What's happening
This bill amends property tax law to clarify veterans’ alternative exemptions, provide state aid to school districts for lost taxes, and establish an income cap for qualifying veterans.
Why it matters
Clarifies how veteran property tax exemptions interact with school funding. The bill ensures these exemptions do not artificially reduce a school district’s calculated tax base for purposes like state aid, tax rates, or debt limits, preventing unintended financial shortfalls for schools in areas with many qualifying veterans.
Establishes a reimbursement mechanism for schools. By making the exemption amount a direct state fiscal responsibility, the bill means school districts will receive state aid to offset lost property tax revenue, helping maintain education funding stability and reducing pressure to raise local taxes.
Introduces an income cap for eligibility. Veterans (or surviving spouses) earning $500,000 or more annually would no longer qualify for the exemption, targeting benefits to those with lower or moderate incomes and potentially increasing public support for the program by focusing on need.
Requires clearer property tax records. The mandate for assessors to list the exemption’s assessed value separately increases transparency, helping taxpayers and local governments better track the fiscal impact and administration of veteran property tax exemptions.
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Who cares
Headline styles
Fund Veteran Tax Exemptions
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
1 Co-sponsor
History
- Referred to veterans, homeland security and military affairs
- 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.
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
6700
2019-2020 Regular Sessions
IN SENATE
September 11, 2019
Introduced by Sen. CARLUCCI -- 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 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:
§ 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04886-01-9
S. 6700 2
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, 2020.
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 alternative 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 (729 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 he levied for any school year shall be deter- mined without regard to the fact that state aid will he 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 453-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
2017-18: 8786-A2696-A - FINANCE/Veterans' Affairs 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, 2020.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.