Increases the amount of the real property tax alternative exemption for veterans

BILL NUMBER:S5252

Title of bill

An act to amend the real property tax law, in relation to the veteran's alternative exemption

Purpose

This legislation would ensure veterans benefit from the veterans' alter- native exemption notwithstanding an increase in property value.

Summary of provisions

Section one of this measure amends paragraphs (a), (b), (c) of section 458-a, subdivision 2 of the Real Property Tax law.

Justification

The "new" veterans' exemption, enacted by chapter 525 of the laws of 1984, provided wartime, combat zone and disabled veterans with 15%, 10% and 50% of disability rating exemptions, respectively. These exemptions are also subject to maximums of $12,000, $8,000 and $40,000 respective- ly. A formula utilizing the equalization rate ensures that veterans living in assessing units that assess at different percentages of full value receive similar exemptions. When enacted, the maximum value of a residence eligible for a full exemption was $80,000. Veterans whose residences exceeded this value saw the value of their exemption decline.

This bill accounts for the fact that property values have increased significantly since 1984. Veterans should not see the value of their exemptions diminish due to factors beyond their control, such as esca- lating housing prices. This bill accounts for inflation and adjusts veterans' exemptions accordingly. A provision is also included permit- ting municipalities to maintain veterans' exemptions at present levels should an increase be unwarranted.

Legislative history

S. 6441 of 2001/2002; S. 3027 of 2003/2004; S. 4358 of 2005/2006; S. 710 of 2007/2008; S. 3275 of 2009/2010; S. 3214 of 2011/2012; S. 3303A of 2013/2014

Fiscal implications

None.

Effective date

This act shall take effect immediately and shall apply to taxes levied on assessment rolls completed on and after July 1, 2002.