What's happening
This bill requires New York State to provide aid to cities, towns, villages, and fire districts where over 35% of property is tax-exempt.
Why it matters
Addresses financial strain on local governments. Cities, towns, villages, and fire districts with a high percentage of tax-exempt properties (like government buildings, hospitals, and churches) often have smaller tax bases and struggle to fund essential services. This bill would help offset that loss with state aid, making it easier for these localities to provide services without overburdening remaining taxpayers.
Targets aid based on both population and tax-exempt property value. The distribution formula ensures that not only the size of the community but also the extent of tax-exempt property is considered. This dual approach aims to more fairly allocate funds to where the impact of tax-exempt properties is greatest.
Could reduce disparities between municipalities. By providing targeted assistance, the bill may help level the playing field between areas with high concentrations of tax-exempt properties (often urban centers or communities with large institutions) and those with more taxable property, potentially reducing local inequities in public service funding.
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Who cares
Headline styles
Aid for Tax-Exempt Cities
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to local government
- Committee discharged and committed to local government
- Referred to investigations and government operations
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.
Aid for Tax-Exempt Property Towns
In Assembly Committee · Real Property Taxation · Sponsor Aileen Gunther
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
745
2017-2018 Regular Sessions
IN SENATE
January 4, 2017
Introduced by Sens. RITCHIE, AKSHAR, SERINO, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
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
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 532-a to read as follows:
§ 532-a. Certain lands subject to state payments. In any city, town, village or fire district in which the total amount of tax exempt property represents more than thirty-five percent, by value, of the total amount of property in such city, town, village or fire district, the state shall pay a sum, subject to budgetary appropriation, as follows:
1. Fifty percent of such sum shall be paid to each eligible city, town, village or fire district in proportion to such entity's population relative to the population of all such eligible entities; and
2. Fifty percent of such sum shall be paid based on the value of tax exempt property in each eligible city, town, village or fire district as a percentage of the value of all tax exempt property in all such eligible entities.
§ 2. This act shall take effect immediately and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on and after the date on which this act shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02788-01-7
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 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
2015-2016: 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.