S01289 Summary:

Amd S206, Pub Health L; add SS439 & 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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S01289 Actions:

03/30/2015PRINT NUMBER 1289A
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S01289 Memo:

Memo not available
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S01289 Text:

                STATE OF NEW YORK
                               2015-2016 Regular Sessions
                    IN SENATE
                                     January 9, 2015
        Introduced  by Sens. YOUNG, FUNKE, O'MARA, RITCHIE -- (at request of the
          Legislative Commission on Rural Resources) -- read twice  and  ordered
          printed,  and  when printed to be committed to the Committee on Health
          -- reported favorably from said committee and committed to the Commit-
          tee  on  Finance  --  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 29 to read as follows:
    16    29. (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.

        S. 1289--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  twenty-nine of
    25  section two hundred six of the public health law.  After a public  hear-
    26  ing,  the  governing  body  of a municipal corporation may adopt a local
    27  law, and the board of a school district, other than  a  school  district
    28  subject  to  article  fifty-two of the education law, may adopt a resol-
    29  ution, to grant 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,

        S. 1289--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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