senate Bill S5991A

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

See Assembly Version of this Bill:
A8324A
Versions:
S5991
S5991A
Legislative Cycle:
2013-2014
Law Section:
Real Property Tax Law
Laws Affected:
Add §485-q, RPT L

Votes

9
0
9
Aye
0
Nay
0
aye with reservations
0
absent
0
excused
0
abstained
show Local Government committee vote details

Sponsor Memo

BILL NUMBER:S5991A

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 provide 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 cities with more than 13,500 inhabitants but less
than 14,000 inhabitants to grant real property tax exemptions for the
construction of residential real property.

EXISTING LAW:

Current law includes no provision allowing cities with more than
13,500 inhabitants but less than 14,000 inhabitants to offer this type
of exemption.

JUSTIFICATION:

Cities with more than 13,500 inhabitants but less than 14,000
inhabitants are currently barred from offering various tax breaks to
property owners who invest in the construction of residential real
property's, as is available to other municipalities under § 485-h,
485-i, § 485-j § 485-k § 485-1, and § 485-m of the Real Property Tax
Law. The Oneonta City Common Council has requested the authority, by
resolution, to offer such tax exemption 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--A

                       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  --  recommitted  to
  the  Committee  on  Local Government in accordance with Senate Rule 6,
  sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

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 THIRTEEN
THOUSAND FIVE HUNDRED AND NOT MORE THAN FOURTEEN 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11994-04-4

S. 5991--A                          2

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-
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 THIRTEEN THOUSAND FIVE HUNDRED AND NOT MORE THAN
FOURTEEN 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 THIRTEEN THOUSAND FIVE HUNDRED AND NOT MORE THAN  FOUR-
TEEN  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-

S. 5991--A                          3

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
THIRTEEN  THOUSAND  FIVE  HUNDRED AND NOT MORE THAN FOURTEEN 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 BE ENTERED BY THE ASSESSOR ON THE ASSESSMENT ROLL WITH THE
TAXABLE PROPERTY, 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 THIRTEEN THOUSAND FIVE
HUNDRED AND NOT MORE THAN FOURTEEN 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, WHICHEVER 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 THIRTEEN THOUSAND FIVE
HUNDRED AND NOT MORE THAN FOURTEEN THOUSAND MAY, BY LOCAL LAW, ESTABLISH
A DATE FOR THE COMMENCEMENT OF EFFECTIVENESS OF EXEMPTION OFFERED PURSU-
ANT TO THIS SECTION AND MAY PROVIDE THAT THE PROVISIONS OF THIS  SECTION
SHALL APPLY ONLY TO CONSTRUCTION HAVING A GREATER VALUE THAN THAT SPECI-
FIED  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  THIRTEEN  THOUSAND
FIVE  HUNDRED  AND  NOT  MORE  THAN FOURTEEN 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 THIRTEEN THOU-
SAND FIVE HUNDRED AND NOT MORE THAN  FOURTEEN  THOUSAND  CONCERNING  THE
VARIOUS  TYPES  OF  RESIDENTIAL  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 OBJEC-
TIVES OF A CITY WITH A POPULATION OF NOT  LESS  THAN  THIRTEEN  THOUSAND
FIVE  HUNDRED  AND NOT MORE THAN FOURTEEN 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 THIRTEEN THOUSAND FIVE

S. 5991--A                          4

HUNDRED AND NOT MORE THAN FOURTEEN 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 THIRTEEN THOUSAND
FIVE HUNDRED AND NOT MORE THAN FOURTEEN THOUSAND ESTABLISHES A  RESIDEN-
TIAL 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 EXEMPTION TO THE SPECIFIC GEOGRAPHIC AREAS  IDENTI-
FIED IN THE PLAN PRESENTED BY THE BOARD.
  11. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION, WHERE A CITY WITH
A  POPULATION  OF  NOT  LESS THAN THIRTEEN THOUSAND FIVE HUNDRED AND NOT
MORE THAN FOURTEEN 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 STRA-
TEGIC EXEMPTION SCHEDULE:

      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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