NY State Senate Bill 2017-S6385

Senate Bill S6385

2017-2018 Legislative Session

Authorizes real property taxing jurisdictions to grant a partial tax exemption for property purchased by a physician in a physician shortage area

download bill text pdf

Archive: Last Bill Status - In Senate Committee Health 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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to health
May 23, 2017	reported and committed to finance
May 11, 2017	referred to health

Votes

- May 23, 2017 - Health Committee Vote
  S6385
  
  17
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Health Committee Vote: May 23, 2017
      
      aye (17)
      
      Felder
      
      Golden
      
      Hannon
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Larkin
      
      Little
      
      Montgomery
      
      Murphy
      
      Persaud
      
      Ritchie
      
      Rivera
      
      Seward
      
      Stavisky
      
      Tedisco
      
      Valesky

2017-S6385 (ACTIVE) - Details

Current Committee:: Senate Health
Law Section:: Public Health Law
Laws Affected:: Amd §206, Pub Health L; add §§439 & 985, RPT L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6919
2013-2014: S4388
2015-2016: S1289

2017-S6385 (ACTIVE) - Summary

Authorizes real property taxing jurisdictions to grant a partial tax exemption for property purchased by a physician in a physician shortage area, as determined by the commissioner of health, which will be such physician's primary residence and he or she will practice in such shortage area; provides state aid to taxing jurisdictions which grant the exemption to the extent of the tax savings provided to physicians.

2017-S6385 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6385

 TITLE OF BILL :  An act to amend the public health law and the real
property tax law, in relation to authorizing real property taxing
jurisdictions to grant a tax exemption for a primary residence
purchased by a physician in a physician shortage area; and to amend
the real property tax law, in relation to providing state aid to such
jurisdictions for the savings granted by such exemption

 PURPOSE :

The purpose of this bill is to provide a partial tax exemption for
real property purchased by a physician for use as primary residence
when the physician works in and the property is located in a physician
shortage area designated by the Commissioner.

 SUMMARY OF PROVISIONS :

Section 1 states the legislative findings and intent.

Section 2 states the Commissioner of health shall biennially designate
and make available a list of designated physician shortage areas by
county or other sub-county geographic area that lacks primary care
and/or other medical specialty physicians in a manner consistent with
designated physician shortage area determinations made under the
Doctors Across New York Program.

Section 3 authorizes an exemption from local property and school taxes
for primary residential property purchases of physicians residing and
working in areas designated by the Commissioner as experiencing a
physician shortage, conditioned upon the local taxing authority
passing an authorizing law or resolution. The exemption cannot be for
a period longer than 5 years, on property purchased after on or after
the effective date of this act, and is for a maximum of 35% of the
value of the real property's assessed value.

Section 4 provides that the total savings provided by a municipal
corporation or school district shall be a state charge.

Section 5 provides that this act shall take effect immediately and
shall apply to tax years beginning on or after the first of March next
succeeding such effective date; or in the case of municipal taxing
authorities, which have a taxable status date other than March first
established by charter, this act shall take effect the first
establishment of the taxable status of real property in the
municipality next succeeding the effective date of this act.

 JUSTIFICATION :

Many communities in New York State are experiencing a growing
physician shortage, reaching crisis proportions in some geographic
regions and in some medical specialties. A survey of its members by
the Health Care Association of New York State (HANYS) reported that
104 hospitals outside of New York City had a current need for 1,400
physicians (almost 40% in primary care). In addition to primary care,
severe shortages exist in general surgery, OB-GYN, urology and
psychiatry. Many areas of the State have seen rapid declines in their
physicians supply and with an average physician age of 52 (almost 30%
are over 60 years of age) ; the shortage is only expected to worsen.
On the demand side for physician services, New York's population age
65 and over increased 25% between 1980 and 2000 and, the population
over age 80 (who use the most health resources) is expected to double
by the year 2020.

Clearly, both the health care community and state government must
focus on this physician supply issue and work together to implement a
multifaceted plan to address the problem. The "Doctors Across New
York" Program is a strong step forward, however, additional
initiatives are essential to the continued viability of rural New York
State. By exempting part of a physician's residence from real property
tax when the local taxing authority chooses to grant the exemption,
this bill provides New York State's medically underserved communities
with another tool to attract physicians.

This physician shortage is an imminent threat to the health, safety
and the economic viability of these communities and their residents.
However, it is clear that local communities cannot bear the burden of
these costs. This bill would allow school districts and municipalities
to be reimbursed by the State for the amount of foregone tax revenue.

 LEGISLATIVE HISTORY :

S.1289a of 2015-16.

 FISCAL IMPLICATIONS :

Undetermined.

 EFFECTIVE DATE :
This bill take effects immediately and applies to tax years beginning
on or after the first of March next succeeding such effective date; or
in the case of municipal taxing authorities which have a taxable
status date other than March first established by charter, this act
shall take effect with the first establishment of the taxable status
of real property in the municipality next succeeding the effective
date of this act.

2017-S6385 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6385
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 11, 2017
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Health
 
 AN ACT to amend the public health law and the real property tax law,  in
   relation  to authorizing real property taxing jurisdictions to grant a
   tax exemption for a primary residence purchased by a  physician  in  a
   physician  shortage  area;  and to amend the real property tax law, in
   relation to providing state aid to such jurisdictions for the  savings
   granted by such exemption
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Legislative findings and intent.  The  legislature  hereby
 finds  that  several  communities  within  the state, particularly those
 located within rural areas, lack adequate access to  physicians.  It  is
 well  established  that  ensuring the sufficient availability of general
 practitioners and specialists directly  benefits  the  health  of  state
 residents, and the legislature has enacted several measures towards that
 end.
   Furthermore,  the legislature finds that municipalities are often best
 situated to evaluate the needs of their communities.  Therefore,  it  is
 the intent of the legislature to offer counties, cities, towns, villages
 and school districts the option to provide real property tax exemptions,
 should  they  determine  that  such an incentive would aid in attracting
 physicians to areas currently underserved by the medical community.
   § 2. Section 206 of the public health law is amended by adding  a  new
 subdivision 31 to read as follows:
   31. (A) THE COMMISSIONER SHALL BIENNIALLY DESIGNATE AND MAKE AVAILABLE
 A LIST OF DESIGNATED PHYSICIAN SHORTAGE AREAS IN THE STATE. A DESIGNATED
 PHYSICIAN SHORTAGE AREA SHALL BE A COUNTY OR OTHER SUB-COUNTY GEOGRAPHIC
 AREA  DETERMINED BY THE COMMISSIONER TO BE IN SHORT SUPPLY OF PHYSICIANS
 IN PRIMARY CARE PRACTICE AND/OR ONE OR MORE  MEDICAL  SPECIALITIES.  THE
 LIST  SHALL INDICATE FOR EACH DESIGNATED PHYSICIAN SHORTAGE AREA, IF THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01555-02-7

 S. 6385                             2
 
 AREA IS IN SHORT SUPPLY OF PRIMARY CARE  PHYSICIANS  AND  WHICH  MEDICAL
 SPECIALITIES ARE IN SHORT SUPPLY IN THE DESIGNATED SHORTAGE AREA.
   (B)  IN  ESTABLISHING DESIGNATED PHYSICIAN SHORTAGE AREAS, THE COMMIS-
 SIONER, TO THE EXTENT PRACTICABLE,  SHALL  UTILIZE  CRITERIA  CONSISTENT
 WITH  THE  CRITERIA  UTILIZED  TO MAKE AWARDS FOR THE PHYSICIAN PRACTICE
 SUPPORT PROGRAM ESTABLISHED PURSUANT TO  PARAGRAPH  (E)  OF  SUBDIVISION
 FIVE-A OF SECTION TWENTY-EIGHT HUNDRED SEVEN-M OF THIS CHAPTER.
   (C)  FOR  THE  PURPOSES  OF  THIS  SUBDIVISION,  "MEDICAL SPECIALTY OR
 SPECIALTY AREA" SHALL MEAN THE BRANCH OR BRANCHES OF SPECIAL  COMPETENCE
 WITHIN  A  PHYSICIAN'S  MEDICAL  PRACTICE  AS EVIDENCED BY THEIR CERTIF-
 ICATION BY A SPECIALITY MEDICAL BOARD ACCEPTABLE TO THE COMMISSIONER.
   § 3. The real property tax law is amended by adding a new section  439
 to read as follows:
   §  439.  REAL PROPERTY TAX EXEMPTIONS IN DESIGNATED PHYSICIAN SHORTAGE
 AREA. 1. A MUNICIPAL CORPORATION OR  SCHOOL  DISTRICT  MAY  EXEMPT  REAL
 PROPERTY  PURCHASED  BY A PHYSICIAN FOR USE SOLELY AS HIS OR HER PRIMARY
 RESIDENCE, TO THE EXTENT PROVIDED IN THIS SECTION, FROM TAXATION BY SUCH
 MUNICIPAL CORPORATION OR SCHOOL DISTRICT IF THE PHYSICIAN RESIDES IN AND
 HAS AN OFFICE LOCATED WITHIN A PHYSICIAN SHORTAGE AREA AS DESIGNATED  BY
 THE COMMISSIONER OF HEALTH PURSUANT TO SUBDIVISION THIRTY-ONE OF SECTION
 TWO  HUNDRED  SIX OF THE PUBLIC HEALTH LAW.  AFTER A PUBLIC HEARING, THE
 GOVERNING BODY OF A MUNICIPAL CORPORATION MAY ADOPT A LOCAL LAW, AND THE
 BOARD OF A SCHOOL DISTRICT, OTHER THAN  A  SCHOOL  DISTRICT  SUBJECT  TO
 ARTICLE FIFTY-TWO OF THE EDUCATION LAW, MAY ADOPT A RESOLUTION, TO GRANT
 THE EXEMPTION AUTHORIZED PURSUANT TO THIS SECTION.
   2.  EXEMPTIONS  PROVIDED  PURSUANT  TO SUBDIVISION ONE OF THIS SECTION
 SHALL ONLY APPLY TO REAL PROPERTY PURCHASED ON OR  AFTER  THE  EFFECTIVE
 DATE  OF  THIS  SECTION,  AND THE SUBSEQUENT ENACTMENT OF A LOCAL LAW OR
 ADOPTION OF A RESOLUTION TO GRANT SUCH REAL PROPERTY TAX EXEMPTION.
   3. ANY LOCAL LAW OR RESOLUTION ADOPTED PURSUANT TO SUBDIVISION ONE  OF
 THIS  SECTION  SHALL  ESTABLISH  THE  DURATION AND PERCENTAGE OF SUCH AN
 EXEMPTION, WHICH SHALL EXCEED NEITHER A PERIOD OF FIVE YEARS  NOR  THIR-
 TY-FIVE  PERCENT  OF  THE  PROPERTY'S  ASSESSED VALUE. SUCH LOCAL LAW OR
 RESOLUTION MAY INCLUDE OTHER CONDITIONS OR RESTRICTIONS,  INCLUDING  BUT
 NOT  LIMITED TO PROVISIONS REGARDING THE MAXIMUM VALUE OF ELIGIBLE PROP-
 ERTY, AT THE DISCRETION OF THE  PROMULGATING  MUNICIPAL  CORPORATION  OR
 SCHOOL DISTRICT.
   4.  A  COPY  OF SUCH LOCAL LAWS OR RESOLUTIONS SHALL BE FILED WITH THE
 STATE BOARD AND THE ASSESSOR FOR SUCH MUNICIPAL  CORPORATION  OR  SCHOOL
 DISTRICT  WHO  PREPARES THE ASSESSMENT ROLL UPON WHICH THE TAXES OF SUCH
 MUNICIPAL CORPORATION OR SCHOOL DISTRICT ARE LEVIED.
   § 4. The real property tax law is amended by adding a new section  985
 to read as follows:
   §  985. EFFECT OF EXEMPTION IN DESIGNATED PHYSICIAN SHORTAGE AREAS. 1.
 IN A MUNICIPAL CORPORATION OR SCHOOL DISTRICT WHICH  ELECTS  TO  PROVIDE
 THE  REAL PROPERTY TAX EXEMPTION IN A DESIGNATED PHYSICIAN SHORTAGE AREA
 PURSUANT TO SECTION FOUR HUNDRED THIRTY-NINE OF THIS CHAPTER, THE AMOUNT
 OF TAXES TO BE LEVIED FOR ANY TAX YEAR OR SCHOOL YEAR, AS THE  CASE  MAY
 BE,  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
 SUCH  YEAR SHALL BE DETERMINED AS IF NO PARCELS ARE EXEMPT FROM TAXATION
 PURSUANT TO SECTION FOUR HUNDRED THIRTY-NINE 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 THIRTY-NINE
 OF THIS CHAPTER.

 S. 6385                             3
 
   2. THE TAX SAVINGS FOR EACH PARCEL RECEIVING THE EXEMPTION  AUTHORIZED
 BY SECTION FOUR HUNDRED THIRTY-NINE 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.  (A) THE TOTAL TAX SAVINGS DULY PROVIDED BY A MUNICIPAL CORPORATION
 OR SCHOOL DISTRICT PURSUANT TO THIS SECTION SHALL  BE  A  STATE  CHARGE,
 WHICH SHALL BE PAYABLE AS PROVIDED IN THIS SUBDIVISION.
   (B)  A  MUNICIPAL  CORPORATION  OR  SCHOOL  DISTRICT SEEKING STATE AID
 PURSUANT TO THIS SUBDIVISION 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
 SUBDIVISION, THE COMMISSIONER SHALL COMPUTE AND CERTIFY THE AMOUNT PAYA-
 BLE TO A MUNICIPAL CORPORATION OR 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.
   § 5. This act shall take effect immediately and  shall  apply  to  tax
 years  beginning  on  or  after  the first of March next succeeding such
 effective date; or in the case of  municipal  taxing  authorities  which
 have  a  taxable status date other than March first established by char-
 ter, this act shall take effect with  the  first  establishment  of  the
 taxable  status of real property in the municipality next succeeding the
 effective date of this act.

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