Senate Bill S6737

2009-2010 Legislative Session

Provides a real property tax exemption for first-time homebuyers of real property as primary residential property

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Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 02, 2010	referred to local government

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2009-S6737 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Add §457-a, RPT L

2009-S6737 (ACTIVE) - Summary

Provides a real property tax exemption, at local option, for first-time homebuyers of real property as primary residential property; sets income eligibility criteria.

2009-S6737 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6737

 TITLE OF BILL :
An act to amend the real property tax law, in relation to exempting
real property purchased by first-time homebuyers from real property
taxation


 PURPOSE :
To assist first-time buyers in purchasing homes.

 SUMMARY OF SPECIFIC PROVISIONS :
Section one adds section 457-a to the real property tax law.
Subdivision one of § 457-a provides, contingent upon adoption of a
local law or resolution therefor, a real property tax exemption for
certain first time homebuyers. Such exemption shall be computed
according to a table detailed in that subdivision.

Subdivision two establishes eligibility criteria for a tax exemption,
including that the first-time buyer be between the ages of eighteen
and forty at the time of purchase and that household income not exceed
$150,000. It likewise defines the terms "income" and "household
income."

Subdivision three pertains to the requirement that a first-time
homebuyer exemption is applicable only to a primary residential

property, no portion of which is the subject of a lease.

Subdivision four requires that an application for tax exemption be
submitted on a form prescribed by the state board and filed with the
appropriate assessor.

Subdivision five pertains to the manner in which an assessor shall
approve and enter an exemption granted pursuant to this legislation.

Subdivision six defines the terms "first-time homebuyer" and "primary
residential property."

 EXISTING LAW :
§ 457 of the Real Property Tax Law authorizes a tax exemption for
first time homebuyers of newly constructed homes. Such tax exemption
is pursuant to a schedule that authorizes an exemption from 50% of the
total value assessed in the first year, an exemption from 40% of the
total value assessed in the second year, an exemption from 30% of the
total value assessed in the third year, an exemption from 20% of the
total value assessed in the fourth year and a 10% exemption from the
total value assessed in the fifth year.

 JUSTIFICATION :
It is becoming increasingly financially difficult for young people to
purchase homes in New York. As a result, many individuals,
particularly those between the ages of 18-years-old and 40-years-old,
have moved out of the state. Such outward migration has had an
especially damaging effect on the younger populations of Long Island
and Western New York.  Indeed. since the 1990s, both communities have
witnessed a decline, of approximately 20%. in those populations.

Legislation such as this. which is intended to provide working-age
individuals the opportunity for homeownership, thereby ensuring a
stable workforce supply in New York, is thus necessary to promote the
long-term economic stability of the state.

 LEGISLATIVE HISTORY :
2007-2008:  S.7634

 FISCAL IMPLICATIONS :
None to the state.

 LOCAL FISCAL IMPLICATIONS :
As localities have the option of adopting pertinent legislation, the
fiscal impact of such will be determined on an ongoing basis.

 EFFECTIVE DATE :
Immediately.

2009-S6737 (ACTIVE) - Bill Text download pdf

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

                                  6737

                            I N  S E N A T E

                            February 2, 2010
                               ___________

Introduced  by  Sens.  HANNON, DeFRANCISCO, O. JOHNSON, LARKIN, MORAHAN,
  VOLKER -- read twice and ordered  printed,  and  when  printed  to  be
  committed to the Committee on Local Government

AN ACT to amend the real property tax law, in relation to exempting real
  property  purchased  by first-time homebuyers from real property taxa-
  tion

  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 457-a to read as follows:
  S 457-A. EXEMPTION FOR FIRST-TIME HOMEBUYERS. 1.  PRIMARY  RESIDENTIAL
PROPERTY  PURCHASED BY ONE OR MORE PERSONS, EACH OF WHOM IS A FIRST-TIME
HOMEBUYER AND HAS NOT BEEN MARRIED TO A HOMEOWNER  IN  THE  THREE  YEARS
PRIOR  TO  APPLYING  FOR  THIS  FIRST-TIME HOMEBUYER EXEMPTION, SHALL BE
EXEMPT FROM TAXATION LEVIED BY OR ON BEHALF OF ANY COUNTY,  CITY,  TOWN,
VILLAGE  OR  SCHOOL  DISTRICT  IN WHICH RESIDENTIAL PROPERTY IS LOCATED,
PROVIDED THE LEGISLATIVE BODY OR GOVERNING BOARD OF SUCH  COUNTY,  CITY,
TOWN  OR  VILLAGE, AFTER PUBLIC HEARING, ADOPTS A LOCAL LAW, OR A SCHOOL
DISTRICT, OTHER THAN A SCHOOL DISTRICT TO WHICH ARTICLE FIFTY-TWO OF THE
EDUCATION LAW APPLIES,  ADOPTS  A  RESOLUTION  PROVIDING  THEREFOR.  THE
LENGTH  AND  PERCENTAGE  OF  ANY EXEMPTION SHALL BE SET FORTH IN A TABLE
CONTAINED IN SUCH LOCAL LAW OR RESOLUTION. IN NO EVENT SHALL THE  LENGTH
EXCEED  TEN  YEARS  NOR  BE  LESS THAN ONE YEAR. SUCH EXEMPTION SHALL BE
COMPUTED IN ACCORDANCE WITH THE FOLLOWING TABLE:
          YEAR OF EXEMPTION            PERCENTAGE ASSESSED
                                 VALUATION EXEMPT FROM TAX
                1                                 100
                2                                  90
                3                                  80
                4                                  70
                5                                  60
                6                                  50
                7                                  40
                8                                  30

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

                                                           LBD15421-01-0

S. 6737                             2

                9                                  20
               10                                  10
               11 OR MORE                           0
  A COPY OF SUCH LOCAL LAWS OR RESOLUTIONS SHALL BE FILED WITH THE STATE
AND THE ASSESSOR OF SUCH COUNTY, CITY, TOWN, OR VILLAGE WHO PREPARES THE
ASSESSMENT  ROLL  ON WHICH THE TAXES OF SUCH COUNTY, CITY, TOWN, VILLAGE
OR SCHOOL DISTRICT ARE LEVIED.
  2. (A) ANY FIRST-TIME HOMEBUYER BETWEEN THE AGES OF EIGHTEEN AND FORTY
YEARS AT THE TIME OF  PURCHASE  SHALL  BE  ELIGIBLE  FOR  THE  EXEMPTION
ALLOWED  PURSUANT TO THIS SECTION. IN THE EVENT THAT FIRST-TIME HOMEBUY-
ERS JOINTLY OWN THE PRIMARY RESIDENTIAL REAL  PROPERTY  SUBJECT  TO  THE
FIRST-TIME  HOMEBUYER  EXEMPTION,  ONLY ONE INDIVIDUAL MUST MEET THE AGE
QUALIFICATION UNDER THIS PARAGRAPH TO QUALIFY FOR SUCH EXEMPTION.
  (B) A FIRST-TIME HOMEBUYER SHALL NOT QUALIFY FOR THE EXEMPTION AUTHOR-
IZED PURSUANT TO THIS  SECTION  IF  THE  HOUSEHOLD  INCOME  EXCEEDS  ONE
HUNDRED FIFTY THOUSAND DOLLARS.
  (I)  THE  TERM "HOUSEHOLD INCOME" AS USED IN THIS PARAGRAPH SHALL MEAN
THE TOTAL INDIVIDUAL INCOME OF A FIRST-TIME HOMEBUYER  OR  THE  COMBINED
INCOME  OF  ALL  THE FIRST-TIME HOMEBUYERS RESIDING ON THE PREMISES, FOR
THE INCOME TAX YEAR PRECEDING THE DATE OF  MAKING  APPLICATION  FOR  THE
EXEMPTION.
  (II)  THE  TERM  "INCOME"  AS  USED  IN  THIS PARAGRAPH SHALL MEAN THE
"ADJUSTED GROSS INCOME" FOR FEDERAL INCOME TAX PURPOSES AS  REPORTED  ON
THE  APPLICANT'S  LATEST  AVAILABLE  FEDERAL  OR STATE INCOME TAX RETURN
SUBJECT TO ANY SUBSEQUENT AMENDMENTS OR REVISIONS, REDUCED  BY  DISTRIB-
UTIONS,  TO  THE  EXTENT  INCLUDED  IN  FEDERAL  ADJUSTED  GROSS INCOME,
RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIRE-
MENT ANNUITY; PROVIDED THAT IF NO SUCH RETURN WAS FILED WITHIN  THE  ONE
YEAR  PERIOD  PRECEDING  TAXABLE  STATUS  DATE,  "INCOME" SHALL MEAN THE
ADJUSTED GROSS INCOME THAT WOULD HAVE BEEN SO REPORTED IF SUCH A  RETURN
HAD  BEEN  FILED.  FOR  PURPOSES  OF THIS SUBDIVISION, "LATEST AVAILABLE
RETURN" SHALL MEAN THE FEDERAL OR STATE INCOME TAX RETURN FOR  THE  YEAR
IMMEDIATELY  PRECEDING THE DATE OF MAKING APPLICATION, PROVIDED HOWEVER,
THAT IF THE TAX RETURN FOR SUCH TAX YEAR HAS NOT BEEN  FILED,  THEN  THE
INCOME  TAX  RETURN  FOR  THE  TAX  YEAR TWO YEARS PRECEDING THE DATE OF
MAKING APPLICATION SHALL BE CONSIDERED THE LATEST AVAILABLE.
  3. (A) NO PORTION OF A  SINGLE  FAMILY  PRIMARY  RESIDENTIAL  PROPERTY
SHALL  BE LEASED DURING THE PERIOD OF TIME WHEN THE FIRST-TIME HOMEBUYER
EXEMPTION SHALL APPLY TO THE RESIDENCE. IF ANY  PORTION  OF  THE  SINGLE
FAMILY  PRIMARY  RESIDENTIAL  PROPERTY  IS  FOUND TO BE THE SUBJECT OF A
LEASE AGREEMENT THE ASSESSOR SHALL  DISCONTINUE  ANY  EXEMPTION  GRANTED
PURSUANT TO THIS SECTION.
  (B)  IN  THE  EVENT  THAT  A  PRIMARY  RESIDENTIAL PROPERTY GRANTED AN
EXEMPTION PURSUANT TO THIS SECTION CEASES TO BE USED PRIMARILY FOR RESI-
DENTIAL PURPOSES OR TITLE THERETO IS TRANSFERRED TO OTHER THAN THE HEIRS
OR DISTRIBUTEES OF THE OWNER, THE EXEMPTION  GRANTED  PURSUANT  TO  THIS
SECTION SHALL BE DISCONTINUED.
  (C)  UPON  DETERMINING  THAT  AN  EXEMPTION  GRANTED  PURSUANT TO THIS
SECTION SHOULD BE DISCONTINUED, THE ASSESSOR  SHALL  MAIL  A  NOTICE  SO
STATING  TO  THE  OWNER  OR OWNERS THEREOF AT THE TIME AND IN THE MANNER
PROVIDED BY SECTION FIVE HUNDRED TEN OF  THIS  CHAPTER.  SUCH  OWNER  OR
OWNERS  SHALL  BE ENTITLED TO SEEK ADMINISTRATIVE AND JUDICIAL REVIEW OF
SUCH ACTION IN THE MANNER PROVIDED BY  LAW,  PROVIDED  THAT  THE  BURDEN
SHALL  BE  ON  SUCH  OWNER  OR  OWNERS  TO ESTABLISH ELIGIBILITY FOR THE
EXEMPTION.

S. 6737                             3

  4. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE  OWNER
OF  SUCH  BUILDING ON A FORM PRESCRIBED BY THE STATE BOARD. THE APPLICA-
TION SHALL BE FILED WITH THE ASSESSOR OF  THE  CITY,  TOWN,  VILLAGE  OR
COUNTY HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR BEFORE THE
APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY, TOWN, VILLAGE AND COUNTY.
  5.  IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSU-
ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH
PRIMARY RESIDENTIAL PROPERTY SHALL THEREAFTER BE  EXEMPT  FROM  TAXATION
AND  SPECIAL  AD  VALOREM  LEVIES AS PROVIDED IN THIS SECTION COMMENCING
WITH THE ASSESSMENT ROLL PREPARED ON THE BASIS  OF  THE  TAXABLE  STATUS
DATE REFERRED TO IN SUBDIVISION FOUR 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.
  6. FOR PURPOSES OF THIS SECTION:
  (A) "FIRST-TIME HOMEBUYER" MEANS A PERSON OR PERSONS WHO HAS NOT OWNED
A  PRIMARY  RESIDENTIAL  PROPERTY AND IS NOT MARRIED TO A PERSON WHO HAS
OWNED A RESIDENTIAL PROPERTY DURING THE THREE-YEAR PERIOD PRIOR  TO  HIS
OR  HER  PURCHASE  OF THE PRIMARY RESIDENTIAL PROPERTY, AND WHO DOES NOT
OWN A VACATION OR INVESTMENT HOME.
  (B) "PRIMARY RESIDENTIAL PROPERTY" MEANS ANY ONE OR TWO FAMILY  HOUSE,
TOWNHOUSE  OR  CONDOMINIUM LOCATED IN THIS STATE WHICH IS OWNER OCCUPIED
BY SUCH FIRST-TIME HOMEBUYER.
  S 2. This act shall take effect immediately.

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Senate Bill S6737

Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

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co-Sponsors

2009-S6737 (ACTIVE) - Details

2009-S6737 (ACTIVE) - Summary

2009-S6737 (ACTIVE) - Sponsor Memo

2009-S6737 (ACTIVE) - Bill Text download pdf

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Sponsored By

Kemp Hannon

Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

co-Sponsors

James S. Alesi

John A. DeFrancisco

Owen H. Johnson

William Larkin

2009-S6737 (ACTIVE) - Details

2009-S6737 (ACTIVE) - Summary

2009-S6737 (ACTIVE) - Sponsor Memo

2009-S6737 (ACTIVE) - Bill Text download pdf

Comments