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S 10180

Provides a tax exemption on certain auxiliary dwelling units constructed for seniors or disabled individuals

2025 Regular Session Introduced by Pete Harckham

Provides a partial property tax exemption on the increase in value from constructing ADUs for seniors (65+) or disabled residents, with limits and annual eligibility requirements.

REFERRED TO LOCAL GOVERNMENT
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Bill Summary · S 10180

Overview

  • Bill: S 10180 (New York) for the 2025-2026 session
  • Introduced by: Sen. Harckham (co-sponsor: Pete Harckham)
  • Committee: Local Government
  • Purpose: Create a real property tax exemption for certain auxiliary dwelling units (ADUs) constructed to provide living space for seniors (65+) or disabled individuals, with conditions and limits on the exemption.

Main purpose and intent

  • To encourage the construction or reconstruction of residential living quarters intended for occupancy by senior citizens or disabled individuals.
  • To provide a tax relief mechanism—specifically a partial exemption from property taxes and related special ad valorem levies—on the incremental increase in assessed value resulting from such construction or reconstruction.
  • The exemption aims to make it financially feasible for homeowners to add ADUs that house eligible residents, thereby supporting aging-in-place and accessibility needs.

Key provisions and changes

  • Eligible properties and exemption scope:
    • Applies to towns and villages meeting certain criteria (bordered by the Hudson River and other specific jurisdictional conditions; within counties with a county tax commission; and with a village over five square miles within the town). The town/village must adopt or amend local laws to authorize the exemption.
    • The exemption covers the increase in assessed value due to construction or reconstruction of the living quarters intended for seniors (65+) or disabled individuals receiving Social Security disability benefits.
  • Exemption limits (whichever is less):
    • The increase in assessed value from construction/reconstruction, or
    • 20% of the total assessed value of the improved property, or
    • 20% of the median sale price of residential property (as reported in the most recent Statistical Sales Summary by the Office of Real Property Services for the property's county).
  • Preconditions for eligibility:
    • Zoning must permit such construction/reconstruction for senior or disabled living quarters.
    • The property must be located in the area where such construction is permitted.
    • The residential property must be the owner's principal residence.
  • Effective period and applicability:
    • Applies to construction or reconstruction occurring after the effective date for the respective town or, for villages, after the effective date of the relevant 2026 amendment.
    • Applies only during taxable years in which the ADU is the legal residence of the eligible senior or disabled resident.
  • Application process:
    • Exemption is granted upon application, including a statement that a qualified senior or disabled individual resides at the residence.
    • Annual filing on a form to be promulgated by the Office of Real Property Services (ORPS), submitted by the property owner to the local assessor before the appropriate taxable status date.
    • If approved, the improvements remain exempt from taxation and related levies as described.
  • Penalties and enforcement:
    • Willful false statements on the application are grounds for revocation of the exemption.
    • Civil penalty of up to $200.
    • Disqualification from future exemptions for two years.

Who/what is affected

  • Property owners who construct or reconstruct ADUs intended for occupancy by a senior citizen (65+) or a disabled individual.
  • Eligible seniors or disabled residents may benefit indirectly via improved housing options and access to housing that is financially supported by the tax exemption.
  • Local assessors and the ORPS, which administer the exemption program and forms.

Procedural and timeline notes

  • Effective date: Immediate upon enactment.
  • Applicable taxable years: Beginning January 1 following enactment, for construction occurring after the specified effective dates for towns and villages.
  • Local governments (towns and eligible villages) must authorize the exemption through local laws or amendments.
  • Annual filing cycle: Owners must submit the required form to the local assessor by the taxable status date each year.

Potential impact considerations

  • Financial impact on local tax revenue: Partial exemption reduces taxable value for affected properties, potentially reducing property tax revenue from those properties in eligible jurisdictions.
  • Housing and aging-in-place: Could incentivize homeowners to create ADUs, increasing availability of accessible, multi-family-style living options for seniors and disabled individuals.
  • Compliance and oversight: Requires appropriate zoning, residency verification, and annual filings to ensure ongoing eligibility; enforcement relies on accurate reporting and detection of false statements.

If you want, I can tailor a one-page briefing for a specific county or village, outlining whether it would likely qualify under current zoning and administrative conditions.

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

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