Authorizes real property taxing jurisdictions to grant a partial tax exemption for property purchased by a physician in a physician shortage area, as determined by the commissioner of health, which will be such physician's primary residence and he or she 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 physicians.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7068A
SPONSOR: Skartados
 
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 physician in a
physician 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 physician for use as primary residence when the
physician works in and the property is located in a physician 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 physician shortage areas by
county or other sub-county geographic area that lacks primary care
and/or other medical specialty physicians 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 physicians residing and
working in areas designated by the Commissioner as experiencing a physi-
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 after on or after the effec-
tive 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.
Section 5 provides that this act shall take effect immediately and shall
apply 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 the first establish-
ment of the taxable status of real property in the municipality next
succeeding the effective date of this act.
 
JUSTIFICATION:
Many communities in New York State are experiencing a growing physician
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 physicians (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 physicians supply and with
an average physician age of 52 (almost 30% are over 60 years of age);
the shortage is only expected to worsen.
On the demand side for physician 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 physician 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 physician's residence from real property tax when the
local taxing authority chooses to grant the exemption, this bill
provides New York State's medically underserved communities with another
tool to attract physicians.
This physician shortage is an imminent threat to the health, safety and
the economic viability of these communities and their residents. Howev-
er, 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:
2015: A.7068 Referred to Real Property Taxation
2013,2014: A.6965 Referred to Real Property Taxation
2012: A.9810 Referred to Real Property Taxation
 
FISCAL IMPLICATIONS:
Undetermined.
 
EFFECTIVE DATE:
This bill take effects 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.
STATE OF NEW YORK
________________________________________________________________________
7068--A
2015-2016 Regular Sessions
IN ASSEMBLY
April 23, 2015
___________
Introduced by M. of A. SKARTADOS, PALMESANO, MONTESANO, WOERNER, FITZPA-
TRICK -- Multi-Sponsored by -- M. of A. LOPEZ -- read once and
referred to the Committee on Real Property Taxation -- recommitted to
the Committee on Real Property Taxation in accordance with Assembly
Rule 3, sec. 2 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
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 physician in a
physician 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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings and intent. The legislature hereby
2 finds that several communities within the state, particularly those
3 located within rural areas, lack adequate access to physicians. It is
4 well established that ensuring the sufficient availability of general
5 practitioners and specialists directly benefits the health of state
6 residents, and the legislature has enacted several measures towards that
7 end.
8 Furthermore, the legislature finds that municipalities are often best
9 situated to evaluate the needs of their communities. Therefore, it is
10 the intent of the legislature to offer counties, cities, towns, villages
11 and school districts the option to provide real property tax exemptions,
12 should they determine that such an incentive would aid in attracting
13 physicians to areas currently underserved by the medical community.
14 § 2. Section 206 of the public health law is amended by adding a new
15 subdivision 30 to read as follows:
16 30. (a) The commissioner shall biennially designate and make available
17 a list of designated physician shortage areas in the state. A designated
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06122-05-6
A. 7068--A 2
1 physician shortage area shall be a county or other sub-county geographic
2 area determined by the commissioner to be in short supply of physicians
3 in primary care practice and/or one or more medical specialities. The
4 list shall indicate for each designated physician shortage area, if the
5 area is in short supply of primary care physicians and which medical
6 specialities are in short supply in the designated shortage area.
7 (b) In establishing designated physician shortage areas, the commis-
8 sioner, to the extent practicable, shall utilize criteria consistent
9 with the criteria utilized to make awards for the physician practice
10 support program established pursuant to paragraph (e) of subdivision
11 five-a of section twenty-eight hundred seven-m of this chapter.
12 (c) For the purposes of this subdivision, "medical specialty or
13 specialty area" shall mean the branch or branches of special competence
14 within a physician's medical practice as evidenced by their certif-
15 ication by a speciality medical board acceptable to the commissioner.
16 § 3. The real property tax law is amended by adding a new section 439
17 to read as follows:
18 § 439. Real property tax exemptions in designated physician shortage
19 area. 1. A municipal corporation or school district may exempt real
20 property purchased by a physician for use solely as his or her primary
21 residence, to the extent provided in this section, from taxation by such
22 municipal corporation or school district if the physician resides in and
23 has an office located within a physician shortage area as designated by
24 the commissioner of health pursuant to subdivision thirty of section two
25 hundred six of the public health law. After a public hearing, the
26 governing body of a municipal corporation may adopt a local law, and the
27 board of a school district, other than a school district subject to
28 article fifty-two of the education law, may adopt a resolution, to grant
29 the exemption authorized pursuant to this section.
30 2. Exemptions provided pursuant to subdivision one of this section
31 shall only apply to real property purchased on or after the effective
32 date of this section, and the subsequent enactment of a local law or
33 adoption of a resolution to grant such real property tax exemption.
34 3. Any local law or resolution adopted pursuant to subdivision one of
35 this section shall establish the duration and percentage of such an
36 exemption, which shall exceed neither a period of five years nor thir-
37 ty-five percent of the property's assessed value. Such local law or
38 resolution may include other conditions or restrictions, including but
39 not limited to provisions regarding the maximum value of eligible prop-
40 erty, at the discretion of the promulgating municipal corporation or
41 school district.
42 4. A copy of such local laws or resolutions shall be filed with the
43 state board and the assessor for such municipal corporation or school
44 district who prepares the assessment roll upon which the taxes of such
45 municipal corporation or school district are levied.
46 § 4. The real property tax law is amended by adding a new section 985
47 to read as follows:
48 § 985. Effect of exemption in designated physician shortage areas. 1.
49 In a municipal corporation or school district which elects to provide
50 the real property tax exemption in a designated physician shortage area
51 pursuant to section four hundred thirty-nine of this chapter, the amount
52 of taxes to be levied for any tax year or school year, as the case may
53 be, shall be determined without regard to the fact that state aid will
54 be payable pursuant to this section. In addition, the tax rate for any
55 such year shall be determined as if no parcels are exempt from taxation
56 pursuant to section four hundred thirty-nine of this chapter. However,
A. 7068--A 3
1 the tax rate so determined shall be applied to the taxable assessed
2 value of each parcel after accounting for all applicable exemptions,
3 including the exemption authorized by section four hundred thirty-nine
4 of this chapter.
5 2. The tax savings for each parcel receiving the exemption authorized
6 by section four hundred thirty-nine of this chapter shall be computed by
7 subtracting the amount actually levied against the parcel from the
8 amount that would have been levied if not for the exemption.
9 3. (a) The total tax savings duly provided by a municipal corporation
10 or school district pursuant to this section shall be a state charge,
11 which shall be payable as provided in this subdivision.
12 (b) A municipal corporation or school district seeking state aid
13 pursuant to this subdivision shall submit an application therefor to the
14 commissioner. The application shall include such information as the
15 commissioner shall require.
16 (c) Upon approving an application for state aid pursuant to this
17 subdivision, the commissioner shall compute and certify the amount paya-
18 ble to a municipal corporation or school district. Such state aid shall
19 be payable upon the audit and warrant of the state comptroller from
20 vouchers certified and approved by the commissioner.
21 § 5. This act shall take effect immediately and shall apply to tax
22 years beginning on or after the first of March next succeeding such
23 effective date; or in the case of municipal taxing authorities which
24 have a taxable status date other than March first established by char-
25 ter, this act shall take effect with the first establishment of the
26 taxable status of real property in the municipality next succeeding the
27 effective date of this act.