S T A T E O F N E W Y O R K
________________________________________________________________________
6463
2013-2014 Regular Sessions
I N A S S E M B L Y
April 1, 2013
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Introduced by M. of A. DIPIETRO, KEARNS, LALOR -- read once and referred
to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to exemption from
taxation of qualifying residential real property for active duty
service members
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 458-c to read as follows:
S 458-C. EXEMPTION FOR ACTIVE DUTY SERVICE MEMBERS. 1. THE FOLLOWING
TERMS WHENEVER USED OR REFERRED TO IN THIS SECTION SHALL HAVE THE
FOLLOWING MEANINGS:
(A) "ACTIVE DUTY SERVICE MEMBER" MEANS A PERSON WHO IS SERVING IN
FULL-TIME ACTIVE DUTY IN THE UNITED STATES ARMY, NAVY, MARINE CORPS, AIR
FORCE, OR COAST GUARD, FOR OTHER THAN TRAINING PURPOSES.
(B) "QUALIFIED OWNER" MEANS AN ACTIVE DUTY SERVICE MEMBER, THE SPOUSE
OF AN ACTIVE DUTY SERVICE MEMBER OR THE UNREMARRIED SURVIVING SPOUSE OF
AN ACTIVE DUTY SERVICE MEMBER. WHERE PROPERTY IS OWNED BY MORE THAN ONE
QUALIFIED OWNER, THE EXEMPTION TO WHICH EACH IS ENTITLED MAY BE
COMBINED. WHERE AN ACTIVE DUTY SERVICE MEMBER IS ALSO THE UNREMARRIED
SURVIVING SPOUSE OF AN ACTIVE DUTY SERVICE MEMBER, SUCH PERSON MAY ALSO
RECEIVE ANY EXEMPTION TO WHICH THE DECEASED SPOUSE WAS ENTITLED.
(C) "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
SECTION. SUCH PROPERTY MUST BE THE PRIMARY RESIDENCE OF THE ACTIVE DUTY
SERVICE MEMBER OR UNREMARRIED SURVIVING SPOUSE OF THE ACTIVE DUTY
SERVICE MEMBER, UNLESS THE ACTIVE DUTY SERVICE MEMBER OR UNREMARRIED
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04074-01-3
A. 6463 2
SURVIVING SPOUSE IS ABSENT FROM THE PROPERTY DUE TO MEDICAL REASONS OR
INSTITUTIONALIZATION. IN THE EVENT THE ACTIVE DUTY SERVICE MEMBER DIES
AND THERE IS NO UNREMARRIED SURVIVING SPOUSE, "QUALIFYING RESIDENTIAL
REAL PROPERTY" SHALL MEAN THE PRIMARY RESIDENCE OWNED BY THE 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 AN ACTIVE DUTY SERVICE MEMBER 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.
(D) "LATEST STATE EQUALIZATION RATE" MEANS THE LATEST FINAL STATE
EQUALIZATION RATE OR SPECIAL EQUALIZATION RATE ESTABLISHED BY THE
COMMISSIONER PURSUANT TO ARTICLE TWELVE OF THIS CHAPTER. THE COMMISSION-
ER SHALL ESTABLISH A SPECIAL EQUALIZATION RATE IF HE OR SHE FINDS THAT
THERE HAS BEEN A MATERIAL CHANGE IN THE LEVEL OF ASSESSMENT SINCE THE
ESTABLISHMENT OF THE LATEST STATE EQUALIZATION RATE, BUT IN NO EVENT
SHALL SUCH SPECIAL EQUALIZATION RATE EXCEED ONE HUNDRED. IN THE EVENT
THAT THE STATE EQUALIZATION RATE EXCEEDS ONE HUNDRED, THEN THE STATE
EQUALIZATION RATE SHALL BE ONE HUNDRED FOR THE PURPOSES OF THIS SECTION.
WHERE A SPECIAL EQUALIZATION RATE IS ESTABLISHED FOR PURPOSES OF THIS
SECTION, THE ASSESSOR IS DIRECTED AND AUTHORIZED TO RECOMPUTE THE ACTIVE
DUTY SERVICE MEMBER EXEMPTION ON THE ASSESSMENT ROLL BY APPLYING SUCH
SPECIAL EQUALIZATION RATE INSTEAD OF THE LATEST STATE EQUALIZATION RATE
APPLIED IN THE PREVIOUS YEAR AND TO MAKE THE APPROPRIATE CORRECTIONS ON
THE ASSESSMENT ROLL, NOTWITHSTANDING THE FACT THAT SUCH ASSESSOR MAY
RECEIVE THE SPECIAL EQUALIZATION RATE AFTER THE COMPLETION, VERIFICATION
AND FILING OF SUCH FINAL ASSESSMENT ROLL. IN THE EVENT THAT THE ASSESSOR
DOES NOT HAVE CUSTODY OF THE ROLL WHEN SUCH RECOMPUTATION IS ACCOM-
PLISHED, THE ASSESSOR SHALL CERTIFY SUCH RECOMPUTATION TO THE LOCAL
OFFICERS HAVING CUSTODY AND CONTROL OF SUCH ROLL, AND SUCH LOCAL OFFI-
CERS ARE HEREBY DIRECTED AND AUTHORIZED TO ENTER THE RECOMPUTED ACTIVE
DUTY SERVICE MEMBER EXEMPTION CERTIFIED BY THE ASSESSOR ON SUCH ROLL.
(E) "LATEST CLASS RATIO" MEANS THE LATEST FINAL CLASS RATIO ESTAB-
LISHED BY THE COMMISSIONER PURSUANT TO TITLE ONE OF ARTICLE TWELVE OF
THIS CHAPTER FOR USE IN A SPECIAL ASSESSING UNIT AS DEFINED IN SECTION
EIGHTEEN HUNDRED ONE OF THIS CHAPTER.
2. (A) EACH COUNTY, CITY, TOWN OR VILLAGE MAY ADOPT A LOCAL LAW TO
PROVIDE THAT QUALIFYING RESIDENTIAL REAL PROPERTY SHALL BE EXEMPT FROM
TAXATION 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.
(B) IN ADDITION TO THE EXEMPTION PROVIDED BY PARAGRAPH (A) OF THIS
SUBDIVISION, EACH COUNTY, CITY, TOWN OR VILLAGE MAY ADOPT A LOCAL LAW TO
ALLOW AN ACTIVE DUTY SERVICE MEMBER WHO SERVED OR IS SERVING 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 EXPEDITION-
ARY MEDAL, OR GLOBAL WAR ON TERRORISM EXPEDITIONARY MEDAL, AN EXEMPTION
FROM TAXATION OF QUALIFYING RESIDENTIAL REAL PROPERTY 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 PROD-
UCT OF EIGHT THOUSAND DOLLARS MULTIPLIED BY THE LATEST STATE EQUALIZA-
TION RATE FOR THE ASSESSING UNIT, OR IN THE CASE OF A SPECIAL ASSESSING
UNIT, THE CLASS RATIO, WHICHEVER IS LESS.
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(C) 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.
(II) EACH COUNTY, CITY, TOWN OR VILLAGE MAY ADOPT A LOCAL LAW TO
REDUCE THE MAXIMUM EXEMPTION ALLOWABLE IN PARAGRAPHS (A) AND (B) OF THIS
SUBDIVISION TO NINE THOUSAND DOLLARS AND SIX THOUSAND DOLLARS, RESPEC-
TIVELY, OR SIX THOUSAND DOLLARS AND FOUR 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) AND
(B) IN THIS SUBDIVISION TO FIFTEEN THOUSAND DOLLARS AND TEN THOUSAND
DOLLARS, RESPECTIVELY; EIGHTEEN THOUSAND DOLLARS AND TWELVE THOUSAND
DOLLARS, RESPECTIVELY; TWENTY-ONE THOUSAND DOLLARS AND FOURTEEN THOUSAND
DOLLARS, RESPECTIVELY; TWENTY-FOUR THOUSAND DOLLARS AND SIXTEEN THOUSAND
DOLLARS, RESPECTIVELY; TWENTY-SEVEN THOUSAND DOLLARS AND EIGHTEEN THOU-
SAND DOLLARS, RESPECTIVELY; THIRTY THOUSAND DOLLARS AND TWENTY THOUSAND
DOLLARS, RESPECTIVELY; THIRTY-THREE THOUSAND DOLLARS AND TWENTY-TWO
THOUSAND DOLLARS, RESPECTIVELY; OR THIRTY-SIX THOUSAND DOLLARS AND TWEN-
TY-FOUR THOUSAND DOLLARS, RESPECTIVELY. IN ADDITION, A COUNTY, CITY,
TOWN OR VILLAGE WHICH IS A "HIGH APPRECIATION MUNICIPALITY" AS DEFINED
IN THIS SUBPARAGRAPH IS AUTHORIZED TO ADOPT A LOCAL LAW TO INCREASE THE
MAXIMUM EXEMPTION ALLOWABLE IN PARAGRAPHS (A) AND (B) OF THIS SUBDIVI-
SION TO THIRTY-NINE THOUSAND DOLLARS AND TWENTY-SIX THOUSAND DOLLARS,
RESPECTIVELY; FORTY-TWO THOUSAND DOLLARS AND TWENTY-EIGHT THOUSAND
DOLLARS, RESPECTIVELY; FORTY-FIVE THOUSAND DOLLARS AND THIRTY THOUSAND
DOLLARS, RESPECTIVELY; FORTY-EIGHT THOUSAND DOLLARS AND THIRTY-TWO THOU-
SAND DOLLARS RESPECTIVELY; FIFTY-ONE THOUSAND DOLLARS AND THIRTY-FOUR
THOUSAND DOLLARS, RESPECTIVELY; OR FIFTY-FOUR THOUSAND DOLLARS AND THIR-
TY-SIX THOUSAND DOLLARS, RESPECTIVELY. FOR PURPOSES OF THIS SUBPARA-
GRAPH, A "HIGH-APPRECIATION MUNICIPALITY" MEANS: (A) A SPECIAL ASSESSING
UNIT THAT IS A CITY, (B) A COUNTY FOR WHICH THE COMMISSIONER HAS ESTAB-
LISHED A SALES PRICE DIFFERENTIAL FACTOR FOR PURPOSES OF THE STAR
EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-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.
(III) A LOCAL LAW ADOPTED PURSUANT TO THIS SECTION MAY BE REPEALED BY
THE GOVERNING BODY OF THE APPLICABLE COUNTY, CITY, TOWN, OR VILLAGE.
3. APPLICATION FOR EXEMPTION MUST BE MADE BY THE OWNER, OR ALL OF THE
OWNERS, OF THE PROPERTY ON A FORM PRESCRIBED BY THE COMMISSIONER. THE
OWNER OR OWNERS SHALL FILE THE COMPLETED FORM IN THE ASSESSOR'S OFFICE
ON OR BEFORE THE APPROPRIATE TAXABLE STATUS DATE. THE EXEMPTION SHALL
CONTINUE IN FULL FORCE AND EFFECT FOR ONE TAX YEAR. APPLICANTS SHALL BE
REQUIRED TO REFILE ON OR BEFORE THE APPROPRIATE TAXABLE STATUS DATE IF
CHANGES HAVE OCCURRED WHICH AFFECT QUALIFICATION FOR OR AN INCREASED OR
DECREASED AMOUNT OF EXEMPTION. ANY APPLICANT CONVICTED OF MAKING ANY
WILLFUL FALSE STATEMENT IN THE APPLICATION FOR SUCH EXEMPTION SHALL BE
SUBJECT TO THE PENALTIES PRESCRIBED IN THE PENAL LAW.
4. A COUNTY, CITY, TOWN OR VILLAGE THAT ADOPTS A LOCAL LAW TO PROVIDE
FOR THE EXEMPTIONS ALLOWABLE IN PARAGRAPHS (A) AND (B) OF SUBDIVISION
TWO OF THIS SECTION SHALL TAKE ALL REASONABLE EFFORTS TO ENSURE THAT ALL
QUALIFYING RESIDENTIAL REAL PROPERTY IS ELIGIBLE FOR EXEMPTION FROM
TAXATION.
5. NOTWITHSTANDING THE PROVISIONS OF THIS SECTION OR ANY OTHER
PROVISION OF LAW, IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE,
APPLICATIONS FOR THE EXEMPTION AUTHORIZED PURSUANT TO THIS SECTION SHALL
BE CONSIDERED TIMELY FILED IF THEY ARE FILED ON OR BEFORE THE FIFTEENTH
DAY OF MARCH OF THE APPROPRIATE YEAR.
A. 6463 4
6. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE
PROVISIONS OF THIS SECTION SHALL APPLY TO ANY REAL PROPERTY HELD IN
TRUST SOLELY FOR THE BENEFIT OF A PERSON OR PERSONS WHO WOULD OTHERWISE
BE ELIGIBLE FOR A REAL PROPERTY TAX EXEMPTION, PURSUANT TO THIS SECTION,
WERE SUCH PERSON OR PERSONS THE OWNER OR OWNERS OF SUCH REAL PROPERTY.
7. (A) FOR THE PURPOSES OF THIS SECTION, TITLE TO THAT PORTION OF REAL
PROPERTY OWNED BY A COOPERATIVE APARTMENT CORPORATION IN WHICH A
TENANT-STOCKHOLDER OF SUCH CORPORATION RESIDES AND WHICH IS REPRESENTED
BY HIS OR HER SHARE OR SHARES OF STOCK IN SUCH CORPORATION AS DETERMINED
BY ITS OR THEIR PROPORTIONAL RELATIONSHIP TO THE TOTAL OUTSTANDING STOCK
OF THE CORPORATION, INCLUDING THAT OWNED BY THE CORPORATION, SHALL BE
DEEMED TO BE VESTED IN SUCH TENANT-STOCKHOLDER.
(B) PROVIDED THAT ALL OTHER ELIGIBILITY CRITERIA OF THIS SECTION ARE
MET, THAT PROPORTION OF THE ASSESSMENT OF SUCH REAL PROPERTY OWNED BY A
COOPERATIVE APARTMENT CORPORATION DETERMINED BY THE RELATIONSHIP OF SUCH
REAL PROPERTY VESTED IN SUCH TENANT-STOCKHOLDER TO SUCH REAL PROPERTY
OWNED BY SUCH COOPERATIVE APARTMENT CORPORATION IN WHICH SUCH
TENANT-STOCKHOLDER RESIDES SHALL BE SUBJECT TO EXEMPTION FROM TAXATION
PURSUANT TO THIS SECTION AND ANY EXEMPTION SO GRANTED SHALL BE CREDITED
BY THE APPROPRIATE TAXING AUTHORITY AGAINST THE ASSESSED VALUATION OF
SUCH REAL PROPERTY; THE REDUCTION IN REAL PROPERTY TAXES REALIZED THERE-
BY SHALL BE CREDITED BY THE COOPERATIVE APARTMENT CORPORATION AGAINST
THE AMOUNT OF SUCH TAXES OTHERWISE PAYABLE BY OR CHARGEABLE TO SUCH
TENANT-STOCKHOLDER.
(C) NOTWITHSTANDING PARAGRAPH (B) OF THIS SUBDIVISION, A TENANT-STOCK-
HOLDER WHO RESIDED IN A DWELLING THAT IS SUBJECT TO THE PROVISIONS OF
EITHER ARTICLE TWO, FOUR, FIVE OR ELEVEN OF THE PRIVATE HOUSING FINANCE
LAW SHALL NOT BE ELIGIBLE FOR AN EXEMPTION PURSUANT TO THIS SECTION.
(D) NOTWITHSTANDING PARAGRAPH (B) OF THIS SUBDIVISION, REAL PROPERTY
OWNED BY A COOPERATIVE CORPORATION MAY BE EXEMPT FROM TAXATION PURSUANT
TO THIS SECTION BY A MUNICIPALITY IN WHICH SUCH PROPERTY IS LOCATED ONLY
IF THE GOVERNING BODY OF SUCH MUNICIPALITY, AFTER PUBLIC HEARING, ADOPTS
A LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING THEREFOR.
8. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (C) OF SUBDIVISION ONE
AND SUBDIVISION THREE OF THIS SECTION, THE GOVERNING BODY OF ANY MUNICI-
PALITY MAY, AFTER PUBLIC HEARING, ADOPT A LOCAL LAW, ORDINANCE OR RESOL-
UTION PROVIDING THAT WHERE AN ACTIVE DUTY SERVICE MEMBER, THE SPOUSE OF
THE ACTIVE DUTY SERVICE MEMBER OR UNREMARRIED SURVIVING SPOUSE 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 ACTIVE DUTY SERVICE MEMBER,
THE SPOUSE OF THE ACTIVE DUTY SERVICE MEMBER OR UNREMARRIED SURVIVING
SPOUSE 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 REMAINING SUBSEQUENT TO THE TRANSFER OF
TITLE. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO REMOVE THE REQUIRE-
MENT THAT ANY SUCH ACTIVE DUTY SERVICE MEMBER, THE SPOUSE OF THE ACTIVE
DUTY SERVICE MEMBER OR UNREMARRIED SURVIVING SPOUSE 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 ACTIVE DUTY SERVICE MEMBER, THE SPOUSE OF
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THE ACTIVE DUTY SERVICE MEMBER OR UNREMARRIED SURVIVING SPOUSE WISHES TO
RECEIVE THE EXEMPTION IN FUTURE FISCAL YEARS.
S 2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law and shall apply to
assessment rolls prepared on the basis of taxable status dates occurring
on or after such date.