Authorizes fire districts to impose ad valorem levies and special assessments on otherwise tax exempt real property.
TITLE OF BILL: An act to amend the real property tax law, in relation to authorizing fire districts to impose special ad valorem levies and special assessments against otherwise tax exempt real property
PURPOSE: To allow fire districts to levy a tax on tax exempt properties.
SUMMARY OF PROVISIONS: Section 1 - amends section 490 of the real property tax law, as amended by chapter 87 of the laws of2001 to add special ad valorem levies and special assessments for a special district improvement or service levied by a fire district on a property in a fire protection district or a property receiving fire protection services.
Section 2 - contains the effective date
EXISTING LAW: Section 490 of the Real Property Tax Law provides for the exemption from special ad valorem levies and special assessments. Currently, fire districts cannot levy taxes on tax exempt properties.
JUSTIFICATION: Not-for-profit entities receive real property tax exempt status under the sections 420-a and 420-b of the Real Property Tax Law. However, section 490 of the Real Property Tax Law provides that county and town charges for capital costs of sewer systems, water supply systems, waterways and drainage improvements, and streets and highways, plus special assessments for indebtedness contracted before July 1, 1953 can be levied on tax exempt properties.
Fire protection is a vital service that is provided to all residents and businesses in a community. Taxes are levied in these districts to pay for these services. Not-far-profits benefit from these fire protection services and should pay this special district tax. In some areas, certain tax exempt organizations do provide a contribution to their local firehouse, but with rising property taxes, the burden of this service should be borne by all the property owners in the community.
LEGISLATIVE HISTORY: 2009-10: S.257 Referred to Local Government; A.772 Ways & Means 2007-08: S.1057 Finance; A.1250 Ways & Means 2006: S.3844-A - Passed Senate; A.10141 Real Property Taxation 2005: S.3844 - 3rd Reading
FISCAL IMPLICATIONS: To be determined.
LOCAL FISCAL IMPLICATIONS: By spreading the costs around to all the properties within a fire district, savings would be realized by those who currently pay fire district taxes.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to special ad valorem levies and special assessments imposed on or after such effective date.
STATE OF NEW YORK ________________________________________________________________________ 549 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________Introduced by Sen. LITTLE -- 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 authorizing fire districts to impose special ad valorem levies and special assess- ments against otherwise tax exempt real property THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 490 of the real property tax law, as amended by chapter 87 of the laws of 2001, is amended to read as follows: S 490. Exemption from special ad valorem levies and special assess- ments. Real property exempt from taxation pursuant to subdivision two of section four hundred, subdivision one of section four hundred four, subdivision one of section four hundred six, sections four hundred eight, four hundred ten, four hundred ten-a, four hundred ten-b, four hundred eighteen, four hundred twenty-a, four hundred twenty-b, four hundred twenty-two, four hundred twenty-six, four hundred twenty-seven, four hundred twenty-eight, four hundred thirty, four hundred thirty-two, four hundred thirty-four, four hundred thirty-six, four hundred thirty- eight, four hundred fifty, four hundred fifty-two, four hundred fifty- four, four hundred fifty-six, four hundred sixty-four, four hundred seventy-two, four hundred seventy-four and four hundred eighty-five of this chapter shall also be exempt from special ad valorem levies and special assessments against real property located outside cities and villages for a special improvement or service or a special district improvement or service and special ad valorem levies and special assess- ments imposed by a county improvement district or district corporation except (1) those levied to pay for the costs, including interest and incidental and preliminary costs, of the acquisition, installation, construction, reconstruction and enlargement of or additions to the following improvements, including original equipment, furnishings,EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00147-01-1 S. 549 2
machinery or apparatus, and the replacements thereof: water supply and distribution systems; sewer systems (either sanitary or surface drainage or both, including purification, treatment or disposal plants or build- ings); waterways and drainage improvements; street, highway, road and parkway improvements (including sidewalks, curbs, gutters, drainage, landscaping, grading or improving the right of way)
[and](2) special assessments payable in installments on an indebtedness including inter- est contracted prior to July first, nineteen hundred fifty-three, pursu- ant to section two hundred forty-two of the town law or pursuant to any other comparable provision of law AND (3) SPECIAL AD VALOREM LEVIES AND SPECIAL ASSESSMENTS FOR A SPECIAL DISTRICT IMPROVEMENT OR SERVICE LEVIED BY A FIRE DISTRICT, FIRE PROTECTION DISTRICT OR A PROPERTY RECEIVING FIRE PROTECTION SERVICES. S 2. This act shall take effect immediately and shall apply to special ad valorem levies and special assessments imposed on or after such effective date.