NY State Senate Bill 2019-S6700

Senate Bill S6700

2019-2020 Legislative Session

Relates to veteran real property tax exemptions and state funding to localities that grant such exemptions

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Archive: Last Bill Status - In Senate Committee Veterans, Homeland Security And Military Affairs Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to veterans, homeland security and military affairs
Sep 11, 2019	referred to rules

co-Sponsors

2019-S6700 (ACTIVE) - Details

See Assembly Version of this Bill:: A1586
Current Committee:: Senate Veterans, Homeland Security And Military Affairs
Law Section:: Real Property Tax Law
Laws Affected:: Amd §458-a, add §1306-b, RPT L
Versions Introduced in Other Legislative Sessions:: 2013-2014: A9867
2015-2016: S1699, A966
2017-2018: S786, A2696
2021-2022: S3982, A3969

2019-S6700 (ACTIVE) - Summary

Provides that real property tax exemptions authorized by school districts to eligible veterans do not shift taxes to other school district taxpayers or reduce school revenue.

2019-S6700 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6700

SPONSOR: CARLUCCI
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to veteran alternative tax exemptions

 
PURPOSE:

This bill ensures that real property tax exemptions authorized by school
districts to eligible veterans does not shift taxes to other school
district taxpayers or reduce school revenue.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends Real Property Tax. Law Section 458-a by
adding two new subdivisions 9 and 10 to provide that:

*The assessed value of any exemption granted pursuant to this section be
entered on the assessment roll of the taxable property in a separate
column.

*The application of this section not be considered when determining
state aid to schools, debt limits, the amount of taxes to be levied, or
when calculating tax rates for a school district, or apportioning taxes
under the applicable laws.

Section 2 amends the Real Property Tax Law by adding a new Section
1306-b to provide that:

*The amount of taxes to he levied for any school year shall be deter-
mined without regard to the fact that state aid will he payable pursuant
to this section and the tax rate for any school year shall be determined
as if no parcels were exempt from taxation pursuant to

Section 453-a of this chapter.

*The tax rate determined shall be applied to the taxable assessed value
of each parcel after accounting for all applicable exemptions, including
the exemption authorized by Section 458-a of this chapter.

*The tax savings for each parcel receiving the exemption shall be
computed by subtracting the amount actually levied against the parcel
from the amount that would have been levied if not for the exemption.

*The total tax savings provided by each school district pursuant to this
section shall be a state charge payable to a school district as state
aid by submitting an application to the commissioner with such informa-
tion as the commissioner shall require.

*The commissioner may audit an application for state aid pursuant to
this section and if the commissioner determines there has been and over-
payment or underpayment the next payment of state aid to the school
district shall be adjusted accordingly.

* When an exemption approved pursuant to section 458-a of this chapter
is revoked, the aid payable to the school district shall be reduced by
the amount of the taxes attributable to the revoked exemption.


Section 3 amends Real Property Tax Law Section 458-a (c) to amend the
definition of qualified owner to include only those eligible veterans
earning an annual income less than five hundred thousand dollars.

Section 4 is the effective date

 
JUSTIFICATION:

In December 2013, Real Property Tax Law Section 458-a, known as the
alternative veterans tax exemption, was amended to authorize school
districts to grant eligible veterans a partial exemption from their
school taxes. Prior to the amendment, the partial exemption was only
available for real property taxes of a municipality.

Granting school tax exemptions for eligible veterans would result in the
shifting of these taxes to the rest of the school district taxpayers.
This placed school districts in the unenviable position of appearing not
to value the service of veterans if they did not grant the exemption, or
shifting taxes to the rest of the taxpayers regardless of the impact.

As a matter of public policy it is not in the State's interest to shift
taxes from one group to another. Rather, the State should seek to reduce
the tax burden for all taxpayers. This bill would provide for additional
state aid to school districts that authorize the partial tax exemption
for eligible veterans. The state aid would be equal to the amount of the
total tax savings that would result from the authorization of the alter-
native veterans tax exemption.

Accordingly, this bill will allow school districts to provide the
partial tax exemption to their veterans without shifting taxes to the
other school district taxpayers by having the state pay the cost through
state aid. In addition the partial tax exemption would be limited to
eligible veterans whose income is under five hundred thousand dollars.

 
LEGISLATIVE HISTORY:

2017-18: 8786-A2696-A - FINANCE/Veterans' Affairs
2015-16: S1699A/A966A - Veteran's Affairs/Veteran's Affairs
2014: A.9867 - Veteran's Affairs Committee

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2020.

2019-S6700 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6700
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                            September 11, 2019
                                ___________
 
 Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the real property tax law, in relation to veteran alter-
   native tax exemptions
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Section  458-a of the real property tax law is amended by
 adding two new subdivisions 11 and 12 to read as follows:
   11. THE ASSESSED VALUE OF  ANY  EXEMPTION  GRANTED  PURSUANT  TO  THIS
 SECTION SHALL BE ENTERED BY THE ASSESSOR ON THE ASSESSMENT ROLL WITH THE
 TAXABLE PROPERTY, WITH THE AMOUNT OF THE EXEMPTION ENTERED IN A SEPARATE
 COLUMN.
   12.  THE  EXEMPTION  AUTHORIZED  BY THIS SECTION SHALL HAVE THE EFFECT
 SPECIFIED IN  SECTION  THIRTEEN  HUNDRED  SIX-B  OF  THIS  CHAPTER.  THE
 EXEMPTION  SHALL  NOT BE CONSIDERED WHEN DETERMINING STATE AID TO EDUCA-
 TION PURSUANT TO SECTION THIRTY-SIX HUNDRED TWO OF  THE  EDUCATION  LAW,
 WHEN  DETERMINING  SCHOOL  DISTRICT  DEBT  LIMITS  PURSUANT TO LAW, WHEN
 DETERMINING THE AMOUNT OF TAXES TO BE LEVIED BY OR ON BEHALF OF A SCHOOL
 DISTRICT, WHEN CALCULATING TAX RATES FOR A SCHOOL DISTRICT, WHEN  APPOR-
 TIONING TAXES BETWEEN OR AMONG SCHOOL DISTRICTS, WHEN APPORTIONING TAXES
 AMONG CLASSES IN A SPECIAL ASSESSING UNIT UNDER ARTICLE EIGHTEEN OF THIS
 CHAPTER,  OR  WHEN  APPORTIONING  TAXES  BETWEEN  CLASSES IN AN APPROVED
 ASSESSING UNIT UNDER ARTICLE NINETEEN OF THIS CHAPTER.
   § 2. The real property tax law is amended  by  adding  a  new  section
 1306-b to read as follows:
   §  1306-B.    EFFECT  OF  VETERANS  ALTERNATIVE  EXEMPTION UPON SCHOOL
 DISTRICT TAXES; STATE AID. 1. LEVY OF TAXES; DETERMINATION OF TAXES DUE.
 THE AMOUNT OF TAXES TO BE LEVIED FOR ANY SCHOOL YEAR SHALL BE DETERMINED
 WITHOUT REGARD TO THE FACT THAT STATE AID WILL BE  PAYABLE  PURSUANT  TO
 THIS  SECTION.  IN  ADDITION,  THE TAX RATE FOR ANY SCHOOL YEAR SHALL BE
 DETERMINED AS IF NO  PARCELS  WERE  EXEMPT  FROM  TAXATION  PURSUANT  TO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04886-01-9

 S. 6700                             2
 
 SECTION  FOUR  HUNDRED  FIFTY-EIGHT-A  OF THIS CHAPTER. HOWEVER, THE TAX
 RATE SO DETERMINED SHALL BE APPLIED TO THE  TAXABLE  ASSESSED  VALUE  OF
 EACH  PARCEL  AFTER  ACCOUNTING FOR ALL APPLICABLE EXEMPTIONS, INCLUDING
 THE  EXEMPTION  AUTHORIZED BY SECTION FOUR HUNDRED FIFTY-EIGHT-A OF THIS
 CHAPTER.
   2. TAX  SAVINGS.  THE  TAX  SAVINGS  FOR  EACH  PARCEL  RECEIVING  THE
 EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED FIFTY-EIGHT-A OF THIS CHAP-
 TER  SHALL BE COMPUTED BY SUBTRACTING THE AMOUNT ACTUALLY LEVIED AGAINST
 THE PARCEL FROM THE AMOUNT THAT WOULD HAVE BEEN LEVIED IF  NOT  FOR  THE
 EXEMPTION.
   3.  STATE  AID. (A) THE TOTAL TAX SAVINGS DULY PROVIDED BY EACH SCHOOL
 DISTRICT PURSUANT TO THIS SECTION SHALL BE A STATE CHARGE,  WHICH  SHALL
 BE PAYABLE AS PROVIDED HEREIN.
   (B) A SCHOOL DISTRICT 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.
   (C) UPON APPROVING AN APPLICATION  FOR  STATE  AID  PURSUANT  TO  THIS
 SECTION,  THE COMMISSIONER SHALL COMPUTE AND CERTIFY TO THE COMMISSIONER
 OF EDUCATION THE AMOUNTS PAYABLE TO THE SCHOOL DISTRICT. SUCH STATE  AID
 SHALL  BE  PAYABLE  UPON  THE AUDIT AND WARRANT OF THE STATE COMPTROLLER
 FROM VOUCHERS CERTIFIED AND APPROVED BY THE COMMISSIONER  OF  EDUCATION,
 AS  PROVIDED  BY SECTION THIRTY-SIX HUNDRED NINE-E OF THE EDUCATION LAW,
 AS APPLICABLE.
   (D) THE COMMISSIONER MAY AUDIT AN APPLICATION FOR STATE  AID  PURSUANT
 TO  THIS  SECTION  WITHIN ONE YEAR AFTER AUTHORIZING PAYMENT THEREON. IF
 THE COMMISSIONER SHOULD DISCOVER THAT A SCHOOL DISTRICT HAS  RECEIVED  A
 GREATER  OR  LESSER AMOUNT OF SUCH AID THAN IT SHOULD HAVE RECEIVED, THE
 COMMISSIONER SHALL SO NOTIFY THE SCHOOL DISTRICT, AND  SHALL  CAUSE  THE
 NEXT  PAYMENT  OF SUCH AID TO THE SCHOOL DISTRICT TO BE ADJUSTED ACCORD-
 INGLY.
   (E) WHEN AN EXEMPTION PURSUANT TO SECTION FOUR  HUNDRED  FIFTY-EIGHT-A
 OF THIS CHAPTER HAS BEEN REVOKED, THE AID PAYABLE TO THE SCHOOL DISTRICT
 PURSUANT  TO  THIS  SECTION  SHALL BE REDUCED BY THE AMOUNT OF THE TAXES
 ATTRIBUTABLE TO THE REVOKED EXEMPTION.
   § 3. Paragraph (c) of subdivision 1 of section 458-a of the real prop-
 erty tax law, as amended by chapter 100 of the laws of 1988, is  amended
 to read as follows:
   (c)  "Qualified owner" means a veteran, the spouse of a veteran or the
 unremarried surviving spouse of a veteran, PROVIDED SUCH PERSON  IS  NOT
 EARNING  AN ANNUAL INCOME EQUAL TO OR IN EXCESS OF FIVE HUNDRED THOUSAND
 DOLLARS. Where property is owned by more than one qualified  owner,  the
 exemption  to which each is entitled may be combined. Where a veteran is
 also the unremarried surviving spouse of a veteran, such person may also
 receive any exemption to which the deceased spouse was entitled.
   § 4.  This act shall take effect immediately and shall apply to  taxa-
 ble years beginning on and after January 1, 2020.

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Senate Bill S6700

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Sponsored By

David Carlucci