S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5336
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 11, 2019
                                ___________
 
 Introduced by M. of A. DiPIETRO -- read once and referred to the Commit-
   tee 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:
   § 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.
              

                                                            LBD07601-01-9

 A. 5336                             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.

 A. 5336                             3
 
   (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. 5336                             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 THEREBY SHALL BE
 CREDITED  BY THE COOPERATIVE APARTMENT CORPORATION AGAINST THE AMOUNT OF
 SUCH TAXES OTHERWISE PAYABLE BY OR CHARGEABLE TO SUCH  TENANT-STOCKHOLD-
 ER.
   (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

 A. 5336                             5
 
 THE ACTIVE DUTY SERVICE MEMBER OR UNREMARRIED SURVIVING SPOUSE WISHES TO
 RECEIVE THE EXEMPTION IN FUTURE FISCAL YEARS.
   §  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.