Directs the department of taxation and finance to establish a pilot program for implementation of local land value taxation based on classes of land; directs the department of taxation and finance to establish an application procedure for the pilot program.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3339A
SPONSOR: Bores TITLE OF BILL:
An act
to direct the department of taxation and finance to establish a pilot
program for implementation of local land value taxation
PURPOSE:
To create a pilot program for up to 5 municipalities to implement a land
value taxation system
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 establishes that the Department of Taxation and Finance shall
establish a pilot program for up to 5 municipalities to develop a plan
for implementation of land value taxation
Section 2 establishes the effective date of the bill
JUSTIFICATION:
In 2023, facing economic and tax challenges not dissimilar to many Amer-
ican cities, Detroit's Mayor Mike Duggan proposed a solution known as a
land value tax. This tax, also referred to as a split-rate tax, involved
taxing land at a higher rate to taxing infrastructure on the land.
The key objective of this approach is to encourage the optimal use of
land by providing a reduced tax increase for land development. This will
promote infill development, rather than continuous outward sprawl from
city centers. By implementing this tax, speculation and wasteful use of
land are discouraged, as the cost of owning undeveloped land is
increased. The land value tax can alleviate the burden on homeowners in
many cities. It ensures that owners of high-value land, currently
utilized for low-value purposes, contribute their fair share. Land value
taxes have drawn interest and been.put into practice elsewhere, includ-
ing in New York. In 1993, Governor Mario Cuomo approved a biparti- san
bill allowing Amsterdam to implement a land tax, but it was later
repealed due to a change in mayoral administration. More recently,
Buffalo's City Council passed a resolution to study the implementation
of a land value tax in February 2023. Pennsylvania has permitted this
form of taxation since 1913, with 15 cities currently using a form of
land value tax.
While property taxes are frequently discussed, there has been little
opportunity for innovation and policy advancement. This bill establishes
a pilot program granting permission and support for up to five munici-
palities to implement a land value tax, providing an opportunity for
experimentation and progress in tax policy.
LEGISLATIVE HISTORY:
A9673/57871 of 2023-24
A9673 - referred to ways and means
S7871 - AMEND (T) AND RECOMMIT TO LOCAL GOVERNMENT:
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
Immediately...
