What's happening
This bill allows local governments to grant temporary property tax exemptions to homeowners facing higher assessments after a full property revaluation.
Why it matters
Helps homeowners adjust to sudden tax increases. By phasing in higher property taxes over two years after a full revaluation, the bill aims to prevent financial shocks for residents whose home values—and therefore tax bills—jump significantly.
Targets relief to primary residences and STAR-eligible owners. Only residential properties eligible for the STAR school tax relief program (or its equivalent credit) can apply, focusing the benefit on owner-occupants rather than investors or commercial properties.
Optional and locally tailored. Local governments can decide whether to implement the exemption and can set their own threshold for how much a property's value must increase to qualify, allowing adaptation to community needs and fiscal realities.
Temporary and conditional assistance. The exemption only lasts two years, and is discontinued if the property is sold or if taxes become delinquent, ensuring the relief is temporary and directed at those most impacted by revaluation.
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Who cares
Headline styles
Limit Revaluation Tax Increases
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Print number 5547a
- Amend and recommit to local government
- Referred to local government
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Tax Hike After Revaluation
Assembly Floor Calendar · Sponsor Sandy Galef
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 5547--A A. 7147--A
2017-2018 Regular Sessions
SENATE - ASSEMBLY
April 10, 2017
IN SENATE -- Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- recommitted to the Committee on Local Government in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
IN ASSEMBLY -- Introduced by M. of A. GALEF, BUTLER -- read once and referred to the Committee on Real Property Taxation -- reported and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to a residential revaluation exemption
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The real property tax law is amended by adding a new section 485-u to read as follows:
§ 485-u. Residential revaluation exemption. 1. Applicability. The governing body of an assessing unit may, after a public hearing, adopt the provisions of this section by local law in the first year of a full value revaluation to provide a residential revaluation exemption. If the governing body of an assessing unit passes a local law pursuant to this subdivision, such exemption shall also apply in the same manner and to the same extent to each village, county, special district or school district that levies taxes on the assessment roll prepared by such assessing unit. A village assessing unit, within an assessing unit that has conducted a revaluation and that chooses to adopt that assessing unit's latest final assessment roll is permitted to adopt the provisions of this section within two years of its implementation.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07896-03-8
S. 5547--A 2 A. 7147--A
2. Eligibility. (a) The assessors in each assessing unit that have adopted the provisions of this section shall, in the first year in which revaluation assessments are to be entered on the assessment roll and for the next succeeding year, apply to each eligible residential property an exemption as provided in subdivision three of this section. For the purpose of this section, to be an "eligible residential property" the following criteria must be met:
(i) The property must be a residential property, provided that dwelling units held in condominium form of ownership shall only be eligible if located in an approved assessing unit and classified in the homestead class or located in a special assessing unit and classified in class one;
(ii) The property must be eligible to receive the STAR exemption authorized by section four hundred twenty-five of this title or the owner or owners must be eligible to receive the personal income tax school tax relief (STAR) credit authorized by subsection (eee) of section six hundred six of the tax law, for such property;
(iii) In any given year, the owner or owners receiving the exemption pursuant to this section must be the same as the owner or owners that appeared on the assessment roll upon which the revaluation is implemented; and
(iv) The property must not have any delinquent taxes as of the taxable status date for the roll on which an exemption is applied.
(b) In addition to the criteria provided in paragraph (a) of this subdivision, an assessing unit may further limit the eligibility to eligible residential property whose full value increase exceeded a set percentage threshold as specified in their local law adopting the provisions of this section.
3. Exemption calculation. (a)(i) The exemption shall be computed with respect to a percentage of the "exemption base." The exemption base shall be the amount by which the assessed value of a property on the assessment roll upon which the revaluation is implemented exceeds the prior year's equalized assessed value, as determined in the initial year. The prior year's equalized assessed value shall be determined by applying the applicable change in level of assessment factor to the prior year's assessed value. Such exemption base shall not include increases due to a physical improvement or a removal or reduction of an exemption on property.
(ii) Any increase in the assessment of a property due to physical changes in the year following the implementation roll shall not be eligible for the exemption. In the event that any portion of a parcel is fully or partially removed from the roll during the year following the implementation roll by reason of fire, demolition, destruction or new exemption, the assessor shall reduce the exemption for any remaining portion in the same proportion assessment is reduced for such fire, demolition, destruction or new exemption. If a property's revaluation assessment is reduced pursuant to title one-A of article five, or title one or one-A of article seven of this chapter, the exemption shall be recomputed accordingly.
(b)(i) The exemption shall be to the extent of sixty-six per centum of the exemption base in year one and thirty-three per centum of the exemption base in year two.
(ii) The following table shall illustrate the computation of the exemption:
Year of exemption Percentage of Exemption
1 66% of exemption base
S. 5547--A 3 A. 7147--A
2 33% of exemption base
4. Granting of exemption. (a) Such exemption shall be granted only upon application by the owner or owners of such real property on a form prescribed by the commissioner. Such application shall be filed with the assessor on or before the appropriate taxable status date for the assessment roll upon which the revaluation is implemented.
(b) If the assessor is satisfied that the applicant is entitled to an exemption pursuant to this section, he or she shall approve the application and the taxable assessed value shall be reduced by the exemption, as in this section provided commencing with the assessment roll prepared after the taxable status date. The assessed value of any exemption granted pursuant to this section shall be entered by the assessor on the assessment roll with the amount of the exemption shown in a separate column.
(c) In the event that the residential property granted an exemption pursuant to this section transfers ownership or otherwise ceases to meet the eligibility requirements of the exemption in subdivision two of this section, the exemption granted pursuant to this section shall be discontinued. Upon determining that an exemption granted pursuant to this section should be discontinued, the assessor shall mail a notice so stating to the owner or owners thereof at the time and in the manner provided by section five hundred ten of this chapter.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to a residential revaluation exemption
Purpose or general idea of bill
The purpose of this legislation is to help mitigate the effects of a town-wide revaluation by giving a town the ability to adopt a two-year phase-in option for assessment increases on certain residential proper- ties.
Summary of provisions
Section 1. Amends the Real Property Tax law by adding a new section 485-u that reads as follows: § 485-u. Residential Revaluation exemption.
Read the full memo (628 words)
1. After a public hearing, the governing body of an assessing unit may adopt the provisions of this section by local law in the 1st year of a full value revaluation to provide a residential revaluation exemption.
2. (a) To be an "eligible residential property" (i)the property must be a residential property,(ii) the property must be eligible to receive the STAR exemption or the personal income tax STAR credit, (iii) in any given year, the owner(s) receiving the exemption must match the owner(s) on the assessment roll, and (iv) the property must not have any delin- quent taxes as of the taxable status date. (b) Additionally, an assess- ing unit may further limit the eligibility to eligible residential prop- erties whose full value increase exceeds a set percentage threshold as specified in their local law.
3. (a)(i) The exemption shall be computed with respect to a percentage of the "exemption base", which a definition is provided. (ii) Any increase in the assessment due to physical changes in the year following the implementation roll shall not be eligible for exemption. (b)(i) The exemption shall be to the extent of 66 per centum of the exemption base in year one and 33 per centum in year two. (ii) Illustration:
YEAR OF EXEMPTION PERCENTAGE OF EXEMPTION 1 66% of exemption base 2 33% of exemption base
4. (a)Exemption shall be granted only upon application by the owner(s)on a form prescribed by the commissioner. Application must be filed with the assessor on or before the appropriate taxable status date for the assessment roll which the revaluation is implemented. (b)If the assessor is satisfied, they shall approve the application and the taxable assessed value will be reduced by the exemption. (c) If property granted an exemption transfers ownership or ceases to meet eligibility, the exemption shall be discontinued, the assessor shall mail a notice to the owner(s).
Section 2. Establishes the effective date.
Difference between original and amended version (if applicable)
485-t has been changed to 485-u.
Justification
New York State does not require assessing units to conduct cynical reas- sessments. As a result, reassessment activity is inconsistent across the State. In many instances, assessments are out of date and do not accu- rately reflect the actual value of properties, causing some taxpayers to pay too much in taxes and others to pay too little. In an effort to bring current the properties, many towns are deciding to complete town- wide property reassessments. Some of these towns had not be reassessed for many decades, and therefore updating the assessment rolls can often cause some owners to experience severe increases in their property taxes. Although these increases may be in the interest of fairness, they can be jarring and sudden. This legislation will help mitigate the impacts of these increases by allowing a town to adopt a local law, after a public hearing, to phase-in the increased assessments that some residents will experience. It will also allow homeowners to prepare financially for their new, increased tax liability.
Prior legislative history
NEW LEGISLATION
Fiscal implications for state and local governments
There are no fiscal implications to the State in association with the passage of this legislation.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.