NY State Senate Bill 2019-S4662

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 08, 2020	referred to local government
Mar 20, 2019	referred to local government

co-Sponsors

2019-S4662 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §485-r, RPT L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S6460
2017-2018: S3878

2019-S4662 (ACTIVE) - Summary

Relates to authorizing a residential redevelopment inhibited property exemption; authorizes any city, town or village to, by local law, provide for a real property tax exemption for residential redevelopment inhibited property.

2019-S4662 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4662

SPONSOR: RANZENHOFER
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to authorizing a residential redevelopment inhibited property exemption

 
PURPOSE OR GENERAL IDEA OF BILL:

To authorize municipalities to institute a property tax exemption on the
increased assessment associated with the repair and redevelopment of
certain dilapidated residential properties to the extent that the
assessment would appreciate as a result of the repair and redevelopment.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1- amends Real Property Tax Law section 485-r to delete the
reference to certain cities and makes the section applicable to any
municipality. The section further defines "municipality" to mean any
city, town or village.

Section 2- provides that the act shall take effect immediately.

 
JUSTIFICATION:

In 2015, the Governor signed Chapter 406, which allowed certain munici-
palities to implement, at its option, a new method of encouraging rede-
velopment of dilapidated housing in the city. The city that fit the
specific description, the City of Batavia in Genesee County, is faced
with a large number of single family homes that are dilapidated and in
need of extensive and costly repairs. These costs can exceed the value
of the home when complete, and as a result, they sit unused. These homes
reduce the values of the houses that surround them and their neighbor-
hoods in general, and this bill will provide needed incentive to make
necessary redevelopment occur.

The scenario faced by the City of Batavia is far from unique. In fact,
cities, towns and villages across the state face this same problem.
This bill will extend the same option to other municipalities who are
struggling to redevelop blighted residential areas where the cost of
purchase and renovation will exceed the value of the homes when
complete. It is in everyone's interest to improve these areas.  There is
no actual cost for these incentives, since without them the properties
will continue to languish with low values or off the tax rolls entirely,
and surrounding values will continue to be depressed.  More importantly,
these neighborhoods will provide a better place for its residents to
live.

 
INHIBITED PROPERTY TAX EXEMPTIONS

 
PRIOR LEGISLATIVE HISTORY:

2015 -- S5196-A /A.7570-A - CH. 406
2016 -- S.6460/A.9226 - PASSED SENATE/Real Property Taxation
2017-18 -- S.3878/A.4450 - PASSED SENATE/Real Property Taxation

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect on the 180th day after it shall have become a
law.
INHIBITED PROPERTY TAX EXEMPTIONS
Updated: 3/19/2019

2019-S4662 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4662
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 2019
                                ___________
 
 Introduced  by  Sens.  RANZENHOFER, AKSHAR, SERINO, SEWARD -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on Local Government
 
 AN ACT to amend the real property tax law, in relation to authorizing  a
   residential redevelopment inhibited property exemption

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 485-r of the real property tax  law,  as  added  by
 chapter  406  of  the laws of 2015 and paragraph (f) of subdivision 1 as
 amended by chapter 28 of the  laws  of  2016,  is  amended  to  read  as
 follows:
   §  485-r.  Residential  redevelopment  inhibited  property exemption[;
 certain cities]. 1. As used in this section, the following  terms  shall
 have the following meanings:
   (a)  "Redevelopment inhibited property" shall mean a residential prop-
 erty that has been neglected or abandoned because of the local  economic
 conditions  and/or conditions on the property that inhibit such property
 from being redeveloped by the private  sector.  Redevelopment  inhibited
 property shall not include land that is undeveloped.
   (b)  "Gap financing costs" shall mean the total cost of the property's
 redevelopment as approved by the [city] MUNICIPALITY minus the  increase
 in  the full valuation of the property upon completion of the redevelop-
 ment.
   (c) "Base assessment" shall mean the assessed value of the property on
 the day the [city] MUNICIPALITY designates the property as redevelopment
 inhibited.
   (d) "Increased assessment" shall mean the assessed value of the  prop-
 erty as determined by the assessor upon completion of the redevelopment.
   (e)  "Incremental  increase  in  annual property taxes" shall mean the
 taxes based on the increased assessment minus the  taxes  based  on  the
 base assessment.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10852-01-9

 S. 4662                             2
 
   (f)  ["City"  shall  mean  a  city  with a population of not less than
 fifteen thousand two hundred fifty and not more  than  fifteen  thousand
 five  hundred  as  determined  by  the latest federal decennial census.]
 "MUNICIPALITY" MEANS ANY CITY, TOWN OR VILLAGE.
   2.  A [city] MUNICIPALITY may, by local law, provide for the exemption
 of real property from taxation as provided in this  section.  Subsequent
 to the adoption of such local law, the county in which such [city] MUNI-
 CIPALITY is located may after a public hearing and by local law, and any
 school  district, all or part of which is located in such [city] MUNICI-
 PALITY, may, by resolution, exempt such property from  its  taxation  in
 the  same  manner  and to the same extent as the [city] MUNICIPALITY has
 done.
   3. A [city] MUNICIPALITY  shall  designate  any  property  within  the
 [city]  MUNICIPALITY'S  boundaries as a redevelopment inhibited property
 if one or more of the following are met:
   (a) the [city] MUNICIPALITY has acquired title to the property  pursu-
 ant  to  article nineteen-A of the real property actions and proceedings
 law; or
   (b) the property has been continuously vacant for a period of at least
 three years; or
   (c) the [city] MUNICIPALITY has acquired title  to  the  property  via
 foreclosure for unpaid taxes pursuant to article eleven of this chapter;
 or
   (d)  the  property  has  outstanding  zoning, housing, or uniform code
 violations and the cost of remedying the violations exceeds the  proper-
 ty's value.
   4.  (a)  Upon  the adoption of such local law, redevelopment inhibited
 property shall be exempt from taxation and special ad valorem levies  to
 the  extent  of any increase in value attributable to demolition, alter-
 ation, rehabilitation, or remediation pursuant to the following require-
 ments:
   (i) the demolition, alterations,  rehabilitation,  and/or  remediation
 shall  be  permitted by the [city's] MUNICIPALITY'S bureau of inspection
 such that building or  plumbing  permits  issued  and  said  demolition,
 alterations,  rehabilitation,  and/or  remediation  shall  have  met all
 necessary approvals per the  applicable  New  York  state  uniform  fire
 prevention and building code, the [city's] MUNICIPALITY'S municipal code
 and  the  [city's]  MUNICIPALITY'S bureau of inspection upon completion;
 and
   (ii) the property for which  the  exemption  is  sought  shall  be  an
 owner-occupied one-family residence; and
   (iii)  the  owner of such property shall file annually an affidavit of
 residency with the assessor of the [city] MUNICIPALITY on or before  the
 appropriate  taxable status date of such [city] MUNICIPALITY, confirming
 continued owner-occupancy of the property; and
   (iv) the redevelopment inhibited property is exempt from taxation  and
 special ad valorem levies attributable to the increased assessment minus
 the  taxes and special ad valorem levies imposed on the base assessment.
 Such exemption shall not apply to special assessments.
   (b) In the event the property granted an exemption  pursuant  to  this
 section ceases to be owner-occupied and/or the affidavit of residency is
 not  filed  annually  for  the  approved exemption period, the exemption
 granted pursuant to this section shall cease.
   (c) In the event the property granted an exemption  pursuant  to  this
 section ceases to be a one-family dwelling, the exemption granted pursu-
 ant to this section shall cease.

 S. 4662                             3
 
   (d) In the event the owner of the property is convicted of a violation
 or  misdemeanor  pursuant  to New York state uniform fire prevention and
 building  code  or  the  [city's]  MUNICIPALITY'S  municipal  code,  the
 exemption granted pursuant to this section shall cease.
   5.  (a)  Such  redevelopment  inhibited property shall be exempt for a
 period equal to the gap  financing  costs  divided  by  the  incremental
 increase in annual property taxes resulting from such redevelopment. The
 exemption  period  shall  be  rounded up to the nearest whole number and
 shall not exceed twenty-five years.
   (b) The extent of such exemption shall decrease the last  eight  years
 of  the  exemption period by twelve and one-half percent of the increase
 in assessment due to the redevelopment equaling a zero percent exemption
 on the final year of the exemption period.
   6. (a) Such exemption shall be granted only upon  application  by  the
 owner of such building for the residential redevelopment inhibited prop-
 erty  exemption,  on a form prescribed by the [city] MUNICIPALITY.  Such
 application must be filed with the assessor of the  [city]  MUNICIPALITY
 on  or before the appropriate taxable status date of such [city] MUNICI-
 PALITY.  The application must be filed with the assessor of  the  [city]
 MUNICIPALITY  within three years from the date of completing the demoli-
 tion, alterations, rehabilitation, and/or remediation.
   (b) The owner filing for such exemption shall not be  required  to  be
 the  owner responsible for completing the demolition, alterations, reha-
 bilitation, and/or remediation.
   (c) If the assessor is satisfied that the applicant is entitled to  an
 exemption pursuant to this section, he or she shall approve the applica-
 tion and such real property shall thereafter be exempt from taxation and
 special ad valorem levies by the [city] MUNICIPALITY commencing with the
 assessment  roll  prepared  after the taxable status date referred to in
 this subdivision. The assessed value of any exemption  granted  pursuant
 to  this  section shall be entered by the assessor of the [city] MUNICI-
 PALITY on the assessment roll with the taxable property, with the amount
 of the exemption shown in a separate column.
   (d) Once granted, the  residential  redevelopment  inhibited  property
 exemption  runs  with the land for the exemption period pursuant to this
 section.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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Senate Bill S4662

Sponsored By

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

co-Sponsors

2019-S4662 (ACTIVE) - Details

2019-S4662 (ACTIVE) - Summary

2019-S4662 (ACTIVE) - Sponsor Memo

2019-S4662 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4662

Share this bill

Sponsored By

Michael H. Ranzenhofer

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

co-Sponsors

Fred Akshar

Susan Serino

James L. Seward

2019-S4662 (ACTIVE) - Details

2019-S4662 (ACTIVE) - Summary

2019-S4662 (ACTIVE) - Sponsor Memo

2019-S4662 (ACTIVE) - Bill Text download pdf

Comments