Establishes a residential-commercial exemption program in certain counties

BILL NUMBER:S7424

Title of bill

An act to amend the real property tax law, in relation to establishing a residential-commercial exemption program in certain counties; and to amend chapter 545 of the laws of 2011, amending the real property tax law, relating to establishing a residential-commercial exemption program in certain counties, in relation to the effectiveness thereof

Purpose

This bill establishes a residential-commercial exemption program in Steuben County, New York.

Summary of provisions

Section 1. The real property tax law is amended by adding Steuben County as a county to which the 485-n abatement program shall apply. Section 485-n allows any municipality within such county to opt in, through adoption of a local law, to a real property tax abatement program. This abatement program would now be offered in Steuben County as well as Livingston County.

Section 2. Establishes the effective date.

Section 3. Establishes the repeal date.

Justification

The County of Steuben has requested to have legislation enacted that will benefit the County of Steuben and all Towns, Villages and School Districts within the county, by allowing them to grant real property tax abatement in defined redevelopment areas.

This initiative was created in Chapter 545 of the Laws of 2011 (A.4643A/Burling) which establishes a real property tax abatement scheme for Livingston County. Section 485-n allows any municipality within such county to opt in, through adoption of a local law, to a real property tax abatement program. This abatement program would now be offered in Steuben County as well as Livingston County.

The properties would be exempt from increase in real property taxes and special ad valorem levies for twelve years.

The tax exemption on the change to assessed value of buildings that have commercial or residential construction work done shall be computed with respect to the exemption base and according to the following schedule:

YEAR OF EXEMPTION PERCENTAGE OF EXEMPTION

1 through 8 100% of exemption base 9 80% of exemption base 10 60% of exemption base 11 40% of exemption base 12 20% of exemption base

The original legislation arose from of a meeting of all local taxing entities in Livingston the county in 2009. They all agreed to support legislation that authorized the adoption of this tax abatement program by each taxing body at local option in recognizance of the need to effect real investment in revitalization.

The municipalities in Steuben County recognize the need for targeted revitalization and would like to partake in a similar abatement program. Cities such as Corning and Hornell are sure to benefit from partic- ipation in this program, much the way localities in Livingston County have.

Tax abatements are a proven technique for local governments to attract investors for revitalization. A tax abatement, which this bill does, is different than a strict tax exemption. A tax exemption takes away exist- ing revenue generated by a property, while a tax abatement does not change existing tax payments. With tax abatements, governments agree to take less than 100% of new revenue generated through property invest- ment, repair and renovation.

This legislation will provide a tool for local governments to use to improve their communities. The proposed tax abatement program will not impose a cost upon the state, and therefore should be considered by the Legislature as a no-cost, mandate-free way to allow local governments in Steuben County to invest in and attract outside investment to their communities.

Legislative history

New Bill.

Fiscal implications

None.

Effective date

Effective immediately, and shall expire and be deemed repealed twelve years after such date.