NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10410
SPONSOR: Rules (Palmesano) TITLE OF BILL:
An act to amend chapter 545 of the laws of 2011, amending the real prop-
erty tax law, relating to establishing a residential-commercial
exemption program in certain counties, in relation to the effectiveness
thereof
PURPOSE:
This bill extends the residential-commercial exemption program in
Livingston and Steuben County, New York.
SUMMARY OF PROVISIONS:
Section 1. The real property tax law is amended by extending the sunset
date in Steuben County on when the 485-n abatement program shall apply.
Section 485-n allows any municipality within such county to opt in,
through adoption of a local law, to a real property tax abatement
program.
Section 2. Establishes the effective date. Section 3. Establishes the
repeal date.
JUSTIFICATION:
The County of Steuben has requested to have legislation enacted that
will benefit the County of Steuben and all Towns, Villages and School
Districts within the county, by allowing them to grant real property tax
abatements in defined redevelopment areas.
This initiative was created in Chapter 545 of the Laws of 2011
(A.4643-A/Burling) which establishes a real property tax abatement
scheme for Livingston County. Section 485-n allows any municipality
within such county to opt in, through adoption of a local law, to a real
property tax abatement program. This abatement program would now be
offered in Steuben County as well as Livingston County.
The properties would be exempt from increase in real property taxes and
special ad valorem levies for twelve years.
The tax exemption on the change to assessed value of buildings that have
commercial or residential construction work done shall be computed with
respect to the exemption base and according to the following schedule:
YEAR OF EXEMPTION PERCENTAGE OF EXEMPTION
1 through 8 100% of exemption base
9 80% of exemption base
10 60% of exemption base
11 40% of exemption base
12 20% of exemption base
The original legislation arose from a meeting of all local taxing enti-
ties in Livingston county in 2009. They all agreed to support legis-
lation that authorized the adoption of this tax abatement program by
each taxing body at local option in recognizance of the need to effect
real investment in revitalization.
The municipalities in Steuben County recognize the need for targeted
revitalization and would like to partake in a similar abatement program.
Cities such as Corning and Hornell are sure to benefit from partic-
ipation in this program, much the way localities in Livingston County
have.
Tax abatements are a proven technique for local governments to attract
investors for revitalization. A tax abatement, which this bill estab-
lishes, is different than a strict tax exemption. A tax exemption takes
away existing revenue generated by a property, while a tax abatement
does not change existing tax payments. With tax abatements, governments
agree to take less than 100% of new revenue generated through property
investment, repair and renovation.
This legislation will provide a tool for local governments to use to
improve their communities. The proposed tax abatement program will not
impose a cost upon the state, and therefore should be considered by the
Legislature as a no-cost, mandate-free way to allow local governments in
Steuben County to invest in and attract outside investment to their
communities.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
Effective immediately, and shall expire and be deemed repealed twelve
years after such date.
STATE OF NEW YORK
________________________________________________________________________
10410
IN ASSEMBLY
May 23, 2024
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Palmesano,
Byrnes, J. M. Giglio) -- read once and referred to the Committee on
Real Property Taxation
AN ACT to amend chapter 545 of the laws of 2011, amending the real prop-
erty tax law, relating to establishing a residential-commercial
exemption program in certain counties, in relation to the effective-
ness thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 2 of chapter 545 of the laws of 2011, amending the
2 real property tax law, relating to establishing a residential-commercial
3 exemption program in certain counties, as amended by chapter 394 of the
4 laws of 2012, is amended to read as follows:
5 § 2. This act shall take effect immediately, and shall expire and be
6 deemed repealed [thirteen years after such date] September 23, 2027.
7 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15741-01-4
