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S 9287

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

2025 Regular Session Introduced by Michelle Hinchey

Pilot 10% property tax exemption for year-round owner- or tenant-occupied homes in selected NY counties to study effects on housing stability and tax revenues.

REFERRED TO REAL PROPERTY TAXATION
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WeVote Research Nonpartisan
Bill Summary · S 9287

Overview

Bill S. 9287-A (2025-2026, New York) proposes a pilot real property tax exemption for certain full-time, year-round residents in specific counties. The exemption would apply to eligible qualifying residential properties in counties that meet defined population and housing-use criteria, and only if local governments adopt enabling local laws. The pilot seeks to evaluate fiscal, administrative, and housing impacts of providing tax relief to full-time residents in areas with high seasonal housing.

Purpose and Intent

  • Recognize that in some counties a large share of housing is used seasonally or recreationally, while public services and infrastructure run year-round.
  • Create a targeted, temporary pilot to assess whether a year-round residence exemption can support housing stability and resident occupancy without unduly shifting tax burdens.
  • Allow state and participating localities to study impacts before broader expansion.

Key Provisions and Changes

  1. Definition of Eligible Property and Population

    • Qualifying residential property: parcel with a dwelling used exclusively for residential purposes, containing up to three dwelling units.
    • Eligible year-round residential property: either (a) owner-occupied primary residence with STAR eligibility or (b) property occupied by tenants under a written 12-month lease.
    • Eligible counties: counties with 150,000–1,000,000 population and at least 6% of housing units categorized as seasonal/recreational/occasional, per latest ACS data as of Jan 1, 2026.

  2. Exemption Details

    • Exemption amount: 10% of the assessed value of the eligible property for local (city/town/village/special district, school district, or county) taxes, excluding special assessments.
    • Local option: cities, towns, or villages in an eligible county must adopt a local law or resolution to provide the exemption. Counties may adopt a county-local law for their portion; school districts may adopt resolutions for their levy portions. Localities that adopt the exemption may extend it to other jurisdictions within the county that have also adopted the provision.

  3. Eligibility Requirements

    • Primary residence requirement for owner-occupied properties (STAR enrollment or eligibility, income eligibility as per STAR program).
    • For properties with 2–3 units, only the year-round-occupied units are exempt; other units are not.
    • For life estates or trusts, life tenants or beneficiaries occupying as primary residents are treated as owners for purposes of eligibility.
    • For owner-occupied properties, the owner must meet STAR income eligibility; no separate income test for properties leased to year-round tenants.

  4. Administration and Administration Data

    • The state Department (Office of Real Property Tax Services) will provide parcel-level data on STAR-eligible owners to eligible counties for administering the exemption.
    • Local assessors automatically grant the exemption to properties meeting STAR-based eligibility; no separate application required for those identified via STAR data. Optional verification by the assessor may occur.
    • Applicants may file if automatic exemption does not apply. For tenant-occupied properties, lease and residency documentation may be required.
    • If eligibility ceases, exemption is discontinued in a timely manner; owners must notify assessors. False statements may trigger revocation and potential liability for exempted taxes.

  5. Annual Certification and Renewal

    • Tenant-occupied exemptions require ongoing certification to verify continued eligibility (lease, residency proof).
    • Owner-occupied properties: STAR enrollment serves as annual eligibility certification; no separate renewal.

  6. Reporting and Evaluation

    • Within five years of enactment, the state Department shall study the exemption’s effectiveness.
    • The report to the Governor, Senate, and Assembly will cover: uptake by counties/cities/towns/villages/school districts, number and value of exemptions, tax liability shifts, and observable housing/residency/economic effects.

Who Is Affected

  • Qualifying property owners in eligible counties (both owner-occupied and tenant-occupied year-round residences).
  • Local governments (cities, towns, villages, school districts, and counties) that opt into the exemption.
  • Assessors and assessing offices administering and applying the exemption.
  • Tenants in eligible properties (where occupancy is under a long-term lease).

Procedural and Timeline Aspects

  • Effective Date: Immediate, applying to assessment rolls for taxable status dates occurring on or after the next January 1 that is at least 90 days after the law takes effect.
  • Pilot Duration: Indefinite until extended by future action, with mandatory five-year study/report to evaluate expansion and adjustments.
  • Local Adoption: Requires local legislative action (adoption of local laws/resolutions) at multiple jurisdictional levels (city/town/village, county, and potentially school districts).

Potential Implications

  • Could lower property tax burdens for full-time residents in areas with high seasonal housing.
  • May impact tax revenue distribution among local jurisdictions and shift some burden to non-exempt properties.
  • Data-sharing and privacy considerations for parcel-level STAR data.
  • Administrative simplicity for auto-grant areas, with safeguards for ongoing eligibility and annual verification for tenant-occupied properties.

This summary provides a high-level view of essential elements, provisions, and potential effects of the bill as introduced and amended.

Compiled from official sources — confirm details with the bill’s official record.

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