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STATE OF NEW YORK
________________________________________________________________________

5571

2011-2012 Regular Sessions

IN ASSEMBLY

February 23, 2011
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Introduced  by  M.  of  A.  McLAUGHLIN,  STEVENSON, CALHOUN, SALADINO --
  Multi-Sponsored by -- M.  of A. HAWLEY -- read once  and  referred  to
  the Committee on Real Property Taxation

AN  ACT to amend the real property tax law, in relation to providing for
  a fixed real property assessed value  for  residential  real  property
  owned by certain persons sixty-five years of age or older, and provid-
  ing  state  reimbursement to municipalities for lost real property tax
  revenue

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  real  property  tax  law  is amended by adding a new
section 431 to read as follows:
  S 431. PERSONS SIXTY-FIVE YEARS OF AGE OR OLDER; FIXED  REAL  PROPERTY
ASSESSED  VALUE.  1. RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED AS THE
PRIMARY RESIDENCE, FOR TEN OR MORE CONSECUTIVE YEARS,  OF  ONE  OR  MORE
PERSONS,  EACH  OF  WHOM  IS SIXTY-FIVE YEARS OF AGE OR OLDER AND ALL OF
WHOM HAVE A COMBINED ANNUAL INCOME OF ONE HUNDRED  THOUSAND  DOLLARS  OR
LESS  FOR THE INCOME TAX YEAR IMMEDIATELY PRECEDING THE DATE OF APPLICA-
TION WHEN THE REAL PROPERTY TAXES  ON  SUCH  RESIDENTIAL  REAL  PROPERTY
EQUALS  OR  EXCEEDS SIX PERCENT OF SUCH PERSONS' COMBINED ANNUAL INCOME,
OR RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED  AS  THE  PRIMARY  RESI-
DENCE,  FOR TEN OR MORE CONSECUTIVE YEARS, OF A HUSBAND AND WIFE, ONE OF
WHOM IS SIXTY-FIVE YEARS OF AGE  OR  OLDER  AND  BOTH  OF  WHOM  HAVE  A
COMBINED  ANNUAL  INCOME OF ONE HUNDRED THOUSAND DOLLARS OR LESS FOR THE
INCOME TAX YEAR IMMEDIATELY PRECEDING THE DATE OF APPLICATION  WHEN  THE
REAL  PROPERTY TAXES ON SUCH RESIDENTIAL REAL PROPERTY EQUALS OR EXCEEDS
SIX PERCENT OF SUCH HUSBAND'S AND WIFE'S COMBINED ANNUAL  INCOME,  SHALL
BE  ELIGIBLE  FOR  THE FIXED REAL PROPERTY ASSESSED VALUE ESTABLISHED BY
THIS SECTION.
  2. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE
THE FOLLOWING MEANINGS:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00154-02-1
A. 5571                             2

  (A) "FIXED REAL PROPERTY ASSESSED VALUE" SHALL MEAN THE LOWER OF:
  (I)  THE  ASSESSED  VALUE  OF REAL PROPERTY ESTABLISHED ON THE TAXABLE
STATUS DATE NEXT SUCCEEDING THE DATE ON WHICH AN ELIGIBLE REAL  PROPERTY
OWNER ATTAINS THE AGE OF SIXTY-FIVE YEARS; OR
  (II)  THE  ASSESSED  VALUE OF REAL PROPERTY ESTABLISHED ON ANY TAXABLE
STATUS DATE SUBSEQUENT TO THE DATE UPON WHICH AN ELIGIBLE REAL  PROPERTY
OWNER  ATTAINS  THE  AGE  OF  SIXTY-FIVE  YEARS, WHICH IS LOWER THAN THE
ASSESSED VALUE ESTABLISHED PURSUANT TO SUBPARAGRAPH (I)  OF  THIS  PARA-
GRAPH.
  (B)  "RESIDENTIAL  REAL  PROPERTY"  SHALL  MEAN  ANY ONE OR TWO FAMILY
DWELLING, INCLUDING CONDOMINIUM UNITS AND COOPERATIVE UNITS.
  3. EACH TAXING AUTHORITY SHALL ANNUALLY DETERMINE THE FIXED REAL PROP-
ERTY ASSESSED VALUE FOR EACH ELIGIBLE REAL PROPERTY OWNER.
  4. ANY PERSON ELIGIBLE FOR THE  FIXED  REAL  PROPERTY  ASSESSED  VALUE
SHALL  ANNUALLY  APPLY  TO THE APPROPRIATE ASSESSING UNIT FOR SUCH FIXED
ASSESSED VALUE.  SUCH APPLICATION SHALL BE MADE IN SUCH MANNER AND  FORM
AS  SHALL  BE DETERMINED BY THE COMMISSIONER, AND SHALL REQUIRE PROOF OF
THE APPLICANTS' AGES AND INCOMES. SUCH APPLICATIONS SHALL BE FILED ON OR
BEFORE THE TAXABLE STATUS DATE OF THE REAL PROPERTY.
  5. EVERY ASSESSING UNIT SHALL NOTIFY OR CAUSE  TO  BE  NOTIFIED,  EACH
PERSON  OWNING RESIDENTIAL REAL PROPERTY WITHIN ITS JURISDICTION, OF THE
PROVISIONS OF THIS SECTION. SUCH NOTICE SHALL BE AND INCLUDE WORDS WHICH
ARE SUBSTANTIALLY THE FOLLOWING: "RESIDENTIAL  REAL  PROPERTY  OWNED  BY
PERSONS  SIXTY-FIVE  YEARS  OF AGE OR OLDER AND HAVING A COMBINED ANNUAL
INCOME OF ONE HUNDRED THOUSAND DOLLARS OR LESS, WHEN THE  REAL  PROPERTY
TAXES ON SUCH PROPERTY EQUAL OR EXCEED SIX PERCENT OF THE COMBINED ANNU-
AL  INCOME  OF  THE  OWNERS,  MAY  BE ELIGIBLE FOR A FIXED REAL PROPERTY
ASSESSED VALUE.  TO RECEIVE SUCH FIXED ASSESSED VALUE,  ELIGIBLE  OWNERS
OF  QUALIFYING  REAL  PROPERTY MUST FILE AN APPLICATION WITH THEIR LOCAL
ASSESSOR ON OR BEFORE THE TAXABLE STATUS DATE. FOR FURTHER  INFORMATION,
PLEASE CONTACT YOUR LOCAL ASSESSOR."
  S  2. The real property tax law is amended by adding a new section 901
to read as follows:
  S 901. EFFECT OF  FIXED  REAL  PROPERTY  ASSESSED  VALUE  UPON  TAXING
AUTHORITIES;  STATE  AID.  1. LEVY OF TAXES; DETERMINATION OF TAXES DUE.
THE AMOUNT OF TAXES TO BE LEVIED FOR ANY TAXABLE YEAR  SHALL  BE  DETER-
MINED WITHOUT REGARD TO THE FACT THAT STATE AID WILL BE PAYABLE PURSUANT
TO THIS SECTION. IN ADDITION, THE TAX RATE FOR ANY TAXABLE YEAR SHALL BE
DETERMINED  AS  IF  NO  PARCELS  ARE  SUBJECT  TO  A FIXED REAL PROPERTY
ASSESSED VALUE PURSUANT TO SECTION FOUR HUNDRED THIRTY-ONE OF THIS CHAP-
TER. HOWEVER, THE TAX RATE SO DETERMINED SHALL BE APPLIED TO THE TAXABLE
ASSESSED VALUE OF  EACH  PARCEL  AFTER  ACCOUNTING  FOR  ALL  APPLICABLE
EXEMPTIONS.
  2.  TAX  SAVINGS.  THE  TAX SAVINGS FOR EACH PARCEL SUBJECT TO A FIXED
REAL PROPERTY ASSESSED VALUE PURSUANT TO SECTION FOUR HUNDRED THIRTY-ONE
OF THIS CHAPTER SHALL BE COMPUTED BY  SUBTRACTING  THE  AMOUNT  ACTUALLY
LEVIED AGAINST THE PARCEL FROM THE AMOUNT THAT WOULD HAVE BEEN LEVIED IF
NOT  FOR  THE FIXED REAL PROPERTY ASSESSED VALUE. A STATEMENT SHALL THEN
BE PLACED ON THE TAX BILL FOR THE PARCEL IN SUBSTANTIALLY THE  FOLLOWING
FORM: "YOUR TAX SAVINGS THIS YEAR RESULTING FROM THE FIXED REAL PROPERTY
ASSESSED VALUE IS $____."
  3.  STATE  AID. (A) THE TOTAL TAX SAVINGS DULY PROVIDED BY EACH TAXING
AUTHORITY PURSUANT TO THIS SECTION SHALL BE A STATE CHARGE, WHICH  SHALL
BE PAYABLE AS PROVIDED IN THIS SUBDIVISION.
  (B)  A  TAXING  AUTHORITY  SEEKING  STATE AID PURSUANT TO THIS SECTION
SHALL SUBMIT AN APPLICATION THEREFOR TO THE COMMISSIONER.  THE  APPLICA-
A. 5571                             3

TION  SHALL  INCLUDE SUCH INFORMATION AS THE COMMISSIONER SHALL REQUIRE.
IN ADDITION, EACH TAXING AUTHORITY SHALL FILE A COPY OF SUCH APPLICATION
WITH THE COUNTY CLERK OF THE COUNTY IN WHICH AN ELIGIBLE PARCEL IS SITU-
ATE.
  (C)  UPON  APPROVING  AN  APPLICATION  FOR  STATE AID PURSUANT TO THIS
SECTION, THE COMMISSIONER SHALL COMPUTE AND CERTIFY THE AMOUNTS  PAYABLE
TO  THE TAXING AUTHORITY. SUCH STATE AID SHALL BE PAYABLE UPON THE AUDIT
AND WARRANT  OF  THE  STATE  COMPTROLLER  FROM  VOUCHERS  CERTIFIED  AND
APPROVED BY THE COMMISSIONER.
  (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 TAXING AUTHORITY HAS RECEIVED A
GREATER OR LESSER AMOUNT OF SUCH AID THAN IT SHOULD HAVE  RECEIVED,  THE
COMMISSIONER  SHALL  SO NOTIFY THE TAXING AUTHORITY, AND SHALL CAUSE THE
NEXT PAYMENT OF SUCH AID TO THE TAXING AUTHORITY TO BE ADJUSTED  ACCORD-
INGLY.
  4.  INSTALLMENT  PAYMENTS.  WHEN  REAL  PROPERTY  TAXES ARE PAYABLE IN
INSTALLMENTS PURSUANT TO LAW, THE TAX SAVINGS PROVIDED BY  THIS  SECTION
SHALL BE APPLIED PROPORTIONALLY AGAINST THE RESPECTIVE INSTALLMENTS.
  5.  UNTIMELY  PAYMENT  OF TAXES. WHEN TAXES ON A PROPERTY SUBJECT TO A
FIXED REAL PROPERTY ASSESSED VALUE  PURSUANT  TO  SECTION  FOUR  HUNDRED
THIRTY-ONE  OF  THIS  CHAPTER ARE NOT PAID IN A TIMELY MANNER, INTEREST,
PENALTIES AND ANY OTHER APPLICABLE CHARGES SHALL BE IMPOSED ONLY AGAINST
THE BALANCE DUE AFTER THE TAX SAVINGS PROVIDED BY THIS SECTION HAVE BEEN
DEDUCTED FROM THE TAXES OWED.
  S 3. This act shall take effect immediately and shall  apply  to  real
property with a taxable status date after such date.