Senate Bill S3140

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

                                  3140

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 11, 2009
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Veterans, Homeland Securi-
  ty and Military Affairs

AN ACT to amend the real property tax law and the administrative code of
  the city  of  New  York,  in  relation  to  providing  an  alternative
  exemption to active members of the armed forces

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

  Section 1. The section heading, paragraphs (c) and (d) of  subdivision
1,  paragraphs (b) and (c) of subdivision 2 and subdivision 8 of section
458-a of the real property tax law, the  section  heading  as  added  by
chapter  525  of  the  laws  of 1984, paragraph (c) of subdivision 1 and
paragraph (c) of subdivision 2 as amended by chapter 100 of the laws  of
1988,  paragraph  (d)  of subdivision 1 as amended by chapter 899 of the
laws of 1985, paragraph (b) of subdivision 2 as amended by  chapter  473
of  the laws of 2004, and subdivision 8 as amended by chapter 503 of the
laws of 2008, are amended to read as follows:
  Veterans AND ACTIVE MEMBER OF THE ARMED FORCES; alternative exemption.
  (c) "Qualified owner" means a veteran, the spouse of a  veteran  [or],
the  unremarried  surviving spouse of a veteran, AN ACTIVE MEMBER OF THE
ARMED FORCES, OR THE SPOUSE OF AN ACTIVE MEMBER  OF  THE  ARMED  FORCES.
Where  property is owned by more than one qualified owner, the exemption
to which each is entitled may be combined. Where a veteran is  also  the
unremarried  surviving spouse of a veteran, such person may also receive
any exemption to which the deceased spouse was entitled.
  (d) "Qualifying residential real property" means property owned  by  a
qualified  owner  which  is  used  exclusively for residential purposes;
provided however, that in the event any portion of such property is  not
so  used  exclusively  for  residential  purposes  but is used for other
purposes, such portion shall be subject to taxation  and  the  remaining
portion  only  shall  be  entitled  to  the  exemption  provided by this

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10056-01-9
              

S. 3140                             2

section. Such property must be the  primary  residence  of  the  veteran
[or],  unremarried  surviving  spouse of the veteran OR ACTIVE MEMBER OF
THE ARMED FORCES, unless the veteran [or], unremarried surviving  spouse
OR  ACTIVE MEMBER OF THE ARMED FORCES is absent from the property due to
medical reasons or institutionalization. In the event the  veteran  dies
and  there  is  no unremarried surviving spouse, "qualifying residential
real property" shall mean the primary residence  owned  by  a  qualified
owner  prior  to  death, provided that the title to the property becomes
vested in the dependent father or mother or dependent child or  children
under  twenty-one  years  of  age of a veteran by virtue of devise by or
descent from the deceased qualified owner, provided that the property is
the primary residence of one or all of the devisees.
  (b) In addition to the exemption provided by  paragraph  (a)  of  this
subdivision,  where  the  veteran  OR  ACTIVE MEMBER OF THE ARMED FORCES
served in a combat theatre or combat zone of operations,  as  documented
by the award of a United States campaign ribbon or service medal, or the
armed forces expeditionary medal, navy expeditionary medal, marine corps
expeditionary  medal,  or  global  war on terrorism expeditionary medal,
qualifying residential real property also shall be exempt from  taxation
to  the  extent  of  ten percent of the assessed value of such property;
provided, however, that such exemption shall not exceed  eight  thousand
dollars  or  the  product  of  eight  thousand dollars multiplied by the
latest state equalization rate for the assessing unit, or in the case of
a special assessing unit, the class ratio, whichever is less.
  (c) In addition to the exemptions provided by paragraphs (a)  and  (b)
of  this  subdivision,  where  the veteran OR ACTIVE MEMBER OF THE ARMED
FORCES received a compensation rating from the United  States  veteran's
administration  or  from the United States department of defense because
of a service connected disability, qualifying residential real  property
shall  be  exempt  from  taxation  to  the  extent of the product of the
assessed value of such property  multiplied  by  fifty  percent  of  the
veteran's  disability  rating;  provided,  however,  that such exemption
shall not exceed forty thousand dollars or the product of forty thousand
dollars multiplied by the latest state equalization rate for the assess-
ing unit, or in the case of a special assessing unit, the  latest  class
ratio, whichever is less. For purposes of this paragraph, where a person
who  served in the active military, naval or air service during a period
of war died in service of a service connected  disability,  such  person
shall  be  deemed  to  have  been  assigned a compensation rating of one
hundred percent.
  8. Notwithstanding the provisions of paragraph (c) of subdivision  one
of  this  section  and  subdivision three of this section, the governing
body of any municipality may, after public hearing, adopt a  local  law,
ordinance  or  resolution providing that where a [veteran, the spouse of
the veteran or unremarried surviving spouse] QUALIFIED OWNER, AS DEFINED
IN THIS SECTION, already receiving an exemption pursuant to this section
sells the property receiving the exemption and purchases property within
the same city, town or village, the assessor shall transfer and prorate,
for the remainder of  the  fiscal  year,  the  exemption  received.  The
prorated exemption shall be based upon the date the [veteran, the spouse
of  the veteran or unremarried surviving spouse] QUALIFIED OWNER obtains
title to the new property and shall be calculated by multiplying the tax
rate or rates for each municipal corporation which levied taxes, or  for
which taxes were levied, on the appropriate tax roll used for the fiscal
year  or  years  during which the transfer occurred times the previously
granted exempt amount times the fraction of each fiscal  year  or  years

S. 3140                             3

remaining  subsequent  to the transfer of title. Nothing in this section
shall be construed to remove the requirement that any such [veteran, the
spouse of the veteran or unremarried surviving spouse] QUALIFIED  OWNERS
transferring an exemption pursuant to this subdivision shall reapply for
the  exemption  authorized  pursuant  to  this  section on or before the
following taxable status date, in the event such [veteran, the spouse of
the veteran or unremarried surviving spouse] QUALIFIED OWNER  wishes  to
receive the exemption in future fiscal years.
  S  2.  Subdivision  1 of section 458-a of the real property tax law is
amended by adding a new paragraph (h) to read as follows:
  (H) "ACTIVE MEMBER OF THE ARMED FORCES" MEANS A MEMBER  OF  THE  ARMED
FORCES  OF  THE  UNITED  STATES ON ACTIVE DUTY, OTHER THAN FOR TRAINING,
PURSUANT TO TITLE 10 OF THE UNITED STATES CODE.
  S 3. Section 11-245.6 of the administrative code of the  city  of  New
York, as amended by local law number 136 of the city of New York for the
year 2005, is amended to read as follows:
  S  11-245.6  Alternative  exemption for veterans AND ACTIVE MEMBERS OF
THE ARMED FORCES; maximum exemptions allowable. Pursuant to subparagraph
(ii) of paragraph (d) of subdivision two of section four hundred  fifty-
eight-a  of  the  real  property  tax law, the city hereby increases the
maximum exemptions allowable in paragraphs (a), (b) and (c) of  subdivi-
sion  two of section four hundred fifty-eight-a of the real property tax
law. The maximum exemption allowable in  such  paragraph  (a)  shall  be
fifteen percent of the assessed value of the qualifying residential real
property;  provided,  however,  that  such  exemption  shall  not exceed
fifty-four thousand  dollars  or  the  product  of  fifty-four  thousand
dollars  multiplied  by  the  latest  class ratio, whichever is less. In
addition to the exemption provided by such paragraph (a),  as  increased
by  this  section, the maximum exemption allowable in such paragraph (b)
shall be ten percent of the assessed value of the qualifying residential
real property; provided, however, that such exemption shall  not  exceed
thirty-six  thousand  dollars  or  the  product  of  thirty-six thousand
dollars multiplied by the latest class  ratio,  whichever  is  less.  In
addition  to  the exemptions provided by such paragraphs (a) and (b), as
increased by this section, the maximum exemption allowable in such para-
graph (c) shall be the product of the assessed value of  the  qualifying
residential  real  property multiplied by fifty percent of the veteran's
disability rating; provided, however,  that  such  exemption  shall  not
exceed one hundred eighty thousand dollars or the product of one hundred
eighty  thousand dollars multiplied by the latest class ratio, whichever
is less. The maximum exemptions allowable in such  paragraphs  (a),  (b)
and (c), as increased by this section, shall not apply to any assessment
roll completed and filed prior to the first day of January, two thousand
six.
  S  4.  This  act  shall take effect immediately and shall apply to tax
assessment rolls completed on or after January 1, 2009.