Provides that community residences will be relieved of their tax exempt status while requiring the state to bear the cost of such property taxes

8 Co-sponsors

• Carl Kruger
• Velmanette Montgomery
• Suzi Oppenheimer
• Kevin S. Parker
• John L. Sampson
• Malcolm A. Smith
• William T. Stachowski
• Toby Ann Stavisky

Title of bill

An act to amend the real property tax law, in relation to the tax exempt status of community residences

Purpose

Provides that community residences will be relieved of their tax exempt status while requiring the state to bear the cost of such property taxes.

Summary of provisions

Section 1. The real property tax law is amended by adding a new section 306 to remove the real property tax exempt status from community residences.

Section 2. §420-a of the real property tax law is amended by adding a new subdivision 15 to remove community residences from the mandatory class exemption from real property tax for non profit organizations.

Section 3. §532 of the real property tax law is amended by adding a new subdivision (k) to include community residences in the category of certain state lands subject to taxation for all purposes.

Section 4. Paragraph (a) of subdivision 1 of section 422 of the real property tax law, as amended by chapter 409 of the laws of 1993, is amended to remove community residences as exempt structures under not-for-profit housing companies.

Justification

With the onset of deinstitutionalization in the 1970s, individuals with mental or developmental disabilities have been integrated into the community at a rapid pace. Community residences, where the majority of these people now reside, have taken the place of institutions. They are much better at meeting the needs of the people they serve, and have become an instrumental component of the community. However, as the number of community residences throughout the State continue to grow, their real property tax exempt status has become a financial burden to municipalities. While the State is saving $2.2 billion annually, municipalities are losing up to $20 million in property taxes.

This legislation would rectify this situation by removing the real property tax exempt status from community residences, while providing that the state be responsible for all future property tax payments. The community residences would never have to make any payments to the municipality. Subsequently, there would be no reimbursement process. The state would make direct payments to the municipality ensuring that community residences would never have to spend their own money. The State Comptroller's Office would be responsible for developing a system and administering payments. Under this bill, municipalities will be provided with their fair share of revenue at NO cost to the community residences, allowing them to continue their vital work in ensuring the health, safety and happiness of the people they serve.

Legislative history

2007/2008 - S.733 Remained in the Senate Committee on Local Government 2005/2006 - S.221 Remained in the Senate Committee on Local Government 2003-2004 - S.570 Remained in the Senate Committee on Local Government 2001/2002 - S.1973 Remained in the Senate Committee on Local Government

1999/2000 - S.803 Remained in the Senate Committee on Local Government

Fiscal implications

Significant savings to local governments.

Effective date

Immediately.