Includes four family dwelling within definition of homestead class

BILL NUMBER:S1718

Title of bill

An act to amend the real property tax law, in relation to including a four family dwelling within the definition of homestead class

Purpose

To add four family residential real property to Section 1903 of the Real Property Tax Law for the purpose of placing said property under the "Homestead" class.

Summary of specific provisions

Paragraph (a) of subdivision 1 of section 1903 of the Real Property Tax Law, as amended by chapter. 355 of the laws of 1997, is amended to allow the governing body of any approved assessing unit, except a county, to include owner occupied four family dwelling within the definition of homestead class by local option.

This provision includes such dwellings used in part for nonresidential purposes, but which are used primarily for residential purposes. Farm dwellings are also included.

Justification

Many older homes which are used for residential purposes often.contain more than three families. The "homestead" class is intended to provide lower tax rates to homeowners, with "non-homestead" property contributing a large share. The sum of the aggregate homestead and non-homestead tax shares is equal to one hundred percent tax rate. Adding owner-occupied four family dwellings to this section would more effectively take into consideration the larger homes that are being remodeled and used by large families or those individuals who use their residence primarily for living purposes. Exclusion of these homes from this section does not appear to be warranted as interpreted by the intent of the law.

Prior legislative history

2001-02: S.1253/A.1481 No action. 2003-04: S.555 No action. 2005-06: S.589/A.1190 No action. 2007-08: S 2620 Referred to Local Government

Fiscal implications

None

Effective date

Immediately.