Bill Text: NY S09181 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to exempting active duty service members from taxation of qualifying residential real property; exempts any person who is serving or has served in active duty for any period of time in the United States army, navy, marine corps, air force, or coast guard, for other than training purposes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-10-22 - REFERRED TO RULES [S09181 Detail]
Download: New_York-2017-S09181-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9181 IN SENATE October 22, 2018 ___________ Introduced by Sen. ROBACH -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the real property tax law, in relation to exempting active duty service members from taxation of qualifying residential real property 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 458-c to read as follows: 3 § 458-c. Exemption for active duty service members. 1. The following 4 terms whenever used or referred to in this section shall have the 5 following meanings unless a different meaning clearly appears in the 6 context: 7 (a) "Active duty service member" means a person who is serving or has 8 served in active duty for any period of time in the United States army, 9 navy, marine corps, air force, or coast guard, for other than training 10 purposes. 11 (b) "Qualified owner" means an active duty service member, the spouse 12 of an active duty service member or the unremarried surviving spouse of 13 an active duty service member. Where property is owned by more than one 14 qualified owner, the exemption to which each is entitled may be 15 combined. Where an active duty service member is also the unremarried 16 surviving spouse of an active duty service member, such person may also 17 receive any exemption to which the deceased spouse was entitled. 18 (c) "Qualifying residential real property" means property owned by a 19 qualified owner which is used exclusively for residential purposes; 20 provided however, that in the event any portion of such property is not 21 so used exclusively for residential purposes but is used for other 22 purposes, such portion shall be subject to taxation and the remaining 23 portion only shall be entitled to the exemption provided by this 24 section. Such property shall be the primary residence of the active duty 25 service member or unremarried surviving spouse of the active duty 26 service member, unless the active duty service member or unremarried 27 surviving spouse is absent from the property due to medical reasons or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16629-01-8S. 9181 2 1 institutionalization. In the event the active duty service member dies 2 and there is no unremarried surviving spouse, "qualifying residential 3 real property" shall mean the primary residence owned by a qualified 4 owner prior to death, provided that the title to the property becomes 5 vested in the dependent father or mother or dependent child or children 6 under twenty-one years of age of an active duty service member by virtue 7 of devise by or descent from the deceased qualified owner, provided that 8 the property is the primary residence of one or all of the devisees. 9 (d) "Latest state equalization rate" means the latest final state 10 equalization rate or special equalization rate established by the 11 commissioner pursuant to article twelve of this chapter. The commission- 12 er shall establish a special equalization rate if it finds that there 13 has been a material change in the level of assessment since the estab- 14 lishment of the latest state equalization rate, but in no event shall 15 such special equalization rate exceed one hundred. In the event that the 16 state equalization rate exceeds one hundred, then the state equalization 17 rate shall be one hundred for the purposes of this section. Where a 18 special equalization rate is established for purposes of this section, 19 the assessor is directed and authorized to recompute the active duty 20 service member exemption on the assessment roll by applying such special 21 equalization rate instead of the latest state equalization rate applied 22 in the previous year and to make the appropriate corrections on the 23 assessment roll, notwithstanding the fact that such assessor may receive 24 the special equalization rate after the completion, verification and 25 filing of such final assessment roll. In the event that the assessor 26 does not have custody of the roll when such recomputation is accom- 27 plished, the assessor shall certify such recomputation to the local 28 officers having custody and control of such roll, and such local offi- 29 cers are hereby directed and authorized to enter the recomputed active 30 duty service member exemption certified by the assessor on such roll. 31 (e) "Latest class ratio" means the latest final class ratio estab- 32 lished by the commissioner pursuant to title one of article twelve of 33 this chapter for use in a special assessing unit as defined in section 34 eighteen hundred one of this chapter. 35 2. (a) Qualifying residential real property shall be exempt from taxa- 36 tion to the extent of fifteen percent of the assessed value of such 37 property; provided, however, that such exemption shall not exceed twelve 38 thousand dollars or the product of twelve thousand dollars multiplied by 39 the latest state equalization rate for the assessing unit, or in the 40 case of a special assessing unit, the latest class ratio, whichever is 41 less. 42 (b) In addition to the exemption provided by paragraph (a) of this 43 subdivision, where the active duty service member is serving or served 44 in a combat theatre or combat zone of operations, as documented by the 45 award of a United States campaign ribbon or service medal, or the armed 46 forces expeditionary medal, navy expeditionary medal, marine corps 47 expeditionary medal, or global war on terrorism expeditionary medal, 48 qualifying residential real property also shall be exempt from taxation 49 to the extent of ten percent of the assessed value of such property; 50 provided, however, that such exemption shall not exceed eight thousand 51 dollars or the product of eight thousand dollars multiplied by the 52 latest state equalization rate for the assessing unit, or in the case of 53 a special assessing unit, the class ratio, whichever is less. 54 (c) In addition to the exemptions provided by paragraphs (a) and (b) 55 of this subdivision, where the active duty service member received a 56 compensation rating from the United States veteran's administration orS. 9181 3 1 from the United States department of defense because of a service 2 connected disability, qualifying residential real property shall be 3 exempt from taxation to the extent of the product of the assessed value 4 of such property multiplied by fifty percent of the active duty service 5 member's disability rating; provided, however, that such exemption shall 6 not exceed forty thousand dollars or the product of forty thousand 7 dollars multiplied by the latest state equalization rate for the assess- 8 ing unit, or in the case of a special assessing unit, the latest class 9 ratio, whichever is less. For purposes of this paragraph, where a person 10 died in service of a service connected disability, such person shall be 11 deemed to have been assigned a compensation rating of one hundred 12 percent. 13 (d) (i) The exemption from taxation provided by this subdivision shall 14 be applicable to county, city, town, village and school district taxa- 15 tion if the governing body of the school district in which the property 16 is located, or in the case of a city with a population of one million or 17 more, the local legislative body, after public hearings, adopts a resol- 18 ution, or in the case of a city with a population of one million or 19 more, a local law, providing such exemption, the procedure for such 20 hearing and resolution or local law shall be conducted separately from 21 the procedure for any hearing and local law or resolution conducted 22 pursuant to subparagraph (ii) of this paragraph, subdivision four and 23 paragraph (d) of subdivision six of this section. 24 (ii) Each county, city, town, village or school district may adopt a 25 local law to reduce the maximum exemption allowable in paragraphs (a), 26 (b) and (c) of this subdivision to nine thousand dollars, six thousand 27 dollars and thirty thousand dollars, respectively, or six thousand 28 dollars, four thousand dollars and twenty thousand dollars, respective- 29 ly. Each county, city, town, village or school district is also author- 30 ized to adopt a local law to increase the maximum exemption allowable in 31 paragraphs (a), (b) and (c) of this subdivision to fifteen thousand 32 dollars, ten thousand dollars and fifty thousand dollars, respectively; 33 eighteen thousand dollars, twelve thousand dollars and sixty thousand 34 dollars, respectively; twenty-one thousand dollars, fourteen thousand 35 dollars, and seventy thousand dollars, respectively; twenty-four thou- 36 sand dollars, sixteen thousand dollars, and eighty thousand dollars, 37 respectively; twenty-seven thousand dollars, eighteen thousand dollars, 38 and ninety thousand dollars, respectively; thirty thousand dollars, 39 twenty thousand dollars, and one hundred thousand dollars, respectively; 40 thirty-three thousand dollars, twenty-two thousand dollars, and one 41 hundred ten thousand dollars, respectively; thirty-six thousand dollars, 42 twenty-four thousand dollars, and one hundred twenty thousand dollars, 43 respectively; thirty-nine thousand dollars, twenty-six thousand dollars, 44 and one hundred thirty thousand dollars, respectively; forty-two thou- 45 sand dollars, twenty-eight thousand dollars, and one hundred forty thou- 46 sand dollars, respectively; and forty-five thousand dollars, thirty 47 thousand dollars and one hundred fifty thousand dollars, respectively. 48 In addition, a county, city, town, village or school district which is a 49 "high-appreciation municipality" as defined in this subparagraph is 50 authorized to adopt a local law to increase the maximum exemption allow- 51 able in paragraphs (a), (b) and (c) of this subdivision to thirty-nine 52 thousand dollars, twenty-six thousand dollars, and one hundred thirty 53 thousand dollars, respectively; forty-two thousand dollars, twenty-eight 54 thousand dollars, and one hundred forty thousand dollars, respectively; 55 forty-five thousand dollars, thirty thousand dollars and one hundred 56 fifty thousand dollars, respectively; forty-eight thousand dollars,S. 9181 4 1 thirty-two thousand dollars and one hundred sixty thousand dollars, 2 respectively; fifty-one thousand dollars, thirty-four thousand dollars 3 and one hundred seventy thousand dollars, respectively; fifty-four thou- 4 sand dollars, thirty-six thousand dollars and one hundred eighty thou- 5 sand dollars, respectively; fifty-seven thousand dollars, thirty-eight 6 thousand dollars and one hundred ninety thousand dollars, respectively; 7 sixty thousand dollars, forty thousand dollars and two hundred thousand 8 dollars, respectively; sixty-three thousand dollars, forty-two thousand 9 dollars and two hundred ten thousand dollars, respectively; sixty-six 10 thousand dollars, forty-four thousand dollars and two hundred twenty 11 thousand dollars, respectively; sixty-nine thousand dollars, forty-six 12 thousand dollars and two hundred thirty thousand dollars, respectively; 13 seventy-two thousand dollars, forty-eight thousand dollars and two 14 hundred forty thousand dollars, respectively; seventy-five thousand 15 dollars, fifty thousand dollars and two hundred fifty thousand dollars, 16 respectively. For purposes of this subparagraph, a "high-appreciation 17 municipality" means: (A) a special assessing unit that is a city, (B) a 18 county for which the commissioner has established a sales price differ- 19 ential factor for purposes of the STAR exemption authorized by section 20 four hundred twenty-five of this title in three consecutive years, and 21 (C) a city, town, village or school district which is wholly or partly 22 located within such a county. 23 3. (a) Application for exemption shall be made by the owner, or all of 24 the owners, of the property on a form prescribed by the commissioner. 25 The owner or owners shall file the completed form in the assessor's 26 office on or before the appropriate taxable status date. The exemption 27 shall continue in full force and effect for all appropriate subsequent 28 tax years and the owner or owners of the property shall not be required 29 to refile each year. Applicants shall be required to refile on or before 30 the appropriate taxable status date if the percentage of disability 31 percentage increases or decreases or may refile if other changes have 32 occurred which affect qualification for an increased or decreased amount 33 of exemption. Any applicant convicted of making any willful false state- 34 ment in the application for such exemption shall be subject to the 35 penalties prescribed in the penal law. 36 (b) Notwithstanding the provisions of this section or any other 37 provision of law, in a city having a population of one million or more, 38 applications for the exemption authorized pursuant to this section shall 39 be considered timely filed if they are filed on or before the fifteenth 40 day of March of the appropriate year. 41 4. A local law or resolution adopted pursuant to this section may be 42 repealed by the governing body of the applicable county, city, town, 43 village, or school district. Such repeal must occur at least ninety days 44 prior to the taxable status date of such county, city, town, village or 45 school district. 46 5. Notwithstanding any other provision of law to the contrary, the 47 provisions of this section shall apply to any real property held in 48 trust solely for the benefit of a person or persons who would otherwise 49 be eligible for a real property tax exemption, pursuant to this section, 50 were such person or persons the owner or owners of such real property. 51 6. (a) For the purposes of this section, title to that portion of real 52 property owned by a cooperative apartment corporation in which a 53 tenant-stockholder of such corporation resides and which is represented 54 by his share or shares of stock in such corporation as determined by its 55 or their proportional relationship to the total outstanding stock of theS. 9181 5 1 corporation, including that owned by the corporation, shall be deemed to 2 be vested in such tenant-stockholder. 3 (b) Provided that all other eligibility criteria of this section are 4 met, that proportion of the assessment of such real property owned by a 5 cooperative apartment corporation determined by the relationship of such 6 real property vested in such tenant-stockholder to such real property 7 owned by such cooperative apartment corporation in which such tenant- 8 stockholder resides shall be subject to exemption from taxation pursuant 9 to this section and any exemption so granted shall be credited by the 10 appropriate taxing authority against the assessed valuation of such real 11 property; the reduction in real property taxes realized thereby shall be 12 credited by the cooperative apartment corporation against the amount of 13 such taxes otherwise payable by or chargeable to such tenant-stockhold- 14 er. 15 (c) Notwithstanding paragraph (b) of this subdivision, a tenant-stock- 16 holder who resides in a dwelling that is subject to the provisions of 17 either article two, four, five or eleven of the private housing finance 18 law shall not be eligible for an exemption pursuant to this section. 19 (d) Notwithstanding paragraph (b) of this subdivision, real property 20 owned by a cooperative corporation may be exempt from taxation pursuant 21 to this section by a municipality in which such property is located only 22 if the governing body of such municipality, after public hearing, adopts 23 a local law, ordinance or resolution providing therefor. 24 7. Notwithstanding the provisions of paragraph (c) of subdivision one 25 of this section and subdivision three of this section, the governing 26 body of any municipality may, after public hearing, adopt a local law, 27 ordinance or resolution providing that where an active duty service 28 member, the spouse of an active duty service member or unremarried 29 surviving spouse already receiving an exemption pursuant to this section 30 sells the property receiving the exemption and purchases property within 31 the same county, or in the case of a city having a population of one 32 million or more persons, within the same city, the assessor shall trans- 33 fer and prorate, for the remainder of the fiscal year, the exemption 34 received. The prorated exemption shall be based upon the date the active 35 duty service member, the spouse of the active duty service member or 36 unremarried surviving spouse obtains title to the new property and shall 37 be calculated by multiplying the tax rate or rates for each municipal 38 corporation which levied taxes, or for which taxes were levied, on the 39 appropriate tax roll used for the fiscal year or years during which the 40 transfer occurred times the previously granted exempt amount times the 41 fraction of each fiscal year or years remaining subsequent to the trans- 42 fer of title. Nothing in this section shall be construed to remove the 43 requirement that any such active duty service member, the spouse of the 44 active duty service member or unremarried surviving spouse transferring 45 an exemption pursuant to this subdivision shall reapply for the 46 exemption authorized pursuant to this section on or before the following 47 taxable status date, in the event such active duty service member, the 48 spouse of the active duty service member or unremarried surviving spouse 49 wishes to receive the exemption in future fiscal years. 50 8. The commissioner shall develop in consultation with the director of 51 the New York state division of veterans' affairs a listing of documents 52 to be used to establish eligibility under this section. Such informa- 53 tion shall be made available to each county, city, town or village 54 assessor's office, or congressional chartered veterans service officers 55 who request such information. The listing of acceptable military recordsS. 9181 6 1 shall be made available on the internet websites of the division of 2 veterans' affairs and the office of real property tax services. 3 § 2. This act shall take effect on the first of January next succeed- 4 ing the date on which it shall have become a law and shall apply to 5 assessment rolls prepared on the basis of taxable status dates occurring 6 on or after such date.
