Relates to state aid for certain towns adversely affected by a concentration of tax exempt property.
TITLE OF BILL: An act to amend the real property tax law, in relation to state aid for certain towns adversely affected by a concentration of tax exempt property
PURPOSE: This bill creates a new category of state aid for certain towns based on the amount of tax exempt property in their jurisdiction.
SUMMARY OF PROVISIONS: Section 1 amends the Real Property Tax Law by adding a new Section 532-a. This section provides that for a town to be eligible for a new category of state aid at least 35 percent of the real property in the town, by value, must be exempt from taxation. The funds available to assist eligible towns are allocated based on a formula. Fifty percent of the distribution is based on the town's population. The remaining 50 percent is based on the amount of tax exempt property in the town.
JUSTIFICATION: Real property taxes are the main way local governments are able to raise revenue and provide necessary services to the residents of their town, When a large concentration, over 35 percent by value, of the property in a town is exempt from taxation, there is a significant portion of town land for which real property taxes cannot be collected to support the services provided by the town. This significantly reduces the property tax base and limits the number of property owners that pay taxes to support the town's services. This places an increased burden on the taxpayers for support of town's services.
This bill will aid the taxpayers and the towns that have a significantly high amount of real property that is exempt from taxation by allowing the state to appropriate and distribute funds, based upon a formula, to the towns which have a significantly high amount, over 35 percent by value, of real property that is exempt from taxation.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: Subject to budgetary appropriation.
EFFECTIVE DATE: This bill would take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 4605 2013-2014 Regular Sessions IN SENATE April 15, 2013 ___________Introduced by Sen. RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the real property tax law, in relation to state aid for certain towns adversely affected by a concentration of tax exempt property 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 532-a to read as follows: S 532-A. CERTAIN LANDS SUBJECT TO STATE PAYMENTS. IN ANY TOWN IN WHICH THE TOTAL AMOUNT OF TAX EXEMPT PROPERTY REPRESENTS MORE THAN THIRTY-FIVE PERCENT, BY VALUE, OF THE TOTAL AMOUNT OF PROPERTY IN SUCH TOWN, THE STATE SHALL PAY A SUM, SUBJECT TO BUDGETARY APPROPRIATION, AS FOLLOWS: 1. FIFTY PERCENT OF SUCH SUM SHALL BE PAID TO EACH ELIGIBLE TOWN IN PROPORTION TO SUCH TOWN'S POPULATION RELATIVE TO THE POPULATION OF ALL ELIGIBLE TOWNS; AND 2. FIFTY PERCENT OF SUCH SUM SHALL BE PAID BASED ON THE VALUE OF TAX EXEMPT PROPERTY IN EACH ELIGIBLE TOWN AS A PERCENTAGE OF THE VALUE OF ALL TAX EXEMPT PROPERTY IN ALL ELIGIBLE TOWNS. S 2. This act shall take effect immediately and shall apply to assess- ment rolls prepared on the basis of taxable status dates occurring on and after the date on which this act shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02379-01-3