Relates to exemptions available to veterans

BILL NUMBER:S3523A

Title of bill

An act to amend the real property tax law, in relation to exemptions available to veterans

Purpose or general idea of bill

Creates an additional local option to increase the maximum exemptions allowed under the alternative veteran's exemption and the exemption for Cold War veterans.

Summary of specific provisions

Section 1. Amends subparagraph (ii) of paragraph (d) of Subdivision 2 of section 458-a of the Real Property Tax Law, as amended by Chapter 518 of the Laws of 2013 to create new categories of higher exemptions available under the alternative veteran's exemption. These are: $39,000, $26,000, and $130,000; $42,000, $28,000, and $140,000; and $45,000, $30,000 and $150,000. Under the "high-appreciation municipality" section of the legislation new categories of higher exemption available to municipalities are also increased. These are: $57,000, $38,000, and $190,000; $60,000, $40,000 and $200,000; $63,000, $42,000 and $210,000; $66,000, $44,000 and $220,000; $69,000, $46,000 and $230,000; $72,000, $48,000 and $240,000; and $75,000, $50,000 and $250,000.

Section 2. Amends subparagraph (iii) of paragraph (c) of subdivision 2 of Section 458-b of the Real Property Tax Law, as amended by Chapter 235 of the Laws of 2009 and as further amended by Section 1 of Part W of Chapter 56 of the Laws of 2010 to create new categories of higher exemptions available to municipalities under the Cold War veteran's exemption. These are: $39,000, $26,000, and $130,000; $42,000, $28,000, and $140,000; and $45,000, $30,000 and $150,000. Under the "high-appreciation municipality" section of the legislation new categories of higher exemption available to municipalities are also increased. These are: $57,000, $38,000, and $190,000; $60,000, $40,000 and $200,000; $63,000, $42,000 and $210,000; $66,000, $44,000 and $220,000; $69,000, $46,000 and $230,000; $72,000, $48,000 and $240,000; and $75,000, $50,000 and $250,000.

Justification

Chapter 477 of the Laws of 1996 amended the alternative veteran's exemption to permit higher municipal caps on the exemption. At the same time, however, the equalization factor, used to assure inter-jurisdictional equity was restored. In some localities, the required use of the equalization rates resulted in lower exemptions even where the highest authorization cap were newly implemented. Chapter 417 of the Laws of 1997 corrected the unintended consequences of Chapter 477, while maintaining local control of the administration of the veteran's alternative exemption. It also created three new higher exemptions that a municipality could adopt and established a special set of exemptions for the City of New York that allowed for even higher exemption limits.

With the dramatic rise in the value of real property over the years, veterans in several municipalities strongly voiced their

dissatisfaction with the administration of the veteran's exemption - clearly stating, at that time, that the benefit had been diminished to such a level that it no longer provides adequate compensation. As such, these exemptions were increased by Chapter 256 of the Laws of 2005. As real property values continue to rise, municipalities should be afforded the opportunity to elect to increase the maximum exemptions allowed under the alternative veteran's exemption and the exemption for Cold War veterans to restore its original intent to provide a viable means by which to help war-time veterans maintain home ownership.

Prior legislative history

2011-12: A.8186-B/S.5597-B

Fiscal implications for state and local governments

None to the State. Localities which opt to enact local laws permitting the increases would shift the tax burden to the remaining tax base.

Effective date

This act shall take effect January 2, 2015; provided that sections one and two of this act shall apply to assessment rolls based on taxable status date occurring on or after such date.