senate Bill S4388

2013-2014 Legislative Session

Authorizes real property taxing jurisdictions to grant a partial tax exemption for property purchased by a physician in a physician shortage area

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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
May 20, 2014 reported and committed to finance
Jan 08, 2014 referred to health
May 21, 2013 reported and committed to finance
Mar 26, 2013 referred to health

Votes

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May 20, 2014 - Health committee Vote

S4388
15
0
committee
15
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Health committee vote details

May 21, 2013 - Health committee Vote

S4388
13
0
committee
13
Aye
0
Nay
4
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Health committee vote details

Co-Sponsors

S4388 - Bill Details

Current Committee:
Senate Finance
Law Section:
Public Health Law
Laws Affected:
Amd §206, Pub Health L; add §439, RPT L
Versions Introduced in 2011-2012 Legislative Session:
S6919

S4388 - Bill Texts

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Authorizes real property taxing jurisdictions to grant a partial tax exemption for property purchased by a physician in a physician shortage area, as determined by the commissioner of health, which will be such physician's primary residence and he or she will practice in such shortage area.

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BILL NUMBER:S4388

TITLE OF BILL: An act to amend the public health law and the real
property tax law, in relation to authorizing real property taxing
jurisdictions to grant a tax exemption for a primary residence
purchased by a physician in a physician shortage area

PURPOSE: The purpose of this bill is to provide a partial tax
exemption for real property purchased by a physician for use as
primary residence when the physician works in and the property is
located in a physician shortage area designated by the Commissioner.

SUMMARY OF PROVISIONS:

Section 1 states the legislative findings and intent.

Section 2 states the Commissioner of health shall biennially designate
and make available a list of designated physician shortage areas by
county or other sub-county geographic area that lacks primary care
and/or other medical specialty physicians in a manner consistent with
designated physician shortage area determinations made under the
Doctors Across New York Program.

Section 3 authorizes an exemption from local property and school taxes
for primary residential property purchases of physicians residing and
working in areas designated by the Commissioner as experiencing a
physician shortage, conditioned upon the local taxing authority
passing an authorizing law or resolution. The exemption cannot be for
a period longer than 5 years, on property purchased after on or after
the effective date of this act, and is for a maximum of 35% of the
value of the real property's assessed value.

Section 3 is the effective date.

EXISTING LAW: None.

JUSTIFICATION: Many communities in New York State are experiencing a
growing physician shortage, reaching crisis proportions in some
geographic regions and in some medical specialties. A survey of its
members by the Health Care Association of New York State (HANYS)
reported that 104 hospitals outside of New York City had a current
need for 1,400 physicians (almost 40% in primary care). In addition to
primary care, severe shortages exist in general surgery, OB-GYN,
urology and psychiatry. Many areas of the State have seen rapid
declines in their physicians supply and with an average physician age
of 52 (almost 30% are over 60 years of age); the shortage is only
expected to worsen.

On the demand side for physician services, New York's population age
65 and over increased 25% between 1980 and 2000 and, the population
over age 80 (who use the most health resources) is expected to double
by the year 2020.

Clearly, both the health care community and state government must
focus on physician supply issue and work together to implement a
multi-faceted plan to address the problem. The "Doctors Across New
York" Program was a strong step forward with awards made in March of


2009 after the program was enacted as part of the 2008-2009 State.
However, additional initiatives are vital to the continued viability
of rural New York State.

By exempting part of a physician's residence from real property tax
when the local taxing authority chooses to grant the exemption, the
legislation provides New York State's medically underserved
communities with another tool to attract physicians.

This physician shortage is an imminent threat to the health, safety
and the economic viability of these communities and their residents.
While this legislation will have a financial impact on the local
governments and school districts via foregone tax revenue, the
severity of the problem requires aggressive action and justifies these
expenditures even in this fiscally difficult period.

LEGISLATIVE HISTORY: 2012: S.6919 COMMITTED TO RULES; A. 9810
Referred to Real Property Taxation Committee

FISCAL IMPLICATIONS: Undetermined.

LOCAL FISCAL IMPLICATIONS: Local taxing authorities would have an
undetermined fiscal impact from real property exempted from property
taxes; however this exemption is at their discretion. Furthermore, the
presence of an adequate health care system has been demonstrated to be
a significant factor in driving economic investment and growth within
communities.

EFFECTIVE DATE: This bill take effects immediately and applies to tax
years on and after March first next succeeding the date on which it
shall have become law, or in the case of municipal taxing authorities
who have a taxable status date other than March first established by
charter, then this act shall take effect with the first establishment
of the taxable status of real property in the municipality, next
succeeding the date on which it shall have become law.

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

                                  4388

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 26, 2013
                               ___________

Introduced by Sen. YOUNG -- (at request of the Legislative Commission on
  Rural  Resources)  -- read twice and ordered printed, and when printed
  to be committed to the Committee on Health

AN ACT to amend the public health law and the real property tax law,  in
  relation  to authorizing real property taxing jurisdictions to grant a
  tax exemption for a primary residence purchased by a  physician  in  a
  physician shortage area

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

  Section 1.  Legislative findings and intent.  The  legislature  hereby
finds  that  several  communities  within  the state, particularly those
located within rural areas, lack adequate access to  physicians.  It  is
well  established  that  ensuring the sufficient availability of general
practitioners and specialists directly  benefits  the  health  of  state
residents, and the legislature has enacted several measures towards that
end.
  Furthermore,  the legislature finds that municipalities are often best
situated to evaluate the needs of their communities.  Therefore,  it  is
the intent of the legislature to offer counties, cities, towns, villages
and school districts the option to provide real property tax exemptions,
should  they  determine  that  such an incentive would aid in attracting
physicians to areas currently underserved by the medical community.
  S 2. Section 206 of the public health law is amended by adding  a  new
subdivision 29 to read as follows:
  29. (A) THE COMMISSIONER SHALL BIENNIALLY DESIGNATE AND MAKE AVAILABLE
A LIST OF DESIGNATED PHYSICIAN SHORTAGE AREAS IN THE STATE. A DESIGNATED
PHYSICIAN SHORTAGE AREA SHALL BE A COUNTY OR OTHER SUB-COUNTY GEOGRAPHIC
AREA  DETERMINED BY THE COMMISSIONER TO BE IN SHORT SUPPLY OF PHYSICIANS
IN PRIMARY CARE PRACTICE AND/OR ONE OR MORE  MEDICAL  SPECIALITIES.  THE
LIST  SHALL INDICATE FOR EACH DESIGNATED PHYSICIAN SHORTAGE AREA, IF THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02531-03-3

S. 4388                             2

AREA IS IN SHORT SUPPLY OF PRIMARY CARE  PHYSICIANS  AND  WHICH  MEDICAL
SPECIALITIES ARE IN SHORT SUPPLY IN THE DESIGNATED SHORTAGE AREA.
  (B)  IN  ESTABLISHING DESIGNATED PHYSICIAN SHORTAGE AREAS, THE COMMIS-
SIONER, TO THE EXTENT PRACTICABLE,  SHALL  UTILIZE  CRITERIA  CONSISTENT
WITH  THE  CRITERIA  UTILIZED  TO MAKE AWARDS FOR THE PHYSICIAN PRACTICE
SUPPORT PROGRAM ESTABLISHED PURSUANT TO  PARAGRAPH  (E)  OF  SUBDIVISION
FIVE-A OF SECTION TWENTY-EIGHT HUNDRED SEVEN-M OF THIS CHAPTER.
  (C)  FOR  THE  PURPOSES  OF  THIS  SUBDIVISION,  "MEDICAL SPECIALTY OR
SPECIALTY AREA" SHALL MEAN THE BRANCH OR BRANCHES OF SPECIAL  COMPETENCE
WITHIN  A  PHYSICIAN'S  MEDICAL  PRACTICE  AS EVIDENCED BY THEIR CERTIF-
ICATION BY A SPECIALITY MEDICAL BOARD ACCEPTABLE TO THE COMMISSIONER.
  S 3. The real property tax law is amended by adding a new section  439
to read as follows:
  S  439.  REAL PROPERTY TAX EXEMPTIONS IN DESIGNATED PHYSICIAN SHORTAGE
AREA. 1. A MUNICIPAL CORPORATION OR  SCHOOL  DISTRICT  MAY  EXEMPT  REAL
PROPERTY  PURCHASED  BY A PHYSICIAN FOR USE SOLELY AS HIS OR HER PRIMARY
RESIDENCE, TO THE EXTENT PROVIDED IN THIS SECTION, FROM TAXATION BY SUCH
MUNICIPAL CORPORATION OR SCHOOL DISTRICT IF THE PHYSICIAN RESIDES IN AND
HAS AN OFFICE LOCATED WITHIN A PHYSICIAN SHORTAGE AREA AS DESIGNATED  BY
THE  COMMISSIONER  OF  HEALTH  PURSUANT  TO  SUBDIVISION  TWENTY-NINE OF
SECTION TWO HUNDRED SIX OF THE PUBLIC HEALTH LAW.  AFTER A PUBLIC  HEAR-
ING,  THE  GOVERNING  BODY  OF A MUNICIPAL CORPORATION MAY ADOPT A LOCAL
LAW, AND THE BOARD OF A SCHOOL DISTRICT, OTHER THAN  A  SCHOOL  DISTRICT
SUBJECT  TO  ARTICLE  FIFTY-TWO OF THE EDUCATION LAW, MAY ADOPT A RESOL-
UTION, TO GRANT THE EXEMPTION AUTHORIZED PURSUANT TO THIS SECTION.
  2. EXEMPTIONS PROVIDED PURSUANT TO SUBDIVISION  ONE  OF  THIS  SECTION
SHALL  ONLY  APPLY  TO REAL PROPERTY PURCHASED ON OR AFTER THE EFFECTIVE
DATE OF THIS SECTION, AND THE SUBSEQUENT ENACTMENT OF  A  LOCAL  LAW  OR
ADOPTION OF A RESOLUTION TO GRANT SUCH REAL PROPERTY TAX EXEMPTION.
  3.  ANY LOCAL LAW OR RESOLUTION ADOPTED PURSUANT TO SUBDIVISION ONE OF
THIS SECTION SHALL ESTABLISH THE DURATION  AND  PERCENTAGE  OF  SUCH  AN
EXEMPTION,  WHICH  SHALL EXCEED NEITHER A PERIOD OF FIVE YEARS NOR THIR-
TY-FIVE PERCENT OF THE PROPERTY'S ASSESSED  VALUE.  SUCH  LOCAL  LAW  OR
RESOLUTION  MAY  INCLUDE OTHER CONDITIONS OR RESTRICTIONS, INCLUDING BUT
NOT LIMITED TO PROVISIONS REGARDING THE MAXIMUM VALUE OF ELIGIBLE  PROP-
ERTY,  AT  THE  DISCRETION  OF THE PROMULGATING MUNICIPAL CORPORATION OR
SCHOOL DISTRICT.
  4. A COPY OF SUCH LOCAL LAWS OR RESOLUTIONS SHALL BE  FILED  WITH  THE
STATE  BOARD  AND  THE ASSESSOR FOR SUCH MUNICIPAL CORPORATION OR SCHOOL
DISTRICT WHO PREPARES THE ASSESSMENT ROLL UPON WHICH THE TAXES  OF  SUCH
MUNICIPAL CORPORATION OR SCHOOL DISTRICT ARE LEVIED.
  S  4.  This  act  shall take effect immediately and shall apply to tax
years beginning on or after the first  of  March  next  succeeding  such
effective  date;  or  in  the case of municipal taxing authorities which
have a taxable status date other than March first established  by  char-
ter,  this  act  shall  take  effect with the first establishment of the
taxable status of real property in the municipality next succeeding  the
effective date of this act.

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