NY State Senate Bill 2025-S1627

Senate Bill S1627

2025-2026 Legislative Session

Authorizes the abatement of municipal and school real property taxes in certain cases of catastrophic loss and establishes procedures therefor

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 13, 2025	referred to local government

2025-S1627 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Add Art 5 Title 2-A §§548 - 548-c, RPT L
Versions Introduced in 2023-2024 Legislative Session:: S5923

2025-S1627 (ACTIVE) - Summary

Authorizes the abatement of real property taxes in certain cases of catastrophic loss; establishes procedures therefor; limits eligibility to one, two, or three family houses; applies to all municipal and school taxes.

2025-S1627 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1627

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to the abatement
of taxes in certain cases of catastrophic loss

 
PURPOSE OR GENERAL IDEA OF BILL:

To establish in the Real Property Tax Law a procedure to abate real
property taxes for those homeowners that have suffered a catastrophic
loss that has made their residence uninhabitable for at least 180 days
after such event, such as a fire, flood, gas explpsion, or other
catastrophic incident.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Creates a new Title 2-A to the Real Property Tax Law to
establish an abatement of taxes in the case of a catastrophic loss.
This provision shall only apply to one, two or three family residences
that are owner occupied. The home will have to have been rendered total-

ly uninhabitable for at least 180 days after the fire, flood, gas explo-
sion or other event has occurred. The claim for such an abatement must
be filed with the municipal assessor within 6 months of the completion
of the final assessment role. If such abatement is granted, the taxpayer
shall have their real property reappraised to reflect the catastrophic
loss and shall pay the reduced tax levy and all penalties and interest
shall be waived. The assessors board must issue a decision on the tax
abatement within two months after the last day for filing a claim has
occurred. Section 2:  Effective date.

 
EXISTING LAW:

Under current law, there is no abatement procedure to reduce real prop-
erty taxes for a homeowner that has experienced a catastrophic loss of
their home that occurred immediately after the deadline for establishing
the town's tax assessments for the year.

 
JUSTIFICATION:

In the Mid-Hudson Valley, there was a family that lost their home due to
a gas explosion which resulted in the total loss of their home. In addi-
tion to bearing the loss of their home, the family was required to pay
their full real property taxes because the gas explosion occurred one
month after the close of the assessment books. Under current law, the
reasoning for this outcome is that the taxpayer will see a substantial
reduction of their taxes in the following tax year when the property is
reassessed. However, as in this situation, a new home may be constructed
within nine months, which will result in an even higher tax assessment
next year. Therefore, at no time will the property owner receive an
abatement for their truly tragic loss, and may in the end pay more in
real property taxes than they would have if no such catastrophic loss
occurred at all. This bill provides for a procedure so that for six
months after the close of the tax assessment rolls, a property owner
that has experienced a catastrophic loss can file an application to
reduce their tax assessment so that it reflects the true value of the
parcel. This bill, if enacted into law, would help to reduce the econom-
ic stress experienced by families that have lost their home, their
possessions, and perhaps loved ones due to a residential fire, flood,
gas explosion or other event that reduced their home to rubble.

 
PRIOR LEGISLATIVE HISTORY:

2005-06, S.2948

2007-08, S.420

02/14/2012 A.1249 - held for consideration in real property taxation,

01/08/14 referred to real property taxation,

A2606 04/12/16 held for consideration in real property taxation,

A.1600 of 2017-18 held for consideration in real property taxation

A.1699 - 07/16/20 held for consideration in real property taxation

A5715 - 05/10/22-held for consideration in real property taxation

2023: S5923/A2016 Referred to Local Government

2024: S5923/A2016 Referred to Local Government

 
FISCAL IMPLICATIONS:

None.

 
LOCAL FISCAL IMPLICATIONS:

Minimal.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law; provided that any and all rules and regulations
and any other measures necessary to implement any provision of this act
on its effective date may be promulgated and taken, respectively, on or
before the effective date of such provision.

2025-S1627 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1627
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2025
                                ___________
 
 Introduced  by Sen. BORRELLO -- 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 the  abatement
   of taxes in certain cases of catastrophic loss
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Article 5 of the real property tax law is amended by adding
 a new title 2-A to read as follows:
                                 TITLE 2-A
            ABATEMENT OF TAXES IN THE CASE OF CATASTROPHIC LOSS
 SECTION 548.   APPLICABILITY OF OTHER PROVISIONS.
         548-A. DEFINITIONS.
         548-B. CATASTROPHIC LOSS TAX ABATEMENT PROCEDURE.
         548-C. COORDINATION WITH SCHOOL AND VILLAGE TAX LEVIES.
   § 548. APPLICABILITY OF OTHER PROVISIONS.  THE  PROVISIONS  OF  TITLES
 ONE-A  AND  THREE  OF  THIS ARTICLE SHALL APPLY TO THIS TITLE INSOFAR AS
 THEY ARE NOT INCONSISTENT WITH  THE  PROVISIONS  AND  PURPOSES  OF  THIS
 TITLE,  WHICH  SHALL SUPERSEDE ANY INCONSISTENT PROVISION OF SUCH TITLES
 ONE-A AND THREE. THE PROVISIONS OF  THIS  TITLE  SHALL  APPLY  TO  TAXES
 LEVIED BY ALL MUNICIPAL CORPORATIONS ONLY UPON A ONE, TWO OR THREE FAMI-
 LY RESIDENCE.
   § 548-A. DEFINITIONS. FOR THE PURPOSES OF THIS TITLE:
   1.  A  ONE,  TWO OR THREE FAMILY RESIDENCE HAS UNDERGONE "CATASTROPHIC
 LOSS" WHEN IT IS TOTALLY DESTROYED OR IS SO EXTENSIVELY DAMAGED THAT ALL
 DWELLING UNITS IN SUCH RESIDENCE ARE UNFIT  FOR  HABITATION  AND  CANNOT
 REASONABLY  BE  MADE  FIT  FOR HABITATION WITHIN A PERIOD OF ONE HUNDRED
 EIGHTY DAYS AFTER THE DAMAGE OCCURRED.
   2. "FAMILY RESIDENCE" MEANS AN OWNER-OCCUPIED RESIDENTIAL DWELLING.
   § 548-B. CATASTROPHIC LOSS TAX  ABATEMENT  PROCEDURE.  1.  A  PROPERTY
 OWNER  IS ELIGIBLE TO FILE A CLAIM FOR A CATASTROPHIC LOSS TAX ABATEMENT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03657-01-5
 S. 1627                             2

 
 IF THE CATASTROPHIC LOSS OCCURRED WITHIN SIX MONTHS AFTER THE COMPLETION
 OF THE FINAL ASSESSMENT ROLL.
   2.  SUCH A CLAIM MUST BE FILED WITH THE ASSESSOR OR BOARD OF ASSESSORS
 WITHIN SIX MONTHS AFTER THE COMPLETION OF THE FINAL ASSESSMENT  ROLL.  A
 STATEMENT  OF  THE  FACTS  CONSTITUTING  THE BASIS OF THE CLAIM SHALL BE
 FILED ON A FORM PRESCRIBED BY THE COMMISSIONER. SUCH STATEMENT SHALL  BE
 MADE  BY  THE  OWNER  OF THE REAL PROPERTY, OR BY A PERSON AUTHORIZED IN
 WRITING BY THE CLAIMANT OR THE CLAIMANT'S ATTORNEY OR AGENT TO MAKE SUCH
 STATEMENT WHO HAS KNOWLEDGE OF THE FACTS STATED  THEREIN.  SUCH  WRITTEN
 AUTHORIZATION  SHALL  BE  MADE  A PART OF SUCH STATEMENT AND BEAR A DATE
 WITHIN THE SAME CALENDAR YEAR DURING WHICH THE COMPLAINT IS FILED.  SUCH
 STATEMENT SHALL ALSO CONTAIN THE FOLLOWING SENTENCE: "I CERTIFY THAT ALL
 STATEMENTS  MADE ON THIS APPLICATION ARE TRUE AND CORRECT TO THE BEST OF
 MY KNOWLEDGE AND BELIEF AND I UNDERSTAND THAT THE MAKING OF ANY WILLFUL-
 LY FALSE STATEMENT OF MATERIAL  FACT  HEREIN  WILL  SUBJECT  ME  TO  THE
 PROVISIONS  OF  THE PENAL LAW RELEVANT TO THE MAKING AND FILING OF FALSE
 INSTRUMENTS." UPON THE FILING OF SUCH STATEMENT, ALL COLLECTION  OF  TAX
 EFFORTS  SHALL  BE SUSPENDED AND THE ACCRUAL OF INTEREST OR PENALTIES OR
 BOTH SHALL ALSO BE SUSPENDED. IF THE CLAIM IS SUSTAINED, NO INTEREST  OR
 PENALTY  SHALL  BE  DUE,  AND  ANY INTEREST OR PENALTY PAID PRIOR TO THE
 FILING OF THE STATEMENT SHALL BE REFUNDED. IF THE CLAIM IS  DENIED,  ALL
 COLLECTION  OF  TAX  EFFORTS  SHALL RESUME, AND INTEREST OR PENALTIES OR
 BOTH SHALL RESUME  THEIR ACCRUAL RETROACTIVELY TO THE  DATE  OF  SUSPEN-
 SION.
   3.  THE CLAIM SHALL BE HEARD AND DETERMINED BY THE BOARD OF ASSESSMENT
 REVIEW OR  ASSESSMENT  REVIEW  COMMISSION,  AS  THE  CASE  MAY  BE.  THE
 PROCEEDINGS  IN  HEARING  AND DETERMINING THE CLAIM SHALL BE MODIFIED AS
 NECESSARY TO SERVE THE PURPOSES OF THIS TITLE AND SHALL BE IN ACCORDANCE
 WITH THE REGULATIONS OF THE COMMISSIONER. ALL CLAIMS SHALL BE HEARD  AND
 DECIDED NOT LATER THAN TWO MONTHS AFTER THE LAST DAY FOR FILING A CLAIM.
   4.  UPON  THE DETERMINATION OF A CLAIM, THE BOARD OF ASSESSMENT REVIEW
 OR ASSESSMENT REVIEW COMMISSION, AS THE CASE MAY BE, SHALL  GIVE  NOTICE
 OF  THE  DETERMINATION  TO  THE  ASSESSOR  OR BOARD OF ASSESSORS AND THE
 CLAIMANT WITHIN FIVE DAYS OF SUCH DETERMINATION.    NOTWITHSTANDING  ANY
 INCONSISTENT PROVISION OF LAW, IF THE CLAIM IS DETERMINED TO BE IN FAVOR
 OF  THE  CLAIMANT,  THE ASSESSOR OR BOARD OF ASSESSORS SHALL CORRECT THE
 TENTATIVE ASSESSMENT ROLL, FINAL ASSESSMENT ROLL OR  TAX  ROLL,  AS  THE
 CASE MAY BE, WITHIN FIVE DAYS OF RECEIVING SUCH NOTICE.
   §  548-C. COORDINATION WITH SCHOOL AND VILLAGE TAX LEVIES. THE COMMIS-
 SIONER SHALL PROMULGATE REGULATIONS TO COORDINATE ASSESSMENT  ROLLS  AND
 TAX  LEVIES OF COUNTIES, CITIES AND TOWNS WITH THOSE OF SCHOOL DISTRICTS
 AND VILLAGES.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Effective immediately the  addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such date.

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