Authorizes municipalities to develop and implement a plan for local land value taxation based on classes of land; allows real estate to be classified as land or land exclusive of buildings and buildings on land.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3339B
SPONSOR: Bores TITLE OF BILL:
An act authorizing municipalities to develop and implement a plan for
local land value taxation
PURPOSE:
To create allow local municipalities to develop and implement a plan for
land value taxation
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 Allows municipalities to develop a plan for implementation of
land value taxation
Section 2 Establishes the classification of taxable property
Section 3 Requires implementation to maintain revenue neutrality
Section 4 Provides exemptions
Section 2 provides the effective date
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 bipartisan
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repealed due to a change in mayoral administration.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 provides an
opportunity for experimentation and progress in tax policy.
LEGISLATIVE HISTORY:
A9673/S7871 of 2023-24
A9673 - referred to ways and means
S7871 - AMEND (T) AND RECOMMIT TO LOCAL GOVERNMENT:
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect immediately.
