Provides for the imposition of a fixed real property assessed value on residential property owned by persons 65 years of age or older, when such owners have a combined annual income of $100,000 or less and the property taxes on such property equals or exceeds 6% of the owners' combined annual income; provides for state reimbursement to municipalities for tax revenue lost pursuant to such fixed real property assessed value.
STATE OF NEW YORK
________________________________________________________________________
5571
2011-2012 Regular Sessions
IN ASSEMBLY
February 23, 2011
___________
Introduced by M. of A. McLAUGHLIN, STEVENSON, CALHOUN, SALADINO --
Multi-Sponsored by -- M. of A. HAWLEY -- read once and referred to
the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to providing for
a fixed real property assessed value for residential real property
owned by certain persons sixty-five years of age or older, and provid-
ing state reimbursement to municipalities for lost real property tax
revenue
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The real property tax law is amended by adding a new
2 section 431 to read as follows:
3 § 431. Persons sixty-five years of age or older; fixed real property
4 assessed value. 1. Residential real property owned and occupied as the
5 primary residence, for ten or more consecutive years, of one or more
6 persons, each of whom is sixty-five years of age or older and all of
7 whom have a combined annual income of one hundred thousand dollars or
8 less for the income tax year immediately preceding the date of applica-
9 tion when the real property taxes on such residential real property
10 equals or exceeds six percent of such persons' combined annual income,
11 or residential real property owned and occupied as the primary resi-
12 dence, for ten or more consecutive years, of a husband and wife, one of
13 whom is sixty-five years of age or older and both of whom have a
14 combined annual income of one hundred thousand dollars or less for the
15 income tax year immediately preceding the date of application when the
16 real property taxes on such residential real property equals or exceeds
17 six percent of such husband's and wife's combined annual income, shall
18 be eligible for the fixed real property assessed value established by
19 this section.
20 2. For the purposes of this section, the following terms shall have
21 the following meanings:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00154-02-1
A. 5571 2
1 (a) "Fixed real property assessed value" shall mean the lower of:
2 (i) the assessed value of real property established on the taxable
3 status date next succeeding the date on which an eligible real property
4 owner attains the age of sixty-five years; or
5 (ii) the assessed value of real property established on any taxable
6 status date subsequent to the date upon which an eligible real property
7 owner attains the age of sixty-five years, which is lower than the
8 assessed value established pursuant to subparagraph (i) of this para-
9 graph.
10 (b) "Residential real property" shall mean any one or two family
11 dwelling, including condominium units and cooperative units.
12 3. Each taxing authority shall annually determine the fixed real prop-
13 erty assessed value for each eligible real property owner.
14 4. Any person eligible for the fixed real property assessed value
15 shall annually apply to the appropriate assessing unit for such fixed
16 assessed value. Such application shall be made in such manner and form
17 as shall be determined by the commissioner, and shall require proof of
18 the applicants' ages and incomes. Such applications shall be filed on or
19 before the taxable status date of the real property.
20 5. Every assessing unit shall notify or cause to be notified, each
21 person owning residential real property within its jurisdiction, of the
22 provisions of this section. Such notice shall be and include words which
23 are substantially the following: "Residential real property owned by
24 persons sixty-five years of age or older and having a combined annual
25 income of one hundred thousand dollars or less, when the real property
26 taxes on such property equal or exceed six percent of the combined annu-
27 al income of the owners, may be eligible for a fixed real property
28 assessed value. To receive such fixed assessed value, eligible owners
29 of qualifying real property must file an application with their local
30 assessor on or before the taxable status date. For further information,
31 please contact your local assessor."
32 § 2. The real property tax law is amended by adding a new section 901
33 to read as follows:
34 § 901. Effect of fixed real property assessed value upon taxing
35 authorities; state aid. 1. Levy of taxes; determination of taxes due.
36 The amount of taxes to be levied for any taxable year shall be deter-
37 mined without regard to the fact that state aid will be payable pursuant
38 to this section. In addition, the tax rate for any taxable year shall be
39 determined as if no parcels are subject to a fixed real property
40 assessed value pursuant to section four hundred thirty-one of this chap-
41 ter. However, the tax rate so determined shall be applied to the taxable
42 assessed value of each parcel after accounting for all applicable
43 exemptions.
44 2. Tax savings. The tax savings for each parcel subject to a fixed
45 real property assessed value pursuant to section four hundred thirty-one
46 of this chapter shall be computed by subtracting the amount actually
47 levied against the parcel from the amount that would have been levied if
48 not for the fixed real property assessed value. A statement shall then
49 be placed on the tax bill for the parcel in substantially the following
50 form: "Your tax savings this year resulting from the fixed real property
51 assessed value is $____."
52 3. State aid. (a) The total tax savings duly provided by each taxing
53 authority pursuant to this section shall be a state charge, which shall
54 be payable as provided in this subdivision.
55 (b) A taxing authority seeking state aid pursuant to this section
56 shall submit an application therefor to the commissioner. The applica-
A. 5571 3
1 tion shall include such information as the commissioner shall require.
2 In addition, each taxing authority shall file a copy of such application
3 with the county clerk of the county in which an eligible parcel is situ-
4 ate.
5 (c) Upon approving an application for state aid pursuant to this
6 section, the commissioner shall compute and certify the amounts payable
7 to the taxing authority. Such state aid shall be payable upon the audit
8 and warrant of the state comptroller from vouchers certified and
9 approved by the commissioner.
10 (d) The commissioner may audit an application for state aid pursuant
11 to this section within one year after authorizing payment thereon. If
12 the commissioner should discover that a taxing authority has received a
13 greater or lesser amount of such aid than it should have received, the
14 commissioner shall so notify the taxing authority, and shall cause the
15 next payment of such aid to the taxing authority to be adjusted accord-
16 ingly.
17 4. Installment payments. When real property taxes are payable in
18 installments pursuant to law, the tax savings provided by this section
19 shall be applied proportionally against the respective installments.
20 5. Untimely payment of taxes. When taxes on a property subject to a
21 fixed real property assessed value pursuant to section four hundred
22 thirty-one of this chapter are not paid in a timely manner, interest,
23 penalties and any other applicable charges shall be imposed only against
24 the balance due after the tax savings provided by this section have been
25 deducted from the taxes owed.
26 § 3. This act shall take effect immediately and shall apply to real
27 property with a taxable status date after such date.
