Grants a tax deferment for persons sixty-five years of age or older who own and occupy real property in N.Y. city

Title of bill

An act to amend the real property tax law, in relation to granting a tax deferment for persons sixty-five years of age or older who reside in a city having a population of one million or more persons

Purpose or general idea of bill

To allow seniors to remain in their homes as the value of the property continues to rise.

Justification

Cities with a population of million or more will continue to experience a population growth.. Affordable housing in these metropolitan areas will be problematic as the demand for it increases. The value of real property will swell, and as a result, the taxes. Seniors are particularly vulnerable to shifts in the housing market. This bill would shield seniors from an increase in real property taxes by deferring the annual increase. The state would receive the difference in the annual increase, without interest, once the home is sold or when the senior resident passes away. The senior would continue to pay the same real property tax they paid when this bill is enacted, allowing them to maintain their budget in light of uncontrollable market forces. The increases in real property tax would be deferred not the entire tax.

Also, by allowing seniors to remain in their homes, they can maintain important ties to the community, family and friends they developed over decades of occupancy. The prospect of moving away from these long-term support networks (family, friends, caregivers, etc.) can be devastating to seniors. Seniors are sustained by a strong sense of place and familiarity with certain locations. Also, seniors tend to live in older buildings that often require repairs. Old houses in cities occupied by the elderly are more likely to have physical problems than newer houses. By deferring the increase in real property tax, seniors will be able to maintain their homes and a safe living environment.

Also, the recent rise in fuel costs is another example of an unforeseen situation that seniors had to face this winter. Many seniors live on a fixed income and cannot afford a healthy standard of living when faced with these circumstances. This deferment will ease some financial stress.

In conclusion, the tax deferment for seniors will not result in a monetary loss for the state. The tax deferment will help seniors to remain in the home they spent their professional lives paying for and to live there with dignity.

Prior legislative history

A6480 (2008). A11822 of 2006

Fiscal implications

Undetermined.

Effective date

This act shall take effect on the one hundred eightieth day after it shall become a law.