S T A T E   O F   N E W   Y O R K
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                                 6523--A

                            I N  S E N A T E

                            February 23, 2012
                               ___________

Introduced by Sens. LANZA, SAVINO -- read twice and ordered printed, and
  when  printed  to  be committed to the Committee on Veterans, Homeland
  Security and Military Affairs -- reported favorably from said  commit-
  tee and committed to the Committee on Finance -- committee discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

AN ACT to amend the real property tax law, in relation to real  property
  tax  exemptions  for  property  in  cities  having a population of one
  million or more and owned by certain veterans or their family members

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

  Section  1.  Paragraphs 2 and 3 of subdivision 1 of section 458 of the
real property tax law, paragraph 2 as amended by chapter 488 of the laws
of 1998 and paragraph 3 as amended by chapter 733 of the laws  of  1959,
are amended to read as follows:
  (2)  Except  as  provided in subdivision five of this section, no such
exemption on account of eligible funds paid on account  of  military  or
naval  services  rendered by an individual shall be allowed in excess of
five thousand dollars; PROVIDED, HOWEVER, IN A CITY WITH A POPULATION OF
ONE MILLION OR MORE, AN EXEMPTION ON ACCOUNT OF ELIGIBLE FUNDS  PAID  ON
ACCOUNT  OF  MILITARY  OR NAVAL SERVICES RENDERED BY AN INDIVIDUAL SHALL
EQUAL FORTY PERCENT OF  ELIGIBLE  FUNDS,  BUT  IN  NO  CASE  SHALL  SUCH
EXEMPTION BE ALLOWED IN EXCESS OF TWO THOUSAND DOLLARS. For the purposes
of   this  subdivision  any  established  exemption,  or  newly  claimed
exemption, or an aggregate thereof, as the case may be, in excess of any
multiple of fifty dollars shall be regarded as being the nearest  multi-
ple  of  fifty dollars and allowed in such amount. If the amount of such
exemption has no nearest multiple of fifty dollars, it shall be regarded
as being the next higher multiple of fifty dollars and allowed  in  such
amount.  The  mingling  of such eligible funds with other funds or their
retention by the United States for insurance premiums shall not bar  the
granting of a claim for such exemption.
  (3)  If  the assessors are satisfied that the applicant is entitled to
any exemption, they shall make appropriate entries upon the  assessment-

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

                                                           LBD14766-04-2

S. 6523--A                          2

roll  opposite  the  description of such property and subtract the total
amount of such exemption from the total amount assessed pursuant to  the
provisions  of  paragraph one of this subdivision. Such entries shall be
made  and  continued in each assessment of the property so long as it is
exempt from taxation for any purpose. Such real property, to the  extent
of  the  exemption entered by the assessors, shall be exempt from state,
county and general municipal taxation, but shall be  taxable  for  local
school purposes; PROVIDED, HOWEVER, IN ANY CITY WITH A POPULATION OF ONE
MILLION  OR  MORE,  SUCH  REAL  PROPERTY, TO THE EXTENT OF THE EXEMPTION
ENTERED BY THE ASSESSORS, SHALL BE EXEMPT FROM STATE, COUNTY AND GENERAL
MUNICIPAL TAXATION AND SHALL NOT BE TAXABLE FOR LOCAL  SCHOOL  PURPOSES.
The provisions herein, relating to the assessment and exemption of prop-
erty  purchased  with eligible funds apply and shall be enforced in each
municipal corporation authorized to levy taxes.
  S 2. Subdivision 2 of section 458 of the real  property  tax  law,  as
amended  by  chapter  63  of  the  laws  of  1976, is amended to read as
follows:
  2.  Real  property  purchased  with  moneys   collected   by   popular
subscription  in  partial recognition of extraordinary services rendered
by any honorably discharged veteran of world war one, world war two,  or
of the hostilities which commenced June twenty-seventh, nineteen hundred
fifty, who sustained permanent disability while on military duty, either
total  or  partial, and owned by the person who sustained such injuries,
or by his or her spouse or unremarried surviving  spouse,  or  dependent
father  or mother, is subject to taxation as herein provided. Such prop-
erty shall be assessed in the same manner as other real property in  the
tax  district.  At  the  meeting  of  the  assessors  to hear complaints
concerning the assessments, a verified application for the exemption  of
such  real  property  from  taxation  may  be presented to them by or on
behalf of the owner thereof, which application must show  the  facts  on
which the exemption is claimed, including the amount of moneys so raised
and  used  in  or  toward the purchase of such property. No exemption on
account of any such gift shall be allowed in  excess  of  five  thousand
dollars; PROVIDED, HOWEVER, IN ANY CITY WITH A POPULATION OF ONE MILLION
OR  MORE, NO EXEMPTION ON ACCOUNT OF ANY GIFT SHALL BE ALLOWED IN EXCESS
OF  TWO  THOUSAND  DOLLARS.  The  application  for  exemption  shall  be
presented and action thereon taken in the manner provided by subdivision
one  of  this  section.  If no application for exemption be granted, the
property shall be subject to taxation for all purposes.  The  provisions
herein,  relating  to the assessment and exemption of property purchased
with moneys raised by popular subscription, apply and shall be  enforced
in each municipal corporation authorized to levy taxes.
  S  3.    Paragraph  (a)  of subdivision 1 of section 458-a of the real
property tax law, as amended by chapter 179 of  the  laws  of  2006,  is
amended to read as follows:
  (a) "Period of war" means the Spanish-American war; the Mexican border
period;  World War I; World War II; the hostilities, known as the Korean
war, which commenced June twenty-seventh,  nineteen  hundred  fifty  and
terminated  on  January  thirty-first,  nineteen hundred fifty-five; the
hostilities, known as the Vietnam war, which commenced February  twenty-
eighth,  nineteen hundred sixty-one and terminated on May seventh, nine-
teen hundred seventy-five; [and] the hostilities, known as  the  Persian
Gulf  conflict,  which commenced August second, nineteen hundred ninety;
IN ANY CITY WITH A POPULATION OF ONE MILLION OR MORE,  THE  HOSTILITIES,
KNOWN AS THE IRAQ WAR, WHICH COMMENCED MARCH, TWO THOUSAND THREE; AND IN
ANY  CITY  WITH  A  POPULATION  OF ONE MILLION OR MORE, THE HOSTILITIES,

S. 6523--A                          3

KNOWN AS THE AFGHANISTAN WAR, WHICH COMMENCED OCTOBER SEVENTH, TWO THOU-
SAND ONE.
  S  4.  Subdivision 2 of section 458-a of the real property tax law, as
added by chapter 525 of the laws of 1984, paragraph (a)  as  amended  by
chapter 899 of the laws of 1985, paragraph (b) as amended by chapter 473
of the laws of 2004, paragraph (c) as amended by chapter 100 of the laws
of 1988, subparagraph (ii) of paragraph (d) as amended by chapter 256 of
the  laws of 2005 and as further amended by subdivision (b) of section 1
of part W of chapter 56 of the laws of  2010,  is  amended  to  read  as
follows:
  2. (a) Qualifying residential real property shall be exempt from taxa-
tion  to  the  extent  of  fifteen percent of the assessed value of such
property; provided, however, that such exemption shall not exceed twelve
thousand dollars or the product of twelve thousand dollars multiplied by
the latest state equalization rate for the assessing  unit,  or  in  the
case  of  a special assessing unit, the latest class ratio, whichever is
less; PROVIDED, HOWEVER, IN ANY CITY WITH A POPULATION OF ONE MILLION OR
MORE, QUALIFYING RESIDENTIAL REAL PROPERTY SHALL BE EXEMPT FROM TAXATION
TO THE EXTENT OF SIX PERCENT OF THE ASSESSED  VALUE  OF  SUCH  PROPERTY;
PROVIDED,  FURTHER,  THAT  SUCH EXEMPTION SHALL NOT EXCEED FOUR THOUSAND
EIGHT HUNDRED DOLLARS OR THE PRODUCT  OF  FOUR  THOUSAND  EIGHT  HUNDRED
DOLLARS MULTIPLIED BY THE LATEST CLASS RATIO, WHICHEVER IS LESS.
  (b)  In  addition  to  the exemption provided by paragraph (a) of this
subdivision, where the veteran 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 assess-
ing  unit,  or in the case of a special assessing unit, the class ratio,
whichever is less; PROVIDED FURTHER, THAT, IN ANY CITY WITH A POPULATION
OF ONE MILLION OR MORE, WHERE THE VETERAN 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 FOUR
PERCENT OF THE ASSESSED VALUE OF SUCH PROPERTY; PROVIDED  FURTHER,  THAT
SUCH  EXEMPTION  SHALL  NOT EXCEED THREE THOUSAND TWO HUNDRED DOLLARS OR
THE PRODUCT OF THREE THOUSAND TWO  HUNDRED  DOLLARS  MULTIPLIED  BY  THE
CLASS RATIO, WHICHEVER IS LESS.
  (c)  In  addition to the exemptions provided by paragraphs (a) and (b)
of this subdivision, where the veteran 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  multi-
plied  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 assessing 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,

S. 6523--A                          4

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; PROVIDED, HOWEVER, IN  ANY
CITY  WITH  A  POPULATION  OF  ONE  MILLION  OR MORE, IN ADDITION TO THE
EXEMPTIONS PROVIDED BY PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION, WHERE
THE VETERAN RECEIVED A COMPENSATION RATING FROM THE UNITED STATES VETER-
AN'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 TWENTY PERCENT OF THE
VETERAN'S DISABILITY RATING; PROVIDED FURTHER, THAT SUCH EXEMPTION SHALL
NOT EXCEED SIXTEEN THOUSAND DOLLARS OR THE PRODUCT OF  SIXTEEN  THOUSAND
DOLLARS MULTIPLIED BY THE LATEST CLASS RATIO, WHICHEVER IS LESS.
  (d)  Limitations.  (i)  The  exemption  from taxation provided by this
subdivision shall be applicable to county, city, town and village  taxa-
tion,  but  shall not be applicable to taxes levied for school purposes;
PROVIDED, HOWEVER, IN ANY CITY WITH A POPULATION OF ONE MILLION OR MORE,
THE EXEMPTION FROM TAXATION PROVIDED BY THIS SUBDIVISION SHALL BE APPLI-
CABLE TO CITY TAXES AND TAXES LEVIED FOR LOCAL SCHOOL PURPOSES.
  (ii) Each county, city, town or village  may  adopt  a  local  law  to
reduce the maximum exemption allowable in paragraphs (a), (b) and (c) of
this  subdivision  to  nine  thousand  dollars, six thousand dollars and
thirty thousand dollars, respectively, or  six  thousand  dollars,  four
thousand dollars and twenty thousand dollars, respectively. Each county,
city,  town,  or  village  is  also  authorized  to adopt a local law to
increase the maximum exemption allowable in paragraphs (a), (b) and  (c)
of  this  subdivision  to fifteen thousand dollars, ten thousand dollars
and fifty thousand dollars,  respectively;  eighteen  thousand  dollars,
twelve  thousand dollars and sixty thousand dollars, respectively; twen-
ty-one thousand dollars, fourteen thousand dollars, and seventy thousand
dollars, respectively; twenty-four thousand  dollars,  sixteen  thousand
dollars,  and  eighty thousand dollars, respectively; twenty-seven thou-
sand dollars, eighteen thousand dollars, and  ninety  thousand  dollars,
respectively;  thirty thousand dollars, twenty thousand dollars, and one
hundred thousand dollars, respectively; thirty-three  thousand  dollars,
twenty-two  thousand  dollars,  and  one  hundred  ten thousand dollars,
respectively; thirty-six thousand dollars, twenty-four thousand dollars,
and one hundred twenty thousand dollars, respectively.  In  addition,  a
county,  city,  town  or  village  which is a "high-appreciation munici-
pality" as defined in this subparagraph is authorized to adopt  a  local
law  to  increase the maximum exemption allowable in paragraphs (a), (b)
and (c) of this subdivision to thirty-nine thousand dollars,  twenty-six
thousand dollars, and one hundred thirty thousand dollars, respectively;
forty-two  thousand  dollars,  twenty-eight  thousand  dollars,  and one
hundred  forty  thousand  dollars,  respectively;  forty-five   thousand
dollars, thirty thousand dollars and one hundred fifty thousand dollars,
respectively;  forty-eight thousand dollars, thirty-two thousand dollars
and one hundred sixty thousand dollars, respectively; fifty-one thousand
dollars, thirty-four thousand dollars and one hundred  seventy  thousand
dollars,  respectively; fifty-four thousand dollars, thirty-six thousand
dollars and one hundred eighty thousand dollars, respectively; PROVIDED,
HOWEVER, A HIGH APPRECIATION MUNICIPALITY THAT IS  A  SPECIAL  ASSESSING
UNIT THAT IS A CITY WITH A POPULATION OF ONE MILLION OR MORE, IS AUTHOR-
IZED TO ADOPT A LOCAL LAW TO INCREASE THE MAXIMUM EXEMPTION ALLOWABLE IN
PARAGRAPHS  (A), (B) AND (C) OF THIS SUBDIVISION TO FIFTEEN THOUSAND SIX
HUNDRED DOLLARS, TEN THOUSAND FOUR HUNDRED DOLLARS, AND FIFTY-TWO  THOU-

S. 6523--A                          5

SAND  DOLLARS,  RESPECTIVELY;  SIXTEEN  THOUSAND  EIGHT HUNDRED DOLLARS,
ELEVEN THOUSAND TWO HUNDRED DOLLARS,  AND  FIFTY-SIX  THOUSAND  DOLLARS,
RESPECTIVELY;  EIGHTEEN  THOUSAND  DOLLARS, TWELVE THOUSAND DOLLARS, AND
SIXTY  THOUSAND  DOLLARS,  RESPECTIVELY;  NINETEEN  THOUSAND TWO HUNDRED
DOLLARS, TWELVE THOUSAND EIGHT HUNDRED DOLLARS, AND SIXTY-FOUR  THOUSAND
DOLLARS,  RESPECTIVELY;  TWENTY  THOUSAND FOUR HUNDRED DOLLARS, THIRTEEN
THOUSAND SIX HUNDRED DOLLARS, AND SIXTY-EIGHT THOUSAND DOLLARS,  RESPEC-
TIVELY;  TWENTY-ONE THOUSAND SIX HUNDRED DOLLARS, FOURTEEN THOUSAND FOUR
HUNDRED DOLLARS, AND SEVENTY-TWO THOUSAND DOLLARS,  RESPECTIVELY.    For
purposes of this subparagraph, a "high-appreciation municipality" means:
(A)  a special assessing unit that is a city, (B) a county for which the
commissioner has established  a  sales  price  differential  factor  for
purposes  of the STAR exemption authorized by section four hundred twen-
ty-five of this title in three consecutive years, and (C) a  city,  town
or village which is wholly or partly located within such a county.
  S 5. An exemption granted pursuant to section 458 or 458-a of the real
property  tax  law that precedes the effective date of this act shall be
calculated on subsequent assessment rolls as if the  original  exemption
had  been granted pursuant to the provisions of such section, as amended
by this act.
  S 6. This act shall take effect immediately and  apply  to  assessment
rolls based upon the taxable status date occurring on or after the fifth
day  of January next succeeding the date on which it shall have become a
law.