What's happening
This bill amends the real property tax law to clarify and expand veterans' property tax exemptions, including an income limit, and provides related state aid to school districts.
Why it matters
New income limit targets aid more precisely. By restricting the veterans’ property tax exemption to those earning less than $500,000 per year, the bill ensures that the benefit is focused on veterans and their families with more moderate incomes, rather than high earners, potentially increasing fairness and cost-effectiveness.
State reimburses school districts for lost revenue. The bill explicitly makes veterans’ exemptions a "state charge," meaning New York State will reimburse school districts for tax revenue they lose due to these exemptions. This could help maintain school funding levels and prevent local taxpayers from bearing the cost of the exemption.
Prevents veterans’ exemptions from impacting school funding calculations. By stipulating that these exemptions will not be considered when calculating state aid, school district tax rates, debt limits, or tax apportionments, the bill protects schools from financial unpredictability and helps ensure stable funding and operations.
Greater transparency and administrative clarity. The requirement to list the exemption amount in a separate column on assessment rolls, along with provisions for state audit and adjustment, should improve transparency and oversight of the exemption process, reducing errors and potential abuse.
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Who cares
Headline styles
Expand Veterans’ Property Tax Exemptions
Plain English, a few words. Used as the page title.
Sponsors
History
- Reported and committed to finance
- Print number 786a
- Amend and recommit to veterans, homeland security and military affairs
- Referred to veterans, homeland security and military affairs
- Reported and committed to finance
- Referred to veterans, homeland security and military affairs
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.
Fund Veteran Tax Exemptions
In Assembly Committee · Veterans' Affairs · Sponsor Thomas Abinanti
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
786--A
2017-2018 Regular Sessions
IN SENATE
January 4, 2017
Introduced by Sens. CARLUCCI, AMEDORE, AVELLA, MARCHIONE, ORTT, TEDISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Veterans, Homeland Security and Military Affairs -recommitted to the Committee on Veterans, Homeland Security and Military Affairs in accordance with Senate Rule 6, sec. 8 -- 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 veteran alternative tax exemptions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 458-a of the real property tax law is amended by adding two new subdivisions 11 and 12 to read as follows:
11. The assessed value of any exemption granted pursuant to this section shall be entered by the assessor on the assessment roll with the taxable property, with the amount of the exemption entered in a separate column.
12. The exemption authorized by this section shall have the effect specified in section thirteen hundred six-b of this chapter. The exemption shall not be considered when determining state aid to education pursuant to section thirty-six hundred two of the education law, when determining school district debt limits pursuant to law, when determining the amount of taxes to be levied by or on behalf of a school district, when calculating tax rates for a school district, when apportioning taxes between or among school districts, when apportioning taxes among classes in a special assessing unit under article eighteen of this chapter, or when apportioning taxes between classes in an approved assessing unit under article nineteen of this chapter.
§ 2. The real property tax law is amended by adding a new section 1306-b to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01825-03-8
S. 786--A 2
§ 1306-b. Effect of veterans alternative exemption upon school district taxes; state aid. 1. Levy of taxes; determination of taxes due. The amount of taxes to be levied for any school year shall be determined without regard to the fact that state aid will be payable pursuant to this section. In addition, the tax rate for any school year shall be determined as if no parcels were exempt from taxation pursuant to section four hundred fifty-eight-a of this chapter. However, the tax rate so determined shall be applied to the taxable assessed value of each parcel after accounting for all applicable exemptions, including the exemption authorized by section four hundred fifty-eight-a of this chapter.
2. Tax savings. The tax savings for each parcel receiving the exemption authorized by section four hundred fifty-eight-a of this chapter shall be computed by subtracting the amount actually levied against the parcel from the amount that would have been levied if not for the exemption.
3. State aid. (a) The total tax savings duly provided by each school district pursuant to this section shall be a state charge, which shall be payable as provided herein.
(b) A school district seeking state aid pursuant to this section shall submit an application therefor to the commissioner. The application shall include such information as the commissioner shall require.
(c) Upon approving an application for state aid pursuant to this section, the commissioner shall compute and certify to the commissioner of education the amounts payable to the school district. Such state aid shall be payable upon the audit and warrant of the state comptroller from vouchers certified and approved by the commissioner of education, as provided by section thirty-six hundred nine-e of the education law, as applicable.
(d) The commissioner may audit an application for state aid pursuant to this section within one year after authorizing payment thereon. If the commissioner should discover that a school district has received a greater or lesser amount of such aid than it should have received, the commissioner shall so notify the school district, and shall cause the next payment of such aid to the school district to be adjusted accordingly.
(e) When an exemption pursuant to section four hundred fifty-eight-a of this chapter has been revoked, the aid payable to the school district pursuant to this section shall be reduced by the amount of the taxes attributable to the revoked exemption.
§ 3. Paragraph (c) of subdivision 1 of section 458-a of the real property tax law, as amended by chapter 100 of the laws of 1988, is amended to read as follows:
(c) "Qualified owner" means a veteran, the spouse of a veteran or the unremarried surviving spouse of a veteran, provided such person is not earning an annual income equal to or in excess of five hundred thousand dollars. Where property is owned by more than one qualified owner, the exemption to which each is entitled may be combined. Where a veteran is also the unremarried surviving spouse of a veteran, such person may also receive any exemption to which the deceased spouse was entitled.
§ 4. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2019.
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 veteran alter- native tax exemptions
Purpose
This bill ensures that real property tax exemptions authorized by school districts to eligible veterans does not shift taxes to other school district taxpayers or reduce school revenue.
Summary of provisions
Section 1 of the bill amends Real Property Tax Law Section 458-a by adding two new subdivisions 9 and 10 to provide that:
Read the full memo (725 words)
*The assessed value of any exemption granted pursuant to this section be entered on the assessment roll of the taxable property in a separate column.
*The application of this section not be considered when determining state aid to schools, debt limits, the amount of taxes to be levied, or when calculating tax rates for a school district, or apportioning taxes under the applicable laws.
Section 2 amends the Real Property Tax Law by adding a new Section 1306-b to provide that:
*The amount of taxes to be levied for any school year shall be deter- mined without regard to the fact that state aid will be payable pursuant to this section and the tax rate for any school year shall be determined as if no parcels were exempt from taxation pursuant to
Section 458-a of this chapter.
*The tax rate determined shall be applied to the taxable assessed value of each parcel after accounting for all applicable exemptions, including the exemption authorized by Section 458-a of this chapter.
*The tax savings for each parcel receiving the exemption shall be computed by subtracting the amount actually levied against the parcel from the amount that would have been levied if not for the exemption.
*The total tax savings provided by each school district pursuant to this section shall be a state charge payable to a school district as state aid by submitting an application to the commissioner with such informa- tion as the commissioner shall require.
*The commissioner may audit an application for state aid pursuant to this section and if the commissioner determines there has been and over- payment or underpayment the next payment of state aid to the school district shall be adjusted accordingly.
* When an exemption approved pursuant to section 458-a of this chapter is revoked, the aid payable to the school district shall be reduced by the amount of the taxes attributable to the revoked exemption. Section 3 amends Real Property Tax Law Section 458-a (c) to amend the definition of qualified owner to include only those eligible veterans earning an annual income less than five hundred thousand dollars.
Section 4 is the effective date
Justification
In December 2013, Real Property Tax Law Section 458-a, known as the alternative veterans tax exemption, was amended to authorize school districts to grant eligible veterans a partial exemption from their school taxes. Prior to the amendment, the partial exemption was only available for real property taxes of a municipality.
Granting school tax exemptions for eligible veterans would result in the shifting of these taxes to the rest of the school district taxpayers. This placed school districts in the unenviable position of appearing not to value the service of veterans if they did not grant the exemption, or shifting taxes to the rest of the taxpayers regardless of the impact.
As a matter of public policy it is not in the State's interest to shift taxes from one group to another. Rather, the State should seek to reduce the tax burden for all taxpayers. This bill would provide for additional state aid to school districts that authorize the partial tax exemption for eligible veterans. The state aid would be equal to the amount of the total tax savings that would result from the authorization of the alter- native veterans tax exemption.
Accordingly, this bill will allow school districts to provide the partial tax exemption to their veterans without shifting taxes to the other school district taxpayers by having the state pay the cost through state aid. In addition the partial tax exemption would be limited to eligible veterans whose income is under five hundred thousand dollars.
Legislative history
2015-16: S1699A/A966A - Veteran's Affairs/Veteran's Affairs 2014: A.9867 - Veteran's Affairs Committee
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2018.
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