NY State Senate Bill 2023-S8838

Current Bill Status - In Senate Committee Housing, Construction And Community Development 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
Mar 19, 2024	referred to housing, construction and community development

co-Sponsors

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2023-S8838 (ACTIVE) - Details

See Assembly Version of this Bill:: A9710
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Tax Law
Laws Affected:: Add §421-p, RPT L

2023-S8838 (ACTIVE) - Summary

Enacts the "homebuyer renovation property tax exemption act" to grant an exemption of up to fifteen thousand dollars from taxation levied by or on behalf of any county, city, town, village or school district in which such residential property is located for a period of five years from the date of purchase of the property; defines "primary residential property".

2023-S8838 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8838

SPONSOR: HELMING
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to enacting the
"homebuyer renovation property tax exemption act"

 
PURPOSE OR GENERAL IDEA OF BILL:

To exempt homebuyers who complete reconstruction, alterations, or
improvements of $15,000 or more from increases in property tax resulting
from increased assessment value for a period of five years following the
purchase of the home.

 
SUMMARY OF SPECIFIC PROVISIONS:

Sections 1: Establishes that this act shall be known as the "homebuyer
renovation property tax exemption act."

Section 2: Legislative findings

Section 3: Amends the real property tax law by adding a new section
421-p. This section exempts homebuyers who complete reconstruction,
alteration, or improvements valued at $15,000 or more as part of a writ-
ten contract for the sale of a primary residential property, or who
enter a written contract within one hundred eighty days after closing of
the sale of a primary residence for reconstruction, alteration, or
improvements, from certain property taxes. This exemption will apply
only to the increase in assessed value which is attributable to the
reconstruction, alteration, or improvement. This section clarifies that
the purchase and installation of appliances does not constitute an
improvement. It also establishes that the tax exemption will be discon-
tinued if any portion of a single family primary residential property is
leased or if the primary residential property ceases to be used primari-
ly for residential purposes.

Section 4: Directs the Commissioner of Taxation and Finance to promul-
gate rules and regulations necessary to implement the provisions of this
act.

Section 5: Provides for an effective date of January 1, 2025.

 
JUSTIFICATION:

It is widely acknowledged that New York State is facing a severe short-
age of housing. At the same time, many properties in New York State
remain vacant, abandoned, or underutilized. Bringing this additional
housing online would provide additional housing options for New Yorkers
and would be a step towards addressing New York's current housing
crisis.

However, current market conditions make reconstruction, renovations, and
alterations to currently dilapidated or outdated housing increasingly
expensive. Due to inflation, supply chain issues and government poli-
cies, material and labor costs continue to rise, and construction costs
are projected to increase an additional three to six percent by the end
of 2024. These costs can often prevent homebuyers from purchasing prop-

erties which will require major renovation or alteration, leaving these
properties vacant.

This legislation would offset rising costs associated with recon-
struction, renovations, and alterations by providing tax relief to home-
buyers who begin reconstruction, renovations, or alterations valued at
$15,000 or more, either as a part of a written contract for the sale of
a primary residence or through a written contract entered into within
one hundred eighty days after closing of the sale of a primary resi-
dence. This tax relief will incentivize homebuyers to make significant
improvements to the current housing stock and bring currently vacant or
outdated homes back online.

Homebuyers who qualify for this tax exemption will be exempt from
increases in local taxes based on an increase in the property assessment
which is attributable to the reconstruction, alteration, or improvement.
The exemption will last for a period of five years following the
purchase of the home. This provides a tax incentive for homebuyers
making major improvements while also preventing decreases in funding for
local governments and school districts, as the homebuyer will still be
responsible for all taxes based on the assessed value prior to recon-
struction, renovation, or alteration as well as any special ad valorem
levies.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S8838 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8838
 
                             I N  S E N A T E
 
                              March 19, 2024
                                ___________
 
 Introduced  by  Sen. HELMING -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to amend the real property tax law, in relation to enacting the
   "homebuyer renovation property tax exemption act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "homebuyer renovation property tax exemption act".
   § 2. Legislative findings. The legislature  finds  that  much  of  New
 York's current housing stock is old and in need of repair, yet often the
 repairs  are  beyond  the  financial capability of many homeowners. This
 bill would give homeowners who  invest  in  their  property  needed  tax
 relief  for  a  period of five years to allow them to recoup the invest-
 ments made in their property and incentivize the revitalization  of  our
 existing  housing stock. This incentive will bring abandoned and dilapi-
 dated homes back to life and  help  expand  the  housing  stock  of  the
 future.
   §  3.  The  real  property  tax law is amended by adding a new section
 421-p to read as follows:
   § 421-P. EXEMPTION FOR RENOVATED HOMES. 1. PRIMARY RESIDENTIAL PROPER-
 TY PURCHASED AFTER THE EFFECTIVE DATE OF THIS SECTION  BY  ONE  OR  MORE
 PERSONS,  WHO  EITHER  AS  PART  OF THE WRITTEN CONTRACT FOR SALE OF THE
 PRIMARY RESIDENTIAL PROPERTY, OR WHO  ENTERS  INTO  A  WRITTEN  CONTRACT
 WITHIN  ONE HUNDRED EIGHTY DAYS AFTER CLOSING OF THE SALE OF THE PRIMARY
 RESIDENCE FOR RECONSTRUCTION, ALTERATION OR IMPROVEMENTS, THE  VALUE  OF
 WHICH EXCEEDS FIFTEEN THOUSAND DOLLARS, TO THE PRIMARY RESIDENTIAL PROP-
 ERTY,  SHALL BE EXEMPT FROM TAXATION LEVIED BY OR ON BEHALF OF ANY COUN-
 TY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT  IN  WHICH  SUCH  RESIDENTIAL
 PROPERTY IS LOCATED FOR A PERIOD OF FIVE YEARS FROM THE DATE OF PURCHASE
 OF  THE  PROPERTY.  SUCH EXEMPTION SHALL APPLY SOLELY TO THE INCREASE IN
 ASSESSED VALUE THEREOF ATTRIBUTABLE TO SUCH RECONSTRUCTION,  ALTERATION,
 OR  IMPROVEMENT.  FOR  THE  PURPOSES OF THIS SECTION, THE PURCHASE OF AN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14933-01-4

 S. 8838                             2
 
 APPLIANCE, INCLUDING, BUT NOT LIMITED TO, A  REFRIGERATOR,  OVEN,  DISH-
 WASHER, WASHER, OR DRYER, SHALL NOT CONSTITUTE AN IMPROVEMENT.
   2.  (A)  NO  PORTION  OF  A SINGLE FAMILY PRIMARY RESIDENTIAL PROPERTY
 SHALL BE LEASED DURING THE PERIOD OF  TIME  WHEN  SUCH  EXEMPTION  SHALL
 APPLY  TO  THE  RESIDENCE.  IF  ANY PORTION OF THE SINGLE FAMILY PRIMARY
 RESIDENTIAL PROPERTY IS FOUND TO BE THE SUBJECT OF  A  LEASE  AGREEMENT,
 THE  ASSESSOR  SHALL  DISCONTINUE ANY EXEMPTION GRANTED PURSUANT TO THIS
 SECTION.
   (B) IN THE EVENT  THAT  A  PRIMARY  RESIDENTIAL  PROPERTY  GRANTED  AN
 EXEMPTION PURSUANT TO THIS SECTION CEASES TO BE USED PRIMARILY FOR RESI-
 DENTIAL PURPOSES OR TITLE THERETO IS TRANSFERRED TO OTHER THAN THE HEIRS
 OR  DISTRIBUTEES  OF  THE  OWNER, THE EXEMPTION GRANTED PURSUANT TO THIS
 SECTION SHALL BE DISCONTINUED.
   (C) UPON DETERMINING  THAT  AN  EXEMPTION  GRANTED  PURSUANT  TO  THIS
 SECTION  SHOULD  BE  DISCONTINUED,  THE  ASSESSOR SHALL MAIL A NOTICE SO
 STATING TO THE OWNER OR OWNERS THEREOF AT THE TIME  AND  IN  THE  MANNER
 PROVIDED  BY  SECTION  FIVE  HUNDRED  TEN OF THIS CHAPTER. SUCH OWNER OR
 OWNERS SHALL BE ENTITLED TO SEEK ADMINISTRATIVE AND JUDICIAL  REVIEW  OF
 SUCH  ACTION  IN  THE  MANNER  PROVIDED BY LAW, PROVIDED THAT THE BURDEN
 SHALL BE ON SUCH OWNER  OR  OWNERS  TO  ESTABLISH  ELIGIBILITY  FOR  THE
 EXEMPTION.
   3.  SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
 OF SUCH RESIDENTIAL PROPERTY ON A FORM PRESCRIBED BY  THE  COMMISSIONER.
 THE  APPLICATION  SHALL  BE  FILED  WITH THE ASSESSOR OF THE CITY, TOWN,
 VILLAGE OR COUNTY HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR
 BEFORE THE APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY,  TOWN,  VILLAGE
 AND COUNTY.
   4.  IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSU-
 ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH
 PRIMARY RESIDENTIAL PROPERTY SHALL THEREAFTER BE EXEMPT FROM TAXATION AS
 PROVIDED IN THIS SECTION COMMENCING WITH THE ASSESSMENT ROLL PREPARED ON
 THE BASIS OF THE TAXABLE STATUS DATE REFERRED TO IN SUBDIVISION  ONE  OF
 THIS  SECTION.  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 SHOWN IN A
 SEPARATE COLUMN.
   5. FOR PURPOSES OF THIS SECTION, "PRIMARY RESIDENTIAL PROPERTY"  MEANS
 ANY  ONE  OR  TWO FAMILY HOUSE, TOWNHOUSE OR CONDOMINIUM LOCATED IN THIS
 STATE WHICH IS OWNER OCCUPIED BY SUCH HOMEBUYER.
   § 4. The commissioner of taxation and  finance  shall  promulgate  any
 rules and regulations necessary to implement the provisions of this act.
   § 5. This act shall take effect January 1, 2025.

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Senate Bill S8838

Sponsored By

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

co-Sponsors

2023-S8838 (ACTIVE) - Details

2023-S8838 (ACTIVE) - Summary

2023-S8838 (ACTIVE) - Sponsor Memo

2023-S8838 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8838

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Sponsored By

Pamela Helming

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

co-Sponsors

George M. Borrello

Patrick M. Gallivan

Steven D. Rhoads

Rob Rolison

2023-S8838 (ACTIVE) - Details

2023-S8838 (ACTIVE) - Summary

2023-S8838 (ACTIVE) - Sponsor Memo

2023-S8838 (ACTIVE) - Bill Text download pdf

Comments