Allows a real property tax exemption for dwelling units constructed for senior citizens or disabled persons receiving social security disability benefits.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A11427A
SPONSOR: Rules (Levenberg) TITLE OF BILL:
An act to amend the real property tax law, in relation to providing a
tax exemption on certain auxiliary dwelling units constructed for
seniors or disabled individuals
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to provide a tax exemption on certain
auxiliary dwelling units constructed for seniors of disabled individ-
uals.
SUMMARY OF PROVISIONS:
Section 1. Section 467-d 1. of the Real Property Tax Law is amended to
also include a village covering more than four square miles within such
town, and section 67-d 3. of the Real Property Tax Law is amended to
also include the following language, "for such town, and subsequent to
the effective date of the chapter of the laws of 2026, which amended
this section for such village,". These additions will allow the Village
of Croton-on-Hudson to enact a tax exemption for certain living quarters
occupied by senior citizens and individuals with disabilities.
Section 2. Establishes the effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
Five Square Miles was changed to Four Square Miles.
JUSTIFICATION:
In 2024, the Village of Croton-on-Hudson adopted the existing statewide
exemption for the construction of living quarters for parents and grand-
parents, as well as the existing statewide exemption for capital
improvements to residential property for the creation of accessory
dwelling units. However, the legislation approved for the Town of Cort-
landt differs from these existing exemptions in that it applies to indi-
viduals with disabilities, in addition to senior citizens, and that it
does not have an expiration period (which the capital improvement
exemption does).
The enactment of this legislation will allow the Village of Croton-on-
Hudson to enact a tax exemption for certain living quarters occupied by
senior citizens and individuals with disabilities. Croton-on-Hudson has
permitted accessory apartments in residential districts for more than 40
years and adopted the Westchester County model ordinance for accessory
dwelling units in 2024, which permitted the construction of accessory
cottages in residential districts. 17 applications have been approved
since the local law was adopted, and additional applications are
currently under consideration.
PRIOR LEGISLATIVE HISTORY:
This is new legislation.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
With the enactment of this legislation, there will be no fiscal impli-
cations to the state.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after the first of January next succeeding the date on
which it shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
11427--A
IN ASSEMBLY
May 15, 2026
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Levenberg)
-- read once and referred to the Committee on Real Property Taxation
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT to amend the real property tax law, in relation to providing a
tax exemption on certain auxiliary dwelling units constructed for
seniors or disabled individuals
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 467-d of the real property tax law, as added by
2 chapter 533 of the laws of 1998, is amended to read as follows:
3 § 467-d. Assessment exemption for certain living quarters constructed
4 to be occupied by a senior citizen or disabled individual. 1. A town
5 which is bordered by the Hudson river on the west and a different county
6 other than the one in which it is located on the north and is located in
7 a county which has a county tax commission with members who serve five
8 year overlapping terms and have powers and duties with respect to real
9 property taxation, and a village covering more than four square miles
10 within such town, acting through its local legislative body [is] are
11 hereby authorized and empowered to adopt and amend local laws to provide
12 for an exemption from taxation and special ad valorem levies to the
13 extent of any increase in assessed value of residential property result-
14 ing from the construction or reconstruction of such property for the
15 purpose of providing living quarters for a senior citizen, who is
16 sixty-five years of age or older, or individuals considered disabled and
17 receiving social security disability benefits. Such an exemption shall
18 not exceed (a) the increase in assessed value resulting from
19 construction or reconstruction of such property, or (b) twenty percent
20 of the total assessed value of such property as improved, or (c) twenty
21 percent of the median sale price of residential property as reported in
22 the most recent statistical sales summary published by the office of
23 real property services for the county in which the property is located,
24 whichever is less.
25 2. No such exemption shall be granted unless:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15678-04-6
A. 11427--A 2
1 (a) the zoning ordinance of such town or such village, as applicable,
2 in which such property is located permits the construction or recon-
3 struction of residential property for the purpose of providing living
4 quarters for senior citizens or disabled individuals;
5 (b) the property is located within the geographical area in which such
6 construction or reconstruction is permitted; and
7 (c) the residential property is so constructed or reconstructed such
8 that it is the principal place of residence for the owner.
9 3. Such exemption shall be applicable only to construction or recon-
10 struction which occurred subsequent to the effective date of this
11 section for such town, and subsequent to the effective date of the chap-
12 ter of the laws of two thousand twenty-six which amended this section
13 for such village, and shall only apply during taxable years in which
14 such living quarters are the legal residence of the senior citizen or
15 disabled person.
16 4. Such exemption from taxation shall be granted upon an application
17 which shall include a statement that a qualified senior citizen or disa-
18 bled individual resides at the residence and shall be made annually upon
19 a form to be promulgated by the office of real property services and
20 filed by the owner of such property to the assessor of such town or such
21 village, as applicable, which has the power to assess property for taxa-
22 tion on or before the appropriate taxable status date of such town or
23 such village, as applicable. If the assessor is satisfied that the prop-
24 erty is qualified for an exemption pursuant to this section, then such
25 residential improvements shall be exempt from taxation and special ad
26 valorem levies as herein provided.
27 5. Any conviction of having made any willful false statements in the
28 application for such exemption shall result in the revocation thereof,
29 be punishable by a civil penalty of not more than two hundred dollars
30 and shall disqualify the applicant or applicants from further exemptions
31 for a period of two years.
32 § 2. This act shall take effect immediately and shall apply to taxable
33 years beginning on or after the first of January next succeeding the
34 date on which it shall have become a law.
