Authorizes real property taxing jurisdictions to grant a partial tax exemption for property purchased by a clinician in a clinician shortage area, as determined by the commissioner of health, which will be such clinician's primary residence and they will practice in such shortage area; provides state aid to taxing jurisdictions which grant the exemption to the extent of the tax savings provided to clinicians.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3409
SPONSOR: Jones TITLE OF BILL:
An act to amend the public health law and the real property tax law, in
relation to authorizing real property taxing jurisdictions to grant a
tax exemption for a primary residence purchased by a clinician in a
clinician shortage area; and to amend the real property tax law, in
relation to providing state aid to such jurisdictions for the savings
granted by such exemption
PURPOSE:
The purpose of this bill is to provide a partial tax exemption for real
property purchased by a clinician for use as primary residence when the
clinician works in and the property is located in a clinician shortage
area designated by the Commissioner.
SUMMARY OF PROVISIONS:
Section 1 states the legislative findings and intent.
Section 2 states the Commissioner of Health shall biennially designate
and make available a list of designated clinician shortage areas by
county or other sub-county geographic area that lacks primary care
and/or other medical specialty clinicians in a manner consistent with
designated physician shortage area determinations made under the Doctors
Across New York Program.
Section 3 authorizes an exemption from local property and school taxes
for primary residential property purchases of clinicians residing and
working in areas designated by the Commissioner as experiencing a clini-
cian shortage, conditioned upon the local taxing authority passing an
authorizing law or resolution. The exemption cannot be for a period
longer than 5 years, on property purchased on or after the effective
date of this act, and is for a maximum of 35% of the value of the real
property's assessed value.
Section 4 provides that the total savings provided by a municipal corpo-
ration or school district shall be a state charge.
Many communities in New York State are experiencing a growing clinician
shortage, reaching crisis proportions in some geographic regions and in
some medical specialties. A survey of its members by the Health Care
Association of New York State (HANYS) reported that 104 hospitals
outside of New York City had a current need for 1,400 clinicians (almost
40% in primary care). In addition to primary care, severe shortages
exist in general surgery, OB-GYN, urology and psychiatry. Many areas of
the State have seen rapid declines in their clinician supply and with an
average clinician age of 52 (almost 30% are over 60 years of age); the
shortage is only expected to worsen. On the demand side for clinician
services, New York's population age 65 and over increased 25% between
1980 and 2000 and, the population over age 80 (who use the most health
resources) is expected to double by the year 2020.
Clearly, both the health care community and state government must focus
on this clinician supply issue and work together to implement a multi-
faceted plan to address the problem. The "Doctors Across New York"
Program is a strong step forward, however, additional initiatives are
essential to the continued viability of rural New York State. By exempt-
ing part of a clinician's residence from real property tax when the
local taxing author ity chooses to grant the exemption, this bill
provides New York State's medically underserved communities with another
tool to attract clinicians. This clinician shortage is an imminent
threat to the health, safety and the economic viability of these commu-
nities and their residents. However, it is clear that local communities
cannot bear the burden of these costs. This bill would allow school
districts and municipalities to be reimbursed by the State for the
amount of foregone tax revenue.
LEGISLATIVE HISTORY:
A.351 2021-2022
01/26/23 referred to real property taxation
01/03/24 referred to real property taxation
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This bill takes effect immediately and applies to tax years beginning on
or after the first of March next succeeding such effective date; or in
the case of municipal taxing authorities, which have a taxable status,
date other than March first established by charter, this act shall take
effect with the first establishment of the taxable status of real prop-
erty in the municipality next succeeding the effective date of this act.
