Authorizes certain municipalities to approve a partial tax exemption for reconstruction, alterations or improvement to qualified residential structures.
Ayes (8): Martins, Ball, Little, McDonald, Ritchie, Stewart-Cousins, Oppenheimer, Klein
TITLE OF BILL: An act to amend the real property tax law, in relation to a partial tax exemption for new residential construction or improvements to qualified residential structures in certain towns
PURPOSE: To allow the Town of Evans in Erie County to implement a residential property tax abatement program.
SUMMARY OF PROVISIONS: Section 1. Authorizes the Town of Evans to enact a partial residential tax abatement for the improvement, modification or construction of one to three family homes that raise said home's assessed value by at least $10,000. In the first year of the program, 50% of the assessed value is abated, to a maximum of $150,000. This abatement is decreased by 10% each year i.e. only 40% of the increased assessed value is abated in the second year, etc.
Section 2. Enacting clause.
JUSTIFICATION: In January 2007, the Town of Evans Economic Development Committee formed a Subcommittee to address the issue of static or declining new housing construction in the Town of Evans. The Subcommittee identified the implementation of a temporary residential tax abatement program as a critical first step in spurring economic development throughout the Town.
New housing starts in Evans have been static or declining over the past 5 years. This new program is expected to improve and maintain quality housing stock, encourage renovation, rehabilitation or replacement of residential property, increase owner occupied dwellings, counter blight, improve the town's tax base, and improve the quality of life for neighborhood residents.
The Town of Evans, The Village of Angola, and the Board of Education for the Evans Brant Central School District have passed Home Rule resolutions requesting authorization to implement the proposed residential investment exemption.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None to the state.
LOCAL FISCAL IMPLICATIONS:
With the growth of modifications, expansions and renovations to existing houses in the Town of Evans, the partial tax abatement this legislation provides will lead to a growth in revenues.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 5557 2011-2012 Regular Sessions IN SENATE June 1, 2011 ___________Introduced by Sen. GALLIVAN -- 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 a partial tax exemption for new residential construction or improvements to quali- fied residential structures in certain towns 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 421-1 to read as follows: S 421-1. EXEMPTION OF NEW CONSTRUCTION AND IMPROVEMENTS TO RESIDENTIAL BUILDINGS IN CERTAIN TOWNS. 1. RESIDENTIAL BUILDINGS SITUATED WITHIN A TOWN WITH A POPULATION OF NOT LESS THAN SEVENTEEN THOUSAND FIVE HUNDRED NINETY-FOUR AND NOT MORE THAN SEVENTEEN THOUSAND SIX HUNDRED FOURTEEN, SITUATED IN A COUNTY WITH A POPULATION OF NOT LESS THAN NINE HUNDRED NINETEEN THOUSAND FORTY AND NOT MORE THAN NINE HUNDRED NINETEEN THOUSAND SIXTY, BASED UPON THE TWO THOUSAND FEDERAL CENSUS THAT HOUSE ONE TO THREE FAMILIES AND WHICH HAVE BEEN NEWLY CONSTRUCTED OR IMPROVED SUBSE- QUENT TO THE EFFECTIVE DATE OF A LOCAL LAW OR RESOLUTION PASSED BY THE GOVERNING BOARD OF SUCH TOWN AFTER PUBLIC HEARING PURSUANT TO THIS SECTION SHALL BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM LEVIES TO THE EXTENT PROVIDED HEREINAFTER. A COPY OF SUCH LOCAL LAW OR RESOLUTION SHALL BE FILED WITH THE COMMISSIONER AND THE ASSESSOR OF SUCH TOWN. 2. SUCH RESIDENTIAL REAL PROPERTY SHALL BE EXEMPT FOR A PERIOD OF ONE YEAR TO THE EXTENT OF FIFTY PER CENTUM OF THE INCREASE IN ASSESSED VALUE THEREOF ATTRIBUTABLE TO SUCH CONSTRUCTION OR IMPROVEMENT AND FOR AN ADDITIONAL PERIOD OF FOUR YEARS SUBJECT TO THE FOLLOWING: (I) THE EXTENT OF SUCH EXEMPTION SHALL BE DECREASED BY TEN PER CENTUM OF THE "EXEMPTION BASE" EACH YEAR DURING SUCH ADDITIONAL FOUR-YEAR PERI- OD, SUCH THAT DURING YEAR TWO THERE SHALL BE AN EXEMPTION OF FORTY PER CENTUM OF THE INCREASE IN ASSESSED VALUE THEREOF ATTRIBUTABLE, DURING YEAR THREE THERE SHALL BE AN EXEMPTION OF THIRTY PER CENTUM OF THEEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11781-02-1 S. 5557 2
INCREASE IN ASSESSED VALUE THEREOF ATTRIBUTABLE, IN YEAR FOUR THERE SHALL BE AN EXEMPTION OF TWENTY PER CENTUM OF THE INCREASE IN ASSESSED VALUE THEREOF ATTRIBUTABLE AND IN YEAR FIVE THERE SHALL BE AN EXEMPTION OF TEN PER CENTUM OF THE INCREASE IN ASSESSED VALUE THEREOF ATTRIBUT- ABLE; (II) THE "EXEMPTION BASE" SHALL BE THE INCREASE IN ASSESSED VALUE DUE TO NEW CONSTRUCTION OR IMPROVEMENTS AS DETERMINED BY THE ASSESSOR IN THE INITIAL YEAR OF SUCH FIVE-YEAR PERIOD FOLLOWING THE FILING OF AN ORIGINAL APPLICATION; (III) A QUALIFIED IMPROVEMENT SHALL HAVE INCREASED THE ASSESSED VALUE OF THE REAL PROPERTY BY AT LEAST TEN THOUSAND DOLLARS, WITH A MAXIMUM PERMITTED EXEMPTION NOT TO EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS; AND (IV) AN EXEMPTION FOR NEW CONSTRUCTION SHALL APPLY TO THE ASSESSED VALUE OF THE REAL PROPERTY IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS, WITH A MAXIMUM PERMITTED EXEMPTION NOT TO EXCEED ONE HUNDRED FIFTY THOU- SAND DOLLARS. 3. FOR PURPOSES OF THIS SECTION, "CONSTRUCTION" OR "IMPROVEMENT" SHALL NOT INCLUDE ORDINARY MAINTENANCE AND REPAIRS. 4. EXEMPTIONS GRANTED PURSUANT TO THIS SECTION SHALL APPLY TO REAL PROPERTY TAXES IMPOSED FOR TOWN, VILLAGE AND SCHOOL DISTRICT PURPOSES. 5. ANY OWNER OF A ONE TO THREE FAMILY RESIDENCE WITHIN A TOWN WITH A POPULATION OF NOT LESS THAN SEVENTEEN THOUSAND FIVE HUNDRED NINETY-FOUR AND NOT MORE THAN SEVENTEEN THOUSAND SIX HUNDRED FOURTEEN, SITUATED IN A COUNTY WITH A POPULATION OF NOT LESS THAN NINE HUNDRED NINETEEN THOUSAND FORTY AND NOT MORE THAN NINE HUNDRED NINETEEN THOUSAND SIXTY, BASED UPON THE TWO THOUSAND FEDERAL CENSUS SHALL QUALIFY FOR AN EXEMPTION PURSUANT TO THIS SECTION, INCLUDING OWNERS WHO DO NOT OCCUPY SUCH RESIDENCES, INDIVIDUALS, PARTNERSHIPS AND LIMITED LIABILITY CORPORATIONS. EXEMPTIONS GRANTED PURSUANT TO THIS SECTION ARE NOT TRANSFERABLE FROM OWNER TO ANOTHER IF THE REAL PROPERTY IS SOLD OR TRANSFERRED DURING THE EXEMPTION PERIOD. 6. NO SUCH EXEMPTION SHALL BE GRANTED UNLESS: (A) SUCH NEW CONSTRUCTION OR IMPROVEMENT WAS COMMENCED SUBSEQUENT TO THE EFFECTIVE DATE OF THE LOCAL LAW OR RESOLUTION ADOPTED BY SUCH TOWN WITH A POPULATION OF NOT LESS THAN SEVENTEEN THOUSAND FIVE HUNDRED NINE- TY-FOUR AND NOT MORE THAN SEVENTEEN THOUSAND SIX HUNDRED FOURTEEN, SITU- ATED IN A COUNTY WITH A POPULATION OF NOT LESS THAN NINE HUNDRED NINE- TEEN THOUSAND FORTY AND NOT MORE THAN NINE HUNDRED NINETEEN THOUSAND SIXTY, BASED UPON THE TWO THOUSAND FEDERAL CENSUS PURSUANT TO SUBDIVI- SION ONE OF THIS SECTION; (B) THE OWNER OF REAL PROPERTY APPLYING FOR SUCH EXEMPTION HAS SATIS- FIED ALL OUTSTANDING TOWN, COUNTY AND SCHOOL TAX OBLIGATIONS; AND (C) SUCH NEW CONSTRUCTION OR IMPROVEMENT IS DOCUMENTED BY A BUILDING PERMIT, IF REQUIRED, FOR THE IMPROVEMENTS OR OTHER APPROPRIATE DOCUMEN- TATION AS REQUIRED BY THE TOWN ASSESSOR AND/OR CODE ENFORCEMENT OFFICER. 7. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER OF SUCH REAL PROPERTY ON A FORM PRESCRIBED BY THE COMMISSIONER. SUCH APPLICATION SHALL BE FILED WITH THE ASSESSOR ON OR BEFORE THE APPROPRI- ATE TAXABLE STATUS DATE OF SUCH TOWN AND WITHIN ONE YEAR AFTER THE DATE OF COMPLETION OF SUCH CONSTRUCTION OR IMPROVEMENT. 8. IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSU- ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH BUILDING SHALL THEREAFTER BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM LEVIES BY THE TOWN AS PROVIDED IN THIS SECTION COMMENCING WITH THE ASSESSMENT ROLL PREPARED ON THE BASIS OF THE TAXABLE STATUS DATES. 5557 3
REFERRED TO IN SUBDIVISION SEVEN OF THIS SECTION. THE ASSESSOR SHALL ENTER THE ASSESSED VALUE OF ANY EXEMPTION GRANTED PURSUANT TO THIS SECTION ON THE ASSESSMENT ROLL FOR THE TAXABLE PROPERTY, WITH THE AMOUNT OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN. 9. IN THE EVENT THAT REAL PROPERTY GRANTED AN EXEMPTION PURSUANT TO THIS SECTION CEASES TO BE USED PRIMARILY FOR ELIGIBLE PURPOSES, THE EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL CEASE. 10. SUCH TOWN SHALL BE PERMITTED BY LOCAL LAW TO REDUCE THE PERCENTAGE OF EXEMPTION OTHERWISE ALLOWABLE BY SUBDIVISION TWO OF THIS SECTION OR INCREASE THE REQUIRED MINIMUM ASSESSED VALUES SET FORTH IN PARAGRAPHS (III) AND (IV) OF SUBDIVISION TWO OF THIS SECTION, PROVIDED THAT A PROJECT IN THE COURSE OF CONSTRUCTION OR IMPROVEMENT SHALL NOT BE SUBJECT TO SUCH AMENDMENTS. S 2. This act shall take effect immediately.