPTION                      PERCENTAGE OF EXEMPTION
              1                                        50
              2                                        45
              3                                        40
              4                                        35
              5                                        30
              6                                        25
              7                                        20
              8                                        15
              9                                        10
             10                                         5

  (B) NO SUCH EXEMPTION SHALL BE GRANTED UNLESS:
  (I) SUCH CONSTRUCTION WAS COMMENCED ON OR AFTER THE FIRST DAY OF JANU-
ARY, TWO THOUSAND FOURTEEN OR SUCH LATER DATE AS  MAY  BE  SPECIFIED  BY
LOCAL LAW;
  (II)  THE  RESIDENTIAL REAL PROPERTY IS SITUATE IN A CITY WITH A POPU-
LATION OF NOT LESS THAN TEN THOUSAND AND NOT MORE THAN TWENTY THOUSAND;
  (III) THE COST OF SUCH CONSTRUCTION EXCEEDS THE SUM OF THIRTY THOUSAND
DOLLARS OR SUCH GREATER AMOUNT AS MAY BE SPECIFIED BY LOCAL LAW; AND
  (IV) SUCH CONSTRUCTION IS COMPLETED AS MAY BE EVIDENCED BY  A  CERTIF-
ICATE OF OCCUPANCY OR OTHER APPROPRIATE DOCUMENTATION AS PROVIDED BY THE
OWNER.
  (C)  FOR  PURPOSES  OF  THIS  SECTION  THE TERM CONSTRUCTION SHALL NOT
INCLUDE ORDINARY MAINTENANCE AND REPAIRS.
  3. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE  OWNER
OF  SUCH  REAL  PROPERTY  ON A FORM PRESCRIBED BY THE COMMISSIONER. SUCH
APPLICATION SHALL BE FILED WITH THE ASSESSOR OF A CITY WITH A POPULATION
OF NOT LESS THAN TEN THOUSAND AND NOT MORE THAN TWENTY  THOUSAND  ON  OR
BEFORE  THE  APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY AND WITHIN ONE
YEAR FROM THE DATE OF COMPLETION OF SUCH CONSTRUCTION.
  4. IF THE ASSESSOR IS SATISFIED THAT THE APPLICANT IS ENTITLED  TO  AN
EXEMPTION PURSUANT TO THIS SECTION, HE OR SHE SHALL APPROVE THE APPLICA-
TION AND SUCH REAL PROPERTY SHALL THEREAFTER BE EXEMPT FROM TAXATION AND
SPECIAL  AD  VALOREM LEVIES BY A CITY WITH A POPULATION OF NOT LESS THAN
TEN THOUSAND AND NOT MORE THAN  TWENTY  THOUSAND  AS  PROVIDED  IN  THIS
SECTION  COMMENCING  WITH THE ASSESSMENT ROLL PREPARED AFTER THE TAXABLE
STATUS DATE REFERRED TO  IN  SUBDIVISION  THREE  OF  THIS  SECTION.  THE
ASSESSED  VALUE  OF ANY EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL

S. 5991                             3

BE ENTERED BY THE ASSESSOR ON THE ASSESSMENT ROLL WITH THE TAXABLE PROP-
ERTY, WITH THE AMOUNT OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN.
  5. THE PROVISIONS OF THIS SECTION SHALL APPLY TO REAL PROPERTY USED AS
THE PRIMARY RESIDENCE OF THE OWNER.
  6.  IN  THE  EVENT THAT REAL PROPERTY GRANTED AN EXEMPTION PURSUANT TO
THIS SECTION CEASES TO BE USED  PRIMARILY  FOR  ELIGIBLE  PURPOSES,  THE
EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL CEASE.
  7. A CITY WITH A POPULATION OF NOT LESS THAN TEN THOUSAND AND NOT MORE
THAN  TWENTY  THOUSAND  MAY,  BY  LOCAL  LAW,  REDUCE  THE PER CENTUM OF
EXEMPTION OTHERWISE ALLOWED PURSUANT TO THIS SECTION; PROVIDED, HOWEVER,
THAT A PROJECT IN COURSE OF CONSTRUCTION AND EXEMPTIONS  EXISTING  PRIOR
IN  TIME  TO  PASSAGE  OF ANY SUCH LOCAL LAW SHALL NOT BE SUBJECT TO ANY
SUCH REDUCTION SO EFFECTED. SUCH CITY UPON REDUCTION OF THE  PER  CENTUM
OF  EXEMPTION PURSUANT TO THIS SUBDIVISION MAY THEREAFTER, BY LOCAL LAW,
INCREASE THE PER CENTUM OF EXEMPTION UP TO ANY PER CENTUM NOT  EXCEEDING
THE MAXIMUM ALLOWED BY SUBDIVISION TWO OR ELEVEN OF THIS SECTION, WHICH-
EVER  IS  APPLICABLE,  PROVIDED,  HOWEVER, THAT ANY SUCH LOCAL LAW SHALL
APPLY ONLY TO CONSTRUCTION COMMENCED SUBSEQUENT TO THE EFFECTIVE DATE OF
SUCH LOCAL LAW. A COPY OF ALL SUCH LOCAL LAWS SHALL BE  FILED  WITH  THE
COMMISSIONER AND THE ASSESSOR OF THE CITY.
  8. A CITY WITH A POPULATION OF NOT LESS THAN TEN THOUSAND AND NOT MORE
THAN  TWENTY  THOUSAND  MAY,  BY  LOCAL  LAW,  ESTABLISH  A DATE FOR THE
COMMENCEMENT OF EFFECTIVENESS OF  EXEMPTION  OFFERED  PURSUANT  TO  THIS
SECTION  AND MAY PROVIDE THAT THE PROVISIONS OF THIS SECTION SHALL APPLY
ONLY TO CONSTRUCTION HAVING A  GREATER  VALUE  THAN  THAT  SPECIFIED  BY
SUBDIVISION  TWO  OF  THIS  SECTION, PROVIDED, HOWEVER, THAT SUCH AMOUNT
SHALL NOT EXCEED SEVENTY THOUSAND DOLLARS.
  9. (A) A CITY WITH A POPULATION OF NOT LESS THAN TEN THOUSAND AND  NOT
MORE  THAN  TWENTY  THOUSAND  MAY, BY LOCAL LAW, ESTABLISH A BOARD TO BE
KNOWN AS THE RESIDENTIAL INCENTIVE BOARD. THE MEMBERSHIP AND COMPOSITION
OF SUCH BOARD SHALL BE SET FORTH IN THE LOCAL LAW.
  (B) THE RESIDENTIAL INCENTIVE BOARD SHALL PRESENT A PLAN TO THE LEGIS-
LATIVE BODY OF A CITY WITH A POPULATION OF NOT LESS  THAN  TEN  THOUSAND
AND  NOT MORE THAN TWENTY THOUSAND CONCERNING THE VARIOUS TYPES OF RESI-
DENTIAL REAL  PROPERTY  WHICH  SHOULD  BE  GRANTED  ELIGIBILITY  FOR  AN
EXEMPTION  PURSUANT  TO SUBDIVISION ONE OF THIS SECTION. SUCH PLAN SHALL
MAKE A RECOMMENDATION  AS  TO  WHETHER  THE  EXEMPTION  BE  COMPUTED  AS
PROVIDED IN SUBDIVISION TWO OR ELEVEN OF THIS SECTION. IN ADDITION, SUCH
PLAN   SHALL  IDENTIFY  SPECIFIC  GEOGRAPHIC  AREAS  WITHIN  WHICH  SUCH
EXEMPTIONS SHOULD BE OFFERED. IN DEVELOPING THE PLAN  REQUIRED  BY  THIS
PARAGRAPH,  THE  BOARD  SHALL CONSIDER THE PLANNING OBJECTIVES OF A CITY
WITH A POPULATION OF NOT LESS THAN TEN THOUSAND AND NOT MORE THAN TWENTY
THOUSAND, THE NECESSITY OF THE EXEMPTION TO THE ATTRACTION OR  RETENTION
OF  HOME  OWNERS  AND  THE  ECONOMIC  BENEFIT  TO  THE AREA OF PROVIDING
EXEMPTIONS TO HOME OWNERS.
  (C) IN ADDITION, THE BOARD MAY MAKE RECOMMENDATIONS TO THE LEGISLATIVE
BODY OF A CITY WITH A POPULATION OF NOT LESS THAN TEN THOUSAND  AND  NOT
MORE  THAN TWENTY THOUSAND WITH RESPECT TO ACTIONS IT DEEMS DESIRABLE TO
IMPROVE THE ECONOMIC CLIMATE THEREIN.
  10. IF A CITY WITH A POPULATION OF NOT LESS THAN TEN THOUSAND AND  NOT
MORE  THAN  TWENTY  THOUSAND  ESTABLISHES A RESIDENTIAL INCENTIVE BOARD,
PURSUANT TO SUBDIVISION NINE OF THIS SECTION, SUCH CITY  MAY,  BY  LOCAL
LAW,  RESTRICT  REAL  PROPERTY ELIGIBLE TO RECEIVE THE EXEMPTION TO REAL
PROPERTY CONSTRUCTED FOR THOSE PURPOSES IDENTIFIED IN THE PLAN PRESENTED
BY THE BOARD. SUCH LOCAL LAW SHALL RESTRICT  THE  AVAILABILITY  OF  SUCH

S. 5991                             4

EXEMPTION  TO  THE  SPECIFIC  GEOGRAPHIC  AREAS  IDENTIFIED  IN THE PLAN
PRESENTED BY THE BOARD.
  11. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION, WHERE A CITY WITH
A  POPULATION  OF  NOT  LESS  THAN TEN THOUSAND AND NOT MORE THAN TWENTY
THOUSAND ADOPTS RESTRICTED EXEMPTIONS PURSUANT  TO  SUBDIVISION  TEN  OF
THIS  SECTION,  THE  LOCAL LAW MAY PROVIDE THAT SUCH EXEMPTIONS SHALL BE
COMPUTED PURSUANT TO THE FOLLOWING ACCELERATED STRATEGIC EXEMPTION SCHE-
DULE:

      YEAR OF EXEMPTION                      PERCENTAGE OF EXEMPTION
              1                                        50
              2                                        45
              3                                        40
              4                                        35
              5                                        30
              6                                        25
              7                                        20
              8                                        15
              9                                        10
             10                                         5

  PROVIDED HOWEVER, THAT SUCH LOCAL LAW SHALL:
  (I) CONTAIN FINDINGS THAT THE ADOPTION OF THIS  ACCELERATED  STRATEGIC
EXEMPTION SCHEDULE IS NECESSARY TO ENCOURAGE TARGETED RESIDENTIAL DEVEL-
OPMENT, AND THAT THE VALUE OF THE EXEMPTIONS TO BE PROVIDED IS JUSTIFIED
BY THE NEED TO BROADEN THE TAX BASE; AND
  (II)  LIMIT  THE  APPLICABILITY OF SUCH SCHEDULE TO PROJECTS WHERE THE
COST OF SUCH CONSTRUCTION EXCEEDS THE SUM OF SEVENTY  THOUSAND  DOLLARS;
AND
  (III)  PROVIDE THAT SUCH EXEMPTIONS ARE RESTRICTED BY GEOGRAPHIC AREAS
AS PROVIDED BY SUBDIVISION TEN OF THIS SECTION.
  S 2. This act shall take effect immediately.

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