NY State Senate Bill 2009-S328

Senate Bill S328

2009-2010 Legislative Session

Provides that community residences will be relieved of their tax exempt status while requiring the state to bear the cost of such property taxes

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Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to local government
Jan 07, 2009	referred to local government

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2009-S328 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Add §306, amd §§420-a, 532 & 422, RPT L

2009-S328 (ACTIVE) - Summary

Provides that community residences for the mentally ill will be relieved of their tax exempt status while requiring the state to bear the cost of such property taxes.

2009-S328 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S328

 TITLE OF BILL :
An act to amend the real property tax law, in relation to the tax
exempt status of community residences


 PURPOSE :
Provides that community residences will be relieved of their tax
exempt status while requiring the state to bear the cost of such
property taxes.

 SUMMARY OF PROVISIONS :
Section 1. The real property tax law is amended by adding a new
section 306 to remove the real property tax exempt status from
community residences.

Section 2. §420-a of the real property tax law is amended by adding a
new subdivision 15 to remove community residences from the mandatory
class exemption from real property tax for non profit organizations.

Section 3. §532 of the real property tax law is amended by adding a
new subdivision (k) to include community residences in the category of
certain state lands subject to taxation for all purposes.

Section 4. Paragraph (a) of subdivision 1 of section 422 of the real

property tax law, as amended by chapter 409 of the laws of 1993, is
amended to remove community residences as exempt structures under
not-for-profit housing companies.

 JUSTIFICATION :
With the onset of deinstitutionalization in the 1970s, individuals
with mental or developmental disabilities have been integrated into
the community at a rapid pace. Community residences, where the
majority of these people now reside, have taken the place of
institutions. They are much better at meeting the needs of the people
they serve, and have become an instrumental component of the
community.  However, as the number of community residences throughout
the State continue to grow, their real property tax exempt status has
become a financial burden to municipalities. While the State is saving
$2.2 billion annually, municipalities are losing up to $20 million in
property taxes.

This legislation would rectify this situation by removing the real
property tax exempt status from community residences, while providing
that the state be responsible for all future property tax payments.
The community residences would never have to make any payments to the
municipality. Subsequently, there would be no reimbursement process.
The state would make direct payments to the municipality ensuring that
community residences would never have to spend their own money. The
State Comptroller's Office would be responsible for developing a
system and administering payments.  Under this bill, municipalities
will be provided with their fair share of revenue at NO cost to the
community residences, allowing them to continue their vital work in
ensuring the health, safety and happiness of the people they serve.

 LEGISLATIVE HISTORY :
2007/2008 - S.733  Remained in the Senate Committee on Local
Government
2005/2006 - S.221  Remained in the Senate Committee on Local
Government
2003-2004 - S.570  Remained in the Senate Committee on Local
Government
2001/2002 - S.1973 Remained in the Senate Committee on Local
Government

1999/2000 - S.803  Remained in the Senate Committee on Local
Government

 FISCAL IMPLICATIONS :
Significant savings to local governments.

 EFFECTIVE DATE :
Immediately.

2009-S328 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   328

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  Sens.  BRESLIN, KRUGER, MONTGOMERY, OPPENHEIMER, PARKER,
  SAMPSON, SMITH, STACHOWSKI, STAVISKY -- read twice and ordered  print-
  ed, and when printed to be committed to the Committee on Local Govern-
  ment

AN ACT to amend the real property tax law, in relation to the tax exempt
  status of community residences

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 306 to read as follows:
  S  306.  TAXATION  OF  COMMUNITY  RESIDENCES  FOR  THE MENTALLY ILL. A
"COMMUNITY RESIDENCE" AS DEFINED IN SECTION 1.03 OF THE  MENTAL  HYGIENE
LAW  SHALL BE SUBJECT TO REAL PROPERTY TAXATION, AND ANY TAX DUE ON SUCH
PROPERTY, WHETHER OWNED BY THE STATE, A MUNICIPALITY, OR A  NOT-FOR-PRO-
FIT COMPANY SHALL BE PAID BY THE STATE.
  S 2. Section 420-a of the real property tax law is amended by adding a
new subdivision 15 to read as follows:
  15.  THE  PROVISIONS  OF THIS SECTION SHALL NOT APPLY TO ANY COMMUNITY
RESIDENCE AS DEFINED IN SECTION 1.03 OF THE MENTAL HYGIENE LAW.
  S 3. Section 532 of the real property tax law is amended by  adding  a
new subdivision (k) to read as follows:
  (K)  ALL LANDS ACQUIRED FOR USE AS A COMMUNITY RESIDENCE AS DEFINED IN
SECTION 1.03 OF THE MENTAL HYGIENE LAW.
  S 4. Paragraph (a) of subdivision 1 of section 422 of the real proper-
ty tax law, as amended by chapter 409 of the laws of 1993, is amended to
read as follows:
  (a) Real property owned  by  a  not-for-profit  corporation  organized
pursuant  to  the  not-for-profit  corporation law and the provisions of
article two of the private housing  finance  law,  used  exclusively  to
provide  housing and auxiliary facilities for faculty members, students,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD03581-01-9

S. 328                              2

employees, nurses, interns, resident physicians, researchers  and  other
personnel  and  their  immediate  families  in attendance or employed at
colleges, universities,  educational  institutions,  child  care  insti-
tutions,  hospitals  and medical research institutes, or for handicapped
or aged persons of low income,  or  owned  by  non-profit  nursing  home
companies  organized  pursuant to the not-for-profit corporation law and
the provisions of article twenty-eight-A of the public health law,  used
exclusively  to  provide  facilities  for nursing care to sick, invalid,
infirm, disabled or convalescent persons of low income,  or  to  provide
health-related  service as defined in article twenty-eight of the public
health law to persons of low income, or any combination of  the  forego-
ing, and in addition thereto, to provide nursing care and health-related
service,  or  either of them, to persons of low income who are not occu-
pants of the project, or owned by  housing  development  fund  companies
organized  pursuant  to  the  not-for-profit corporation law and article
eleven of the private housing finance law, used exclusively  to  provide
housing for handicapped or aged persons of low income, and financed by a
federally-aided mortgage as defined in said article eleven, [or owned by
companies  organized  pursuant to the not-for-profit corporation law and
the provisions of article seventy-five of the mental hygiene  law,  used
exclusively to provide care, treatment, training, education and residen-
tial  accommodations  for  operation  as hostels for the mentally ill or
mentally retarded,] or owned by  companies  organized  pursuant  to  the
membership corporations law and the provisions of article seven-A of the
private  housing  finance  law,  used  exclusively  to provide programs,
services and other facilities for the aging, shall be exempt from  taxa-
tion  and  exempt from special ad valorem levies and special assessments
to the extent provided in section four hundred ninety of  this  chapter,
provided,  however, that in a city having a population of one million or
more real property owned by any such corporation  which  is  to  provide
housing  accommodations,  substantially  all  of  which are or are to be
assisted by rent subsidies made or to be made available by  the  Federal
government  pursuant  to  a  contract  under section eight of the United
States Housing Act of nineteen  hundred  thirty-seven,  as  amended,  or
pursuant  to  a  project  rental  assistance  contract under section two
hundred two of the United States Housing Act of nineteen hundred  fifty-
nine,  as  amended,  or pursuant to a project rental assistance contract
under section eight hundred eleven of the  National  Affordable  Housing
Act  of  nineteen  hundred  ninety, as amended, shall from and after the
commencement of construction be subject to taxation or exempt  therefrom
to the extent approved by a municipality acting through its local legis-
lative  body,  as  such local legislative body is defined in [paragraph]
SUBDIVISION twelve of section two of the private housing finance law. No
such corporation or company shall pay a dividend on any of its stock  or
pay  interest  on any of its debentures. Provided further, however, in a
county having a population of one million or more and  having  not  more
than  three  towns  within  such  county, real property owned by housing
development fund companies  organized  pursuant  to  the  not-for-profit
corporation  law  and article eleven of the private housing finance law,
used exclusively to provide housing for handicapped or aged  persons  of
low  income,  and  financed  by a federally-aided mortgage as defined in
said  article  eleven  shall  from  and  after   the   commencement   of
construction  be  subject  to taxation or exempt therefrom to the extent
approved by a municipality acting through its local legislative body, as
such local legislative body is defined in [paragraph] SUBDIVISION twelve
of section two of the private housing  finance  law.  Any  tax  payments

S. 328                              3

and/or  payments in lieu of taxes made to a municipality pursuant to the
preceding sentence shall not be passed through nor become the  liability
of any of the occupants of such property.
  S 5. This act shall take effect immediately.

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