Relates to creating the New York state home ownership savings plan and creating a property tax exemption related thereto

BILL NUMBER:S6642

Title of bill

An act to amend the state finance law and the real property tax law, in relation to creating the New York state home ownership savings plan and creating a property tax exemption relating thereto

Purpose or general idea of bill

This bill relates to creating the New York state home ownership savings plan and creating a property tax exemption related thereto.

Summary of provisions

Section 1 establishes the title of the legislation as the "New York State Home Ownership Savings Plan".

Section 2 amends the state finance law by adding a new section, 97-j, that states the legislative intent, defines important terms and provides guidance for implementation.

Section 3 amends the real property tax law by adding a new section, 421-n, that creates exemptions for prosperities purchased in target areas with a New York state home ownership savings plan.

Justification

In recent years, homeownership in New York has declined to rates not seen since the Great Depression. The declines are particularly concentrated among younger households, with many young people delaying property purchases for a variety of reasons.

Furthermore, according to the 2010 Census, New York State has the lowest percentage of homeowners in the United States. This is the second consecutive census in which New York has had the lowest rate. Only 53 percent of the population owned a home compared to the national rate of 65.1 percent.

Home ownership can confer significant benefits for individuals and communities. Owning a home can result in increased health and education benefits, increased civic involvement, reduced crime and higher lifetime wealth. Owning a residence also leads to higher tax revenues, reclamation of distressed neighborhoods and census tracts, and renovation of abandoned and/or vacant buildings. Therefore it is in the interest of the state to continue offering opportunities for individuals to purchase homes.

In a manner similar to the New York College Savings Program, and the Ontario home buyer's savings plan, this plan would offer potential home buyers a tax-advantaged opportunity to save their money and buy a home. It is expected this program will become immensely popular in New York because, like Independent Retirement Accounts (IRAs), this new program would empower average New Yorkers in rural, suburban and urban to join in the American Dream of owning a home.

Prior legislative history

This is a new bill.

Fiscal implications

There will be no discernible fiscal impact in the initial years of this program. It is expected that returning distressed properties to the tax rolls and developing distressed census tracts will provide new revenue to the state fisc.

Effective date

This shall take effect immediately.