Directs the secretary of state to establish a pilot program for implementation of local land value taxation based on classes of land; directs the secretary of state to submit the application procedure for the pilot program to the temporary president of the senate and the speaker of the assembly.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9673
SPONSOR: Bores TITLE OF BILL:
An act to direct the secretary of state to establish a pilot program for
implementation of local land value taxation
PUROSE:
To create a pilot program for up to 5 municipalities to implement a land
value taxation system
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 establishes that the secretary of state shall establish a
pilot program for up to 5 municipalities to develop a plan for implemen-
tation of land value taxation
Section 2 establishes the effective date of the bill
JUSTIFICATION:
In 2023, facing economic and tax challenges not dissimilar to many Amer-
ican cities, Detroit's, Mayor, Mike Duggan, proposed a solution known as
a land value tax. This tax, also referred to as a split-rate tax,
involved taxing land at a higher rate to taxing infrastructure on the
land.
The key objective of this approach is to encourage the optimal use of
land by providing a reduced tax increase for land development. This will
promote infill development, rather than continuous outward sprawl from
city centers. By implementing this tax, speculation and wasteful use of
land are discouraged, as the cost of owning undeveloped land is
increased. The land value tax can alleviate the burden on homeowners in
many cities. It ensures that owners of high-value land, currently
utilized for low-value purposes, contribute their fair share.
Land value taxes have drawn interest and been put into practice else-
where, including in New York. In 1993, Governor Mario Cuomo approved a
bipartisan bill allowing Amsterdam to implement a land tax, but it was
later repealed due to a change in mayoral administration. More recently,
Buffalo's city council passed a resolution to study the implementation
of a land value tax in February 2023. Pennsylvania has permitted this
form of taxation since 1913, with 15 cities currently using a form of
land value, tax.
While property taxes are frequently discussed, there has been little
opportunity for innovation and policy advancement. This bill establishes
a pilot program granting permission and support to up to 5 munici-
palities to implement a land value tax, providing an opportunity for
experimentation and progress in tax policy.
LEGISLATIVE HISTORY:
New bill
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
Immediately...
STATE OF NEW YORK
________________________________________________________________________
9673
IN ASSEMBLY
April 3, 2024
___________
Introduced by M. of A. BORES -- read once and referred to the Committee
on Real Property Taxation
AN ACT to direct the secretary of state to establish a pilot program for
implementation of local land value taxation
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. 1. The secretary of state shall establish a pilot program
2 in up to five municipalities under which such municipalities shall
3 develop a plan for implementation of land value taxation that (a) clas-
4 sifies real estate included in such municipality's assessment roll as
5 (i) land or land exclusive of buildings, or (ii) buildings on land; and
6 (b) establishes a different local property tax rate for each such class,
7 provided the higher local property tax rate shall apply to land or land
8 exclusive of buildings.
9 2. The secretary of state shall establish an application procedure and
10 any other criteria for the pilot program established under subdivision
11 one of this section, under which municipalities may apply to participate
12 in such pilot program, and shall send a copy of such application proce-
13 dure and any other criteria to the temporary president of the senate and
14 the speaker of the assembly. If a municipality having a population
15 greater than 50,000 applies for participation in such pilot program,
16 such municipality shall designate a specific neighborhood or area within
17 such municipality that would participate in such program, if selected.
18 The secretary of state shall not select a municipality for such pilot
19 program unless the legislative body of such municipality has approved
20 such municipality's application for participation in such pilot program.
21 The secretary of state shall send a notice of selection for such pilot
22 program to the chief executive officer of the municipality and to the
23 temporary president of the senate and the speaker of the assembly.
24 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13486-02-3
