What's happening
This bill allows local governments to provide a temporary property tax exemption for homeowners after a full value property revaluation.
Why it matters
Helps homeowners adjust to sudden property tax increases. By allowing a phased-in exemption after a full property revaluation, the bill can soften the financial shock for homeowners whose assessed values—and therefore property taxes—rise sharply, giving them time to plan and budget.
Local control and flexibility. The exemption is optional; each town, city, or village can decide whether to adopt it, and can set additional eligibility criteria, such as limiting the benefit to properties with unusually large assessment increases. This means relief can be targeted where it’s most needed.
Encourages fairness in tax administration. The exemption applies only to owner-occupied residences eligible for the STAR property tax benefit, and excludes properties with delinquent taxes or new owners, helping ensure that the relief goes to long-term, responsible residents rather than investors or those who recently purchased at new values.
Temporary and structured relief. The exemption phases out over two years (66% the first year, 33% the second), helping homeowners transition to higher taxes without permanently reducing local tax bases or school funding. This balances short-term relief with the long-term fiscal needs of the community.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Limit Tax Hikes After Revaluation
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
1 Co-sponsor
History
- Print number 1551a
- 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 Hikes After Revaluation
In Senate Committee · Rules · Sponsor Sandy Galef
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 1551--A A. 1329--A Cal. No. 68
2019-2020 Regular Sessions
SENATE - ASSEMBLY
January 15, 2019
IN SENATE -- Introduced by Sens. CARLUCCI, KENNEDY -- 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, WALLACE -- read once and referred to the Committee on Real Property Taxation -- ordered to a third reading, amended and ordered reprinted, retaining its place on the order of third reading
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-v to read as follows:
§ 485-v. 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.
2. Eligibility. (a) The assessors in each assessing unit that have adopted the provisions of this section shall, in the first year in which
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00259-02-0
S. 1551--A 2 A. 1329--A
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
2 33% of exemption base
S. 1551--A 3 A. 1329--A
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-v that reads as follows: § 485-v. Residential Revaluation exemption.
Read the full memo (640 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 asses- sor 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)
Changes section number of new section of RPTL to 485-v from 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
A. 7147-A and S. 5547-A of 2017/2018
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.