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.
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
