September 22, 2016 Cold War Tax Exemption
KEEPING YOU INFORMED…
Governor Cuomo recently signed a law providing a tax exemption for property that is owned by individuals who served in the armed forces from September 2, 1945 through December 26, 1991; i.e., the term of the “Cold War.” School districts are authorized, but not required, to offer, pursuant to a duly adopted board resolution, the Cold War Property Tax Exemption to “qualified owners.”
A resident is eligible for the exemption if he/she meets the following criteria:
1. The resident is a “qualified owner;” e., is a Cold War veteran, the spouse of a Cold War veteran; or the unmarried surviving spouse of a deceased Cold War veteran; and
2. If a Cold War veteran, the “qualified owner” is not already receiving the veteran’s or alternative veteran’s tax exemption; and
3. The resident owns real property that is exclusively used for residential purposes; e., no portion of the property may be used for a non-residential purpose; and
4. The real property is the “qualified owner’s” primary residence, unless the person is absent from the property for medical reasons or is in an institution.
If the property is owned by more than one “qualified owner,” the exemption benefits for each may be combined. School districts have the option to offer the exemption to “qualified owners” who own cooperative apartments.
A “qualified owner” may receive, at the school district’s option, an exemption equal to either 10% (not to exceed $8,000, or the product of $8,000 multiplied by the latest State equalization rate of the assessing unit, whichever is less) or 15% (not to exceed $12,000, or the product of $12,000 multiplied by the latest State equalization rate of the assessing unit, whichever is less) of the property’s assessed value. This exemption is limited to 10 years’ duration.
If the “qualified owner” received a service-connected disability rating from the Veterans’ Administration or the Department of Defense, there is an additional available exemption equal to one-half of the disability rating, multiplied by the assessed value of the property (not to exceed $40,000, or the product of $40,000 multiplied by the latest State equalization rate for the assessing unit, whichever is less). There is no limit for the additional exemption for “qualified owners” who received a service-connected disability rating.
Any exemption must be approved by March 1, 2017 in order for it to apply to property taxes for the 2017-2018 school year. As with the existing alternative veteran’s tax exemption, there is no State reimbursement for school districts offering the Cold War Property Tax Exemption. Instead, the monies that would otherwise be collected from “qualified owners” would have to be collected from school district taxpayers.
If you have any questions about the Cold War Property Tax Exemption, please contact Mara Harvey or one of our other attorneys by calling (631) 694-2300.
THIS MEMORANDUM IS MEANT TO ASSIST IN GENERAL UNDERSTANDING OF THE CURRENT LAW. IT IS NOT TO BE REGARDED AS LEGAL ADVICE. THOSE WITH PARTICULAR QUESTIONS SHOULD SEEK THE ADVICE OF COUNSEL.
© Lamb & Barnosky, LLP 2016