Exempts qualifying residential real property from taxation for active duty service members

BILL NUMBER:S6869

Title of bill

An act to amend the real property tax law, in relation to exemption from taxation of qualifying residential real property for active duty service members

Purpose

To offer a partial real property tax exemption for active duty armed services members.

Summary of provisions

Section 1 creates definitions and authorizes two tiers of partial property tax exemptions for active duty armed services members. A qualifying armed service member may exempt 15% of the assessed value of the qualifying residential property up to $12,000. A qualifying armed services member that has or is serving in combat theatre or combat zone of operations may exempt an additional 10% of the assessed value to a maximum of $8,000. Every applicant for a partial property tax exemption pursuant to this legislation would be required to refile every tax year.

Section 2 is the effective date.

Existing law

There are two existing property tax exemptions relating to certain armed services personnel. RPT 458-a provides an alternative exemption for veterans who were honorably discharged. RPT 458-b grants another exemption for qualifying Cold War Veterans.

Justification

Serving in the armed services is perhaps the greatest sacrifice a person can make for this nation. They must leave their homes and families to fulfill their service. However, the obligation to pay property taxes will always remain. Nowadays, it is difficult enough for any homeowner to pay their obligated property taxes, it is even harder for armed services members who must spend significant periods of time away from home. By giving active duty service members a partial exemption from property taxes, this State can honor their service while helping to maintain their homes in New York.

Mindful of property tax cap placed on localities, this legislation would only authorize, not require, a locality to offer an extra exemption to active duty armed services members. The exemption will only go into effect upon a local law adopted by a county, city, town or village.

Legislative history

New bill.

Fiscal implications

No costs to the state.

Local fiscal implications

If adopted, this legislation would reduce the total taxable base in a county, city, town or village.

Effective date

First of January next succeeding the date on which it shall have become a law and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date.