NY State Senate Bill 2023-S7871A

Senate Bill S7871A

2023-2024 Legislative Session

Directs the department of taxation and finance to establish a pilot program for implementation of local land value taxation

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 14, 2024	print number 7871a
May 14, 2024	amend (t) and recommit to local government
Jan 03, 2024	referred to local government

Bill Amendments

Original

A (Active)

2023-S7871 - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Taxation

2023-S7871 - Summary

Directs the department of taxation and finance to establish a pilot program for implementation of local land value taxation based on classes of land; directs the department of taxation and finance to establish an application procedure for the pilot program.

2023-S7871 - Sponsor Memo

                                 
BILL NUMBER: S7871

SPONSOR: MAY
 
TITLE OF BILL:

An act to direct the secretary of state to establish a pilot program for
implementation of local land value taxation

 
PURPOSE:

To create a pilot program for up to 5 municipalities to implement a land
value taxation system

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 establishes that the secretary of state shall establish a
pilot program for up to 5 municipalities to develop a plan for implemen-
tation of land value taxation

Section 2 establishes the effective date of the bill

JUSTIFICATION:

In 2023, facing economic and tax challenges not dissimilar to many Amer-
ican cities, Detroit's, Mayor, Mike Duggan, proposed a solution known as
a land value tax. This tax, also referred to as a split-rate tax,
involved taxing land at a higher rate to taxing infrastructure on the
land.

The key objective of this approach is to encourage the optimal use of
land by providing a reduced tax increase for land development. This will
promote infill development, rather than continuous outward sprawl from
city centers. By implementing this tax, speculation and wasteful use of
land are discouraged, as the cost of owning undeveloped land is
increased. The land value tax can alleviate the burden on homeowners in
many cities. It ensures that owners of high-value land, currently
utilized for low-value purposes, contribute their fair share.

Land value taxes have drawn interest and been put into practice else-
where, including in New York. In 1993, Governor Mario Cuomo approved a
bipartisan bill allowing Amsterdam to implement a land tax, but it was
later repealed due to a change in mayoral administration. More recently,
Buffalo's city council passed a resolution to study the implementation
of a land value tax in February 2023. Pennsylvania has permitted this
form of taxation since 1913, with 15 cities currently using a form of
land value tax.

While property taxes are frequently discussed, there has been little
opportunity for innovation and policy advancement. This bill establishes
a pilot program granting permission and support to up to 5 munici-
palities to implement a land value tax, providing an opportunity for
experimentation and progress in tax policy.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Immediately

2023-S7871 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7871
 
                             I N  S E N A T E
 
                              January 3, 2024
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to direct the secretary of state to establish a pilot program for
   implementation of local land value taxation
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  1. The secretary of state shall establish a pilot program
 in up to five  municipalities  under  which  such  municipalities  shall
 develop  a plan for implementation of land value taxation that (a) clas-
 sifies real estate included in such municipality's  assessment  roll  as
 (i)  land or land exclusive of buildings, or (ii) buildings on land; and
 (b) establishes a different local property tax rate for each such class,
 provided the higher local property tax rate shall apply to land or  land
 exclusive of buildings.
   2. The secretary of state shall establish an application procedure and
 any  other  criteria for the pilot program established under subdivision
 one of this section, under which municipalities may apply to participate
 in such pilot program, and shall send a copy of such application  proce-
 dure and any other criteria to the temporary president of the senate and
 the  speaker  of  the  assembly.   If a municipality having a population
 greater than 50,000 applies for participation  in  such  pilot  program,
 such municipality shall designate a specific neighborhood or area within
 such  municipality  that would participate in such program, if selected.
 The secretary of state shall not select a municipality  for  such  pilot
 program  unless  the  legislative body of such municipality has approved
 such municipality's application for participation in such pilot program.
 The secretary of state shall send a notice of selection for  such  pilot
 program  to  the  chief executive officer of the municipality and to the
 temporary president of the senate and the speaker of the assembly.
   § 2. This act shall take effect immediately.
 

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13486-02-3

2023-S7871A (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Taxation

2023-S7871A (ACTIVE) - Summary

2023-S7871A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7871A

SPONSOR: MAY
 
TITLE OF BILL:

An act to direct the department of taxation and finance to establish a
pilot program for implementation of local land value taxation

 
PURPOSE:

To create a pilot program for up to 5 municipalities to implement a land
value taxation system

 
SUMMARY OF PROVISIONS:

Section 1 establishes that the secretary of state shall establish a
pilot program for up to 5 municipalities to develop a plan for implemen-
tation of land value taxation

Section 2 establishes the effective date of the bill

JUSTIFICATION:

In 2023, facing economic and tax challenges not dissimilar to many Amer-
ican cities, Detroit's, Mayor, Mike Duggan, proposed a solution known as
a land value tax. This tax, also referred to as a split-rate tax,
involved taxing land at a higher rate to taxing infrastructure on the
land.

The key objective of this approach is to encourage the optimal use of
land by providing a reduced tax increase for land development. This will
promote infill development, rather than continuous outward sprawl from
city centers. By implementing this tax, speculation and wasteful use of
land are discouraged, as the cost of owning undeveloped land is
increased. The land value tax can alleviate the burden on homeowners in
many cities. It ensures that owners of high-value land, currently
utilized for low-value purposes, contribute their fair share.

Land value taxes have drawn interest and been put into practice else-
where, including in New York. In 1993, Governor Mario Cuomo approved a
bipartisan bill allowing Amsterdam to implement a land tax, but it was
later repealed due to a change in mayoral administration. More recently,
Buffalo's city council passed a resolution to study the implementation
of a land value tax in February 2023. Pennsylvania has permitted this
form of taxation since 1913, with 15 cities currently using a form of
land value, tax.

While property taxes are frequently discussed, there has been little
opportunity for innovation and policy advancement. This bill establishes
a pilot program granting permission and support to up to 5 munici-
palities to implement a land value tax, providing an opportunity for
experimentation and progress in tax policy.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S7871A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7871--A
 
                             I N  S E N A T E
 
                              January 3, 2024
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed  to  the  Committee  on  Local  Government  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT
   to direct the department of taxation and finance to establish a  pilot
 program for implementation of local land value taxation

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. 1. The department of taxation and finance shall establish a
 pilot program in up to five  municipalities  under  which  such  munici-
 palities  shall develop a plan for implementation of land value taxation
 that (a) classifies real estate included in such municipality's  assess-
 ment  roll as (i) land or land exclusive of buildings, or (ii) buildings
 on land; and (b) establishes a different local  property  tax  rate  for
 each such class, provided the higher local property tax rate shall apply
 to land or land exclusive of buildings.
   2.  The department of taxation and finance shall establish an applica-
 tion procedure and any other criteria for the pilot program  established
 under  subdivision  one  of this section, under which municipalities may
 apply to participate in such pilot program.  If a municipality having  a
 population  greater  than 50,000 applies for participation in such pilot
 program, such municipality shall designate a  specific  neighborhood  or
 area within such municipality that would participate in such program, if
 selected.  The department of taxation and finance shall send a notice of
 selection  for  such pilot program to the chief executive officer of the
 municipality and to the temporary president of the senate and the speak-
 er of the assembly.
   3. In order to apply to participate in the pilot  program  established
 under  subdivision  one  of  this  section,  the legislative body of the
 applicable municipality shall pass a local law, and  a  school  district
 shall  pass  a  resolution,  affirmatively  authorizing  the application
 established under subdivision two of this section.
   § 2. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13486-04-4

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