Creates a tax exemption for owner occupied residential property in municipalities affected by Superstorm Sandy

BILL NUMBER:S4577A

Title of bill

An act in relation to tax assessments for certain improved properties affected by Superstorm Sandy

Purpose or general idea of bill

Creates a tax exemption for owner occupied residential property in municipalities affected by Superstorm Sandy. Provides authority to local assessors to implement a phased in, graduated assessment increase over an 8 year period to property owners who were victims of Superstorm Sandy and had to complete significant repairs, reconstruction and in some cases build entire new homes in the aftermath of Superstorm Sandy.

Summary of specific provisions

Section 1 (a) creates a tax exemption for owner occupied residential property in municipalities and school districts affected by Superstorm Sandy which, after a public hearing, have adopted a local law or resolution to grant the exemption, and filed it with the commissioner of taxation and finance and the assessor of the municipality.

Section 1 (b) lists requirements for eligibility.

Section 1 (c) specifies the duration of the exemption; (i) defines "exemption base"; (ii) discusses conditions requiring the recomputing of the "exemption base"; (iii) specifies how the exemption shall be applied.

Section 1 (d) specifies under what circumstances an exemption shall be granted. Excludes additions and improvements which did not exist before Superstorm Sandy.

Section 1 (e) specifies how the exemption shall be filed and the duration of the exemption.

Section 1 (f) specifies the details of application approval.

Section 1 (g) defines "primary residence."

Section 1 (h) specifies under what conditions the exemption shall cease.

Section 1 (i) specifies that no local law or resolution shall reduce or repeal an exemption that has been granted.

Section 2 sets out the effective date.

Justification

In the aftermath of Superstorm Sandy, many storm-impacted homeowners were required to do extensive repairs and reconstruction so that they could remain in or return to their homes. As a result for many homeowners, their property. assessments have increased substantially

and they are now faced with the financial burdens of loan payments for the reconstruction in addition to increased property taxes. This legislation allows for an exemption which provides a graduated tax increase over an eight year period for certain eligible Superstorm Sandy victims.

Prior legislative history

New bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately and shall apply to exemption applications made prior to the first of March next succeeding the date on which this act shall have become a law and no later than the first of March two thousand eighteen, and any exemption once granted shall continue for a period of up to eight prospective tax years as set forth in this act.