Establishes a real property tax exemption for certain property owners who reside full-time on such property in certain counties

Showing the cosponsors who are on Agora, A to Z. The official record may list more.

• Democratic1

Shown in neutral colors by design; Agora is non-partisan.

◆ The sponsor's argument

Why Michelle Hinchey says this is needed

The availability of New York's housing stock has been decreasing over the last decade in large part due-to once primary homes turning into short term and vacation rentals. In some localities, as many as half or more of all housing units are now utilized as second homes, vacation homes, or for other temporary or short-term purposes. This trend not only reduces housing availability for people seeking primary homes, it can also drive up expenses for full-time residents. Local governments must figure out how to maintain local services, like fire, EMS and education systems, even as the number of full-time resi- dents decreases in favor of seasonal residents less likely to partic- ipate in civic institutions like volunteer fire and ambulance companies or to send their children to local school districts. Second, third and fourth homes are also often renovated to serve as the perfect vacation playgrounds for the wealthy. This can drive up property assessments, inadvertently skyrocketing tax costs for neighboring prima- ry residents who often do not have the level of disposable income to cover these changes. For instance, in the Hudson Valley, there is currently a vacation home listed in a rural community for $90 million. The local county's median household income is $81,000. Existing real property tax law does not adequately distinguish between full-time, year-round occupied properties and seasonal or temporary residences. Recognizing the impact of seasonal housing, over a dozen states have moved to distinguish among these categories in their proper- ty tax structures. For example, Georgia, Iowa, Minnesota, and several other states offer percentage or flat-dollar exemptions applicable only to owner-occupied homes, with some counties offering larger add-ons than their base rates; Arkansas offers a state-funded credit applied to the tax bills of owner-occupants only; and Alaskan municipalities may exempt up to $50,000 of a primary residence's value pursuant to local law. Consistent with the goals of those rules, this bill permits localities in eligible counties, with county approval, to enact local laws author- izing property tax exemptions of 10% of the assessed value for owner-oc- cupied primary residences. The bill also includes a report after five years to review the impact of the program. This will encourage use of property for primary residency, while maintaining flexibility for local governments who may choose or not choose to participate, and ultimately provide data to the state to better understand whether such incentives should be expanded beyond the initially participating areas.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.