Senate Bill S7904

2009-2010 Legislative Session

Establishes a residential-commercial exemption program in certain counties

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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
May 21, 2010	referred to local government

co-Sponsors

2009-S7904 (ACTIVE) - Details

See Assembly Version of this Bill:: A11356
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Add §485-n, RPT L
Versions Introduced in 2011-2012 Legislative Session:: S863, A4643

2009-S7904 (ACTIVE) - Summary

Establishes a residential-commercial real property tax exemption program in certain counties.

2009-S7904 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7904

 TITLE OF BILL :

An act to amend the real property tax law, in relation to establishing
a residential-commercial exemption program in certain counties; and
providing for the repeal of such provisions upon the expiration
thereof


 PURPOSE :

This bill establishes a residential-commercial exemption program in
Livingston County, New York.

 SUMMARY OF PROVISIONS :

Section 1. The real property tax law is amended by adding a new
section 485-n to define Residential-commercial exemption programs,
applicants, benefit areas, commercial construction work, commercial
purpose or use, commercial property, mixed-use property, municipality
and residential construction work.

Section 2. Allows any municipality within such county to opt in,
through adoption of a local law, to a real property tax abatement
program. This abatement program would be offered in a designated

benefit area, as identified by the municipality, for properties that
are converted, created, modernized, rehabilitated, expanded or
otherwise improved.

The properties would be exempt from increase in real property taxes
and special ad valorem levies for twelve years.

The tax exemption on the change to assessed value of buildings that
have commercial or residential construction work done shall be
computed with respect to the exemption base and according to the
following schedule:

YEAR OF EXEMPTION             PERCENTAGE OF EXEMPTION

1 through 8                   100% of Exemption Base
9                              80% of Exemption Base
10                             60% of Exemption Base
11                             40% of Exemption Base
12                             20% of Exemption Base


 JUSTIFICATION :

The  County  of  Livingston  has requested to have legislation enacted
that will benefit the County of Livingston and all Towns, Villages and
School Districts within the county, by allowing  them  to  grant  real
property tax abatement in defined redevelopment areas.

This  initiative  came  out  of  a  meeting involving all local taxing
entities in the county in 2009. They all agreed to support legislation
that authorized the adoption of this tax  abatement  program  by  each
taxing body at local option in recognizance of the need to effect real
investment in revitalization.

The  municipalities  in  Livingston  County  recognize  the  need  for
targeted revitalization and seek authorization at the state level  for
this.

Tax abatements are a proven technique for local governments to attract
investors  for  revitalization. A tax abatement, which this bill does,
is different than a strict tax exemption. A tax exemption  takes  away
existing  revenue  generated  by a property while with a tax abatement
does  not  change  existing  tax  payments.   with   tax   abatements,
governments  agree  to  take  less  than 100% of new revenue generated
through property investment, repair and renovation.

This  legislation  will  provide  a  tool  for  local  governments  in
Livingston  County  to  use to improve their communities. The proposed
tax abatement program will not impose  a  cost  upon  the  State,  and
further,  since  it  authorizes  an  optional  program  for  the local
governments to participate in it should therefore be considered by the
State as a no-cost, mandate-free way for these  local  governments  to
invest in and attract outside investment to their communities.

 LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Effective  immediately, and shall expire and be deemed repealed twelve
years after such date.

2009-S7904 (ACTIVE) - Bill Text download pdf

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

                                  7904

                            I N  S E N A T E

                              May 21, 2010
                               ___________

Introduced by Sens. YOUNG, 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 establishing a
  residential-commercial  exemption  program  in  certain  counties; and
  providing for the repeal of such provisions upon the expiration there-
  of

  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-n to read as follows:
  S 485-N.  RESIDENTIAL-COMMERCIAL EXEMPTION PROGRAM. 1. DEFINITIONS. AS
USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
INGS:
  (A) "APPLICANT" MEANS ANY PERSON OBLIGATED TO PAY REAL PROPERTY  TAXES
ON REAL PROPERTY FOR WHICH AN EXEMPTION FROM TAXES UNDER THIS SECTION IS
SOUGHT.
  (B) "BENEFIT AREA" MEANS THE AREA WITHIN A MUNICIPALITY, DESIGNATED BY
LOCAL  LAW, TO WHICH AN EXEMPTION, ESTABLISHED PURSUANT TO THIS SECTION,
APPLIES.
  (C) "COMMERCIAL CONSTRUCTION WORK" MEANS THE MODERNIZATION,  REHABILI-
TATION, EXPANSION OR OTHER IMPROVEMENT OF COMMERCIAL USE PROPERTY OR THE
PORTION OF MIXED-USE PROPERTY TO BE USED FOR COMMERCIAL PURPOSES.
  (D) "COMMERCIAL PURPOSE OR USE" MEANS THE BUYING, SELLING OR OTHERWISE
PROVIDING  OF  GOODS  OR  SERVICES,  INCLUDING  HOTEL SERVICES, OR OTHER
LAWFUL BUSINESS OR COMMERCIAL ACTIVITIES PERMITTED UPON MIXED-USE  PROP-
ERTY.
  (E) "COMMERCIAL USE PROPERTY" MEANS REAL PROPERTY ON WHICH WILL EXIST,
AFTER  COMPLETION  OF  COMMERCIAL CONSTRUCTION WORK, A BUILDING USED FOR
COMMERCIAL PURPOSES OR USE.
  (F) "MIXED-USE PROPERTY" MEANS REAL  PROPERTY  ON  WHICH  WILL  EXIST,
AFTER  COMPLETION  OF  RESIDENTIAL CONSTRUCTION WORK OR A COMBINATION OF
RESIDENTIAL CONSTRUCTION WORK AND COMMERCIAL CONSTRUCTION WORK, A BUILD-
ING OR STRUCTURE USED FOR BOTH RESIDENTIAL AND COMMERCIAL PURPOSES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16836-02-0

S. 7904                             2

  (G) "MUNICIPALITY" MEANS ANY TOWN, CITY, VILLAGE OR OTHER TAXING ENTI-
TY LOCATED IN A COUNTY HAVING A POPULATION OF NOT LESS  THAN  SIXTY-FOUR
THOUSAND  THREE  HUNDRED  AND  NOT  MORE  THAN  SIXTY-FOUR THOUSAND FOUR
HUNDRED AS DETERMINED BY THE FEDERAL DECENNIAL CENSUS FOR THE  YEAR  TWO
THOUSAND.
  (H) "RESIDENTIAL CONSTRUCTION WORK" MEANS THE CREATION, MODERNIZATION,
REHABILITATION,  EXPANSION OR OTHER IMPROVEMENT OF DWELLING UNITS, OTHER
THAN DWELLING UNITS IN A HOTEL, IN THE PORTION OF MIXED-USE PROPERTY  TO
BE USED FOR RESIDENTIAL PURPOSES.
  2. A MUNICIPALITY MAY, BY LOCAL LAW, PROVIDE FOR THE EXEMPTION OF REAL
PROPERTY  IN A DESIGNATED BENEFIT AREA FROM TAXATION AS PROVIDED IN THIS
SECTION. UPON THE ADOPTION OF SUCH A LOCAL LAW, THE COUNTY IN WHICH SUCH
MUNICIPALITY IS LOCATED MAY, BY LOCAL LAW, AND ANY SCHOOL DISTRICT,  ALL
OR  PART  OF  WHICH IS LOCATED IN SUCH MUNICIPALITY, MAY, BY RESOLUTION,
EXEMPT SUCH PROPERTY FROM ITS TAXATION IN THE SAME  MANNER  AND  TO  THE
SAME EXTENT AS SUCH MUNICIPALITY HAS DONE.
  3.  UPON  THE ADOPTION OF SUCH A LOCAL LAW THE COMMERCIAL USE PROPERTY
OR MIXED-USE PROPERTY THAT WAS CONVERTED, CREATED, MODERNIZED, REHABILI-
TATED, EXPANDED OR OTHERWISE IMPROVED, SHALL BE EXEMPT FROM TAXATION AND
SPECIAL AD VALOREM LEVIES AS PROVIDED FOR IN SUBDIVISION  FOUR  OF  THIS
SECTION.
  4.  (A)  (I) FOR A PERIOD OF TWELVE YEARS FOLLOWING THE APPROVAL OF AN
APPLICATION, THE INCREASE IN ASSESSED VALUE OF SUCH  PROPERTY  ATTRIBUT-
ABLE TO SUCH CONVERSION, CREATION, MODERNIZATION, REHABILITATION, EXPAN-
SION  OR  OTHER  IMPROVEMENT SHALL BE EXEMPT AS PROVIDED IN SUBPARAGRAPH
(II) OF THIS PARAGRAPH. SUCH EXEMPTION SHALL BE COMPUTED WITH RESPECT TO
THE "EXEMPTION BASE". THE EXEMPTION BASE SHALL BE  DETERMINED  FOR  EACH
YEAR  IN  WHICH  THERE  IS AN INCREASE IN ASSESSED VALUE SO ATTRIBUTABLE
FROM THAT OF THE PREVIOUS YEAR'S ASSESSED VALUE.
  (II)  THE  FOLLOWING  SHALL  DETERMINE  THE  COMPUTATION  OF  THE  TAX
EXEMPTION:

YEAR OF EXEMPTION   PERCENTAGE OF EXEMPTION
   1 THROUGH 8      100% OF EXEMPTION BASE
   9                80% OF EXEMPTION BASE
   10               60% OF EXEMPTION BASE
   11               40% OF EXEMPTION BASE
   12               20% OF EXEMPTION BASE

  (B) NO SUCH EXEMPTION SHALL BE GRANTED UNLESS:
  (I)  SUCH  CONVERSION, CREATION, MODERNIZATION, REHABILITATION, EXPAN-
SION OR OTHER IMPROVEMENT WAS COMMENCED SUBSEQUENT TO THE DATE ON  WHICH
THE MUNICIPALITY'S LOCAL LAW TOOK EFFECT; AND
  (II)  THE  COST  OF  SUCH  CONVERSION  EXCEEDS THE SUM OF TEN THOUSAND
DOLLARS OR SUCH GREATER AMOUNT AS MAY BE SPECIFIED BY LOCAL LAW.
  (C) FOR PURPOSES OF  THIS  SECTION  THE  TERM  "CONVERSION,  CREATION,
MODERNIZATION, REHABILITATION, EXPANSION OR OTHER IMPROVEMENT" SHALL NOT
INCLUDE ORDINARY MAINTENANCE AND REPAIRS.
  (D)  NO  SUCH EXEMPTION SHALL BE GRANTED CONCURRENT WITH OR SUBSEQUENT
TO ANY OTHER REAL PROPERTY TAX EXEMPTION GRANTED TO  THE  SAME  IMPROVE-
MENTS TO REAL PROPERTY, EXCEPT, WHERE DURING THE PERIOD OF SUCH PREVIOUS
EXEMPTION,  PAYMENTS IN LIEU OF TAXES OR OTHER PAYMENTS WERE MADE TO THE
MUNICIPALITY IN AN AMOUNT THAT WOULD HAVE BEEN EQUAL TO OR GREATER  THAN
THE  AMOUNT  OF  REAL  PROPERTY  TAXES THAT WOULD HAVE BEEN PAID ON SUCH
IMPROVEMENTS HAD SUCH PROPERTY BEEN GRANTED  AN  EXEMPTION  PURSUANT  TO
THIS  SECTION.  IN SUCH CASE, AN EXEMPTION SHALL BE GRANTED FOR A NUMBER

S. 7904                             3

OF YEARS EQUAL TO THE TWELVE YEAR EXEMPTION  GRANTED  PURSUANT  TO  THIS
SECTION LESS THE NUMBER OF YEARS THE PROPERTY WOULD HAVE BEEN PREVIOUSLY
EXEMPT FROM REAL PROPERTY TAXES.
  5.  SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF REAL PROPERTY ON A FORM PRESCRIBED BY THE STATE BOARD. SUCH  APPLICA-
TION  SHALL  BE  FILED  WITH  THE ASSESSOR OF THE MUNICIPALITY OR COUNTY
HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR BEFORE THE APPRO-
PRIATE TAXABLE STATUS DATE OF SUCH MUNICIPALITY OR COUNTY.
  6. 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 AS PROVIDED IN THIS SECTION COMMENCING WITH
THE ASSESSMENT ROLL PREPARED AFTER THE TAXABLE STATUS DATE  REFERRED  TO
IN  SUBDIVISION  FIVE  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.
  S 2. This act shall take effect immediately, and shall expire  and  be
deemed repealed twelve years after such date.

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Senate Bill S7904

Sponsored By

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

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co-Sponsors

2009-S7904 (ACTIVE) - Details

2009-S7904 (ACTIVE) - Summary

2009-S7904 (ACTIVE) - Sponsor Memo

2009-S7904 (ACTIVE) - Bill Text download pdf

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Sponsored By

Catharine Young

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

Actions

co-Sponsors

Dale M. Volker

2009-S7904 (ACTIVE) - Details

2009-S7904 (ACTIVE) - Summary

2009-S7904 (ACTIVE) - Sponsor Memo

2009-S7904 (ACTIVE) - Bill Text download pdf

Comments