BILL NUMBER: S573

SPONSOR: ORTT
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to the residen-
tial-commercial exemption program

 
PURPOSE:

Expands the Residential-Commercial Exemption program statewide.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. The real property tax law is amended to remove the
restriction that limits the residential-commercial exemption program's
applicability to Livingston County.

 
JUSTIFICATION:

New York's older communities are faced with thousands of properties in
              

need of significant remediation and rehabilitation. The cost of such
remediation and rehabilitation frequently exceeds the value of the Prop-
erty creating a situation where private sector financing will not loan
money to undertake the remediation or rehabilitation. As a result, these
properties will not be rehabilitated or redeveloped without addressing
this gap in the private sector financing. This legislation will facili-
tate the redevelopment of New York's communities by allowing counties,
towns, villages and school districts, to grant real property tax abate-
ment in defined redevelopment areas.

Tax abatements are a proven technique for local governments to attract
investors for revitalization. A tax abatement, which this bill would
provide, is different than a strict tax exemption. A tax exemption takes
away existing revenue generated by a property, while tax abatement does
not change existing tax payments. With tax abatements, governments agree
to take less than 100% of new revenue generated through property invest-
ment, repair and renovation.

This legislation will provide a tool for local governments to improve
their communities. The proposed tax abatement program will not impose a
cost upon the state, and therefore should be considered by the Legisla-
ture as a no cost, mandate-free way to allow local governments across
New York to invest in and attract outside investment to their communi-
ties.

 
PRIOR LEGISLATIVE HISTORY:

2021-2022: S. 2158 Referred to Local Government

2019-20: 8.127 Referred to Local Government

2015-16 A3940

2013-14 A7931 2011-12 A10193

 
FISCAL IMPLICATIONS:

To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.