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 states the Commissioner of health shall biennially designate and make available a list of designated physician shortage areas by county or other sub-county geographic area that lacks primary care and/or other medical specialty physicians in a manner consistent with designated physician shortage area determinations made under the Doctors Across New York Program.

Section 3 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, on property purchased after on or after the effective date of this act, and is for a maximum of 35% of the value of the real property's assessed value.

Section 4 provides that the total savings provided by a municipal corporation or school district shall be a state charge.

Section 5 provides that this act shall take effect immediately and shall apply to tax years beginning on or after the first of March next succeeding such effective date; or in the case of municipal taxing authorities which have a taxable status date other than March first established by charter, this act shall take effect the first establishment of the taxable status of real property in the municipality next succeeding the effective date of this act.

Justification

Many communities in New York State are experiencing a growing physician shortage, reaching crisis proportions in some geographic regions and in some medical specialties. 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 this physician supply issue and work together to implement a multifaceted plan to address the problem. The "Doctors Across New York" Program is a strong step forward, however, additional initiatives are essential 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, this bill 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. However, it is clear that local communities cannot bear the burden of these costs. This bill would allow school districts and municipalities to be reimbursed by the State for the amount of foregone tax revenue.

Legislative history

2013,2014: S.4388 Reported and Committed to Finance 2012: S.6919/A.9810 Committed to Rules

Fiscal implications

Undetermined.

Effective date

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