Bill Text: NY S05186 | 2011-2012 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Establishes a residential-commercial real property tax exemption program.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-04 - REFERRED TO LOCAL GOVERNMENT [S05186 Detail]

Download: New_York-2011-S05186-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        5186--A
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                      May 3, 2011
                                      ___________
       Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
         printed to be committed  to  the  Committee  on  Local  Government  --
         committee  discharged,  bill amended, ordered reprinted as amended and
         recommitted to said committee
       AN ACT to amend the real property tax law, in relation to establishing a
         residential-commercial exemption program
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  The  real  property  tax  law  is amended by adding a new
    2  section 485-n to read as follows:
    3    S 485-N.  RESIDENTIAL-COMMERCIAL EXEMPTION PROGRAM. 1. DEFINITIONS. AS
    4  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
    5  INGS:
    6    (A) "APPLICANT" MEANS ANY PERSON OBLIGATED TO PAY REAL PROPERTY  TAXES
    7  ON REAL PROPERTY FOR WHICH AN EXEMPTION FROM TAXES UNDER THIS SECTION IS
    8  SOUGHT.
    9    (B) "BENEFIT AREA" MEANS THE AREA WITHIN A MUNICIPALITY, DESIGNATED BY
   10  LOCAL  LAW, TO WHICH AN EXEMPTION, ESTABLISHED PURSUANT TO THIS SECTION,
   11  APPLIES.
   12    (C) "COMMERCIAL CONSTRUCTION WORK" MEANS THE MODERNIZATION,  REHABILI-
   13  TATION, EXPANSION OR OTHER IMPROVEMENT OF THE COMMERCIAL USE PROPERTY OR
   14  OF THE PORTION OF MIXED-USE PROPERTY TO BE USED FOR COMMERCIAL PURPOSES.
   15    (D) "COMMERCIAL PURPOSE OR USE" MEANS THE BUYING, SELLING OR OTHERWISE
   16  PROVIDING  OF  GOODS  OR  SERVICES,  INCLUDING  HOTEL SERVICES, OR OTHER
   17  LAWFUL BUSINESS OR COMMERCIAL ACTIVITIES PERMITTED UPON MIXED-USE  PROP-
   18  ERTY.
   19    (E) "COMMERCIAL USE PROPERTY" MEANS REAL PROPERTY ON WHICH WILL EXIST,
   20  AFTER  COMPLETION  OF  COMMERCIAL CONSTRUCTION WORK, A BUILDING USED FOR
   21  COMMERCIAL PURPOSES OR USE.
   22    (F) "MIXED-USE PROPERTY" MEANS REAL  PROPERTY  ON  WHICH  WILL  EXIST,
   23  AFTER  COMPLETION  OF  RESIDENTIAL CONSTRUCTION WORK OR A COMBINATION OF
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11374-02-1
       S. 5186--A                          2
    1  RESIDENTIAL CONSTRUCTION WORK AND COMMERCIAL CONSTRUCTION WORK, A BUILD-
    2  ING OR STRUCTURE USED FOR BOTH RESIDENTIAL AND COMMERCIAL PURPOSES.
    3    (G) "MUNICIPALITY" MEANS ANY TOWN, CITY, VILLAGE OR OTHER TAXING ENTI-
    4  TY,  THAT  IS  NOT  A  CITY  OR WITHIN A CITY HAVING A POPULATION OF ONE
    5  MILLION OR MORE.
    6    (H) "RESIDENTIAL CONSTRUCTION WORK" MEANS THE CREATION, MODERNIZATION,
    7  REHABILITATION, EXPANSION OR OTHER IMPROVEMENT OF DWELLING UNITS,  OTHER
    8  THAN  DWELLING UNITS IN A HOTEL, IN THE PORTION OF MIXED-USE PROPERTY TO
    9  BE USED FOR RESIDENTIAL PURPOSES.
   10    2. (A) A MUNICIPALITY MAY, BY LOCAL LAW, PROVIDE FOR THE EXEMPTION  OF
   11  REAL  PROPERTY IN A DESIGNATED BENEFIT AREA FROM TAXATION AS PROVIDED IN
   12  THIS SECTION.
   13    (B) THE LOCAL GOVERNING  BOARD  OR  COUNCIL  SHALL  ESTABLISH  A  PLAN
   14  CONCERNING  THE  VARIOUS TYPES OF RESIDENTIAL REAL PROPERTY WHICH MAY BE
   15  GRANTED ELIGIBILITY FOR AN EXEMPTION PURSUANT TO PARAGRAPH (A)  OF  THIS
   16  SUBDIVISION.  THE  EXEMPTION  SHALL  BE  COMPUTED  AS  PROVIDED  IN THIS
   17  SECTION. IN ADDITION, SUCH PLAN SHALL IDENTIFY DESIGNATED BENEFIT AREAS,
   18  WITHIN WHICH SUCH EXEMPTIONS SHALL BE OFFERED.  IN DEVELOPING  THE  PLAN
   19  REQUIRED  BY  THIS PARAGRAPH, THE LOCAL GOVERNING BOARD OR COUNCIL SHALL
   20  CONSIDER THE PLANNING OBJECTIVES OF THE  SCHOOL  DISTRICT  WHICH  SERVES
   21  SUCH  MUNICIPALITY, AND THE NECESSITY OF THE EXEMPTION TO THE ATTRACTION
   22  OR RETENTION OF HOME OWNERS AND THE ECONOMIC  BENEFIT  TO  THE  AREA  OF
   23  PROVIDING EXEMPTIONS TO HOME OWNERS.
   24    (C)  IN  ADDITION, THE LOCAL GOVERNING BOARD OR COUNCIL MAY MODIFY ITS
   25  PLAN TO IMPROVE THE ECONOMIC CLIMATE THEREIN.
   26    (D) A LOCAL GOVERNING BOARD OR COUNCIL MAY,  BY  LOCAL  LAW,  RESTRICT
   27  REAL  PROPERTY  ELIGIBLE  TO  RECEIVE  THE  EXEMPTION  TO  REAL PROPERTY
   28  CONSTRUCTED FOR THOSE PURPOSES IDENTIFIED IN THE PLAN.  SUCH  LOCAL  LAW
   29  SHALL  RESTRICT  THE  AVAILABILITY  OF  SUCH  EXEMPTION  TO THE SPECIFIC
   30  GEOGRAPHIC AREAS IDENTIFIED IN THE PLAN.  UPON THE ADOPTION  OF  SUCH  A
   31  LOCAL  LAW,  THE  COUNTY  IN  WHICH SUCH MUNICIPALITY IS LOCATED MAY, BY
   32  LOCAL LAW, AND ANY SCHOOL DISTRICT, ALL OR PART OF WHICH IS  LOCATED  IN
   33  SUCH  MUNICIPALITY,  MAY,  BY  RESOLUTION, EXEMPT SUCH PROPERTY FROM ITS
   34  TAXATION IN THE SAME MANNER AND TO THE SAME EXTENT AS SUCH  MUNICIPALITY
   35  HAS DONE.
   36    3.  UPON  THE ADOPTION OF SUCH A LOCAL LAW THE COMMERCIAL USE PROPERTY
   37  OR MIXED-USE PROPERTY THAT WAS CONVERTED, CREATED, MODERNIZED, REHABILI-
   38  TATED, EXPANDED OR OTHERWISE IMPROVED OR  THE  COMMERCIAL  USE  PROPERTY
   39  THAT  WAS  CONVERTED,  CREATED,  MODERNIZED,  REHABILITATED, EXPANDED OR
   40  OTHERWISE IMPROVED, SHALL BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM
   41  LEVIES AS PROVIDED FOR IN SUBDIVISION FOUR OF THIS SECTION.
   42    4. (A) (I) FOR A PERIOD OF TWELVE YEARS FOLLOWING THE APPROVAL  OF  AN
   43  APPLICATION,  THE  INCREASE IN ASSESSED VALUE OF SUCH PROPERTY ATTRIBUT-
   44  ABLE TO SUCH CONVERSION, CREATION, MODERNIZATION, REHABILITATION, EXPAN-
   45  SION OR OTHER IMPROVEMENT SHALL BE EXEMPT AS  PROVIDED  IN  SUBPARAGRAPH
   46  (II) OF THIS PARAGRAPH. SUCH EXEMPTION SHALL BE COMPUTED WITH RESPECT TO
   47  THE  "EXEMPTION  BASE".  THE EXEMPTION BASE SHALL BE DETERMINED FOR EACH
   48  YEAR IN WHICH THERE IS AN INCREASE IN  ASSESSED  VALUE  SO  ATTRIBUTABLE
   49  FROM THAT OF THE PREVIOUS YEAR'S ASSESSED VALUE.
   50    (II)  THE  FOLLOWING  SHALL  DETERMINE  THE  COMPUTATION  OF  THE  TAX
   51  EXEMPTION:
   52  YEAR OF EXEMPTION   PERCENTAGE OF EXEMPTION
   53     1 THROUGH 8      100% OF EXEMPTION BASE
   54     9                80% OF EXEMPTION BASE
   55     10               60% OF EXEMPTION BASE
       S. 5186--A                          3
    1     11               40% OF EXEMPTION BASE
    2     12               20% OF EXEMPTION BASE
    3    (B) NO SUCH EXEMPTION SHALL BE GRANTED UNLESS:
    4    (I)  SUCH  CONVERSION, CREATION, MODERNIZATION, REHABILITATION, EXPAN-
    5  SION OR OTHER IMPROVEMENT WAS COMMENCED SUBSEQUENT TO THE DATE ON  WHICH
    6  THE MUNICIPALITY'S LOCAL LAW TOOK EFFECT; AND
    7    (II)  THE  COST OF SUCH CONVERSION, CREATION, MODERNIZATION, REHABILI-
    8  TATION, EXPANSION OR OTHER IMPROVEMENT EXCEEDS THE SUM OF  TEN  THOUSAND
    9  DOLLARS OR SUCH GREATER AMOUNT AS MAY BE SPECIFIED BY LOCAL LAW.
   10    (C)  FOR  PURPOSES  OF  THIS  SECTION  THE TERM "CONVERSION, CREATION,
   11  MODERNIZATION, REHABILITATION, EXPANSION OR OTHER IMPROVEMENT" SHALL NOT
   12  INCLUDE ORDINARY MAINTENANCE AND REPAIRS.
   13    (D) NO SUCH EXEMPTION SHALL BE GRANTED CONCURRENT WITH  OR  SUBSEQUENT
   14  TO  ANY  OTHER  REAL PROPERTY TAX EXEMPTION GRANTED TO THE SAME IMPROVE-
   15  MENTS TO REAL PROPERTY, EXCEPT, WHERE DURING THE PERIOD OF SUCH PREVIOUS
   16  EXEMPTION, PAYMENTS IN LIEU OF TAXES OR OTHER PAYMENTS WERE MADE TO  THE
   17  MUNICIPALITY  IN AN AMOUNT THAT WOULD HAVE BEEN EQUAL TO OR GREATER THAN
   18  THE AMOUNT OF REAL PROPERTY TAXES THAT WOULD  HAVE  BEEN  PAID  ON  SUCH
   19  IMPROVEMENTS  HAD  SUCH  PROPERTY  BEEN GRANTED AN EXEMPTION PURSUANT TO
   20  THIS SECTION. IN SUCH CASE, AN EXEMPTION SHALL BE GRANTED FOR  A  NUMBER
   21  OF  YEARS  EQUAL  TO  THE TWELVE YEAR EXEMPTION GRANTED PURSUANT TO THIS
   22  SECTION LESS THE NUMBER OF YEARS THE PROPERTY WOULD HAVE BEEN PREVIOUSLY
   23  EXEMPT FROM REAL PROPERTY TAXES.
   24    5. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE  OWNER
   25  OF  REAL PROPERTY ON A FORM PRESCRIBED BY THE STATE BOARD. SUCH APPLICA-
   26  TION SHALL BE FILED WITH THE ASSESSOR  OF  THE  MUNICIPALITY  OR  COUNTY
   27  HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR BEFORE THE APPRO-
   28  PRIATE  TAXABLE STATUS DATE OF SUCH MUNICIPALITY OR COUNTY.  NO APPLICA-
   29  TION SHALL BE APPROVED BY ANY MUNICIPALITY OR COUNTY THAT WAS  SUBMITTED
   30  MORE THAN TWELVE YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION.
   31    6.  IF  THE ASSESSOR IS SATISFIED THAT THE APPLICANT IS ENTITLED TO AN
   32  EXEMPTION PURSUANT TO THIS SECTION, HE OR SHE SHALL APPROVE THE APPLICA-
   33  TION AND SUCH REAL PROPERTY SHALL THEREAFTER BE EXEMPT FROM TAXATION AND
   34  SPECIAL AD VALOREM LEVIES AS PROVIDED IN THIS  SECTION  COMMENCING  WITH
   35  THE  ASSESSMENT  ROLL PREPARED AFTER THE TAXABLE STATUS DATE REFERRED TO
   36  IN SUBDIVISION FIVE  OF  THIS  SECTION.    THE  ASSESSED  VALUE  OF  ANY
   37  EXEMPTION  GRANTED  PURSUANT  TO  THIS  SECTION  SHALL BE ENTERED BY THE
   38  ASSESSOR ON THE ASSESSMENT ROLL WITH  THE  TAXABLE  PROPERTY,  WITH  THE
   39  AMOUNT OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN.
   40    S 2. This act shall take effect immediately.