Bill > S01131

This bill directs the New York State Department of Taxation and Finance to create a pilot program for local land value taxation (LVT), which is an alternative property tax approach that taxes land at a higher rate than buildings. The program will allow up to five municipalities to participate, with each selected municipality required to pass a local law and have its school district pass a resolution authorizing participation. Municipalities with populations over 50,000 can designate a specific neighborhood or area to participate in the program. Under the pilot program, municipalities must classify real estate into two categories: land (or land without buildings) and buildings on land, and establish different local property tax rates for each category, with a higher tax rate applied to land itself. The department will develop an application procedure and selection criteria, and will notify the municipality's chief executive, the senate president, and the assembly speaker upon selection. The bill aims to explore an alternative taxation model that potentially incentivizes development and more efficient land use by making vacant or underutilized land more expensive to hold. The pilot program would provide insights into how such a taxation approach might work in practice across different municipal contexts.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S1131