Increases the real property tax exemption for certain veterans using alternative exemption; exemption increased from $12,000 to $15,000; additional exemption for combat veterans increased from $8,000 to $10,000; increases disabled veteran exemption from $40,000 to $50,000.

---

S3303-2013 Actions

• Jan 31, 2013: REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS

S3303-2013 Memo

BILL NUMBER:S3303

TITLE OF BILL:  An act to amend the real property tax law, in relation
to the veteran's alternative exemption

PURPOSE:    This  legislation  would  ensure veterans benefit from the
veterans'  alternative  exemption  notwithstanding  an   increase   in
property value.

SUMMARY OF PROVISIONS:

Section one of this measure amends paragraphs (a), (b), (c) and (d) of
section 458-a, subdivision 2 of the Real Property Tax law.

JUSTIFICATION:   The "new" veterans' exemption, enacted by chapter 525
of the laws of  1984,  provided  wartime,  combat  zone  and  disabled
veterans  with  15%,  10%  and  50%  of  disability rating exemptions,
respectively.  These  exemptions  are  also  subject  to  maximums  of
$12,000,  $8,000  and  $40,000  respectively.  A formula utilizing the
equalization rate ensures that veterans living in assessing units that
assess  at  different  percentages  of  full  value  receive   similar
exemptions.  When  enacted,  the maximum value of a residence eligible
for a full exemption was $80,000. Veterans whose  residences  exceeded
this value saw the value of their exemption decline.

This  bill  accounts  for the fact that property values have increased
significantly since 1984. Veterans should not see the value  of  their
exemptions  diminish  due  to  factors  beyond  their control, such as
escalating housing  prices.  This  bill  accounts  for  inflation  and
adjusts veterans' exemptions accordingly. A provision is also included
permitting  municipalities to maintain veterans' exemptions at present
levels should an increase be unwarranted.

LEGISLATIVE HISTORY:

S.6441 of 2001/2002 S.3027 of 2003/2004 S.4358 of 2005/2006  S.710  of
2007/2008 S.3275 of 2009/2010 S.3214 of 2011/2012

FISCAL IMPLICATIONS: None.

EFFECTIVE  DATE:    This  act  shall take effect immediately and shall
apply to taxes levied on assessment rolls completed on and after  July
1, 2002.

S3303-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    3303

                         2013-2014 Regular Sessions

                              I N  SENATE

                              January 31, 2013
                                 ___________

  Introduced  by Sen. NOZZOLIO -- read twice and ordered printed, and when
    printed to be committed to the Committee on Veterans, Homeland Securi-
    ty and Military Affairs

  AN ACT to amend the real property tax law, in relation to the  veteran's
    alternative exemption

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


    Section 1. Paragraphs (a), (b),  (c)  and  (d)  of  subdivision  2  of
  section  458-a of the real property tax law, paragraph (a) as amended by
  chapter 899 of the laws of 1985, paragraph (b) as amended by chapter 473
  of the laws of 2004, paragraph (c) as amended by chapter 100 of the laws
  of 1988, paragraph (d) as added by chapter 525 of the laws of 1984,  and
  subparagraph (ii) of paragraph (d) as amended by chapter 256 of the laws
  of  2005  and as further amended by section 1 of part W of charter 56 of
  the laws of 2010, are amended to read as follows:

    (a) Qualifying residential real property shall be exempt from taxation
  to the extent of fifteen percent of the assessed value of such property;
  provided, however, that such exemption shall not exceed [twelve] FIFTEEN
  thousand dollars or the product of  [twelve]  FIFTEEN  thousand  dollars
  multiplied by the latest state equalization rate for the assessing unit,
  or  in  the  case  of  a special assessing unit, the latest class ratio,
  whichever is less.
    (b) In addition to the exemption provided by  paragraph  (a)  of  this
  subdivision, where the veteran served in a combat theatre or combat zone
  of  operations,  as  documented by the award of a United States campaign
  ribbon or service medal, or the armed forces expeditionary  medal,  navy
  expeditionary  medal, marine corps expeditionary medal, or global war on
  terrorism expeditionary medal, qualifying residential real property also
  shall be exempt from taxation to  the  extent  of  ten  percent  of  the
  assessed  value of such property; provided, however, that such exemption
  shall not exceed [eight] TEN thousand dollars or the product of  [eight]

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD01446-01-3

 S. 3303                             2

  TEN  thousand  dollars  multiplied by the latest state equalization rate
  for the assessing unit, or in the case of a special assessing unit,  the
  class ratio, whichever is less.
    (c)  In  addition to the exemptions provided by paragraphs (a) and (b)
  of this subdivision, where the veteran received  a  compensation  rating
  from  the  United  States  veteran's  administration  or from the United
  States department of defense because of a service connected  disability,
  qualifying  residential  real  property shall be exempt from taxation to
  the extent of the product of the assessed value of such property  multi-
  plied  by  fifty  percent  of the veteran's disability rating; provided,
  however, that such exemption shall not  exceed  [forty]  FIFTY  thousand
  dollars  or  the product of [forty] FIFTY thousand dollars multiplied by
  the latest state equalization rate for the assessing  unit,  or  in  the
  case  of  a special assessing unit, the latest class ratio, whichever is
  less. For purposes of this paragraph, where a person who served  in  the
  active  military,  naval  or  air service during a period of war died in
  service of a service connected disability, such person shall  be  deemed
  to have been assigned a compensation rating of one hundred percent.
    (d)  Limitations.  (i)  The  exemption  from taxation provided by this
  subdivision shall be applicable to county, city, town and village  taxa-
  tion, but shall not be applicable to taxes levied for school purposes.
    (ii)  Each  county,  city,  town  or  village may adopt a local law to
  reduce the maximum exemption allowable in paragraphs (a), (b) and (c) of
  this subdivision to TWELVE THOUSAND DOLLARS, EIGHT THOUSAND DOLLARS  AND
  FORTY THOUSAND DOLLARS, RESPECTIVELY OR nine thousand dollars, six thou-
  sand  dollars and thirty thousand dollars, respectively, or six thousand
  dollars, four thousand dollars and twenty thousand dollars,  respective-
  ly.  Each  county,  city, town, or village is also authorized to adopt a
  local law to increase the maximum exemption allowable in paragraphs (a),
  (b) and (c) of this subdivision to fifteen thousand dollars,  ten  thou-
  sand dollars and fifty thousand dollars, respectively; eighteen thousand
  dollars, twelve thousand dollars and sixty thousand dollars, respective-
  ly;  twenty-one thousand dollars, fourteen thousand dollars, and seventy
  thousand dollars, respectively; twenty-four  thousand  dollars,  sixteen
  thousand dollars, and eighty thousand dollars, respectively; twenty-sev-
  en  thousand  dollars,  eighteen  thousand  dollars, and ninety thousand
  dollars, respectively; thirty thousand dollars, twenty thousand dollars,
  and one hundred thousand dollars,  respectively;  thirty-three  thousand
  dollars,  twenty-two  thousand  dollars,  and  one  hundred ten thousand
  dollars, respectively; thirty-six thousand dollars, twenty-four thousand
  dollars, and one hundred twenty thousand dollars, respectively. In addi-
  tion, a county, city, town or  village  which  is  a  "high-appreciation
  municipality"  as  defined in this subparagraph is authorized to adopt a
  local law to increase the maximum exemption allowable in paragraphs (a),
  (b) and (c) of this subdivision to thirty-nine thousand  dollars,  twen-
  ty-six  thousand  dollars,  and  one  hundred  thirty  thousand dollars,
  respectively; forty-two thousand dollars, twenty-eight thousand dollars,
  and one hundred forty thousand dollars, respectively;  forty-five  thou-
  sand  dollars,  thirty  thousand  dollars and one hundred fifty thousand
  dollars, respectively; forty-eight thousand dollars, thirty-two thousand
  dollars and one hundred sixty thousand dollars, respectively;  fifty-one
  thousand  dollars,  thirty-four thousand dollars and one hundred seventy
  thousand dollars, respectively; fifty-four thousand dollars,  thirty-six
  thousand  dollars and one hundred eighty thousand dollars, respectively.
  For purposes of this subparagraph,  a  "high-appreciation  municipality"
  means:  (A)  a  special  assessing unit that is a city, (B) a county for

 S. 3303                             3

  which the commissioner has established a sales price differential factor
  for purposes of the STAR exemption authorized by  section  four  hundred
  twenty-five  of  this  title in three consecutive years, and (C) a city,
  town or village which is wholly or partly located within such a county.
    S  2.  This act shall take effect immediately and shall apply to taxes
  levied on assessment rolls completed on and after July 1, 2002.