BILL NUMBER: S8942

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend chapter 317 of the laws of 2020 relating to establishing
the real property tax exemption task force, and providing for its powers
and duties, in relation to the effectiveness thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill will extend the real property tax exemption task force to
examine the real property tax exemption laws and to recommend changes,
if any, to those laws.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 6 of chapter 317 of the laws of
2020 relating to establishing the real property tax exemption task force
and providing for its powers and duties to take effective immediately
and expire and be deemed repealed four years after the effective date.

              

Section 2 is the effective date.

 
JUSTIFICATION:

The largest source of revenue for local governments in New York is the
real property tax. Real property tax exemptions have a significant
impact on both local governments and taxpayers.

According to a Property Tax Exemptions report issued by the Office of
the New York State Comptroller in 2018, in 2016, property tax exemptions
totaled $457 billion, or about 30 percent of the $1.5 trillion in total
property value outside New York City. For the fiscal year ending 2015,
Industrial Development Agencies (IDAs) reported $1 billion value of
property tax exemptions granted of which $500 million of that amount was
offset by Payments in Lieu of Taxes (PILOTs).

These real property tax exemptions are provided to a wide array of enti-
ties from government properties to profitable business and corpora-
tions-for example, the National Football League. These taxes are shifted
to other taxpayers most notably increasing the already high tax burden
of homeowners and small businesses.

Chapter 131 of the Laws of 2021 and Chapter 317 of the Laws of 2020 were
enacted to establish a real property tax exemption task force within the
department of taxation and finance to study and prepare a report of its
findings and recommendations to the Legislature.

The work of this task force was to be completed within two years of the
effective date which is approaching. Real property tax exemptions need
to be thoroughly examined to ensure that everyone is paying their fair
share for the services they use.As the work of the task force has not
been completed this bill will extend the task force for another two
years. This will give the task force additional time to study this issue
and make the necessary recommendations to the Legislature to ensure
greater fairness.

 
PRIOR LEGISLATIVE HISTORY:
New Bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.