Senate Bill S2479

2009-2010 Legislative Session

Provides a real property tax exemption for first-time homebuyers of pre-owned 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
Jan 06, 2010	referred to local government
Feb 20, 2009	referred to local government

2009-S2479 (ACTIVE) - Details

See Assembly Version of this Bill:: A2899
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Add §457-a, RPT L

2009-S2479 (ACTIVE) - Summary

Provides a real property tax exemption, at local option, for first-time homebuyers of pre-owned real property as primary residential property and provides flexibility to local taxing authorities regarding length and percentage increments of such exemption; sets income eligibility criteria.

2009-S2479 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2479

 TITLE OF BILL :

An act to amend the real property tax law, in relation to exempting
pre-owned real property purchased by first-time homebuyers from real
property taxation


 PURPOSE :

To provide localities with an option to allow for a partial real
property tax exemption for first-time homebuyers of pre-owned homes.
The intent of this legislation is to assist potential homeowners in
their ability to afford low to moderately priced housing in New York
State. The property price limitations and the income limitations for
the family are the same as those set for each county by the State of
New York mortgage agency low interest rate mortgage program.

 SUMMARY OF PROVISIONS :

This bill would allow localities to provide a partial tax exemption
for a period not to exceed five years for first-time homebuyers of
pre-owned homes. The maximum exemption would be 50% in the first year
and would be phased out by 10% each year thereafter. Localities would
have the option of providing a lesser exemption and or a shorter

period of exemption.

In order to qualify for the exemption, neither the homeowner nor their
spouse shall have owned a primary residential property, a vacation
home or an investment home during the three year period prior to the
purchase of the primary residential property. Additional
qualifications include a purchase price limitation and a household
income limitation. The maximum sales price must not exceed the maximum
property price limits as allowed by SONYMA on its Low Interest Rate
Mortgage Program by more than 15% unless a municipality opts to allow
for a maximum sales price of not more than 25% above the price limits
set by the SONYMA Low Interest Rate Mortgage Program. The income
limits are the same as those set by SONYMA for the Low Interest Rate
Mortgage Program. (The income limits and property price maximum for
the SONYMA Low Interest Rate Program are set for the particular county
in question.)

 JUSTIFICATION :

There are many potential homeowners who find that the costs of buying
and maintaining a home in New York State are far more than they can
afford. As such many of these individuals choose to relocate out of
state. Businesses in New York are having a difficult time competing
for available employees. In order to assist in attracting new
businesses, and employees for those businesses, a locality would have
the option to make an exemption available for first-time homebuyers of
pre-owned homes. A similar exemption is already permitted for
first-time homebuyers of new homes.

 LEGISLATIVE HISTORY :

S.1841, 2007-08; S.1395, 2005-06; S.6257, 2003-04.

 FISCAL IMPLICATIONS :

None to the State.

 LOCAL FISCAL IMPLICATIONS :


To be determined by the locality. Localities have the option whether
they would like to provide this exemption and to what extent.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S2479 (ACTIVE) - Bill Text download pdf

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

                                  2479

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 20, 2009
                               ___________

Introduced  by  Sen. LAVALLE -- 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
  pre-owned  real  property purchased by first-time homebuyers from real
  property taxation

  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 OF PRE-OWNED HOMES.    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 HOMEOWNERS
EXEMPTION, SHALL BE EXEMPT FROM TAXATION LEVIED BY OR ON BEHALF  OF  ANY
COUNTY,  CITY,  TOWN, VILLAGE OR SCHOOL DISTRICT IN WHICH SUCH PRE-OWNED
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 FIVE YEARS NOR BE LESS
THAN ONE YEAR. THE PERCENTAGE EXEMPTION MAY  BE  COMPUTED  IN  A  MANNER
SIMILAR  TO  THE FOLLOWING TABLE; HOWEVER, NOTHING IN THIS SECTION SHALL
PROHIBIT TAXING AUTHORITIES FROM ADOPTING  A  LOCAL  LAW  OR  RESOLUTION
WHICH ESTABLISHES PERCENTAGE INCREMENTS LESS THAN FIFTY PER CENTUM:
           YEAR OF EXEMPTION            PERCENTAGE ASSESSED
                                      VALUATION EXEMPT FROM TAX
                  1                               50
                  2                               40
                  3                               30

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02776-01-9

S. 2479                             2

                  4                               20
                  5                               10
                  6 OR MORE                       0
  A COPY OF SUCH LOCAL LAWS OR RESOLUTIONS SHALL BE FILED WITH THE STATE
BOARD  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  PRE-OWNED  PRIMARY  RESIDENTIAL REAL PROPERTY WITHIN THE
PURCHASE PRICE LIMITS DEFINED BY THE STATE OF NEW YORK  MORTGAGE  AGENCY
LOW INTEREST RATE MORTGAGE PROGRAM IN THE NON-TARGET, ONE FAMILY CATEGO-
RIES  FOR THE COUNTY WHERE SUCH PROPERTY IS LOCATED AND IN EFFECT ON THE
CONTRACT DATE FOR THE PURCHASE AND  SALE  OF  SUCH  PROPERTY,  SHALL  BE
ELIGIBLE FOR THE EXEMPTION ALLOWED PURSUANT TO THIS SECTION.
  (B) A FIRST-TIME HOMEBUYER SHALL NOT QUALIFY FOR THE EXEMPTION AUTHOR-
IZED  PURSUANT  TO  THIS  SECTION IF THE HOUSEHOLD INCOME EXCEEDS INCOME
LIMITS DEFINED BY THE STATE OF NEW YORK  MORTGAGE  AGENCY  LOW  INTEREST
RATE  MORTGAGE  PROGRAM  IN THE NON-TARGET, ONE AND TWO PERSON HOUSEHOLD
CATEGORY FOR THE COUNTY WHERE SUCH PROPERTY IS LOCATED AND IN EFFECT  ON
THE CONTRACT DATE FOR THE PURCHASE AND SALE OF SUCH PROPERTY.
  (I)  THE  TERM "HOUSEHOLD INCOME" AS USED IN THIS PARAGRAPH SHALL MEAN
THE TOTAL COMBINED INCOME OF ALL THE OWNERS, AND OF ANY OWNERS'  SPOUSES
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.  PRE-OWNED  PRIMARY  RESIDENTIAL  PROPERTY  PURCHASED BY FIRST-TIME
HOMEBUYERS AT A SALES PRICE GREATER  THAN  THE  MAXIMUM  ELIGIBLE  SALES
PRICE  SHALL  QUALIFY FOR THE EXEMPTION ALLOWED PURSUANT TO THIS SECTION
FOR THAT PORTION OF THE SALES PRICE OF SUCH PRE-OWNED  PRIMARY  RESIDEN-
TIAL  PROPERTY  EQUAL  TO  THE  MAXIMUM  ELIGIBLE SALES PRICE, PROVIDED,
HOWEVER, THAT ANY PRE-OWNED PRIMARY RESIDENTIAL PROPERTY PURCHASED AT  A
SALES  PRICE  GREATER  THAN  FIFTEEN  PERCENT ABOVE THE MAXIMUM ELIGIBLE
SALES PRICE SHALL NOT BE ALLOWED ANY EXEMPTION.
  4. THE LEGISLATIVE BODY OR GOVERNING BOARD OF A COUNTY, CITY, TOWN  OR
VILLAGE MAY ADOPT A LOCAL LAW, OR A SCHOOL DISTRICT, OTHER THAN A SCHOOL
DISTRICT  TO  WHICH  ARTICLE  FIFTY-TWO OF THE EDUCATION LAW APPLIES MAY
ADOPT A RESOLUTION TO PROVIDE FOR AN INCREASE NOT TO EXCEED  TWENTY-FIVE
PER  CENTUM  ON  THE  PURCHASE  PRICE LIMIT USED FOR ELIGIBILITY FOR THE
EXEMPTION PROVIDED FOR IN THIS SECTION.
  5.  (A) NO PORTION OF A SINGLE FAMILY  PRE-OWNED  PRIMARY  RESIDENTIAL
PROPERTY  SHALL  BE LEASED DURING THE PERIOD OF TIME WHEN THE FIRST-TIME
HOMEOWNER EXEMPTION SHALL APPLY TO THE RESIDENCE. IF ANY PORTION OF  THE
SINGLE  FAMILY PRE-OWNED PRIMARY RESIDENTIAL PROPERTY IS FOUND TO BE THE

S. 2479                             3

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.
  6. 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.
  7.  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 SIX 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.
  8. FOR PURPOSES OF THIS SECTION:
  (A) "FIRST-TIME HOMEBUYER" MEANS A PERSON 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 HOMEBUYER.
  (C) "PRE-OWNED" MEANS ANY REAL PROPERTY WHICH, PRIOR TO  THE  CONTRACT
DATE  FOR  THE PURCHASE AND SALE OF SUCH PROPERTY, HAS BEEN OCCUPIED FOR
NO LESS THAN ONE YEAR.
  S 2. This act shall take effect immediately.

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Senate Bill S2479

Sponsored By

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

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2009-S2479 (ACTIVE) - Details

2009-S2479 (ACTIVE) - Summary

2009-S2479 (ACTIVE) - Sponsor Memo

2009-S2479 (ACTIVE) - Bill Text download pdf

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Sponsored By

Kenneth P. LaValle

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

Actions

2009-S2479 (ACTIVE) - Details

2009-S2479 (ACTIVE) - Summary

2009-S2479 (ACTIVE) - Sponsor Memo

2009-S2479 (ACTIVE) - Bill Text download pdf

Comments