Relates to state aid for certain cities, towns, villages or fire districts adversely affected by a concentration of tax exempt property

3 Co-sponsors

• Fredrick J. Akshar II
• Susan Serino
• James L. Seward

Title of bill

An act to amend the real property tax law, in relation to state aid for certain towns adversely affected by a concentration of tax exempt property

Purpose

This bill creates a new category of state aid for certain towns based on the amount of tax exempt property in their jurisdiction.

Summary of provisions

Section 1 amends the Real Property Tax Law by adding a new Section 532-a providing that for any city, town, village, or fire district to be eligible for a new category of state aid at least 35 percent of the real property in the city, town, village, or fire district, by value, must be exempt from taxation. The funds available to assist eligible cities, towns, villages, or fire districts are allocated based on a formula. Fifty percent of the distribution is based on the town's population. The remaining 50 percent is based on the amount of tax exempt property in the town.

Section 2 is the effective date.

Justification

Real property taxes are the main way local governments are able to raise revenue and provide necessary services to the residents of their city, town, village, or fire district. When a large concentration, over 35 percent by value, of the property in a city, town, village, or fire district, is exempt from taxation, there is a significant portion of land for which real property taxes cannot be collected to support the services provided by the locality. This significantly reduces the property tax base and limits the number of property owners that pay taxes to support the town's services. This places an increased burden on the taxpayers for support of a city's, town's, village's, or fire district's services.

This bill will aid the taxpayers and the cities, towns, villages, and fire districts, that have a significantly high amount of real property that is exempt from taxation by allowing the state to appropriate and distribute funds, based upon a formula, to the towns which have a significantly high amount, over 35 percent by value, of real property that is exempt from taxation.

Legislative history

2015: S.1821/ A.1026 2013-2014: S.4605/ A.1079

Fiscal implications

Subject to budgetary appropriation.

Effective date

This bill shall take effect immediately and shall apply to assessment rolls prepared on the basis of taxable status dates occurring and after the date on which this act shall have become a law.