senate Bill S3855

2013-2014 Legislative Session

Provides for the granting of real property tax abatements due to catastrophic loss caused by a natural disaster

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

do you support this bill?

Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to local government
Feb 25, 2013 referred to local government

Co-Sponsors

S3855 - Bill Details

Current Committee:
Law Section:
Real Property Tax Law
Laws Affected:
Add Art 5 Title 2-A ยงยง548 - 548-d, RPT L

S3855 - Bill Texts

view summary

Provides for the granting of real property tax abatements due to catastrophic loss caused by a natural disaster.

view sponsor memo
BILL NUMBER:S3855

TITLE OF BILL: An act to amend the real property tax law, in relation
to the abatement of taxes due to a catastrophic loss caused by a
natural disaster

PURPOSE: To establish in the Real Property Tax Law a procedure to
abate real property taxes for those homeowners that have suffered a
catastrophic loss due to damage caused by a declared natural disaster.
Such catastrophic loss must make such damaged residence uninhabitable
for at least 90 days after such a catastrophic weather event or
natural disaster.

SUMMARY OF PROVISIONS:

Section 1: Creates a new Title 2-A to the Real Property Tax Law to
establish an abatement of real property taxes in the case of a
catastrophic loss to a one, two or three family residence, that is
owner occupied, that is caused by a declared natural disaster. This
provision shall only apply to one, two or three family residences that
are owner occupied that are totally destroyed or in which one or more
of the units of such residence have been extensively damaged. The
home, or at least one unit within the residence, will have had to have
been rendered totally uninhabitable for at least 90 days after the
declared natural disaster has occurred and cannot be reasonably made
fit for habitation within the 90 day period of time after the natural
disaster. In addition, the damage to such residential property must
have occurred within 9 months after the close of the final municipal
real property assessment roll.

The claim for such an abatement must be filed with the municipal
assessor within 11 months of the completion of the final assessment
role. If such abatement is granted, the taxpayer shall have their real
property reappraised to reflect the catastrophic loss and shall pay
the reduced tax levy and all penalties and interest shall be waived.
The assessors board must issue a decision on the tax abatement within
two months after the last day for filing a claim has occurred.

The bill adds a new section 548-d to require New York State to
reimburse the local government for the real property tax lost due for
persons who apply for a real property talc abatement pursuant to this
provision. The reason being, that the local municipality in which the
natural disaster has occurred is also, most probably, financially
stressed due to the natural disaster that occurred within its
jurisdiction. This provision ensures that such local government will
continue to have the tax revenue that it planned to spend for that
fiscal year.

Section 2: Effective date.

EXISTING LAW: Under current law, there is no abatement procedure to
reduce real property taxes for a home owner that has experienced a
catastrophic loss of their home that occurred immediately after the
deadline for establishing the municipal real property tax roll
assessments for the next fiscal year. Such real property tax rolls
close in March of every year.


JUSTIFICATION: Recently, many homeowners in New York State either
lost their homes or such homes were made inhabitable for more than 90
days due to Super-storm Sandy. In addition to bearing the loss of
their home, these families have been required to pay their full real
property taxes because the damage due to Super storm Sandy occurred
six months after the close of the real property assessments for that
taxable year. Under current law, the reasoning for this outcome is
that the taxpayer will see a substantial reduction of their taxes in
the following tax year when the property is reassessed downward to
reflect the reduced value of such residence. However, some of these
residence may be rehabilitated or a new home constructed on the site
before the next year's tax rolls are closed, which will result in an
even higher tax assessment next year. Therefore, at no time will the
property owner receive an abatement for their truly tragic loss, and
they may in the end pay more in real property taxes than they would
have if no such catastrophic loss occurred at all. Families in this
situation, after the event, face a cash crunch of having no place to
live, mounting debts, and other emotional stress. At least, these
families should have the ability to petition their local government to
reduce real property taxes to reflect the true diminished value of
their home.

This bill provides for a procedure so that for eleven months after the
close of the tax assessment rolls, a property owner that has
experienced a catastrophic loss can file an application to reduce
their tax assessment so that it reflects the true value of the parcel.
This bill, if enacted into law, would help to reduce the economic
stress experienced by families that have lost their home, their
possessions, and perhaps loved ones due to a natural disaster that has
reduced their home to rubble.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: To be determined.

LOCAL FISCAL IMPLICATIONS: Minimal.

EFFECTIVE DATE: This act shall take effect retroactively to January 1,
2013.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3855

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 25, 2013
                               ___________

Introduced  by  Sen.  SAVINO -- 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 the  abatement
  of taxes due to a catastrophic loss caused by a natural disaster

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

  Section 1. Article 5 of the real property tax law is amended by adding
a new title 2-A to read as follows:
                                TITLE 2-A
                ABATEMENT OF TAXES DUE TO A CATASTROPHIC
                    LOSS CAUSED BY A NATURAL DISASTER
SECTION 548.   APPLICABILITY OF OTHER PROVISIONS.
        548-A. DEFINITIONS.
        548-B. CATASTROPHIC LOSS TAX ABATEMENT PROCEDURE.
        548-C. COORDINATION WITH SCHOOL AND VILLAGE TAX LEVIES.
        548-D. ABATEMENT; STATE EXPENSE.
  S 548. APPLICABILITY OF OTHER PROVISIONS.  THE  PROVISIONS  OF  TITLES
ONE-A  AND  THREE  OF  THIS ARTICLE SHALL APPLY TO THIS TITLE INSOFAR AS
THEY ARE NOT INCONSISTENT WITH  THE  PROVISIONS  AND  PURPOSES  OF  THIS
TITLE,  WHICH  SHALL SUPERSEDE ANY INCONSISTENT PROVISION OF SUCH TITLES
ONE-A AND THREE. THE PROVISIONS OF  THIS  TITLE  SHALL  APPLY  TO  TAXES
LEVIED BY ALL MUNICIPAL CORPORATIONS ONLY UPON A ONE, TWO OR THREE FAMI-
LY RESIDENCE.
  S 548-A. DEFINITIONS. FOR THE PURPOSES OF THIS TITLE:
  1.  A  FAMILY RESIDENCE HAS UNDERGONE A "CATASTROPHIC LOSS" WHEN IT IS
TOTALLY DESTROYED OR IS SO EXTENSIVELY DAMAGED THAT AT LEAST ONE OF  THE
DWELLING  UNITS  IN  SUCH  RESIDENCE  IS UNFIT FOR HABITATION AND CANNOT
REASONABLY BE MADE FIT FOR HABITATION WITHIN A  PERIOD  OF  NINETY  DAYS
AFTER  THE  DAMAGE OCCURRED.  SUCH CATASTROPHIC LOSS SHALL BE THE CONSE-
QUENCE OF DAMAGE CAUSED BY A NATURAL  DISASTER  OR  OTHER  WEATHER-BASED
EVENT  WHICH  WAS  A DECLARED STATE DISASTER EMERGENCY OR LOCAL STATE OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08513-02-3

S. 3855                             2

EMERGENCY PURSUANT TO ARTICLE TWO-B OF THE EXECUTIVE LAW, INCLUDING, BUT
NOT LIMITED TO, A HURRICANE, WIND STORM, ICE STORM, STORM SURGE,  FLOOD,
WILDFIRE,  EARTHQUAKE,  TORNADO, HIGH WATER, LANDSLIDE, MUDSLIDE OR WAVE
ACTION.
  2.  "FAMILY  RESIDENCE" MEANS AN OWNER-OCCUPIED ONE, TWO OR THREE UNIT
RESIDENTIAL DWELLING.
  S 548-B. CATASTROPHIC LOSS TAX ABATEMENT PROCEDURE.  1.  THE  PROPERTY
OWNER  OF  A  FAMILY  RESIDENCE  WHICH HAS UNDERGONE A CATASTROPHIC LOSS
SHALL BE ELIGIBLE TO FILE A CLAIM FOR A CATASTROPHIC LOSS TAX  ABATEMENT
IF  SUCH  CATASTROPHIC  LOSS  OCCURRED  WITHIN  NINE  MONTHS  AFTER  THE
COMPLETION OF THE FINAL ASSESSMENT ROLL.
  2. SUCH A CLAIM MUST BE FILED WITH THE ASSESSOR OR BOARD OF  ASSESSORS
WITHIN  ELEVEN MONTHS AFTER THE COMPLETION OF THE FINAL ASSESSMENT ROLL.
A STATEMENT OF THE FACTS CONSTITUTING THE BASIS OF THE  CLAIM  SHALL  BE
FILED  ON A FORM PRESCRIBED BY THE COMMISSIONER. SUCH STATEMENT SHALL BE
MADE BY THE OWNER OF THE REAL PROPERTY, OR BY  A  PERSON  AUTHORIZED  IN
WRITING  BY  THE  CLAIMANT  OR HIS OR HER ATTORNEY OR AGENT TO MAKE SUCH
STATEMENT WHO HAS KNOWLEDGE OF THE FACTS STATED  THEREIN.  SUCH  WRITTEN
AUTHORIZATION  SHALL  BE  MADE A PART OF SUCH STATEMENT.  SUCH STATEMENT
SHALL ALSO CONTAIN THE FOLLOWING SENTENCE: "I CERTIFY  THAT  ALL  STATE-
MENTS  MADE  ON  THIS APPLICATION ARE TRUE AND CORRECT TO THE BEST OF MY
KNOWLEDGE AND BELIEF AND I UNDERSTAND THAT THE MAKING OF  ANY  WILLFULLY
FALSE  STATEMENT  OF  MATERIAL  FACT  HEREIN  WILL  SUBJECT  ME  TO  THE
PROVISIONS OF THE PENAL LAW RELEVANT TO THE MAKING AND FILING  OF  FALSE
INSTRUMENTS."  UPON  THE FILING OF SUCH STATEMENT, ALL COLLECTION OF TAX
EFFORTS SHALL BE SUSPENDED AND THE ACCRUAL OF INTEREST OR  PENALTIES  OR
BOTH  SHALL ALSO BE SUSPENDED. IF THE CLAIM IS SUSTAINED, NO INTEREST OR
PENALTY SHALL BE DUE, AND ANY INTEREST OR  PENALTY  PAID  PRIOR  TO  THE
FILING  OF  THE STATEMENT SHALL BE REFUNDED. IF THE CLAIM IS DENIED, ALL
COLLECTION OF TAX EFFORTS SHALL RESUME, AND  INTEREST  OR  PENALTIES  OR
BOTH  SHALL  RESUME   THEIR ACCRUAL RETROACTIVELY TO THE DATE OF SUSPEN-
SION.
  3. THE CLAIM SHALL BE HEARD AND DETERMINED BY THE BOARD OF  ASSESSMENT
REVIEW  OR  ASSESSMENT  REVIEW  COMMISSION,  AS  THE  CASE  MAY  BE. THE
PROCEEDINGS IN HEARING AND DETERMINING THE CLAIM SHALL  BE  MODIFIED  AS
NECESSARY TO SERVE THE PURPOSES OF THIS TITLE AND SHALL BE IN ACCORDANCE
WITH  THE REGULATIONS OF THE COMMISSIONER. ALL CLAIMS SHALL BE HEARD AND
DECIDED NOT LATER THAN TWO MONTHS AFTER THE LAST DAY FOR FILING A CLAIM.
  4. UPON THE DETERMINATION OF A CLAIM, THE BOARD OF  ASSESSMENT  REVIEW
OR  ASSESSMENT  REVIEW COMMISSION, AS THE CASE MAY BE, SHALL GIVE NOTICE
OF THE DETERMINATION TO THE ASSESSOR  OR  BOARD  OF  ASSESSORS  AND  THE
CLAIMANT  WITHIN  FIVE  DAYS OF SUCH DETERMINATION.  NOTWITHSTANDING ANY
INCONSISTENT PROVISION OF LAW, IF THE CLAIM IS DETERMINED TO BE IN FAVOR
OF THE CLAIMANT, THE ASSESSOR OR BOARD OF ASSESSORS  SHALL  CORRECT  THE
TENTATIVE  ASSESSMENT  ROLL,  FINAL  ASSESSMENT ROLL OR TAX ROLL, AS THE
CASE MAY BE, WITHIN FIVE DAYS OF RECEIVING SUCH NOTICE.
  S 548-C. COORDINATION WITH SCHOOL AND VILLAGE TAX LEVIES. THE  COMMIS-
SIONER  SHALL  PROMULGATE REGULATIONS TO COORDINATE ASSESSMENT ROLLS AND
TAX LEVIES OF COUNTIES, CITIES AND TOWNS WITH THOSE OF SCHOOL  DISTRICTS
AND VILLAGES.
  S 548-D. ABATEMENT; STATE EXPENSE. 1. THE ABATEMENT GRANTED TO A PROP-
ERTY  OWNER  PURSUANT TO THIS TITLE SHALL BE A STATE CHARGE, WHICH SHALL
BE PAYABLE AS PROVIDED IN THIS SECTION.
  2. A TAXING AUTHORITY SEEKING STATE AID PURSUANT TO THIS SECTION SHALL
SUBMIT AN APPLICATION THEREFOR  TO  THE  COMMISSIONER.  THE  APPLICATION
SHALL INCLUDE SUCH INFORMATION AS THE COMMISSIONER SHALL REQUIRE.

S. 3855                             3

  3.  UPON  APPROVING  AN  APPLICATION  FOR  STATE  AID PURSUANT TO THIS
SECTION, THE COMMISSIONER SHALL COMPUTE AND CERTIFY THE AMOUNTS  PAYABLE
TO  A  TAXING  AUTHORITY. SUCH STATE AID SHALL BE PAYABLE UPON THE AUDIT
AND WARRANT OF THE STATE COMPTROLLER.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force  and  effect  on  and  after  January  1,  2013;
provided  that  any and all rules and regulations and any other measures
necessary to implement any provision of this act  shall  be  promulgated
and taken on an emergency basis, respectively, within 30 days after this
act shall have become a law.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.