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S6934Senate2017-2018 SessionSame asA2279

Senior Tax Break for Homeowners

Official title

“Authorizes cities having a population of between 250,000 and 300,000 to establish a senior citizen longtime resident real property tax exemption”

Sponsor Chris JacobsSD-60+1 co-sponsorAffects Local Government
Status
Senate Floor Calendar
Impact
5/10
Moderate
Outcome
Companion signed

Bill progress

Signed via A2279

What's happening

This bill allows certain cities to grant property tax exemptions to longtime senior residents meeting specific age, income, and residency requirements.

Why it matters

  1. Targets seniors at risk of displacement. The exemption is specifically designed for longtime senior residents living in low-income census tracts, particularly in areas experiencing rising property values from new development, helping them avoid being priced out of their homes.

  2. Strict eligibility requirements. Only those who are at least 65 years old, have lived in and owned their home for at least 25 consecutive years, and have a total household income below $30,000 are eligible—meaning the benefit is tightly focused on the most economically vulnerable seniors.

  3. Limits on exemption calculation. The exemption only covers increases in property assessments above a fixed “base” level, and excludes increases caused by home improvements or certain other assessment changes, ensuring the relief is targeted at market-driven assessment hikes rather than owner-initiated enhancements.

  4. Annual application and oversight. Seniors must apply every year, with the city assessor responsible for sending out applications and notices, and exemptions are discontinued if ownership changes or eligibility requirements are no longer met—ensuring ongoing oversight and fairness.

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Who cares

Headline styles

Senior Tax Break for Homeowners

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Chris Jacobs

Senator · Senate District 60

1 Co-sponsor

History

  1. Substituted by A2279A
  2. Ordered to third reading cal.1668
  3. Committee discharged and committed to rules
  4. Referred to local government
  5. Referred to rules

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.

A2279Assembly

Tax Break for Senior Homeowners

Signed by Governor · Sponsor Crystal Peoples-Stokes

Impact 4 · LowSigned into law

Full text

3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

6934

2017-2018 Regular Sessions

IN SENATE

November 1, 2017

Introduced by Sen. JACOBS -- read twice and ordered printed, and when printed to be committed to the Committee on Rules

AN ACT to amend the real property tax law, in relation to establishing a senior citizen longtime resident exemption in certain cities

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 467-k to read as follows:

§ 467-k. Senior citizen longtime resident exemption. 1. Establishment. Any city with a population greater than two hundred fifty thousand and less than three hundred thousand, as determined by the latest decennial federal census, after conducting a public hearing, may adopt a local law to grant a senior citizen longtime resident exemption pursuant to this section. Once a city has enacted a local law adopting the provisions of this section, the county government in which such city is located may also enact a local law to provide an exemption in the same manner as such city.

2. Eligibility. a. No exemption shall be granted pursuant to this section unless:

(1) the property is a one-, two- or three-family residential property located within a United States census tract that has a median income not exceeding sixteen thousand fifty-six dollars according to the two thousand ten decennial census. A city adopting the provisions of this section may by local law further limit the exemption to specific areas within such city experiencing an increase in property values due to new development occurring therein, which put senior citizen longtime residents at risk of displacement;

(2) the property serves as the primary residence of one or more of the owners;

(3) all of the owners are at least sixty-five years of age or older, or in the case of property owned by husband and wife or by siblings, one

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD05536-07-7

S. 6934 2

of the owners is at least sixty-five years of age, as of the taxable status date. At the option of the city, which shall be specified in the local law adopting the provisions of this section, any person otherwise qualifying under this section shall not be denied the exemption under this section if he or she becomes sixty-five years of age after the appropriate taxable status date and on or before December thirty-first of the same year;

(4) one or more of the owners has owned and resided in the property for no fewer than twenty-five consecutive years; and

(5) the total household income does not exceed thirty thousand dollars for the latest preceding income tax year prior to the date of application for such exemption. The term "income" as used in this section shall mean the "adjusted gross income" for federal income tax purposes as reported on the applicant's federal or state income tax return for the applicable income tax year, subject to any subsequent amendments or revisions, reduced by distributions, to the extent included in federal adjusted gross income, received from an individual retirement account and an individual retirement annuity; provided that if no such return was filed for the applicable income tax year, "income" shall mean the adjusted gross income that would have been so reported if such a return had been filed.

3. Calculation of exemption. a. Except as provided in paragraph b of this subdivision, a senior citizen longtime resident shall be exempt from taxation and special ad valorem levies for every year in which the property's current assessment exceeds the "base assessment." For the purposes of this section the "base assessment" shall be the assessment that appeared on the assessment roll immediately preceding the first year in which an exemption was granted pursuant to this section. The assessor shall annually calculate the exemption by subtracting the "base assessment" from the current year's assessment.

b. Notwithstanding the provisions of paragraph a of this subdivision, no exemption shall be allowed to the extent that the assessment increased due to one or more of the following events:

(1) a physical improvement made to the property;

(2) a removal or reduction of an exemption on the eligible taxpayer's primary residence, including a reduction of the STAR exempt amount calculated pursuant to subdivision two of section four hundred twentyfive of this title; or

(3) a revaluation that caused the assessment of the eligible taxpayer's primary residence to increase by a percentage that is less than or equal to the applicable change in level of assessment. As used in this section, the terms "revaluation" and "change in level of assessment" shall have the same meanings as set forth in sections one hundred two and twelve hundred twenty of this chapter, respectively.

4. Application for such exemption shall be made annually on a form prescribed by the commissioner. Such application shall be made to the city assessor on or before the taxable status date. No application for such exemption shall be granted unless the eligibility criteria of subdivision two of this section are met.

5. In the event that a 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

S. 6934 3

or owners thereof at the time and in the manner provided by section five hundred ten of this chapter.

6. The city assessor shall, on or before December first, mail to each person who was granted an exemption pursuant to this section for the current city fiscal year, an application form for an exemption and a notice that such application must be filed no later than the taxable status date in order for the exemption to be granted or continued. Failure to mail any such application form or notice or the failure of such person or persons to receive the same shall not prevent the levy, collection and enforcement of the payment of the taxes on property owned by such person or persons.

§ 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 establishing a senior citizen longtime resident exemption in certain cities

Purpose

Authorizes cities having a population of between 250,000 and 300,000 to establish a senior citizen longtime resident real property tax exemption

Summary of provisions

Section 1 of the bill amends the real property tax law by adding a new section 467-j.

Section 2 of the bill provides the effective date.

Justification

When a neighborhood is determined to be gentrifying, a potential bypro- duct is the displacement of long-time residents. Higher mortgages and rents may be cited as a reason for that displacement.

Over the past few years, several major U.S. cities have initiated plans to reduce or freeze property tax assessments for long-time homeowners in certain gentrifying neighborhoods. In doing so, the cities aim to protect low- and middle-income homeowners unable to afford an increase in property taxes, and thereby slow the churning of these neighborhoods.

Last year, to assess the extent to which gentrification has reshaped urban communities, Governing analyzed Census tract data for the nation's 50 largest cities. One of its findings from its examinations of these neighborhoods concluded that nearly 20 percent of neighborhoods with lower incomes and home values have experienced gentrification since 2000, compared to only 9 percent during the 1990s.*

Cities across the state of New York are experiencing resurgence in recent years. The City of Buffalo is one example. The growth of the Buffalo Niagara Medical Campus has accelerated exponentially over the last several years, with nine major institutions and more than 40 public and private companies expanding in the city of Buffalo.

This expansion has facilitated the investment of over 750 million dollars into a development covering over 120 acres and employing well over 12,000 employees. With new development, come new residents. This growth, however economically beneficial can have some negative conse- quences upon the adjacent Fruit Belt community. This neighborhood is of singular importance due to its rich history as one of the City's oldest neighborhoods developed in the decades before the Civil War. As such, some of the housing stock has been in families for generations.

The purpose of this legislation is to protect the some of the most vulnerable of our New Yorkers, its seniors by establishing a longtime resident real property tax exemption. This will allow senior residents to enjoy the revitalization of their communities without taxing them out of it.

Fiscal implications

To be determined

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.