NY State Senate Bill 2021-S3982

Senate Bill S3982

2021-2022 Legislative Session

Relates to veteran real property tax exemptions and state funding to localities that grant such exemptions

download bill text pdf

Archive: Last Bill Status - In Senate Committee Veterans, Homeland Security And Military Affairs 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to veterans, homeland security and military affairs
Feb 01, 2021	referred to veterans, homeland security and military affairs

Votes

- Apr 19, 2021 - Veterans, Homeland Security And Military Affairs Committee Vote
  S3982
  
  9
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Veterans, Homeland Security And Military Affairs Committee Vote: Apr 19, 2021
      
      aye (9)
      
      Addabbo Jr.
      
      Brooks
      
      Harckham
      
      Jordan
      
      Reichlin-Melnick
      
      Ritchie
      
      Sanders Jr.
      
      Serrano
      
      Weik

co-Sponsors

2021-S3982 (ACTIVE) - Details

See Assembly Version of this Bill:: A3969
Current Committee:: Senate Veterans, Homeland Security And Military Affairs
Law Section:: Real Property Tax Law
Laws Affected:: Amd §458-a, add §1306-b, RPT L
Versions Introduced in Other Legislative Sessions:: 2013-2014: A9867
2015-2016: S1699, A966
2017-2018: S786, A2696
2019-2020: S6700, A1586

2021-S3982 (ACTIVE) - Summary

Provides that real property tax exemptions authorized by school districts to eligible veterans do not shift taxes to other school district taxpayers or reduce school revenue.

2021-S3982 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3982

SPONSOR: REICHLIN-MELNICK
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to veteran alter-
native 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 one of the bill amends Real Property Tax Law § 458-a by adding
subdivisions 11 and 12 to provide that the veterans exemption shall not
be considered when determining or calculating state aid to schools, debt
limits, the amount of taxes to be levied, tax rates for a school
district, or apportioning taxes under the applicable laws.

Section two amends the Real Property Tax Law by adding § 1306-b, provid-
ing that 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 and the tax rate for any school year shall be
determined as if no parcels received the veterans tax exemption. This
section also specifies that 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 of Education with such information as the commissioner
shall require. Further, the commissioner of education is given the power
to determine if there has been an overpayment or underpayment of school
aid. If either has occurred the next payment of state aid to the school
district will be adjusted accordingly.

Section three amends Real Property Tax Law Section 458-a (c) to amend
the definition of qualified owner to include only those eligible veter-
ans earning an annual income less than five hundred thousand dollars.

Section four provides 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:

2019-20: S6700 - referred to Veterans, Homeland Security, and Military
Affairs 2017-18: S786A - reported and committed to Finance

2015-16: S1699A - amended and recommitted to Veterans, Homeland Securi-
ty, and Military Affairs

 
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, 2022.

2021-S3982 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3982
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 1, 2021
                                ___________
 
 Introduced  by  Sen. REICHLIN-MELNICK -- read twice and ordered printed,
   and when printed to be committed to the Committee on  Veterans,  Home-
   land Security and Military Affairs
 
 AN ACT to amend the real property tax law, in relation to veteran alter-
   native tax exemptions

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, 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  EDUCA-
 TION  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 APPOR-
 TIONING 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00993-01-1

 S. 3982                             2
 
 DETERMINED  AS  IF  NO  PARCELS  WERE  EXEMPT  FROM TAXATION PURSUANT TO
 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 CHAP-
 TER 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  ACCORD-
 INGLY.
   (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 prop-
 erty  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 taxa-
 ble years beginning on and after January 1, 2022.

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Senate Bill S3982

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Sponsored By

Elijah Reichlin-Melnick

Archive: Last Bill Status - In Senate Committee Veterans, Homeland Security And Military Affairs Committee

co-Sponsors

Joseph P. Addabbo Jr.

George M. Borrello

Zellnor Myrie

Anthony H. Palumbo

2021-S3982 (ACTIVE) - Details

2021-S3982 (ACTIVE) - Summary

2021-S3982 (ACTIVE) - Sponsor Memo

2021-S3982 (ACTIVE) - Bill Text download pdf

Comments