Real Property Taxation

ANNUAL REPORT

New York State Assembly

Carl E. Heastie, Speaker

Committee on

Sandra R. Galef, Chairperson

SANDRA R. GALEF

Assemblywoman 95

District

THE ASSEMBLY

STATE OF NEW YORK

ALBANY

CHAIR

Real Property Taxation

COMMITTEES

Corporations, Authorities and Commissions

Election Law

Governmental Operations

Health

ALBANY OFFICE: Room 641, Legislative Office Building, Albany, New York 12248, (518) 455-5348, FAX (518) 455-5728

DISTRICT OFFICE: 2 Church Street, Ossining, New York 10562, (914) 941-1111, FAX (914) 941-9132

E-MAIL: galefs@assembly.state.ny.us WEBSITE: www.assembly.state.ny.us

December 15, 2015

The Honorable Carl Heastie

Speaker of the Assembly

Room 932 – Legislative Office Building

Albany, New York 12248

Dear Speaker Heastie:

I am pleased to submit the 2015 Annual Report of the Assembly Standing Committee on Real Property

Taxation. This was a busy year for the Committee, which dealt with a wide range of challenging

issues and diverse legislation.

In 2015, the Committee met eight times and reported fifty-one bills. We reviewed and reported

proposed legislation in a variety of areas including general administration, exemption administration,

and jurisdiction specific (local) legislation. In addition to our legislative responsibilities, the

Committee worked closely with the New York State Office of Real Property Tax Services (ORPTS) to

promote informed and responsible legislation. The Committee also conducted a public hearing to

examine the impact of the 2015-2016 State Budget on real property taxation including changes to the

School Tax Relief (STAR) exemption program.

In 2016, the Committee will continue to focus on legislation that will provide real property tax relief,

improve assessment practices, enhance efficiency and reduce costs in real property tax administration,

and examine the effects of real property tax exemptions.

I have greatly enjoyed working with the Real Property Taxation Committee members. Their

knowledge and enthusiasm were instrumental in making this a pleasant and productive year. I look

forward to another productive year in 2016.

Sincerely,

Sandra R. Galef, Chairperson

Real Property Taxation Committee

2015 STANDING COMMITTEE ON

REAL PROPERTY TAXATION

SANDRA R. GALEF, CHAIRPERSON

MEMBERS of the COMMITTEE

MAJORITY MINORITY

James F. Brennan Kieran M. Lalor – Ranking Member

Mark Gjonaj Philip A. Palmesano

Aileen Gunther

John McDonald, III

Roxanne Persaud

Victor Pichardo

Annette Robinson

COMMITTEE STAFF

Julia Mallalieu, Assistant Secretary for Program and Policy

Nairobi Vives, Associate Counsel

Lauren Denison, Legislative Analyst

Rebecca Southard-Kreiger, Committee Clerk

Nicole VanAuken, Program and Counsel Secretary

TABLE OF CONTENTS

I. General Administrative

A. Statewide Legislation…………………………………………………..………………...1

B. Legislation of Local Significance…………………………………………………….…..1

II. Real Property Tax Relief Programs

A. Statewide Legislation ……………..………………….…………………………….……2

B. Legislation of Local Significance….………………………………………….……….…4

C. Not-For-Profit Retroactive Exemptions………………………………………………….8

III. Public Hearings…...9

IV. Outlook for 2016……………….………….……………………………….………..……....9

V. Appendices

A. Appendix A: 2015 Committee Summary……………………………………………….11

B. Appendix B: Enacted RPT Committee Bill(s)………………………………………….12

C. Appendix C: RPT Committee Bills Passed Assembly Only…………………...….……15

I. GENERAL ADMINISTRATIVE

A. STATEWIDE LEGISLATION

Extends the Tax Cap for Four Years

(Part A of S.6012 (Flanagan)/A.8328 (Heastie); Chapter 20 of the Laws of 2015)

Part A of Chapter 20 of the Laws of 2015 extended the tax levy limit, more commonly known as the tax

cap, for four years until June 15, 2020.

Authorizes the Department of Taxation and Finance to Make Certain Tax Cap Adjustments

(Part C of S.6012 (Flanagan)/A.8328 (Heastie); Chapter 20 of the Laws of 2015)

This part authorizes the Commissioner of the Department of Taxation and Finance (DTF) to provide, by

rules and regulations, for the adjustment of a school district's capital local expenditures to reflect the

district's share of capital expenditures made by a Board of Cooperative Educational Services (BOCES). It

also authorizes the DTF Commissioner to provide the adjustment of quantity change factor for a local

government or school district to reflect development on tax-exempt property within the jurisdiction.

Requires Mineral Rights Be Included in Municipal Foreclosure Sale

(A.6930 (Galef )/S.5288 (Seward); Chapter 500 of the Laws of 2015)

This legislation requires that when a tax district becomes vested with title to real property by virtue of a

foreclosure proceeding and sells or conveys the real property so acquired, any and all gas, oil and mineral

rights associated with shall be included in such sale or conveyance.

Assessment Petition Notification of Fire Districts

(A. 1155 (Magee)/ S.1107 (LaValle); Passed the Assembly)

This legislation would require that notice be provided to the Chair of the Board of Fire Commissioners

when there is a challenge to a real property tax assessment within a fire district. This legislation would

allow fire districts, which receive funding through real property taxation, to receive the same notification

received by other affected parties.

B. LEGISLATION OF LOCAL SIGNIFICANCE

Base/Adjusted Base Proportion Limitations for Approved Assessing Units

(A.5933 (Kaminsky)/S.4395 (Venditto); Chapter 256 of the Laws of 2015)

(A.7281 (Ramos)/S.4840 (Croci); Chapter 266 of the Laws of 2015)

Some municipalities that have opted into the Homestead Tax Option, as authorized by Article 19 of the

RPTL, have requested special legislation limiting the amount by which their base or adjusted base

proportions can increase for a class of properties in a given year. By limiting base and adjusted base

proportional shifts, which are used for calculating tax shares and tax rates, large changes in tax

liabilities between the two classes of properties are avoided. Chapter 256 of the Laws of 2015

authorizes approved assessing units in Nassau County (cities and villages that do their own assessing)

to adopt local laws limiting class shifts to 1% for taxes based upon the 2015 assessment roll. If a

locality chooses not to adopt such a local law, the default limit is 5%. Chapter 266 of the Laws of 2015

provides that in an approved assessing unit in the county of Suffolk (Islip) the current base proportions

to be determined by taxes based on such approved assessing unit's 2015-2016 assessment roll, the

current base proportion of any class shall not exceed the adjusted base proportion or adjusted

proportion, whichever is appropriate, of the immediately preceding year by more than 1%.

Base Proportion Limitations for Certain Special Assessing Units

(A.7186 (Kaminsky)/S.4396 (Martins); Chapter 445 of the Laws of 2015)

This legislation provides that in a special assessing unit that is not a city (Nassau County), for the 2015

assessment roll, the current base proportion of any class shall not exceed the adjusted base proportion

or adjusted proportion, whichever is appropriate, of the immediately preceding year by more than 1%.

Changes the Final Date to Pay Property Taxes Without Penalty in Dutchess County

(A.7982 (Skartados)/S.5537 (Serino); Chapter 507 of the Laws of 2015)

This legislation provides that in towns within Dutchess county, if the final date for collection of taxes,

or for the collection of taxes without penalty, or for the collection of taxes at a lesser prescribed

penalty interest rate shall fall on a Saturday, Sunday or public holiday, an extension for the collection

of taxes shall automatically be in effect until the first business day following such date and the date for

paying over taxes shall be extended to the following day.

Extends the Authority of Certain Villages to Hold Tax Lien Sales

(A.7992 (Schimel)/S.5767 (Martins); Chapter 512 of the Laws of 2015)

This legislation amends subdivision (c) of §6 of Chapter 602 of the Laws of 1993 to provide that any

village which adopted a local law by September 1, 1994, authorizing such village to continue to

enforce unpaid property taxes by tax lien sale, may continue to hold tax lien sales for village taxes

which become liens on or before December 31, 2018. Prior law provided that such authorization would

have expired on December 31, 2015

Authorizes the Extension of Certain 2015 Real Property Tax Payments Due to Storm

(A.5150-B (Buchwald)/S.5876 (Murphy); Chapter 251 of the Laws of 2015)

This legislation extends, by local option, from February 2, 2015 to February 3, 2015 the deadline for

the collection of property taxes without interest or penalties in instances where the municipal office

was closed due to severe weather on February 2, 2015 and such payment was physically delivered on

February 3, 2015. This legislation is in response to the fact that a snow storm occurred on the last day

in which taxes were due without penalty in Westchester County and some municipal offices closed

thereby prohibiting some taxpayers to make a timely payment.

II. REAL PROPERTY TAX RELIEF PROGRAMS:

A. STATEWIDE

Real Property Tax Relief Credit

(Part C of S.6012 (Flanagan)/A.8328 (Heastie); Chapter 20 of the Laws of 2015)

Part C of Chapter 20 of the Laws of 2015 establishes a new real property tax relief credit for tax years

2016-2019. It is available to homeowners outside of New York City receiving the basic or Enhanced

STAR exemption whose incomes do not exceed specified income thresholds. For 2016, the credit will

be $130 for taxpayers in the metropolitan commuter transportation district (MCTD) with household

incomes up to $275,000, and $185 for taxpayers outside the MCTD with household incomes up to

$200,000. For tax years 2017-2019, the credit would be calculated a percentage of the eligible

property’s star savings, with lower income taxpayers receiving a greater benefit.

Eliminates the New York City STAR Personal Income Tax Reduction for High Earners

(Part B of Revenue Budget Bill (S.2009B/A. 3009-B); Chapter 59 of the Laws of 2015)

This part eliminates the New York City STAR Personal Income Tax (PIT) reduction for New York

City residents with incomes above $500,000. This income limitation is consistent with the STAR

Exemption income limitation.

Recoupment of Erroneous STAR Exemptions by Commissioner

(Part E of Revenue Budget Bill (S.2009B/A. 3009-B); Chapter 59 of the Laws of 2015)

This part authorizes the Commissioner of the Department of Taxation and Finance to recoup

erroneously granted STAR Exemptions. Such authorization is limited to one or more of the three

preceding final assessment rolls provided that erroneous exemptions granted on final assessment rolls

that were filed prior to April 1, 2011 shall not be eligible for recoupment. The tax savings attributable

to each improperly granted STAR exemption shall be collected from the owners whose property

received the exemption, together with interest, by utilizing procedures for the collection, levy and lien

of personal income taxes. Prior to the recoupment of an exemption, the Commissioner shall provide

the owners with the opportunity to show that the eligibility requirements were satisfied for such

exemptions. These provisions shall not be applicable where the exemption has been revoked locally,

or where there has been a voluntary renunciation of the STAR exemption.

One-time Relief for Certain Unenrolled STAR Registrants

(Part F of Revenue Budget Bill (S.2009B/A. 3009-B); Chapter 59 of the Laws of 2015)

This Part allows the Department of Taxation and Finance to retroactively grant STAR exemptions to

taxpayers who registered with the Department as part of the STAR Reregistration program, but failed

to file an exemption with their local assessor for the 2013 assessment roll. In some cases, new

homeowners who purchased their properties after the taxable status date for the 2013 assessment roll

misunderstood that in addition to registering with the Department, they also needed to file an

exemption application with the local assessor. This part would allow a one-time fix to allow taxpayers

that registered with the State but failed to file locally, to receive the exemption. The STAR savings

that the STAR exemption would have yielded if the exemption had been granted on the 2014

assessment roll will be paid to the taxpayer directly from the Department.

Enhanced STAR Income Verification Program Clarifier

(A.7375 (Galef)/S.5446 (Serino); Chapter 451 of the Laws of 2015)

This bill would provide that all assessing units shall be required to participate in the Enhanced STAR

Income Verification Program. The Income Verification Program was intended to be an option for all

Enhanced STAR applicants as a way to avoid the annual application process. Despite this, some

assessors have not been offering the option to taxpayers. The purpose of this bill is to make it clear that

the Income Verification Program is a state-wide program that is available to all Enhanced STAR

applicants.

STAR Exemptions for Certain Farm Dwellings

(A.1421 (Magnarelli)/ S.3539 (Marchione); Chapter 564 of the Laws of 2015)

This legislation would provide that if the legal title to a farm dwelling is held by a Limited Liability

Company, the property could be eligible to receive the STAR exemption if the property serves as the

primary residence of one or more of its owners.

Expands Renewable Energy Systems Exemption

(A.1872-B (Paulin)/S.4750-A (Griffo); Passed the Assembly)

This bill would extend the eligibility of the property tax exemption for solar, wind and farm waste

energy systems in Section 487 of the Real Property Tax Law to micro-hydroelectric energy systems,

fuel cell electric generating systems, micro-combined heat and power generating equipment systems,

and electric energy storage equipment and electric energy storage systems. It would apply to such

energy systems that are constructed subsequent to January 1, 2016 and prior to January 1, 2025. A

county, city, town or village may by local law, or a school district may by resolution, opt out of the

provisions.

B. LEGISLATION OF LOCAL SIGNIFICANCE

Assessment Relief of Real Property Damaged by Hurricane Sandy in New York City

(A.5620-B (Goldfeder)/S.3688-B (Lanza); Chapter 14 of the Laws of 2015)

This legislation adds a new section 1805-a to the Real Property Tax Law to authorize New York City

to limit increases in the assessed value of certain class one, class two, and class four properties. The

properties that would be subject to the limitations in this section must satisfy the following conditions:

1. The Department of Finance (DoF) reduced the assessed value of the building on the property on the

assessment roll completed in 2013 from the assessed value on the assessment roll completed in 2012 as

a result of damage caused by Hurricane Sandy.

2. DoF increased or will increase the assessed value of the building on the property as a result of the

repair or reconstruction of damage caused by Hurricane Sandy on any assessment roll completed from

2014 through 2020.

For properties that satisfy these conditions and have not performed repairs or reconstruction as of the

assessment roll completed in 2015, the physical increase to their assessed value as a result of repairs or

reconstruction that will be performed would be limited to the amount of the physical decrease reflected

on the assessment roll completed in 2013. Any increase in excess of the amount of the physical

decrease reflected on the assessment roll completed in 2013 would be treated as an equalization (non-

physical) increase and subject to the limitations for equalization increases. The assessed values of the

properties that satisfy the requisite conditions will not be higher than they would have been but for

Hurricane Sandy. For class four and larger class two properties subject to transitional assessments, the

limitation on physical increases would apply to the lower of the actual assessed value or the

transitional assessed value.

For properties that satisfy these conditions and have already performed repairs or reconstruction that

constitute a physical increase reflected on an assessment roll completed as of 2015, the assessed value

as it appeared on the assessment roll completed in 2015 would be recalculated as if section 1805-a had

been in effect. DoF is authorized to correct the 2015/2016 assessed value in accordance with section

1805-a within ninety days of the effective date of a local law adopting these provisions. Subsequent

physical increases reflected on an assessment roll completed from 2016 through 2020 would also be

subject to the limitations described in the preceding paragraph. To the extent that the square footage

used to determine the assessed value of the building on the property on a given assessment roll exceeds

that reflected on the assessment roll completed in 2012, the bill provides that the DoF would

recalculate the limitation on physical increases by multiplying it by the percentage of the excess square

footage of the building.

Assessment Relief of Real Property Damaged by Hurricane Sandy in Nassau County

(A.7156 (Kaminsky)/S.5800 (Venditto); Chapter 411 of the Laws of 2015)

This bill would add a new section 1805-b to the Real Property Tax Law to authorize Nassau County to

limit increases in the assessed value of certain class one, class two, and class four properties. It is

modeled after A.5620-B (Goldfeder)/S.3688-B (Lanza); Chapter 14 of the Laws of 2015.

Extends Exemption for the Rehab of Certain Single Room Occupancy Multiple Dwellings

(A.8239 (Persaud)/S.5935 (Felder); Chapter 273 of the Laws of 2015)

This legislation Section 488-a of the Real Property Tax Law to extend the date by which not-for-profit

and for-profit owners rehabilitating single room occupancy housing (SROs) are eligible to receive a

real property tax benefit. Prior law provided that any increase in assessed valuation as a result of

eligible improvements to the SROs receives a tax exemption provided that the improvements are

commenced prior to December 31, 2015 and are completed within 36 months of commencement. This

legislation extended the sunset date for eligibility for tax benefits from December 31, 2015 to

December 31, 2019.

Authorizes a Residential Redevelopment Inhibited Property Exemption in Certain Cities

(A.7570-A (Hawley)/ S.5196-A (Ranzenhofer); Chapter 406 of the Laws of 2015)

This legislation added a new Section 485-r to the Real Property Tax Law, which authorizes cities with

a population of not less than 15,250 and not more than 15,500 as determined by the federal decennial

census to adopt a residential redevelopment inhibited property exemption. Subsequent to its adoption,

the county and school district may also adopt the provisions in the same manner as the city. The

exemption is for residential property that has been neglected or abandoned because of economic

conditions and/or conditions on the property that inhibit the property from being redeveloped by the

private sector. A city shall designate any property within the city boundaries as eligible for the

property tax exemption if one or more of the following conditions are met:

 The city has acquired title to the property pursuant to Article 19-a of the Real Property

Actions and Proceedings Law;

 The property has been continuously vacant for a period of at least three years;

 The city has acquired title to the property via foreclosure for unpaid taxes pursuant to Article

11 of the Real Property Tax Law; or

 The property has outstanding zoning, housing, or uniform code violations and the cost of

remedying the violations exceeds the property’s value.

The exemption is to the extent of any increase in value attributable to demolition, alteration,

rehabilitation or remediation meeting certain requirements. The property would be exempt for a period

equal to the gap financing costs divided by the incremental increase in annually property taxes

resulting from such redevelopment. For the purposes of this section “gap financing costs” are defined

as the total cost of the property's redevelopment as approved by the city minus the increase in the full

valuation of the property upon completion of the redevelopment. To qualify the property must be an

owner-occupied single family residence and the owner must annually file an affidavit of residency with

the assessor.

New York City J-51 Program Extender

(Part A of S.6012 (Flanagan)/A.8328 (Heastie); Chapter 20 of the Laws of 2015)

Part A of Chapter 20 of the Laws of 2015 included provisions that extended the New York City J-51

program, which provides a property tax exemption and abatement for owners renovating a residential

apartment building. The construction completion deadline for benefits was extended from June 30,

2015 to June 30, 2019.

Condo-Co-op Abatement Extender

(Part A of S.6012 (Flanagan)/A.8328 (Heastie); Chapter 20 of the Laws of 2015)

Part A of Chapter 20 of the Laws of 2015 included provisions that extended the New York City Condo

Co-op Abatement program for four years. This abatement program provides a reduction in real

property taxes for primary residences and up to two additional units owned by such owner within the

same development. The amount of the abatement is based on the average assessed value of the

residential units in the building. No changes were made to the program.

421-a Exemption for New Multiple Dwellings in New York City Extender

(Part A of S.6012 (Flanagan)/A.8328 (Heastie); Chapter 20 of the Laws of 2015)

Part A of Chapter 20 of the Laws of 2015 included provisions that extended and modified New York

City’s 421-a program. The existing program was extended for seven months. A modified program

will be extended until June 15, 2019 if representatives of the largest trade association of residential real

estate developers and the largest trade association representing building and construction workers in

NYC enter into a Memorandum of Understanding (MOU) regarding the wage and wage supplements

for construction workers on buildings over fifteen units for new projects before applications can be

accepted after January 15, 2016. The terms and conditions of the MOU will be binding on future

projects.

The legislation grandfathers any current projects that have completed an application for 421-a tax

exemption benefits on or before December 31, 2015 into the current phase of the 421-a program.

Under the new program a project could qualify for benefits if it has six or more dwelling units.

Condominium and cooperative units could qualify outside of the borough of Manhattan if primary

residence requirements and certain other conditions are met. The legislation offers four different

affordability requirements, at the option of the developer, to qualify for the new 421-a program. For

rental projects, the new program would provide a 35-year exemption, which would result in a 100%

exemption for 25 years, plus a 10-year phase-out equal to the percentage of affordable units included

in such multiple dwellings. For homeownership projects, the new program would provide a 20-year

exemption. This would result in a 100% exemption for 14 years, plus a 6-year phase-out with a 25%

exemption. This exemption would be capped at $65,000. Affordable units must share the same

common entrances and common areas of a building as market-rate units must not be relegated or

isolated to a specific floor or area of a building relative to market-rate units. Affordable units would be

fully subject to rent stabilization during the tax exemption period. Tenants holding a lease and in

occupancy at the expiration of the tax exemption period would remain as rent-stabilized tenants for the

duration of their occupancy. Current projects with over 50 units, or projects whereby 50% are

affordable, are subject to prevailing wage requirements for building service workers. Future projects,

or projects receiving extending benefits, will be subject to prevailing wage requirements for building

service workers if there are 30 units, or 100% are affordable and at least 50% of those units are

affordable for those whose income is lower than 125% of the area median income.

This legislation also extends the benefits of certain 80/20 buildings currently receiving a 421-a

exemption that commenced construction prior to July 1, 2008. The 10-15-year extended exemption

would follow the conclusion of the building’s 20-year or 25-year tax exemption in exchange for 5%

increase in number affordable units, to 25%. The exemption would be in the amount of 50%.

Exemption for New or Substantially Rehabilitated Multiple Dwellings outside of New York City

Extender

(Part A of S.6012 (Flanagan)/A.8328 (Heastie); Chapter 20 of the Laws of 2015)

Part A of Chapter 20 of the Laws of 2015 extended an exemption authorized pursuant to Section

421-m of the Real Property Tax Law. This exemption, at local option, is for multiple dwellings

constructed or substantially rehabilitated in a benefit area as designated in local law and where at least

20 percent of the units are affordable to individuals and families of low to moderate incomes. The

duration of the exemption benefit is for up to 23 years. Upon adoption of such a local law, any other

municipal corporation in which the designated benefit area is located may likewise offer this

exemption from taxation and special ad valorem levies in local law, or in resolution by the school

district(s). This exemption is not available in New York City or in any city, town, or village whose

governing body has adopted a local law allowing the exemption pursuant to RPTL §421-c.

Furthermore, the property receiving this exemption may not be simultaneously receiving any other

property tax exemption.

Extension of Various New York City Commercial/Industrial Tax Incentives

(Part A of S.6012 (Flanagan)/A.8328 (Heastie); Chapter 20 of the Laws of 2015)

Part A of Chapter 20 of the Laws of 2015 included provisions that extended for two years various New

York City commercial and/or industrial tax incentives. Included in the extension were the following:

 The New York City Commercial Expansion Program;

 The Commercial Revitalization Program; and

 The Industrial and Commercial Abatement Program.

C. NOT-FOR-PROFIT RETROACTIVE EXEMPTIONS

Assessors in several jurisdictions were authorized to accept real property tax exemption applications after

the applicable taxable status date for certain properties (22 in all) owned by religious organizations,

municipalities, educational institutions, and other nonprofit entities. In most cases, the property was

purchased and/or acquired after the taxable status date. In some instances, the property owners were

unaware of the need to file annual exemption applications. Under the following pieces of legislation, the

assessor is granted the authority to review these applications and determine if the entity qualifies for the

nonprofit real property tax exemption pursuant to State Law. If the assessor determines the nonprofit

entity is eligible, the governing body or tax department may, in its sole discretion, provide for the refund

of those taxes paid and cancel fines, penalties, or interest remaining unpaid. The following is a list, by

chapter number, of the organization name and taxing jurisdiction affected by this legislation.

Chapter #

ORGANIZATION NAME

ASSESSMENT

JURISDICTION(S)

164

Strong Youth, Inc.

Nassau County

283

YWAM Cornerstone

Nassau County

284

World Mission Agency Winners Chapel of New

York, Inc.

Nassau County

294

Faith Alive Ministries

Town of Islip

299

Calgary Apostolic Church, Inc.

Nassau County

309

Village of Montebello

Town of Ramapo

310

Goblind Marg Society, Inc.

Nassau County

316

World Mission Society Church of God

Nassau County

317

East Rockaway Fire Department

Nassau County

318

Temple Israel

Nassau County

319

Mesivta Ateres Yaakov

Nassau County

322

Torah OHR Hebrew Academy

Nassau County

327

Greater Five Towns YM & YWHA, Inc.

Nassau County

328

Machon Basya Rochel, Inc.

Nassau County

346

Iqra Darul Ehsan, Inc.

Town of Ramapo

352

Historical Society of Tonawandas, Inc.

City of Tonawanda

355

United Methodist Church of Port Washington

Nassau County

356

India Association of Long Island, Inc.

Nassau County

357

Yeshiva of South Shore

Nassau County

359 & 360

Sixth Avenue Baptist Church

City of Troy

253

Congregation Anshe Sholom of New Rochelle

City of New Rochelle

261

Suffolk Islamic Center, Inc.

Town of Brookhaven

III. PUBLIC HEARINGS AND ROUNDTABLES

 December 9

, 2015 – Real Property Taxation Committee Oversight Hearing of the 2015-2016

State Budget

On December 9

, 2015 the Committee conducted a public hearing to examine the impact of the 2015-

2016 State Budget on real property taxation including discussion of changes to the School Tax Relief

(STAR) exemption program.

This hearing will meet the Assembly Rules requirement that the chairperson of each standing

committee call at least one public hearing after the adoption of the state budget regarding the

implementation and administration of programs of departments, agencies, divisions, authorities,

boards, commissions, public benefit corporations and other entities within the jurisdiction of such

committee, as mandated by Assembly Rule IV, §4.

IV. OUTLOOK FOR 2016

Real property tax assessments and exemptions determine the distribution of tax liability that local

governments and school districts impose on residential, commercial, and industrial real property. Not

only is the Committee responsible for legislation that sets policies for equity and fairness in the way

assessors determine real property tax assessments, but it is also responsible for developing ways to

reduce the overall tax burden.

In 2016, the Committee will continue its obligation to review and consider legislation that will improve

the real property taxation and assessment process. Our focus will be on real property tax relief,

improving assessment practices and efficiency, and real property tax exemptions.

Real Property Tax Relief - With some of the highest real property taxes in the country, real property

taxation has been gaining increasing attention and public scrutiny as many people find the cost of

living in the State of New York to be increasingly burdensome. In 2016, the Real Property Taxation

Committee plans to continue its efforts to address the effectiveness and sustainability of current tax

relief efforts including the STAR exemption program, as well as the use of various exemptions in

providing real property tax relief. It will also strive to find alternatives to programs that are identified

as being inadequate or unsuccessful.

Assessment Practices - As the foundation of the real property tax system is the assessment process, it is

imperative that assessments be based on accurate and up-to-date information. The Committee will

continue to advance proposals that will encourage taxing jurisdictions to use up-to-date, full value

assessment practices. It will also continue to promote transparent assessment practices, thus ensuring

that taxpayers have access to assessment information so they may be active participants in the

assessment process. Additionally, the Committee will continue to explore ways to integrate new

technologies into real property assessment administration to streamline processes, decrease costs to the

state and local governments and provide greater access to assessment data for taxpayers.

Exemptions - There are over one hundred real property tax exemptions applicable to private real

property. While these exemptions provide savings for certain property owners, they in turn shift the

burden to other parties. As more properties become partially or wholly exempt from taxation in a

community, the tax base becomes eroded and those property owners that do not receive exemptions

experience tax increases. Because of this, the Real Property Taxation Committee has made it a priority

to scrutinize new exemption proposals and will continue to examine the fairness of preexisting

exemptions in order to avoid unduly compromising the tax base.

On January 22

2016 the Committee will conduct a public hearing to evaluate New York City’s Real

Property Taxation System. Over the years there have been numerous legislative proposals to change

various aspects of New York City’s real property tax system. What has been lacking, however, is a

comprehensive evaluation of the entire system. The purpose of this hearing is to evaluate New York

City’s current real property taxation system in its totality, and discuss improvements that could be

made through State legislation.

APPENDIX A

2015 SUMMARY OF ACTION ON ALL BILLS REFERRED TO THE

REAL PROPERTY TAXATION COMMITTEE

FINAL DISPOSITION OF BILLS ASSEMBLY SENATE TOTAL

Bill Reported - 51 51

To the Floor 0 0 0

To Ways & Means 49 0 49

To Codes 2 0 2

Bills Having Enacting Clause Stricken 3 0 3

Bills Having Committee Reference Change 0 0 0

Senate Bills Substituted or Recalled 9 9

Bills Held for Consideration 17 0 17

Bills Never Reported 175 21 196

In Committee

Total in Committee 246 30 276

# of Bills Signed Into Law: 37

Real Property Committee Meetings: 8

APPENDIX B

2015 ENACTED REAL PROPERTY TAXATION LEGISLATION

CHAPTER

BILL No.

SPONSOR

DESCRIPTION

A05620-B

Goldfeder

Provides for the assessment of real property in cities having a

population of one million or more, which was damaged by a severe

storm on October 29 - 30, 2012.

150

A02550

Magee

Relates to residential investment exemptions.

164

A05808-A

Hooper

Authorizes the assessor of the county of Nassau to accept an

application for exemption from real property taxes from Strong

Youth, Inc.

251

A05150-B

Buchwald

Relates to extending the date from February 2, 2015 to February 3,

2015 for the collection of property taxes.

253

A05521

Otis

Provides a real property tax exemption for Congregation Anshe

Sholom of New Rochelle; provides that if the exemption is granted,

the governing body or tax department may, in its sole discretion,

provide for the refund of applicable paid taxes, fines, penalties,

interest, or tax liens remaining unpaid.

256

A05933

Kaminsky

Relates to the base proportion in approved assessing units in Nassau

county.

261

A06875-B

Graf

Authorizes the Suffolk Islamic Center, Inc. to receive retroactive real

property tax exempt status.

266

A07281

Ramos

Relates to the computation of adjusted base proportions for tax

assessment rolls.

273

A08239

Persaud

Relates to the rehabilitation of certain multiple dwellings used for

single room occupancy.

283

A05816-A

Hooper

Authorizes the assessor of the county of Nassau to accept an

application for exemption from real property taxes from YWAM

Cornerstone.

284

A05817-C

Hooper

Authorizes the assessor of the county of Nassau to accept an

application for exemption from real property taxes from the World

Mission Agency Winners Chapel of New York, Inc.

294

A05408

Ramos

Authorizes the Faith Alive Ministries to file an application for

exemption from real property taxes for a certain parcel of land located

in the town of Islip.

299

A08236

Saladino

Authorizes the assessor of the county of Nassau to accept an

application for exemption from real property tax from the Calvary

Apostolic Church, Inc. for a certain parcel of land located in the town

of Oyster Bay.

309

A07692-A

Jaffee

Authorizes the village of Montebello to file an application for

exemption from real property taxes for certain parcels of land located

in the town of Ramapo, county of Rockland.

310

A06994-A

Permits the Gobind Marg Charitable Society, Incorporated to file an

application for certain real property tax exemptions.

316

A07172

Montesano

Permits the World Mission Society Church of God to file an

application for certain real property tax exemptions.

317

A07168-A

Curran

Authorizes the East Rockaway fire department to apply to the

assessor of the county of Nassau for a retroactive real property tax

exemption on a certain parcel of land.

318

A07259

Kaminsky

Authorizes Temple Israel in the village of Lawrence, in the county of

Nassau, to apply for a retroactive real property tax exemption.

319

A07266

Kaminsky

Authorizes Mesivta Ateres Yaakov in the village of Lawrence, county

of Nassau, to apply for a retroactive real property tax exemption.

322

A07258-A

Schimel

Authorizes the Torah OHR Hebrew Academy to retroactively apply

for real property tax exemptions for certain properties in the village of

Great Neck, county of Nassau.

327

A07395

Kaminsky

Authorizess Greater Five Towns YM & YWHA, Inc., in the county

of Nassau, to apply for a retroactive real property tax exemption

328

A07412-C

Kaminsky

Authorizes Machon Basya Rochel, Inc. in the village of Lawrence, in

the county of Nassau, to apply for a retroactive real property tax

exemption.

346

A07709

Jaffee

Permits the Iqra Darul Ehsan, Inc. to file an application for a real

property tax exemption.

352

A07757-A

Schimminger

Authorizes Historical Society of the Tonawandas Inc. to file a

retroactive application for real property tax exemption.

355

A07983

Schimel

Authorizes the United Methodist Church of Port Washington to

retroactively apply for a real property tax exemption.

356

A07740

Montesano

Authorizes the India Association of Long Island, Inc. to retroactively

apply for a real property tax exemption for certain properties in the

hamlet of Hicksville, county of Nassau.

357

A08096

Kaminsky

Authorizes Yeshiva of South Shore in the town of Hempstead, in the

county of Nassau, to apply for a retroactive real property tax

exemption.

359

A08131

McDonald

Authorizes the assessor of the city of Troy to accept from the Sixth

Avenue Baptist Church an application for exemption from real

property taxes pursuant to section 420-a of the real property tax law.

360

A08130

McDonald

Authorizes the assessor of the city of Troy to accept from the Sixth

Avenue Baptist Church an application for exemption from real

property taxes pursuant to section 420-a of the real property tax law.

406

A07570-A

Hawley

Authorizes a residential redevelopment inhibited property exemption

in certain cities.

411

A07156

Kaminsky

Relates to an assessment of real property damaged by the severe

storm that occurred on the twenty-ninth and thirtieth of October, two

thousand twelve in a special assessing unit that is not a city.

445

A07186

Kaminsky

Relates to allowing certain special assessing units other than cities to

adjust their current base proportions.

451

A07375

Galef

Requires all assessing units to participate in the enhanced school tax

relief exemption.

507

A07982

Skartados

Relates to penalties and interest payments on real property taxes due

in towns of Dutchess county when the final payment date falls on a

weekend or holiday.

512

A07992

Schimel

Extends the enforcement of the collection of delinquent real property

taxes and the collection of taxes by banks and enforces the collection

of taxes in certain villages.

548

A06930

Galef

Provides that oil, gas, and mineral rights shall be sold along with any

property sold pursuant to a tax foreclosure sale.

564

A01421

Magnarelli

Relates to real property tax exemptions for farm dwellings owned by

a limited liability company.

APPENDIX C

2015 REAL PROPERTY TAX LEGISLATION - PASSED ASSEMBLY ONLY

BILL No.

SPONSOR

DESCRIPTION

A01155

Magee

Provides that real property assessment challenges shall be served

upon a fire district by serving the chair of the board of fire

commissioners of the fire district.

A01872-B

Paulin

Relates to the exemption from taxation for micro-hydroelectric

energy systems, fuel cell electric generating systems, or micro-

combined heat and power generating equipment systems.

A08231

Wright

Relates to tax abatements, general corporation tax in NYC,

conversion of residential property to condominiums, and loft

authorization; repealer.