Authorizes fire districts to impose ad valorem levies and special assessments on otherwise tax exempt real property.

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S999-2013 Actions

• Jan 9, 2013: REFERRED TO LOCAL GOVERNMENT

S999-2013 Memo

BILL NUMBER:S999

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:
Authorizes fire districts to impose ad valorem levies and special
assessments on otherwise tax exempt real property.

SUMMARY OF PROVISIONS:

Section 1- Amends section 490 of the real property tax law, as amended
by chapter 87 of the laws of 2001 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, water ways 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-for-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:
2011-2012: S. 549 Referred to Local Government; A. 428 Referred to
Real Property Taxation
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 cost 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.

S999-2013 Text

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

                                     999

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  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.
                                                             LBD01135-01-3

 S. 999                              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.