senate Bill S3872A

2013-2014 Legislative Session

Provides for the application of the veterans' real property tax exemptions in N.Y. city

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Feb 10, 2014 print number 3872a
amend and recommit to veterans, homeland security and military affairs
Jan 08, 2014 referred to veterans, homeland security and military affairs
Jun 04, 2013 reported and committed to finance
Feb 26, 2013 referred to veterans, homeland security and military affairs

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S3872 - Bill Details

See Assembly Version of this Bill:
A514A
Current Committee:
Senate Veterans, Homeland Security And Military Affairs
Law Section:
Real Property Tax Law
Laws Affected:
Amd §§458 & 458-a, RPT L
Versions Introduced in 2011-2012 Legislative Session:
S6523A, A9377A

S3872 - Bill Texts

view summary

Provides for the application of the veterans' real property tax exemptions in cities having a population of one million or more.

view sponsor memo
BILL NUMBER:S3872

TITLE OF BILL: 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

PURPOSE: Provides for the application of the veterans' real property
tax exemptions in cities having a population of one million or more

SUMMARY OF PROVISIONS:

Section one amends 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.

Section two amends subdivisions 2 of section 458 of the real property
tax law, as amended by chapter 53 of the laws of 1976.

Section four amends subdivision 2 of section 458-a of the real
property tax law.

Section five grants an exemption pursuant to section 458 and 458-a of
the real property tax law.

Section six is the effective date.

JUSTIFICATION: The Veterans Property Tax Exemption is different from
other property tax breaks in the system. With most exemptions, the
exempted value is fully excluded from the property tax. However, with
the current Veterans exemption, the exempted value is only partially
non-taxable: the property owner must still pay the School Tax Rate on
the exempted value.

This School Tax Rate is the share of the Property Tax that pays for
public schools (DOE). This means the more money the City pays for its
schools, the closer the School Tax Rate will be to the Property Tax
Rate. And so the closer the School Tax Rate is to the Property Tax
Rate, the less a Veterans Property Tax Exemption will be worth. The
School Rate varies from year to year, which causes the relative value
of a Veterans Exemption to fluctuate year to year as well. In the last
two fiscal years, as the City has increased its local share of
spending on DOE in response to reductions in State and Federal
education aid, the value of the Veterans Exemption has decreased.

To eliminate these fluctuations in the exemptions value, this bill
would make the Veterans Exemption like the others and exempt that
value from the School Tax. That means the Veterans Exemption will go
from being only partially nontaxable, to fully nontaxable. This would
also mean that the value of the exemption would rise consistent with
increases in assessed value and/or the appropriate class property tax
rate.(1)

In order to maintain the value of the exemption at approximately its
recent historical level while fully eliminating taxation of the exempt


portion, the nominal value of the exemption will be set at 40 percent
of their current values(2). Thus, a 15% exemption under current law
would be set at 6% under the proposed amended law. Chart 1 shows an
illustrative example of the value of the exemption under current law
and as it would have been under the proposed amendments.

CHART 1 EXAMPLE OF EXEMPTION UNDER CURRENT LAW AND PROPOSED AMENDMENTS

CURRENT LAW PROPOSED
2008 $191 $232
2009 $237 $243
2010 $286 $256
2011 $268 $260
2012 $248 $273

Example based on $15.000 assessed value and 25% exemption (10% under
proposed amendment)

FISCAL IMPLICATIONS: Undetermined.

LEGISLATIVE HISTORY: 2012: S.6523-Referred to Finance / A.9377
Referred to Veterans

EFFECTIVE DATE: 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.

FOOTNOTES:

(1) Some class tax rates have risen as a function of shifts in the
share of total market value of taxable property attributable to the
different classes. The individual tax class rates are determined by
formula and not by legislative action of the City Councilor the State.

(2) The one exception to this is the "Eligible Funds" exemption for
seriously disabled veterans. The value of that exemption will remain
unchanged as it is already exempted from the School Tax and therefore
needs no reform.

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

                                  3872

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 26, 2013
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Veterans, Homeland Securi-
  ty and Military Affairs

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.
                                                           LBD00845-01-3

S. 3872                             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. 3872                             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. 3872                             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. 3872                             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.

Co-Sponsors

S3872A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A514A
Current Committee:
Senate Veterans, Homeland Security And Military Affairs
Law Section:
Real Property Tax Law
Laws Affected:
Amd §§458 & 458-a, RPT L
Versions Introduced in 2011-2012 Legislative Session:
S6523A, A9377A

S3872A (ACTIVE) - Bill Texts

view summary

Provides for the application of the veterans' real property tax exemptions in cities having a population of one million or more.

view sponsor memo
BILL NUMBER:S3872A

TITLE OF BILL: 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

PURPOSE:

Provides for the application of the veterans' real property tax
exemptions in cities having a population of one million or more

SUMMARY OF PROVISIONS:

Section one amends 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.

Section two amends subdivisions 2 of section 458 of the real property
tax law, as amended by chapter 63 of the laws of 1976.

Section four amends subdivision 2 of section 458-a of the real
property tax law.

Section five grants an exemption pursuant to section 458 and 458-a of
the real property tax law.

Section six is the effective date.

JUSTIFICATION:

The Veterans Property Tax Exemption is different from other property
tax breaks in the system. With most exemptions, the exempted value is
fully excluded from the property tax. However, with the current
Veterans exemption, the exempted value is only partially non-taxable:
the property owner must still pay the School Tax Rate on the exempted
value.

This School Tax Rate is the share of the Property Tax that pays for
public schools {DOE). This means the more money the City pays for its
schools, the closer the School Tax Rate will be to the Property Tax
Rate. And so the closer the School Tax Rate is to the Property Tax
Rate, the less a Veterans Property Tax Exemption will be worth. The
School Rate varies from year to year, which causes the relative value
of a Veterans Exemption to fluctuate year to year as well. In the last
two fiscal years, as the City has increased its local share of
spending on DOE in response to reductions in State and Federal
education aid, the value of the Veterans Exemption has decreased.

To eliminate these fluctuations in the exemptions value, this bill
would make the Veterans Exemption like the others and exempt that
value from the School Tax. That means the Veterans Exemption will go
from being only partially nontaxable, to fully nontaxable. This would
also mean that the value of the exemption would rise consistent with
increases in assessed value and/or the appropriate class property tax
rate.(1)


In order to maintain the value of the exemption at approximately its
recent historical level while fully eliminating taxation of the exempt
portion, the nominal value of the exemption will be set at 40 percent
of their current values(2). Thus, a 15% exemption under current law
would be set at 6% under the proposed amended law. Chart 1 shows an
illustrative example of the value of the exemption under current law
and as it would have been under the proposed amendments.

CHART 1 EXAMPLE OF EXEMPTION UNDER CURRENT LAW AND PROPOSED AMENDMENTS

CURRENT LAW PROPOSED

2008 $191 $232
2009 $237 $243
2010 $286 $256
2011 $268 $260
2012 $248 $273

Example based on $15.000 assessed value and 25% exemption (10% under
proposed amendment)

FISCAL IMPLICATIONS:

Undetermined.

LEGISLATIVE HISTORY:

2013: Reported and Committed to Finance
2012: S.6523-Referred to Finance / A.9377 Referred to Veterans

EFFECTIVE DATE:

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.

FOOTNOTES:

(1) Some class tax rates have risen as a function of shifts in the
share of total market value of taxable property attributable to the
different classes. The individual tax class rates are determined by
formula and not by legislative action of the City Councilor the State.

(2) The one exception to this is the "Eligible Funds" exemption for
seriously disabled veterans. The value of that exemption will remain
unchanged as it is already exempted from the School Tax and therefore
needs no reform.

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

                                 3872--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 26, 2013
                               ___________

Introduced  by  Sens.  LANZA,  ADDABBO, AVELLA -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Veter-
  ans,  Homeland  Security  and  Military  Affairs -- recommitted to the
  Committee on Veterans,  Homeland  Security  and  Military  Affairs  in
  accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00845-02-4

S. 3872--A                          2

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-
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

S. 3872--A                          3

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,
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, subparagraphs (i) and (ii) of paragraph (d) as amended by chap-
ter 518 of the laws of 2013, 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

S. 3872--A                          4

assessing unit, the latest class ratio, whichever is less. For  purposes
of  this  paragraph,  where  a person who served in the active military,
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,  village  and
school district taxation if the governing body of the school district in
which  the  property  is located, after public hearings, adopts a resol-
ution providing such exemption,  the  procedure  for  such  hearing  and
resolution  shall  be  conducted  separately  from the procedure for any
hearing and local law or resolution conducted pursuant  to  subparagraph
(ii)  of  this paragraph, subdivision four, paragraph (d) of subdivision
six and paragraph (b) of subdivision seven of  this  section;  PROVIDED,
HOWEVER,  THAT IN ANY CITY WITH A POPULATION OF ONE MILLION OR MORE, THE
EXEMPTION FROM TAXATION PROVIDED BY THIS SUBDIVISION SHALL BE APPLICABLE
TO CITY TAXES AND TAXES LEVIED FOR LOCAL SCHOOL PURPOSES.
  (ii) Each county, city, town, village or school district 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,  respective-
ly.  Each county, city, town, village or school district is also 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
dollars,  ten thousand dollars and fifty thousand dollars, respectively;
eighteen thousand dollars, twelve thousand dollars  and  sixty  thousand
dollars,  respectively;  twenty-one  thousand dollars, fourteen thousand
dollars, and seventy thousand dollars, respectively;  twenty-four  thou-
sand  dollars,  sixteen  thousand  dollars, and eighty thousand dollars,
respectively; twenty-seven thousand 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,  village  or  school
district  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), (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

S. 3872--A                          5

sixty thousand dollars, respectively; fifty-one thousand dollars,  thir-
ty-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, HOWEV-
ER, A HIGH APPRECIATION MUNICIPALITY THAT IS A  SPECIAL  ASSESSING  UNIT
THAT  IS  A CITY WITH A POPULATION OF ONE MILLION OR MORE, IS AUTHORIZED
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-
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,
village or school district 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.

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