Senate Bill S745

                                 BILL NUMBER:  S745

 TITLE OF BILL :

An act to amend the real property tax law, in relation to state aid
for certain towns adversely affected by a concentration of tax exempt
property

 PURPOSE :

This bill creates a new category of state aid for certain towns based
on the amount of tax exempt property in their jurisdiction.

 SUMMARY OF PROVISIONS :

Section 1 amends the Real Property Tax Law by adding a new Section
532-a providing that for any city, town, village, or fire district to
be eligible for a new category of state aid at least 35 percent of the
real property in the city, town, village, or fire district, by value,
must be exempt from taxation. The funds available to assist eligible
cities, towns, villages, or fire districts are allocated based on a
formula. Fifty percent of the distribution is based on the town's
population. The remaining 50 percent is based on the amount of tax
exempt property in the town.

Section 2 is the effective date.
              

 JUSTIFICATION :

Real property taxes are the main way local governments are able to
raise revenue and provide necessary services to the residents of their
city, town, village, or fire district. When a large concentration,
over 35 percent by value, of the property in a city, town, village, or
fire district, is exempt from taxation, there is a significant portion
of land for which real property taxes cannot be collected to support
the services provided by the locality. This significantly reduces the
property tax base and limits the number of property owners that pay
taxes to support the town's services. This places an increased burden
on the taxpayers for support of a city's, town's, village's, or fire
district's services.

This bill will aid the taxpayers and the cities, towns, villages, and
fire districts, that have a significantly high amount of real property
that is exempt from taxation by allowing the state to appropriate and
distribute funds, based upon a formula, to the towns which have a
significantly high amount, over 35 percent by value, of real property
that is exempt from taxation.

 LEGISLATIVE HISTORY :

2015-2016: S.1821/ A.1026
2013-2014: S.4605/ A.1079

 FISCAL IMPLICATIONS :

Subject to budgetary appropriation.

 EFFECTIVE DATE :
This bill shall take effect immediately and shall apply to assessment
rolls prepared on the basis of taxable status dates occurring and
after the date on which this act shall have become a law.