BILL NUMBER: S7515A
SPONSOR: STEWART-COUSINS
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to enacting the
"climate change property tax relief act"
 
PURPOSE:
To provide a local option for municipalities and other taxing entities
to provide real property tax abatements to homeowners whose properties
sustain damage as a result of natural disasters.
 
SUMMARY OF PROVISIONS:
Section 1 provides for the bill title: the "Climate Change Property Tax
Relief Act."
Section 2 amends the Real Property Tax Law by adding a new section
467-n, which:
Establishes the relevant definitions, including eligible municipalities
that can adopt the provisions at local option (this includes munici-
palities, school districts, and special districts), eligible properties
(generally, owner-occupied residential properties with three units or
less), types of disasters covered (major and local), and thresholds for
abatements (to be established by local law).
Provides that the legislation is at local option and outlines the
requirements for the local law or resolution. Local laws may provide for
retroactive relief for disasters that have already occurred.
Details the provisions for granting tax abatements for eligible proper-
ties damaged by major or local disasters. The abatement amount is equal
to the reduction in assessed value, subject to any maximum benefit ceil-
ing. The abatement thresholds also include a "minimum damage floor,"
which is the minimum reduction in the total assessed value of an eligi-
ble property, either in a set dollar amount or a percentage of the total
assessed value lost. Both thresholds are established by local law. The
taxing jurisdiction can make an exception to the minimum damage floor in
the event that the building inspector determines that the property has
been rendered uninhabitable.
Requires property owners to submit an application to receive the abate-
ment, which the local assessor will review to determine the amount of
damage. Homeowners may provide various forms of evidence to prove the
damages to their property, including documentation provided by their
homeowner's insurance company, documentation provided by a public adjus-
ter, and photographic and visual documentation, among others. This
provision also provides for an appeals process in the event the homeown-
er does not agree with the abatement granted.
Specifies that if the abatement granted exceeds the amount of real prop-
erty taxes owed on an eligible property, the excess abatement carries
over to the next year, until the cumulative sum of abated real property
taxes equals the damage to the eligible property, or until five years
have passed, whichever occurs first. Specifies that abatements may not
be granted if the owner intentionally contributed to the damage.
Provides that improvements made to repair damage shall not constitute a
selective reassessment.
Section 3 contains a severability clause.
Section 4 provides for the effective date and makes the act retroactive
to apply to damages caused by disasters on or after January 1, 2020, if
allowed by local law.
 
JUSTIFICATION:
As severe weather events become stronger and more frequent due to
climate change, homeowners across New York are experiencing firsthand
the severe toll these disasters are taking on communities. In certain
circumstances, due to constraints in New York law concerning property
taxation, local assessors do not have the legal flexibility to provide
relief to homeowners in time. As a result, some homeowners are stuck
with large property tax bills despite facing housing insecurity and
uncertainty following a severe weather event that may render their home
severely damaged or even uninhabitable.
While the Legislature can address specific events through legislation,
as it did with the "Superstorm Sandy Assessment Relief Act," (Chapter
424 of the Laws of 2013), the legislative process takes time; in some
cases, that time can make all the difference in the world to a family
struggling with their housing situation and expenses piling up as a
result of a natural disaster. As these disasters become more common, a
general authority is needed for local taxing entities to provide real
property tax relief to homeowners in a timely manner when they sustain
damage to their properties. This bill provides that authority at local
option.
 
LEGISLATIVE HISTORY:
2024: S.7515 (Original Print) - Passed Senate 58-0
2023: S.7515 (Original Print) - Passed Senate 61-0
 
FISCAL IMPLICATIONS:
None to the state or localities.
 
EFFECTIVE DATE:
This act shall take effect immediately, and is retroactive to January 1,
2020.

Statutes affected:
S7515: 11.00 local finance law