Increases the veteran's real property tax exemption from $5000 to $7500

BILL NUMBER:S2536

Title of bill

An act to amend the real property tax law, in relation to increasing exemption for veterans

Purpose or general idea

Amends paragraph two, subdivision one of Section 458 of the Real Property Tax Law to increase the exemption a veteran may receive on real property purchased with eligible funds from the present $5,000 to $7,500 of the assessed value of that property.

Summary of specific provisions

Amends paragraph two, subdivision one of Section 458 of the Real Property Tax Law to provide that real property owned by a veteran shall be exempt up to $7,500 of assessed valuation when the property shall have been purchased with eligible funds. Any established or newly claimed exemption in excess of fifty dollars shall be allowed as the nearest multiple of fifty dollars and if there is no nearest multiple of fifty dollars the exemption shall be allowed in the amount of the next higher multiple of fifty dollars. Claims for exemption can be granted even if there is a mingling of such eligible funds with other funds or their retention by the United States for insurance premiums.

Justification

This act will make more realistic and meaningful, the value of the exemption which was within the intent of the Legislature when it originally passed the law. The dollar value has certainly decreased at least 50% since the law was originally enacted more than twenty years ago. This act, while changing the dollar amount of the exemption, will afford the veteran homeowner substantially the same value of tax relief as he first received when the law originally went into effect.

Prior legislative history

None.

Fiscal implication for state and local governments

Undetermined.

Effective date

This act shall take effect on the first of July next succeeding the date on which it shall have become a law.