NY State Senate Bill 2025-S1131

Senate Bill S1131

2025-2026 Legislative Session

Directs the department of taxation and finance to establish a pilot program for implementation of local land value taxation

download bill text pdf

Current 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2025	referred to local government

2025-S1131 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Taxation
Versions Introduced in 2023-2024 Legislative Session:: S7871

2025-S1131 (ACTIVE) - Summary

Directs the department of taxation and finance to establish a pilot program for implementation of local land value taxation based on classes of land; directs the department of taxation and finance to establish an application procedure for the pilot program.

2025-S1131 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1131

SPONSOR: MAY
 
TITLE OF BILL:

An act
  to  direct the department of taxation and finance to establish a pilot
program for implementation of local land value taxation

 
PURPOSE:

To create a pilot program for up to 5 municipalities to implement a land
value taxation system

 
SUMMARY OF PROVISIONS:

Section 1 establishes that the secretary  of  state  shall  establish  a
pilot program for up to 5 municipalities to develop a plan for implemen-
tation of land value taxation

Section 2 establishes the effective date of the bill

 
JUSTIFICATION:

In 2023, facing economic and tax challenges not dissimilar to many Amer-
ican  cities, Detroit's Mayor, Mike Duggan, proposed a solution known as
a land value tax. This tax,  also  referred  to  as  a  split-rate  tax,
involved  taxing  land  at a higher rate to taxing infrastructure on the
land.

The key objective of this approach is to encourage the  optimal  use  of
land by providing a reduced tax increase for land development. This will
promote  infill  development, rather than continuous outward sprawl from
city centers. By implementing this tax, speculation and wasteful use  of
land  are  discouraged,  as  the  cost  of  owning  undeveloped  land is
increased. The land value tax can alleviate the burden on homeowners  in
many  cities.  It  ensures  that  owners  of  high-value land, currently
utilized for low-value purposes, contribute their fair share.

Land value taxes have drawn interest and been put  into  practice  else-
where,  including  in New York. In 1993, Governor Mario Cuomo approved a
bipartisan bill allowing Amsterdam to implement a land tax, but  it  was
later repealed due to a change in mayoral administration. More recently,
Buffalo's  city  council passed a resolution to study the implementation
of a land value tax in February 2023. Pennsylvania  has  permitted  this
form  of  taxation  since 1913, with 15 cities currently using a form of
land value, tax.

While property taxes are frequently discussed,  there  has  been  little
opportunity for innovation and policy advancement. This bill establishes
a  pilot  program  granting  permission  and  support to up to 5 munici-
palities to implement a land value tax,  providing  an  opportunity  for
experimentation and progress in tax policy.

 
LEGISLATIVE HISTORY:

2023-2024: S.7871-A (May) / A.9673-A (Bores)

 
FISCAL IMPLICATIONS:
None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S1131 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1131
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT
   to direct the department of taxation and finance to establish a  pilot
 program for implementation of local land value taxation
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. 1. The department of taxation and finance shall establish a
 pilot program in up to five  municipalities  under  which  such  munici-
 palities  shall develop a plan for implementation of land value taxation
 that (a) classifies real estate included in such municipality's  assess-
 ment  roll as (i) land or land exclusive of buildings, or (ii) buildings
 on land; and (b) establishes a different local  property  tax  rate  for
 each such class, provided the higher local property tax rate shall apply
 to land or land exclusive of buildings.
   2.  The department of taxation and finance shall establish an applica-
 tion procedure and any other criteria for the pilot program  established
 under  subdivision  one  of this section, under which municipalities may
 apply to participate in such pilot program.  If a municipality having  a
 population  greater  than 50,000 applies for participation in such pilot
 program, such municipality shall designate a  specific  neighborhood  or
 area within such municipality that would participate in such program, if
 selected.  The department of taxation and finance shall send a notice of
 selection  for  such pilot program to the chief executive officer of the
 municipality and to the temporary president of the senate and the speak-
 er of the assembly.
   3. In order to apply to participate in the pilot  program  established
 under  subdivision  one  of  this  section,  the legislative body of the
 applicable municipality shall pass a local law, and  a  school  district
 shall  pass  a  resolution,  affirmatively  authorizing  the application
 established under subdivision two of this section.
   § 2. This act shall take effect immediately.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03468-01-5

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