Authorizes real property taxing jurisdictions to grant a partial tax exemption for property purchased by a physician in a physician shortage area, as determined by the commissioner of health, which will be such physician's primary residence and he or she will practice in such shortage area; provides state aid to taxing jurisdictions which grant the exemption to the extent of the tax savings provided to physicians.
TITLE OF BILL: An act to amend the public health law and the real property tax law, in relation to authorizing real property taxing jurisdictions to grant a tax exemption for a primary residence purchased by a physician in a physician shortage area
PURPOSE: The purpose of this bill is to provide a partial tax exemption for real property purchased by a physician for use as primary residence when the physician works in and the property is located in a physician shortage area designated by the Commissioner.
SUMMARY OF PROVISIONS:
Section 1 states the legislative findings and intent.
Section 2 states the Commissioner of health shall biennially designate and make available a list of designated physician shortage areas by county or other sub-county geographic area that lacks primary care and/or other medical specialty physicians in a manner consistent with designated physician shortage area determinations made under the Doctors Across New York Program.
Section 3 authorizes an exemption from local property and school taxes for primary residential property purchases of physicians residing and working in areas designated by the Commissioner as experiencing a physician shortage, conditioned upon the local taxing authority passing an authorizing law or resolution. The exemption cannot be for a period longer than 5 years, on property purchased after on or after the effective date of this act, and is for a maximum of 35% of the value of the real property's assessed value.
Section 3 provides the effective date.
JUSTIFICATION: Many communities in New York State are experiencing a growing physician shortage, reaching crisis proportions in some geographic regions and in some medical specialties. A survey of its members by the Health Care Association of New York State (HANYS) reported that 104 hospitals outside of New York City had a current need for 1,400 physicians (almost 40% in primary care). In addition to primary care, severe shortages exist in general surgery, OB-GYN, urology and psychiatry. Many areas of the State have seen rapid declines in their physicians supply and with an average physician age of 52 (almost 30% are over 60 years of age); the shortage is only expected to worsen.
On the demand side for physician services, New York's population age 65 and over increased 25% between 1980 and 2000 and, the population over age 80 (who use the most health resources) is expected to double by the year 2020.
Clearly, both the health care community and state government must focus on physician supply issue and work together to implement a
multi-faceted plan to address the problem. The "Doctors Across New York" Program was a strong step forward with awards made in March of 2009 after the program was enacted as part of the 2008-2009 State. However, additional initiatives are vital to the continued viability of rural New York State. By exempting part of a physician's residence from real property tax when the local taxing authority chooses to grant the exemption, the legislation provides New York State's medically underserved communities with another tool to attract physicians.
This physician shortage is an imminent threat to the health, safety and the economic viability of these communities and their residents. While this legislation will have a financial impact on the local governments and school districts via foregone tax revenue, the severity of the problem requires aggressive action and justifies these expenditures even in this fiscally difficult period.
LEGISLATIVE HISTORY: 2013,2014: S.4388 Reported and Committed to Finance 2012:S.6919/A.9810 Committed to Rules
FISCAL IMPLICATIONS: Undetermined.
LOCAL FISCAL IMPLICATIONS: Local taxing authorities would have an undetermined fiscal impact from real property exempted from property taxes; however this exemption is at their discretion. Furthermore, the presence of an adequate health care system has been demonstrated to be a significant factor in driving economic investment and growth within communities.
EFFECTIVE DATE: This bill take effects immediately and applies to tax years on and after March first next succeeding the date on which it shall have become law, or in the case of municipal taxing authorities who have a taxable status date other than March first established by charter, then this act shall take effect with the first establishment of the taxable status of real property in the municipality, next succeeding the date on which it shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 1289 2015-2016 Regular Sessions IN SENATE January 9, 2015 ___________Introduced by Sen. YOUNG -- (at request of the Legislative Commission on Rural Resources) -- read twice and ordered printed, and when printed to be committed to the Committee on Health AN ACT to amend the public health law and the real property tax law, in relation to authorizing real property taxing jurisdictions to grant a tax exemption for a primary residence purchased by a physician in a physician shortage area THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative findings and intent. The legislature hereby finds that several communities within the state, particularly those located within rural areas, lack adequate access to physicians. It is well established that ensuring the sufficient availability of general practitioners and specialists directly benefits the health of state residents, and the legislature has enacted several measures towards that end. Furthermore, the legislature finds that municipalities are often best situated to evaluate the needs of their communities. Therefore, it is the intent of the legislature to offer counties, cities, towns, villages and school districts the option to provide real property tax exemptions, should they determine that such an incentive would aid in attracting physicians to areas currently underserved by the medical community. S 2. Section 206 of the public health law is amended by adding a new subdivision 29 to read as follows: 29. (A) THE COMMISSIONER SHALL BIENNIALLY DESIGNATE AND MAKE AVAILABLE A LIST OF DESIGNATED PHYSICIAN SHORTAGE AREAS IN THE STATE. A DESIGNATED PHYSICIAN SHORTAGE AREA SHALL BE A COUNTY OR OTHER SUB-COUNTY GEOGRAPHIC AREA DETERMINED BY THE COMMISSIONER TO BE IN SHORT SUPPLY OF PHYSICIANS IN PRIMARY CARE PRACTICE AND/OR ONE OR MORE MEDICAL SPECIALITIES. THE LIST SHALL INDICATE FOR EACH DESIGNATED PHYSICIAN SHORTAGE AREA, IF THEEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06122-01-5 S. 1289 2
AREA IS IN SHORT SUPPLY OF PRIMARY CARE PHYSICIANS AND WHICH MEDICAL SPECIALITIES ARE IN SHORT SUPPLY IN THE DESIGNATED SHORTAGE AREA. (B) IN ESTABLISHING DESIGNATED PHYSICIAN SHORTAGE AREAS, THE COMMIS- SIONER, TO THE EXTENT PRACTICABLE, SHALL UTILIZE CRITERIA CONSISTENT WITH THE CRITERIA UTILIZED TO MAKE AWARDS FOR THE PHYSICIAN PRACTICE SUPPORT PROGRAM ESTABLISHED PURSUANT TO PARAGRAPH (E) OF SUBDIVISION FIVE-A OF SECTION TWENTY-EIGHT HUNDRED SEVEN-M OF THIS CHAPTER. (C) FOR THE PURPOSES OF THIS SUBDIVISION, "MEDICAL SPECIALTY OR SPECIALTY AREA" SHALL MEAN THE BRANCH OR BRANCHES OF SPECIAL COMPETENCE WITHIN A PHYSICIAN'S MEDICAL PRACTICE AS EVIDENCED BY THEIR CERTIF- ICATION BY A SPECIALITY MEDICAL BOARD ACCEPTABLE TO THE COMMISSIONER. S 3. The real property tax law is amended by adding a new section 439 to read as follows: S 439. REAL PROPERTY TAX EXEMPTIONS IN DESIGNATED PHYSICIAN SHORTAGE AREA. 1. A MUNICIPAL CORPORATION OR SCHOOL DISTRICT MAY EXEMPT REAL PROPERTY PURCHASED BY A PHYSICIAN FOR USE SOLELY AS HIS OR HER PRIMARY RESIDENCE, TO THE EXTENT PROVIDED IN THIS SECTION, FROM TAXATION BY SUCH MUNICIPAL CORPORATION OR SCHOOL DISTRICT IF THE PHYSICIAN RESIDES IN AND HAS AN OFFICE LOCATED WITHIN A PHYSICIAN SHORTAGE AREA AS DESIGNATED BY THE COMMISSIONER OF HEALTH PURSUANT TO SUBDIVISION TWENTY-NINE OF SECTION TWO HUNDRED SIX OF THE PUBLIC HEALTH LAW. AFTER A PUBLIC HEAR- ING, THE GOVERNING BODY OF A MUNICIPAL CORPORATION MAY ADOPT A LOCAL LAW, AND THE BOARD OF A SCHOOL DISTRICT, OTHER THAN A SCHOOL DISTRICT SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, MAY ADOPT A RESOL- UTION, TO GRANT THE EXEMPTION AUTHORIZED PURSUANT TO THIS SECTION. 2. EXEMPTIONS PROVIDED PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL ONLY APPLY TO REAL PROPERTY PURCHASED ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION, AND THE SUBSEQUENT ENACTMENT OF A LOCAL LAW OR ADOPTION OF A RESOLUTION TO GRANT SUCH REAL PROPERTY TAX EXEMPTION. 3. ANY LOCAL LAW OR RESOLUTION ADOPTED PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL ESTABLISH THE DURATION AND PERCENTAGE OF SUCH AN EXEMPTION, WHICH SHALL EXCEED NEITHER A PERIOD OF FIVE YEARS NOR THIR- TY-FIVE PERCENT OF THE PROPERTY'S ASSESSED VALUE. SUCH LOCAL LAW OR RESOLUTION MAY INCLUDE OTHER CONDITIONS OR RESTRICTIONS, INCLUDING BUT NOT LIMITED TO PROVISIONS REGARDING THE MAXIMUM VALUE OF ELIGIBLE PROP- ERTY, AT THE DISCRETION OF THE PROMULGATING MUNICIPAL CORPORATION OR SCHOOL DISTRICT. 4. A COPY OF SUCH LOCAL LAWS OR RESOLUTIONS SHALL BE FILED WITH THE STATE BOARD AND THE ASSESSOR FOR SUCH MUNICIPAL CORPORATION OR SCHOOL DISTRICT WHO PREPARES THE ASSESSMENT ROLL UPON WHICH THE TAXES OF SUCH MUNICIPAL CORPORATION OR SCHOOL DISTRICT ARE LEVIED. S 4. This act shall take effect immediately and shall apply to tax years beginning on or after the first of March next succeeding such effective date; or in the case of municipal taxing authorities which have a taxable status date other than March first established by char- ter, this act shall take effect with the first establishment of the taxable status of real property in the municipality next succeeding the effective date of this act.