Senate Bill S7963

2009-2010 Legislative Session

Establishes a real property tax exemption for the value of a new single family dwelling which is unsold to a buyer who will reside therein

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development 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 27, 2010	referred to housing, construction and community development

2009-S7963 (ACTIVE) - Details

See Assembly Version of this Bill:: A11495
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Tax Law
Laws Affected:: Add §421-l, RPT L

2009-S7963 (ACTIVE) - Summary

Establishes a real property tax exemption for the value of a new single family dwelling which is unsold to a buyer who will reside therein.

2009-S7963 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7963

TITLE OF BILL:

An act
to amend the real property tax law, in relation to establishing an
exemption for newly constructed single family residential property until
sale

PURPOSE:

This bill would give the option to municipalities and school districts
to provide a real property tax exemption for certain newly
constructed single family residences until the property is sold or
otherwise occupied

SUMMARY OF PROVISIONS:

Amends the real property tax law by adding a new section 421-1 to
allow the exemption of certain newly constructed single family
residential property

JUSTIFICATION:

Building permits in New York State for single family residences are in
decline. There are very few incentives for a builder or developer to

construct housing that isn't already under contract. And builders who
began construction of homes for sale at the beginning of the
recession are now stuck holding onto these properties because of the
struggling economy.

This bill would incentivize builders to build single family homes for
sale that are not under contract. With this, the carrying cost of
maintaining the home would be significantly eased during the sales
period.
Construction is an important economic development tool that cannot
be overlooked; this bill seeks to recognize the increased risk of
speculative home building while also preserving the economic impacts
of residential home construction.

This exemption is limited to the increased value from the construction
so the builder would continue to pay real property taxes as if the
property were vacant until the premises is sold. The maximum period
for this exemption would be three years.

The municipalities or school districts who choose to opt into this
plan do not relinquish their current revenue from the tax on the land
property; the exemption only applies to the value of the newly
constructed property that is unsold.

The addition of homes and infrastructure in our State is a vital step
in the direction of creating more jobs, growing the tax base of our
local governments, and building a stronger community.

LEGISLATIVE HISTORY:




New bill.

FISCAL IMPLICATIONS:

No fiscal impact on the State, with any local costs subject to
municipal option EFFECTIVE DATE:

This bill would take effect immediately.

2009-S7963 (ACTIVE) - Bill Text download pdf

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

                                  7963

                            I N  S E N A T E

                              May 27, 2010
                               ___________

Introduced  by  Sen.  LIBOUS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN  ACT  to amend the real property tax law, in relation to establishing
  an exemption for newly constructed single family residential  property
  until sale

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

  Section 1.  Legislative  intent.  The  legislature  hereby  finds  and
declares  that the construction and sale of detached single family resi-
dences is an integral part of the economy of this state,  and  that  new
home construction fosters economic development throughout the state. The
residential  construction  permits  for  new  construction  have dropped
precipitously. It is the intent of  the  legislature  to  exempt  unsold
newly constructed homes in order to promote such development.
  S  2.  The  real  property  tax law is amended by adding a new section
421-1 to read as follows:
  S 421-1. EXEMPTION OF CERTAIN NEWLY CONSTRUCTED SINGLE FAMILY RESIDEN-
TIAL PROPERTY. 1. A COUNTY, CITY, TOWN OR VILLAGE MAY BY LOCAL LAW, OR A
SCHOOL DISTRICT MAY BY RESOLUTION PROVIDE THAT THE EXEMPTION UNDER  THIS
SECTION  SHALL  BE  APPLICABLE  WITHIN  ITS JURISDICTION. A COPY OF SUCH
LOCAL LAW OR RESOLUTION SHALL BE FILED WITH THE OFFICE OF REAL  PROPERTY
SERVICES.
  2. RESIDENTIAL BUILDING LOTS WHICH ARE IMPROVED BY A NEWLY CONSTRUCTED
DETACHED  SINGLE  FAMILY  RESIDENCE  WHICH  WAS  NOT  CONSTRUCTED  UNDER
CONTRACT WITH A PURCHASER AND WHICH IS OFFERED FOR SALE BY  THE  BUILDER
OR  DEVELOPER  SHALL  BE  EXEMPT  FROM  TAXATION  TO  THE  EXTENT OF THE
INCREASED VALUE OF SUCH LOT RESULTING FROM THE  ADDITION  OF  THE  NEWLY
CONSTRUCTED  DETACHED  SINGLE  FAMILY RESIDENCE FROM A PERIOD UNTIL SUCH
PROPERTY IS SOLD OR OTHERWISE OCCUPIED AS A RESIDENCE, BUT IN  NO  EVENT
LONGER  THAN  THREE YEARS FROM THE GRANTING OF THE EXEMPTION PURSUANT TO
THIS SECTION.
  3. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE  OWNER
OF  THE  REAL  PROPERTY  ON  A FORM PRESCRIBED AND MADE AVAILABLE BY THE

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

                                                           LBD17416-01-0

S. 7963                             2

OFFICE OF REAL PROPERTY SERVICES. THE APPLICANT SHALL FILE SUCH INFORMA-
TION AS IS REQUIRED BY THE OFFICE OF REAL PROPERTY  SERVICES  INCLUDING,
BUT NOT LIMITED TO, PROOF THAT THE OWNER OF SUCH PROPERTY IS DOING BUSI-
NESS  AS A BUILDER OR DEVELOPER OF RESIDENTIAL PROPERTY. THE APPLICATION
SHALL BE FILED WITH THE ASSESSOR OF THE APPROPRIATE ASSESSING UNIT. SUCH
APPLICATION SHALL BE FILED ON OR BEFORE THE APPROPRIATE  TAXABLE  STATUS
DATE OF SUCH ASSESSING UNIT AND NOT LATER THAN ONE YEAR FROM THE DATE OF
COMPLETION OF CONSTRUCTION OF SUCH DETACHED SINGLE FAMILY RESIDENCE.
  4.  IF  THE  ASSESSOR RECEIVES AN APPLICATION BY THE OWNER OF THE REAL
PROPERTY, AND  IS  SATISFIED  THAT  THE  APPLICANT  IS  ENTITLED  TO  AN
EXEMPTION  PURSUANT  TO  THIS  SECTION,  THE  ASSESSOR SHALL APPROVE THE
APPLICATION AND SUCH REAL PROPERTY SHALL THEREAFTER BE EXEMPT FROM TAXA-
TION AS PROVIDED IN THIS SECTION COMMENCING WITH THE TAX  ROLL  PREPARED
AFTER  THE  TAXABLE STATUS DATE. THE ASSESSED VALUE OF ANY REAL PROPERTY
GRANTED AN EXEMPTION PURSUANT TO THIS SECTION SHALL BE  ENTERED  BY  THE
ASSESSOR  ON THE TAX ROLL, WITH THE AMOUNT OF THE EXEMPTION ENTERED IN A
SEPARATE COLUMN.
  5. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO  A  CITY  WITH  A
POPULATION OF ONE MILLION OR MORE.
  S 3. This act shall take effect immediately.

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Senate Bill S7963

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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2009-S7963 (ACTIVE) - Details

2009-S7963 (ACTIVE) - Summary

2009-S7963 (ACTIVE) - Sponsor Memo

2009-S7963 (ACTIVE) - Bill Text download pdf

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Sponsored By

Tom Libous

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Actions

2009-S7963 (ACTIVE) - Details

2009-S7963 (ACTIVE) - Summary

2009-S7963 (ACTIVE) - Sponsor Memo

2009-S7963 (ACTIVE) - Bill Text download pdf

Comments