A07068 Summary:

BILL NOA07068A
 
SAME ASSAME AS S06620
 
SPONSORSkartados
 
COSPNSRPalmesano, Montesano, Woerner, Fitzpatrick
 
MLTSPNSRLopez
 
Amd §206, Pub Health L; add §§439 & 985, RPT L
 
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.
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A07068 Actions:

BILL NOA07068A
 
04/23/2015referred to real property taxation
01/06/2016referred to real property taxation
03/22/2016amend and recommit to real property taxation
03/22/2016print number 7068a
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A07068 Memo:

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.
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A07068 Text:



 
                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.
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