NY State Senate Bill 2021-S4126

Senate Bill S4126

2021-2022 Legislative Session

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

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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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to health
Feb 02, 2021	referred to health

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2021-S4126 (ACTIVE) - Details

See Assembly Version of this Bill:: A351
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:: 2017-2018: S7661, A10440
2019-2020: S2909, A1590
2023-2024: S1833, A2497

2021-S4126 (ACTIVE) - Summary

Authorizes real property taxing jurisdictions to grant a partial tax exemption for property purchased by a clinician in a clinician shortage area, as determined by the commissioner of health, which will be such clinician'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 clinicians.

2021-S4126 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4126

SPONSOR: GRIFFO
 
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 clinician in a
clinician 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 clinician for use as primary residence when the
clinician works in and the property is located in a clinician 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 clinician shortage areas by
county or other sub-county geographic area that lacks primary care
and/or other medical specialty clinicians 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 clinicians residing and
working in areas designated by the Commissioner as experiencing a clini-
cian 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 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 corpo-
ration 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 with the first estab-
lishment 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 clinician
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 clinicians (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 clinician supply and with an
average clinician age of 52 (almost 30% are over 60 years of age); the
shortage is only expected to worsen.  On the demand side for clinician
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 clinician supply issue and work together to implement a multi-
faceted 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 exempt-
ing part of a clinician'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 clinicians.

This clinician shortage is an imminent threat to the health, safety and
the economic viability of these communities and their residents.  Howev-
er, 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:

2019-20 - S. 2909 - Health Committee/A. 1590 - Real Property Taxation.

2018 - S. 7661 - Finance Committee/A. 10440 - Real Property Taxation.

2017 - Finance Committee.

2015-16 - S. 1289a - Finance Committee.

 
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 prop-
erty in the municipality next succeeding the effective date of this act.

2021-S4126 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4126
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 2, 2021
                                ___________
 
 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  clinician  in  a
   clinician  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  clinicians.  It  is
 well  established  that  ensuring  the sufficient availability of physi-
 cians, physician assistants, nurse  practitioners,  and  nurse  midwives
 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
 clinicians 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 CLINICIAN SHORTAGE AREAS IN THE STATE. A DESIGNATED
 CLINICIAN SHORTAGE AREA SHALL BE A COUNTY OR OTHER SUB-COUNTY GEOGRAPHIC
 AREA  DETERMINED BY THE COMMISSIONER TO BE IN SHORT SUPPLY OF CLINICIANS
 IN PRIMARY CARE PRACTICE AND/OR ONE OR MORE  MEDICAL  SPECIALITIES.  THE
 LIST  SHALL INDICATE FOR EACH DESIGNATED CLINICIAN SHORTAGE AREA, IF THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04040-01-1

 S. 4126                             2
 
 AREA IS IN SHORT SUPPLY OF PRIMARY CARE  PHYSICIANS,  MEDICAL  SPECIALTY
 PHYSICIANS  AND WHICH MEDICAL SPECIALTY IS IN SHORT SUPPLY IN THE DESIG-
 NATED SHORTAGE AREA,  PHYSICIAN  ASSISTANTS,  NURSE  PRACTITIONERS,  AND
 NURSE MIDWIVES.
   (B)  IN  ESTABLISHING DESIGNATED CLINICIAN 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.
   (D) FOR THE PURPOSES OF THIS SUBDIVISION,  "CLINICIAN"  SHALL  MEAN  A
 PHYSICIAN, PHYSICIAN ASSISTANT, NURSE PRACTITIONER, OR NURSE MIDWIFE.
   §  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  CLINICIAN  SHORTAGE
 AREA.  1.  A  MUNICIPAL  CORPORATION  OR SCHOOL DISTRICT MAY EXEMPT REAL
 PROPERTY PURCHASED BY A CLINICIAN 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 CLINICIAN RESIDES IN AND
 HAS  AN OFFICE LOCATED WITHIN A CLINICIAN 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 CLINICIAN SHORTAGE AREAS.  1.
 IN  A  MUNICIPAL  CORPORATION OR SCHOOL DISTRICT WHICH ELECTS TO PROVIDE
 THE REAL PROPERTY TAX EXEMPTION IN A DESIGNATED CLINICIAN 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,

 S. 4126                             3
 
 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.
   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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Senate Bill S4126

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Sponsored By

Joseph A. Griffo