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Bill

A 11427

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

2025 Regular Session

The bill provides a property tax exemption for increases in property value from constructing ADUs for seniors 65+ or disabled residents, limited to the lesser of the value increase

REPORTED REFERRED TO RULES
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WeVote Research Nonpartisan
Bill Summary · A 11427

Summary of Bill A 11427-A (2025-2026) – New York

Purpose and intent

  • Provides a real property tax exemption for certain auxiliary dwelling units (ADUs) constructed to house senior citizens or individuals who are disabled and receive Social Security disability benefits.
  • The exemption applies to increases in assessed value resulting from the construction or reconstruction of such ADUs, effectively reducing the property tax burden for eligible homeowners.

Key provisions and changes

  • Eligibility and scope
    • Applicable to towns bordered on the west by the Hudson River and bordered north by a different county, within counties that have a county tax commission, and to villages within those towns that cover more than four square miles.
    • Allows local jurisdictions (towns and their eligible villages) to adopt or amend local laws to grant an exemption from taxation and special ad valorem levies for the portion of assessed value increase due to constructing or reconstructing living quarters for seniors aged 65+ or for disabled individuals with Social Security disability benefits.
  • Calculation of exemption (whichever is less)
    • The exemption amount is limited to the lesser of:
    • The increase in assessed value from the construction/reconstruction, or
    • 20% of the total assessed value of the improved property, or
    • 20% of the county's latest median sale price for residential property (as reported by the Office of Real Property Services for the property's county).
  • Conditions and limitations
    • Construction/reconstruction must be permitted by the local zoning ordinance for providing such living quarters.
    • The property must be located in the area where such construction is permitted and must be the owner’s principal residence.
    • Exemption applies only to qualifying construction occurring after the effective date of the act for towns and after the effective date of the 2026 amendment for the village.
    • Exemption applies only during taxable years in which the qualifying living quarters are the owner’s legal residence.
  • Application and enforcement
    • Exemption granted via annual applications submitted by the property owner on a form promulgated by the Office of Real Property Services (ORPS) to the local assessor by the applicable tax status date.
    • If approved, the improvements are exempt from taxation and from special ad valorem levies as specified.
    • Willful false statements on the application can result in:
    • A civil penalty up to $200, and
    • Disqualification from further exemptions for two years.
  • Effective date
    • Immediate effect upon enactment.
    • Applies to taxable years beginning on or after January 1 of the year following the law’s date of enactment (with village applicability tied to its 2026 amendment).

Who is affected

  • Eligible property owners in eligible towns (and eligible villages) who construct or reconstruct ADUs intended for senior citizens (65+) or disabled individuals receiving Social Security disability benefits.
  • Local taxing authorities (towns and villages) that opt into administer­ing and granting the exemption.
  • ORPS, as the agency promulgating the required annual application form and overseeing administration.

Procedural and timeline notes

  • Legislative history indicates:
    • Introduced May 15, 2026.
    • Referred to Real Property Taxation; subsequent amendments and reprints.
    • Reported/referred to Rules as of June 4, 2026.
  • Effective date is immediate, with applicability to taxable years beginning after January 1 following enactment (and village applicability aligned with 2026 amendments).
  • Local options: The bill authorizes but does not mandate adoption of the exemption by towns and villages; local adoption governs implementation specifics.

Practical considerations

  • Benefits: Potential reduction in property taxes for homeowners adding ADUs for eligible seniors/disabled residents; could encourage development of accessible, age/ability-friendly housing.
  • Limitations: Exemption scope is capped to specific percentages or value increases, with a floor/ceiling tied to local market indicators; requires compliance with zoning and annual re-qualification through annual filing.
  • Compliance risk: Penalties for misrepresentation on applications serve as a deterrent against improper claiming of exemptions.

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

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