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A02333 Summary:

BILL NOA02333
 
SAME ASNo Same As
 
SPONSORBarclay
 
COSPNSRManktelow, Lemondes, Jensen
 
MLTSPNSR
 
Add §485-x, RPT L
 
Establishes the Lake Ontario assessment increase exemption; provides exemptions on any increase in assessments due to preventative measures taken at the expense of property owners to mitigate potential flood damage due to rising lake levels in the areas surrounding Lake Ontario.
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A02333 Actions:

BILL NOA02333
 
01/25/2023referred to real property taxation
01/03/2024referred to real property taxation
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A02333 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2333
 
SPONSOR: Barclay
  TITLE OF BILL: An act to amend the real property tax law, in relation to establishing the Lake Ontario assessment increase exemption   PURPOSE: To provide real property tax relief by providing exemptions on any increase in assessments due to incurred flood damage and preventative measures taken at the expense of property owners to mitigate potential flood damage due to rising lake levels in the areas surrounding Lake Ontario.   SUMMARY OF PROVISIONS: Section 1. Creates a property tax exemption on any increase in assess- ments for any preventative maintenance with erosion protection in areas surrounding Lake Ontario. Specifically, this bill would, * Provide for a 20-year assessment exemption for any preventative main- tenance with erosion protection structures. The exemption would be phased out starting in the 12th year. These structures as defined in the bill, would include any structure such as a groin, jetty, seawall, revetment, bulkhead, breakwater, or artificial beach nourishment project as defined in 6 CRR-NY 505.2. * Provide for the submission of an application by the homeowner to the assessor of a participating municipality. * Provide for an approval process of the exemption application by the assessor of a participating municipality. * Allow participating municipalities, at local option, to reduce or increase the per centum of exemption. * Allow municipalities, at local option, to establish the effective date of such exemption. Section 2. Provides the effective date of the bill.   JUSTIFICATION: According to the Army Corps of Engineers, tasked at monitoring Lake Ontario's monthly lake levels, lake levels had been above average in every month since at least late 2015. They also strongly predict Lake Ontario could rise as much as 11 inches through June of 2019. This legislation seeks to provide real property tax relief to property owners impacted by record high lake levels by providing exemptions on increases in assessments. Like the previous disaster relief measures enacted in the state, this bill authorizes localities, at local option, the ability to exempt increases in real property assessments to reflect property damage, shoreline loss, and preventative measures funded at the expense of prop- erty owners to protect property from rising lake levels.   LEGISLATIVE HISTORY: A6974 of 2021-22-Referred to Real Property Taxation   FISCAL IMPLICATIONS: No cost to the State.   EFFECTIVE DATE: This act shall take effect immediately.
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A02333 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2333
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 25, 2023
                                       ___________
 
        Introduced by M. of A. BARCLAY, MANKTELOW, LEMONDES, JENSEN -- read once
          and referred to the Committee on Real Property Taxation
 
        AN  ACT  to amend the real property tax law, in relation to establishing
          the Lake Ontario assessment increase exemption
 
          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 485-x to read as follows:
     3    § 485-x. Lake Ontario assessment increase exemption. 1.    Residential
     4  real  property  that has undergone preventative maintenance with erosion
     5  protection structures to ensure property will be  protected  from  flood
     6  damage or erosion in the event of rising water levels or necessary main-
     7  tenance  of  bank  stabilization  due to damage sustained by flooding or
     8  erosion may be exempt from an assessment increase from such  maintenance
     9  as  provided  in  this section in a participating municipality within an
    10  eligible county.
    11    2. (a) (i) Such real property shall be exempt for a period  of  eleven
    12  years  to  the  extent  of  one  hundred  per  centum of the increase in
    13  assessed value thereof attributable to such maintenance and for an addi-
    14  tional period of nine years provided, however, that the extent  of  such
    15  exemption  shall  be  decreased  by ten per centum each year during such
    16  additional period of nine years and such  exemption  shall  be  computed
    17  with  respect  to  the  exemption  base. The exemption base shall be the
    18  increase in assessed value as determined in the  initial  year  of  such
    19  twenty year period following the filing of an original application.
    20    (ii)  The  following  table  shall  illustrate  the computation of the
    21  exemption pursuant to this section:
    22                 Year of exemption        Percentage of exemption
    23                        1                        100
    24                        2                        100
    25                        3                        100
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05947-01-3

        A. 2333                             2
 
     1                        4                        100
     2                        5                        100
     3                        6                        100
     4                        7                        100
     5                        8                        100
     6                        9                        100
     7                        10                       100
     8                        11                       100
     9                        12                       90
    10                        13                       80
    11                        14                       70
    12                        15                       60
    13                        16                       50
    14                        17                       40
    15                        18                       30
    16                        19                       20
    17                        20                       10
    18    (b) No such exemption shall be granted unless:
    19    (i)  such construction was commenced on or after the enactment of this
    20  section;
    21    (ii) the residential real property is situate in a participating muni-
    22  cipality within an eligible county;
    23    (iii) the cost of such construction exceeds the sum  of  ten  thousand
    24  dollars or such greater amount as may be specified by local law; and
    25    (iv) such construction is completed as may be evidenced by appropriate
    26  documentation as provided by the owner.
    27    (c)  For  purposes  of  this  section  the term construction shall not
    28  include ordinary maintenance and repairs.
    29    3. Such exemption shall be granted only upon application by the  owner
    30  of  such  real  property  on a form prescribed by the commissioner. Such
    31  application shall be filed with the assessor of a participating  munici-
    32  pality  on or before the appropriate taxable status date of such munici-
    33  pality and  within  one  year  from  the  date  of  completion  of  such
    34  construction.    The owner shall attach any and all reports prepared by,
    35  but not limited to the cost of installation of erosion protection struc-
    36  tures or bank stabilization  and  shall  be  accompanied  by  any  other
    37  supporting documentation.
    38    4.  If  the assessor is satisfied that the applicant is entitled to an
    39  exemption pursuant to this section, he or she shall approve the applica-
    40  tion and such real property shall thereafter be exempt from taxation and
    41  special ad valorem levies by a participating municipality as provided in
    42  this section commencing with the  assessment  roll  prepared  after  the
    43  taxable  status  date  referred to in subdivision three of this section.
    44  The assessed value of any exemption granted  pursuant  to  this  section
    45  shall be entered by the assessor on the assessment roll with the taxable
    46  property, with the amount of the exemption shown in a separate column.
    47    5.  A  participating  municipality  may,  by local law, reduce the per
    48  centum  of  exemption  otherwise  allowed  pursuant  to  this   section;
    49  provided,  however,  that  a  project  in  course  of  construction  and
    50  exemptions existing prior in time to passage of any such local law shall
    51  not be subject to any such reduction so effected. Such municipality upon
    52  reduction of the per centum of exemption pursuant  to  this  subdivision
    53  may thereafter, by local law, increase the per centum of exemption up to
    54  any  per  centum not exceeding the maximum allowed by subdivision two of
    55  this section, provided, however, that any such  local  law  shall  apply
    56  only  to construction commenced subsequent to the effective date of such

        A. 2333                             3

     1  local law. A copy of all such local laws shall be filed with the commis-
     2  sioner and the assessor of the municipality.
     3    6.  A  participating  municipality may, by local law, establish a date
     4  for the commencement of effectiveness of exemption offered  pursuant  to
     5  this  section  and may provide that the provisions of this section shall
     6  apply only to construction having a greater value than that specified by
     7  subdivision two of this section.
     8    7. For the purposes of this section, the following  terms  shall  have
     9  the following meanings:
    10    (a)  "Eligible  county" shall mean a county included in the governor's
    11  executive order  one  hundred  sixty-five  of  two  thousand  seventeen,
    12  declaring a state of emergency, dated May third, two thousand seventeen.
    13    (b)  "Eligible  municipality"  shall  mean a municipal corporation, as
    14  defined by subdivision ten of section one hundred two of  this  chapter,
    15  which  is either: (i) an eligible county; or (ii) a city, town, village,
    16  special district, or school district that is wholly or partly  contained
    17  within an eligible county.
    18    (c)  "Participating  municipality" shall mean an eligible municipality
    19  that has passed a local law, ordinance, or resolution pursuant to subdi-
    20  vision five of this section.
    21    (d) "Flooding" shall mean the  lake  shore  and  inland  flooding  and
    22  accelerated  erosion that occurred as a result of heavy rainfall and the
    23  rising water level of Lake Ontario and any connected inland waterways or
    24  estuaries within an eligible county.
    25    (e) "Maintenance" shall mean the repair, rehabilitation,  or  replace-
    26  ment  of  any  previously authorized, currently serviceable structure or
    27  fill, or of any currently serviceable structure or  fill  authorized  by
    28  the  department  of environmental conservation, provided that the struc-
    29  ture or fill is not to be put to uses differing from those  uses  speci-
    30  fied  or contemplated for it in the original permit or the most recently
    31  authorized modification.
    32    (f) "Bank stabilization" shall mean activities necessary  for  erosion
    33  control or prevention, such as vegetative stabilization, bioengineering,
    34  sills,  rip rap, revetment, gabion baskets, stream barbs, and bulkheads,
    35  or combinations of bank stabilization techniques, provided the  activity
    36  is approved by the department of environmental conservation.
    37    (g)  "Erosion  protection  structures"  shall mean a structure specif-
    38  ically designed to reduce or prevent erosion, such as  a  groin,  jetty,
    39  seawall,  revetment,  bulkhead, breakwater, or artificial beach nourish-
    40  ment project as defined in 6 NYCRR 505.2.
    41    (h) "Erosion" shall mean the loss or displacement of  land  along  the
    42  coastline  due  to  the  action  of  waves, currents, tides, wind-driven
    43  water, waterborne ice, or other impact of storms. It also means the loss
    44  or displacement of land due to the action of  wind,  runoff  of  surface
    45  waters, or groundwater seepage as defined in 6 NYCRR 505.2.
    46    § 2. This act shall take effect immediately.
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