Provides certain real property a 15% tax exemption.
TITLE OF BILL: An act to amend the real property tax law, in relation to providing certain real property a 15% tax exemption
PURPOSE: To provide a 15% real property tax exemption for certain real property where the tax classification resulted in a 25-40% higher tax assessment.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends the real property tax law to add a new section 421-n to create an exemption certain residential property from local taxation for real property held in condominium form of ownership that satisfies the elements of article nine-b, but for the failure of the developer or owner to file a separate assessment application. The exemption from local taxation shall apply to county, city, school, town and village taxation.
The application for exemption must be filed by all owners of the real property and provided all criteria are met, the exemption shall continue in full force for all subsequent, tax years with no need to re-file.
The local legislative body has the authority to adopt a law allowing for the exemption and to repeal up to 90 days prior to the taxable status date of the municipality.
Section 2 is the effective date.
JUSTIFICATION: New York State patio home communities are classified as either single family homes or condominiums. In accordance with the real property tax law 339Y, the developer requests the tax classification from the state prior to the start of construction. Property taxes for the two different classifications are significantly different. The single family home property assessment value is based on a percentage of the fair market value of the home. The condo property assessment is based on a percentage of rental income the home could generate. This classification difference results in a 25-40% tax discrepancy-between the two identical homes. To create taxation equity between these identical homes, this legislation allows the local body the authority to offer a 15% tax exemption to these homes that did not receive the discounted tax classification. The legislation also allows the locality to terminate the 15% exemption if necessary.
LEGISLATIVE HISTORY: 2012: S.7832/A.9851 Referred to Rules
FISCAL IMPLICATION: To be determined.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 538 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. KENNEDY -- 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 providing certain real property a 15% tax exemption 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 421-n to read as follows: S 421-N. EXEMPTION OF CERTAIN RESIDENTIAL PROPERTY FROM LOCAL TAXA- TION. 1. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, THE LOCAL LEGISLATIVE BODY OF ANY CITY, TOWN OR VILLAGE IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND A LOCAL LAW TO PROVIDE THAT REAL PROPERTY: (A) HELD IN CONDOMINIUM FORM OF OWNERSHIP; (B) THAT OTHERWISE SATISFIES THE PROVISIONS AND COMMON ELEMENTS ESTAB- LISHED BY ARTICLE NINE-B OF THE REAL PROPERTY LAW FOR CLASSIFYING REAL PROPERTY AS A CONDOMINIUM; AND (C) BUT FOR THE FAILURE OF THE DEVELOPER OR OWNER OF SUCH REAL PROPER- TY TO FILE THE NECESSARY APPLICATION REQUIRED TO OBTAIN THE SEPARATE ASSESSMENT AND TAXATION PROVIDED IN SECTION THREE HUNDRED THIRTY-NINE-Y OF THE REAL PROPERTY LAW, MAY HAVE BEEN ELIGIBLE FOR SUCH ASSESSMENT AND TAXATION, SHALL BE EXEMPT FROM TAXATION TO THE EXTENT OF FIFTEEN PERCENT OF THE ASSESSED VALUE OF SUCH PROPERTY. 2. THE EXEMPTION FROM TAXATION PROVIDED BY THIS SECTION SHALL BE APPLICABLE TO COUNTY, CITY, SCHOOL, TOWN AND VILLAGE TAXATION. 3. APPLICATION FOR EXEMPTION MUST BE MADE BY THE OWNER, OR ALL OF THE OWNERS, OF SUCH PROPERTY ON A FORM PRESCRIBED BY THE COMMISSIONER OF TAXATION AND FINANCE. THE OWNER OR OWNERS SHALL FILE THE COMPLETED FORM IN THE ASSESSOR'S OFFICE ON OR BEFORE THE APPROPRIATE TAXABLE STATUSEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03971-01-3 S. 538 2
DATE. PROVIDED THAT ALL ELIGIBILITY CRITERIA OF THIS SECTION ARE MET, THE EXEMPTION SHALL CONTINUE IN FULL FORCE AND EFFECT FOR ALL APPROPRI- ATE SUBSEQUENT TAX YEARS AND THE OWNER OR OWNERS OF THE PROPERTY SHALL NOT BE REQUIRED TO RE-FILE EACH YEAR. 4. A LOCAL LAW ADOPTED PURSUANT TO THIS SUBDIVISION MAY BE REPEALED BY THE GOVERNING BOARD OF THE APPLICABLE COUNTY, CITY, TOWN OR VILLAGE. SUCH REPEAL SHALL OCCUR AT LEAST NINETY DAYS PRIOR TO THE TAXABLE STATUS DATE OF SUCH COUNTY, CITY, TOWN OR VILLAGE. 5. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION, NO LATER THAN NINETY DAYS BEFORE THE TAXABLE STATUS DATE NEXT OCCURRING, THE GOVERNING BOARD OF ANY COUNTY, CITY, TOWN OR VILLAGE MAY ADOPT A LOCAL LAW TO PROVIDE THAT NO EXEMPTION SHALL BE GRANTED PURSUANT TO THIS SECTION FOR THE PURPOSE OF TAXES LEVIED FOR SUCH COUNTY, CITY, TOWN OR VILLAGE. S 2. This act shall take effect immediately.