A03987 Summary:

BILL NOA03987
 
SAME ASNo Same As
 
SPONSORPaulin
 
COSPNSRColton, DiPietro, Zebrowski
 
MLTSPNSR
 
Amd §458-a, RPT L
 
Provides alternative real property tax exemptions for active duty members of the armed forces.
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A03987 Actions:

BILL NOA03987
 
01/29/2021referred to real property taxation
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A03987 Committee Votes:

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A03987 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3987
 
SPONSOR: Paulin
  TITLE OF BILL: An act to amend the real property tax law, in relation to alternative exemptions for active duty members of the armed forces   PURPOSE: To extend the real property tax exemption provided in section 458-a of the Real Property Tax Law, referred to as the "alternative veterans' exemption," to active duty members of the armed forces.   THE CURRENT LAW: Currently, only veterans who meet certain requirements and who have been discharged or released from active military, naval, or air service under honorable conditions qualify for exemptions under the Real Property Tax Law. In order to prove eligibility, an applicant must provide a Certif- icate of Release or Discharge from Active Duty, a DD-214, to the Asses- sor along with a copy of the deed to his/her home and the application. Thus, active duty members of the armed forces, having never been discharged or released, generally do not qualify for the real property tax exemption.   SUMMARY OF PROVISIONS: Section one adds a new section that defines "Active duty member of the armed forces" and authorizes localities to adopt a local law providing that the real property tax exemption be granted to active duty members of the armed forces. Section two provides the effective date.   JUSTIFICATION: This legislation will allow the real property tax exemption currently available to veterans to be extended to active duty members of the armed forces, thereby correcting an inequity in the current treatment of career military personnel. Section 458-a of the Real Property Tax Law provides a partial exemption on residential real property taxes to veterans who served during wartime or received an expeditionary medal, or their spouses, known as the "alternative veterans' exemption." A "veteran" is defined for purposes of the alternative veterans' exemption as a person who served in the active military, naval, or air service during a time of war, or, if service was during peacetime only, who received an expeditionary medal, and who was discharged or released under honorable conditions. Because of the statutory requirement of discharge or release, active duty personnel are generally not eligible for the exemption with two exceptions. Reservists and service members of the National Guards who engage in significant, full-time active duty during a time of war and have been discharged or released are veterans for purposes of section 458-a and keep their veteran status forever even if they are re-activat- ed for an additional tour of duty. After their initial tour of duty is completed, they receive a DD-214, the Certificate of Release or Discharge from Active Duty. They are therefore eligible for the alterna- tive veterans' exemption henceforth. However, because career members of the armed forces, including both officers and enlisted personnel, are not discharged between tours of duty, they are not eligible for the veterans' exemption until they resign or retire. Thus, there is a dichotomy in the treatment of career military personnel and Reservists or service members of the National Guards. (see, 11 Op. Counsel SBRPS No. 58) Previously, career enlisted personnel received momentary discharges when they reenlisted after their initial contracts expired. These enlisted members would receive a DD-214 covering their prior service whenever they reenlisted or extended their active duty service. Thus, they were eligible for the alternative veterans' exemption even if they immediately reenlisted and extended their active duty service. Several years ago, the State Division of Veterans Affairs changed this procedure to align with the long-followed procedure for career officers which is that officers simply remain on active duty and are not discharged when they extend their active duty service. Therefore, no matter how many times an officer or enlisted member of the armed forces completes a tour of duty either in the homeland or in a combat zone such as Iraq or Afghanistan and reenlists during a period of war, they are not eligible for the alternative veterans' exemption because they have never been discharged. (see, 11 Op. Counsel SBRPS No.58) This is unfair. This legislation rightfully honors active duty members of the armed forces and recognizes their ongoing sacrifice in the service of their country. Under this legislation, a, qualified resi- dential parcel owned by an active duty service member will now be eligi- ble for the regular exemption under section 458-a 2.(a) equal to 15% of its assessed value as well as the additional combat exemption under section 458-a 2.(b) if applicable.   LEGISLATIVE HISTORY: A363, 2019 and 2020, referred to real property taxation A.1973,2017 and 2018, real property taxation A.1733,2015 and 2016, referred to real property taxation A.500,2013 and 2014, referred to real property taxation A.131,2011 and 2012, referred to real property taxation A.10465, 2010, referred to real property taxation   FISCAL IMPLICATIONS: None to the State.   EFFECTIVE DATE: This act shall take effect on the sixtieth day after it shall become law and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date.
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A03987 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3987
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 29, 2021
                                       ___________
 
        Introduced  by M. of A. PAULIN, COLTON, DiPIETRO, ZEBROWSKI -- read once
          and referred to the Committee on Real Property Taxation
 
        AN ACT to amend the real property tax law, in  relation  to  alternative
          exemptions for active duty members of the armed forces
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 458-a of the real property tax law  is  amended  by
     2  adding a new subdivision 11 to read as follows:
     3    11.  (a) As used in this subdivision, "active duty member of the armed
     4  forces" means a member of the United States Army,  Navy,  Marine  Corps,
     5  Air  Force  or  Coast  Guard on full-time active duty during a period of
     6  war.
     7    (b) A county, city, town, or village may adopt a local law to  include
     8  an  active  duty  member  of the armed forces or the spouse of an active
     9  duty member of the armed forces, as evidenced annually by a statement of
    10  service from the unit in which the active duty member  serves  or  other
    11  adequate proof of active duty military service, within the definition of
    12  "qualified  owner,"  as  provided in paragraph (c) of subdivision one of
    13  this section, and to include property owned by an active duty member  of
    14  the  armed  forces  or  the spouse of an active duty member of the armed
    15  forces within the definition of "qualifying residential  real  property"
    16  as  provided  in  paragraph  (d)  of  subdivision  one  of this section,
    17  provided that such property shall be the primary residence of the active
    18  duty member of the armed forces or the spouse of an active  duty  member
    19  of the armed forces.
    20    § 2. This act shall take effect immediately and shall apply to assess-
    21  ment rolls prepared on the basis of taxable status dates occurring on or
    22  after  the  first  of January next succeeding the date on which this act
    23  shall have become a law.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01870-01-1
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