NY State Senate Bill 2023-S5923

Senate Bill S5923

2023-2024 Legislative Session

Authorizes the abatement of municipal and school real property taxes in certain cases of catastrophic loss and establishes procedures therefor

download bill text pdf

Current Bill Status - In Senate Committee Local Government 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to local government
Mar 22, 2023	referred to local government

2023-S5923 (ACTIVE) - Details

See Assembly Version of this Bill:: A2016
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Add Art 5 Title 2-A §§548 - 548-c, RPT L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A6370
2011-2012: A1249
2013-2014: A339
2015-2016: A2606
2017-2018: A1600
2019-2020: A1699
2021-2022: A5715

2023-S5923 (ACTIVE) - Summary

Authorizes the abatement of real property taxes in certain cases of catastrophic loss; establishes procedures therefor; limits eligibility to one, two, or three family houses; applies to all municipal and school taxes.

2023-S5923 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5923

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to the abatement
of taxes in certain cases of catastrophic loss

 
PURPOSE OR GENERAL IDEA OF BILL:

To establish in the Real Property Tax Law a procedure to abate real
property taxes for those homeowners that have suffered a catastrophic
loss that has made their residence uninhabitable for at least 180 days
after such event, such as a fire, flood, gas explosion, or other
catastrophic incident.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Creates a new Title 2-A to the Real Property Tax Law to
establish an abatement of taxes in the case of a catastrophic loss.
This provision shall only apply to one, two or three family residences
that are owner occupied. The home will have to have been rendered total-

ly uninhabitable for at least 180 days after the fire, flood, gas explo-
sion or other event has occurred. The claim for such an abatement must
be filed with the municipal assessor within 6 months of the completion
of the final assessment role. If such abatement is granted, the taxpayer
shall have their real property reappraised to reflect the catastrophic
loss and shall pay the reduced tax levy and all penalties and interest
shall be waived. The assessors board must issue a decision on the tax
abatement within two months after the last day for filing a claim has
occurred. Section 2:  Effective date.

 
EXISTING LAW:

Under current law, there is no abatement procedure to reduce real prop-
erty taxes for a homeowner that has experienced a catastrophic loss of
their home that occurred immediately after the deadline for establishing
the town's tax assessments for the year.

 
JUSTIFICATION:

In the Mid-Hudson Valley, there was a family that lost their home due to
a gas explosion which resulted in the total loss of their home. In addi-
tion to bearing the loss of their home, the family was required to pay
their full real property taxes because the gas explosion occurred one
month after the close of the assessment books. Under current law, the
reasoning for this outcome is that the taxpayer will see a substantial
reduction of their taxes in the following tax year when the property is
reassessed. However, as in this situation, a new home may be constructed
within nine months, which will result in an even higher tax assessment
next year. Therefore, at no time will the property owner receive an
abatement for their truly tragic loss, and may in the end pay more in
real property taxes than they would have if no such catastrophic loss
occurred at all. This bill provides for a procedure so that for six
months after the close of the tax assessment rolls, a property owner
that has experienced a catastrophic loss can file an application to
reduce their tax assessment so that it reflects the true value of the
parcel. This bill, if enacted into law, would help to reduce the econom-
ic stress experienced by families that have lost their home, their
possessions, and perhaps loved ones due to a residential fire, flood,
gas explosion or other event that reduced their home to rubble.

 
PRIOR LEGISLATIVE HISTORY:

2005-06, S.2948

2007-08, S.420

02/14/2012 A.1249 - held for consideration in real property taxation,

01/08/14 referred to real property taxation,

A2606 04/12/16 held for consideration in real property taxation,

A.1600of 2017-18 held for consideration in real property taxation

A.1699- 07/16/20 held for consideration in real property taxation

A5715- 05/10/22- held for consideration in real property taxation

 
FISCAL IMPLICATIONS:

None.

 
LOCAL FISCAL IMPLICATIONS:

Minimal.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law; provided that any and all rules and regulations
and any other measures necessary to implement any provision of this act
on its effective date may be promulgated and taken, respectively, on or
before the effective date of such provision.

2023-S5923 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5923
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 22, 2023
                                ___________
 
 Introduced  by Sen. BORRELLO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real property tax law, in relation to the  abatement
   of taxes in certain cases of catastrophic loss
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Article 5 of the real property tax law is amended by adding
 a new title 2-A to read as follows:
                                 TITLE 2-A
            ABATEMENT OF TAXES IN THE CASE OF CATASTROPHIC LOSS
 SECTION 548.   APPLICABILITY OF OTHER PROVISIONS.
         548-A. DEFINITIONS.
         548-B. CATASTROPHIC LOSS TAX ABATEMENT PROCEDURE.
         548-C. COORDINATION WITH SCHOOL AND VILLAGE TAX LEVIES.
   § 548. APPLICABILITY OF OTHER PROVISIONS.  THE  PROVISIONS  OF  TITLES
 ONE-A  AND  THREE  OF  THIS ARTICLE SHALL APPLY TO THIS TITLE INSOFAR AS
 THEY ARE NOT INCONSISTENT WITH  THE  PROVISIONS  AND  PURPOSES  OF  THIS
 TITLE,  WHICH  SHALL SUPERSEDE ANY INCONSISTENT PROVISION OF SUCH TITLES
 ONE-A AND THREE. THE PROVISIONS OF  THIS  TITLE  SHALL  APPLY  TO  TAXES
 LEVIED BY ALL MUNICIPAL CORPORATIONS ONLY UPON A ONE, TWO OR THREE FAMI-
 LY RESIDENCE.
   § 548-A. DEFINITIONS. FOR THE PURPOSES OF THIS TITLE:
   1.  A  ONE,  TWO OR THREE FAMILY RESIDENCE HAS UNDERGONE "CATASTROPHIC
 LOSS" WHEN IT IS TOTALLY DESTROYED OR IS SO EXTENSIVELY DAMAGED THAT ALL
 DWELLING UNITS IN SUCH RESIDENCE ARE UNFIT  FOR  HABITATION  AND  CANNOT
 REASONABLY  BE  MADE  FIT  FOR HABITATION WITHIN A PERIOD OF ONE HUNDRED
 EIGHTY DAYS AFTER THE DAMAGE OCCURRED.
   2. "FAMILY RESIDENCE" MEANS AN OWNER-OCCUPIED RESIDENTIAL DWELLING.
   § 548-B. CATASTROPHIC LOSS TAX  ABATEMENT  PROCEDURE.  1.  A  PROPERTY
 OWNER  IS ELIGIBLE TO FILE A CLAIM FOR A CATASTROPHIC LOSS TAX ABATEMENT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02911-01-3
 S. 5923                             2

 
 IF THE CATASTROPHIC LOSS OCCURRED WITHIN SIX MONTHS AFTER THE COMPLETION
 OF THE FINAL ASSESSMENT ROLL.
   2.  SUCH A CLAIM MUST BE FILED WITH THE ASSESSOR OR BOARD OF ASSESSORS
 WITHIN SIX MONTHS AFTER THE COMPLETION OF THE FINAL ASSESSMENT  ROLL.  A
 STATEMENT  OF  THE  FACTS  CONSTITUTING  THE BASIS OF THE CLAIM SHALL BE
 FILED ON A FORM PRESCRIBED BY THE COMMISSIONER. SUCH STATEMENT SHALL  BE
 MADE  BY  THE  OWNER  OF THE REAL PROPERTY, OR BY A PERSON AUTHORIZED IN
 WRITING BY THE CLAIMANT OR HIS OR HER ATTORNEY OR  AGENT  TO  MAKE  SUCH
 STATEMENT  WHO  HAS  KNOWLEDGE OF THE FACTS STATED THEREIN. SUCH WRITTEN
 AUTHORIZATION SHALL BE MADE A PART OF SUCH STATEMENT  AND  BEAR  A  DATE
 WITHIN  THE SAME CALENDAR YEAR DURING WHICH THE COMPLAINT IS FILED. SUCH
 STATEMENT SHALL ALSO CONTAIN THE FOLLOWING SENTENCE: "I CERTIFY THAT ALL
 STATEMENTS MADE ON THIS APPLICATION ARE TRUE AND CORRECT TO THE BEST  OF
 MY KNOWLEDGE AND BELIEF AND I UNDERSTAND THAT THE MAKING OF ANY WILLFUL-
 LY  FALSE  STATEMENT  OF  MATERIAL  FACT  HEREIN  WILL SUBJECT ME TO THE
 PROVISIONS OF THE PENAL LAW RELEVANT TO THE MAKING AND FILING  OF  FALSE
 INSTRUMENTS."  UPON  THE FILING OF SUCH STATEMENT, ALL COLLECTION OF TAX
 EFFORTS SHALL BE SUSPENDED AND THE ACCRUAL OF INTEREST OR  PENALTIES  OR
 BOTH  SHALL ALSO BE SUSPENDED. IF THE CLAIM IS SUSTAINED, NO INTEREST OR
 PENALTY SHALL BE DUE, AND ANY INTEREST OR  PENALTY  PAID  PRIOR  TO  THE
 FILING  OF  THE STATEMENT SHALL BE REFUNDED. IF THE CLAIM IS DENIED, ALL
 COLLECTION OF TAX EFFORTS SHALL RESUME, AND  INTEREST  OR  PENALTIES  OR
 BOTH  SHALL  RESUME   THEIR ACCRUAL RETROACTIVELY TO THE DATE OF SUSPEN-
 SION.
   3. THE CLAIM SHALL BE HEARD AND DETERMINED BY THE BOARD OF  ASSESSMENT
 REVIEW  OR  ASSESSMENT  REVIEW  COMMISSION,  AS  THE  CASE  MAY  BE. THE
 PROCEEDINGS IN HEARING AND DETERMINING THE CLAIM SHALL  BE  MODIFIED  AS
 NECESSARY TO SERVE THE PURPOSES OF THIS TITLE AND SHALL BE IN ACCORDANCE
 WITH  THE REGULATIONS OF THE COMMISSIONER. ALL CLAIMS SHALL BE HEARD AND
 DECIDED NOT LATER THAN TWO MONTHS AFTER THE LAST DAY FOR FILING A CLAIM.
   4. UPON THE DETERMINATION OF A CLAIM, THE BOARD OF  ASSESSMENT  REVIEW
 OR  ASSESSMENT  REVIEW COMMISSION, AS THE CASE MAY BE, SHALL GIVE NOTICE
 OF THE DETERMINATION TO THE ASSESSOR  OR  BOARD  OF  ASSESSORS  AND  THE
 CLAIMANT  WITHIN  FIVE  DAYS OF SUCH DETERMINATION.  NOTWITHSTANDING ANY
 INCONSISTENT PROVISION OF LAW, IF THE CLAIM IS DETERMINED TO BE IN FAVOR
 OF THE CLAIMANT, THE ASSESSOR OR BOARD OF ASSESSORS  SHALL  CORRECT  THE
 TENTATIVE  ASSESSMENT  ROLL,  FINAL  ASSESSMENT ROLL OR TAX ROLL, AS THE
 CASE MAY BE, WITHIN FIVE DAYS OF RECEIVING SUCH NOTICE.
   § 548-C. COORDINATION WITH SCHOOL AND VILLAGE TAX LEVIES. THE  COMMIS-
 SIONER  SHALL  PROMULGATE REGULATIONS TO COORDINATE ASSESSMENT ROLLS AND
 TAX LEVIES OF COUNTIES, CITIES AND TOWNS WITH THOSE OF SCHOOL  DISTRICTS
 AND VILLAGES.
   § 2. This act shall take effect on the one hundred eightieth day after
 it  shall  have become a law. Effective immediately the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such date.

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