Disaster Property Tax Relief

Section 1. Section 467-n of the real property tax law, as added by a chapter of the laws of 2024 amending the real property tax law relating to enacting the "climate change property tax relief act", as proposed in legislative bills numbers S. 7515-A and A. 7748-B, is REPEALED and a new section 467-n is added to read as follows:

§ 467-n. Assessment relief for disasters. 1. Definitions. For the purposes of this section, the following terms shall have the following meanings:

(a) "Eligible municipality" shall mean a county, a city other than a city with a population of one million or more, a town, a village, a school district, or a special district that has been impacted by a major or local disaster.

(b) "Eligible property" shall mean residential real property consisting of three or fewer dwelling units that have been impacted by a major or local disaster where at least one of such units had been owner-occupied immediately before such disaster occurred; provided, however, that property that has been transferred to a new owner after the occurrence of the major or local disaster and prior to relief being granted pursu-

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

[ ] is old law to be omitted.

LBD02894-01-5

ant to this section shall not be considered eligible property for purposes of this section whether or not it is owner-occupied. Where the local law, ordinance or resolution authorizing the exemption explicitly so provides, the term "eligible property" shall also include a small business as defined in section one hundred thirty-one of the economic development law; provided however, that such eligible property must be occupied by the small business owner; and provided further, that participating municipalities may provide, via local law, ordinance or resolution, additional qualifications that a small business must satisfy to receive the exemption provided for by this section.

(c) "Impacted tax roll" shall mean the final assessment roll that satisfies both of the following conditions: (i) the roll is based upon a taxable status date occurring prior to a major or local disaster; and (ii) taxes levied upon that roll by or on behalf of a participating municipality are payable without interest on or after the date of the disaster; provided however, that the interest due from an individual property owner impacted by a major or local disaster shall not impact such property owner's eligibility for relief pursuant to this section; and provided further, that the exemption provided for by this section shall not affect interest or penalties due as the result of a delinquency.

(d) "Improved value" shall mean the market value of the real property improvements prior to the reduction in value resulting from damage incurred to such improvements during a major or local disaster, excluding the land.

(e) "Local disaster" shall mean the occurrence or imminent, impending or urgent threat of widespread or severe damage, injury, or loss of life or property resulting from any natural or man-made causes, including, but not limited to, fire, flood, earthquake, hurricane, tornado, high water, landslide, mudslide, wind, storm, wave action, volcanic activity, epidemic, disease outbreak, air contamination, terrorism, cyber event, blight, drought, infestation, explosion, radiological accident, nuclear, chemical, biological, or bacteriological release, water contamination, bridge failure or bridge collapse, occurring in an area or region that is proclaimed to be in a local state of emergency pursuant to section twenty-four of the executive law; provided however, where damages occurred between January 1, 2020 and six months after the effective date of this section, a local disaster will be presumed to have occurred pursuant to this paragraph regardless of whether or not a local state of emergency was proclaimed pursuant to section twenty-four of the executive law, if:

(i) the occurrence otherwise conforms with the local disaster definition contained herein; and

(ii) the local law, ordinance or resolution that is adopted authorizing an exemption pursuant to this section so declares a local disaster to have occurred during such period for purposes of this section.

(f) "Major disaster" shall mean the occurrence or imminent, impending or urgent threat of widespread or severe damage, injury, or loss of life or property resulting from any natural or man-made causes, including, but not limited to, fire, flood, earthquake, hurricane, tornado, high water, landslide, mudslide, wind, storm, wave action, volcanic activity, epidemic, disease outbreak, air contamination, terrorism, cyber event, blight, drought, infestation, explosion, radiological accident, nuclear, chemical, biological, or bacteriological release, water contamination, bridge failure or bridge collapse, occurring in an area or region that is subsequently proclaimed to be impacted by a state disaster emergency declared by the governor pursuant to section twenty-eight of the executive law, or by a major disaster or an emergency declared by the president of the United States pursuant to chapter sixty-eight of title forty-two of the United States code.

(g) "Maximum benefit ceiling" shall mean the maximum exemption from real property taxes expressed in a dollar amount that an eligible property may receive on each tax roll pursuant to this section, as specified in the local law, ordinance or resolution authorizing the exemption.

(h) "Minimum damage floor" shall mean the minimum loss of assessed value to an eligible property, expressed as a percentage of the total assessed value lost that must be demonstrated in order for the property to be eligible for an exemption pursuant to this section, as specified in the local law, ordinance or resolution authorizing the exemption. A participating municipality shall not specify a minimum damage floor above fifty percent. Where a participating municipality does not specify a minimum damage floor, the minimum damage floor shall be fifty percent.

(i) "Participating municipality" shall mean an eligible municipality that has passed a local law, ordinance, or resolution to provide assessment relief to owners of eligible properties within such eligible municipality pursuant to the provisions of this section.

(j) "Participating property" shall mean an eligible property in a participating municipality that is granted assessment relief pursuant to this section.

(k) "Total assessed value" shall mean the total assessed value of the parcel prior to any and all exemption adjustments.

2. Local option. (a) After a major or local disaster as defined by this section, the governing body of an eligible municipality may authorize assessment relief for eligible properties after conducting a public hearing, by adopting a local law, ordinance or, in the case of a school district, a resolution adopting the provisions of this section.

(b) Such local law, ordinance or resolution shall identify the major or local disaster or disasters to which it pertains, provided that no such local law, ordinance or resolution shall apply to a major or local disaster that occurred prior to January first, two thousand twenty. Such local law, ordinance or resolution shall include a deadline by which applications for relief pursuant to this section must be submitted in order to be considered. If no deadline is specified, such applications may be submitted until the local law, ordinance or resolution authorizing the exemption is either repealed or amended to specify a deadline.

(c) Such local law, ordinance or resolution may also specify a minimum damage floor and a maximum benefit ceiling.

(d) Such local law, ordinance or resolution shall also specify how many prospective tax years, if any, beyond the impacted tax roll that the exemption shall apply for; provided however, that the exemption may be provided for a maximum of four prospective tax years following the impacted tax roll; and provided further, that such local law, ordinance or resolution may provide for a distinct number of years the exemption shall be provided applicable to each damage bracket.

(e) Such local law, ordinance or resolution shall also provide an address to which assessors shall mail written notice pursuant to paragraph (d) of subdivision three of this section.

3. Assessment relief for disaster victims in an eligible municipality. (a) Notwithstanding any provision of law to the contrary, where real property is impacted by a major or local disaster, and such property is located within a participating municipality, assessment relief shall be granted as follows:

(i) If a participating municipality has elected to provide assessment relief for real property that lost at least ten percent but less than twenty percent of its improved value due to a disaster, the assessed value attributable to the improvements shall be reduced by fifteen percent of the property's improved value for purposes of the participating municipality on the impacted tax roll, and for up to four prospective tax years, as provided for by local law, ordinance or resolution.

(ii) If a participating municipality has elected to provide assessment relief for real property that lost at least twenty percent but less than thirty percent of its improved value due to a disaster, the assessed value attributable to the improvements shall be reduced by twenty-five percent of the property's improved value for purposes of the participating municipality on the impacted tax roll, and for up to four prospective tax years, as provided for by local law, ordinance or resolution.

(iii) If a participating municipality has elected to provide assessment relief for real property that lost at least thirty percent but less than forty percent of its improved value due to a disaster, the assessed value attributable to the improvements shall be reduced by thirty-five percent of the property's improved value for purposes of the participating municipality on the impacted tax roll, and for up to four prospective tax years, as provided for by local law, ordinance or resolution.

(iv) If a participating municipality has elected to provide assessment relief for real property that lost at least forty percent but less than fifty percent of its improved value due to a disaster, the assessed value attributable to the improvements shall be reduced by forty-five percent of the property's improved value for purposes of the participating municipality on the impacted tax roll, and for up to four prospective tax years, as provided for by local law, ordinance or resolution.

(v) If the property lost at least fifty but less than sixty percent of its improved value due to a disaster, the assessed value attributable to the improvements shall be reduced by fifty-five percent of the property's improved value for purposes of the participating municipality on the impacted tax roll, and for up to four prospective tax years, as provided for by local law, ordinance or resolution.

(vi) If the property lost at least sixty but less than seventy percent of its improved value due to a disaster, the assessed value attributable to the improvements shall be reduced by sixty-five percent of the property's improved value for purposes of the participating municipality on the impacted tax roll, and for up to four prospective tax years, as provided for by local law, ordinance or resolution.

(vii) If the property lost at least seventy but less than eighty percent of its improved value due to a disaster, the assessed value attributable to the improvements shall be reduced by seventy-five percent of the property's improved value for purposes of the participating municipality on the impacted tax roll, and for up to four prospective tax years, as provided for by local law, ordinance or resolution.

(viii) If the property lost at least eighty but less than ninety percent of its improved value due to a disaster, the assessed value attributable to the improvements shall be reduced by eighty-five percent of the property's improved value for purposes of the participating municipality on the impacted tax roll, and for up to four prospective tax years, as provided for by local law, ordinance or resolution.

(ix) If the property lost at least ninety but less than one hundred percent of its improved value due to a disaster, the assessed value attributable to the improvements shall be reduced by ninety-five percent of the property's improved value for purposes of the participating municipality on the impacted tax roll, and for up to four prospective tax years, as provided for by local law, ordinance or resolution.

(x) If the property lost one hundred percent of its improved value due to a disaster, the assessed value attributable to the improvements shall be reduced by one hundred percent of the property's improved value for purposes of the participating municipality on the impacted tax roll, and for up to four prospective tax years, as provided for by local law, ordinance or resolution.