Authorizes real property taxing jurisdictions to grant a partial tax exemption for property purchased by a physician in a physician shortage area

Summary of provisions

Section 1 states the legislative findings and intent.

Section 2 authorizes an exemption from local property and school taxes for primary residential property purchases of physicians residing and working in areas designated by the Commissioner as experiencing a physician shortage, conditioned upon the local taxing authority passing an authorizing law or resolution. The exemption cannot be for a period longer than 5 years and is for a maximum of 50% of the value of the real property's assessed value.

Section 3 is the effective date.

Existing law

None.

Justification

Many communities in New York State are experiencing a growing physician shortage, reaching crisis proportions in some geographic regions and in some medical special ties. A survey of its members by the Health Care Association of New York State (HANYS) reported that 104 hospitals outside of New York City had a current need for 1,400 physicians (almost 40% in primary care). In addition to primary care, severe shortages exist in general surgery, OB-GYN, urology and psychiatry. Many areas of the State have seen rapid declines in their physicians supply and with an average physician age of 52 (almost 30% are over 60 years of age); the shortage is only expected to worsen.

On the demand side for physician services, New York's population age 65 and over increased 25% between 1980 and 2000 and, the population over age 80 (who use the most health resources) is expected to double by the year 2020.

Clearly, both the health care community and state government must focus on physician supply issue and work together to implement a multi-faceted plan to address the problem. The "Doctors Across New

York" Program was a strong step forward with awards made in March of 2009 after the program was enacted as part of the 2008-2009 State. However, additional initiatives are vital to the continued viability of rural New York State.

By exempting part of a physician's residence from real property tax when the local taxing authority chooses to grant the exemption, the legislation provides New York State's medically underserved communities with another tool to attract physicians.

This physician shortage is an imminent threat to the health, safety and the economic viability of these communities and their residents. While this legislation will have a financial impact on the local governments and school districts via foregone tax revenue, the severity of the problem requires aggressive action and justifies these expenditures even in this fiscally difficult period.

Legislative history

New Bill.

Fiscal implications

None.

Local fiscal implications

Local taxing authorities would have an undetermined fiscal impact from real property exempted from property taxes; however this exemption is at their discretion. Furthermore, the presence of an adequate health care system has been demonstrated to be a significant factor in driving economic investment and growth within communities.

Effective date

This bill take effects immediately and applies to tax years on and after March first next succeeding the date on which it shall have become law, or in the case of municipal taxing authorities who have a taxable status date other than March first established by charter, then this act shall take effect with the first establishment of the taxable status of real property in the municipality, next succeeding the date on which it shall have become law.