Bill > S01131

This bill authorizes cities, villages, and towns to create and implement a local land value taxation plan, which is a system where property taxes are based on the value of the land itself, separate from the value of any buildings on it. Under this plan, municipalities can classify real estate into two categories: "land" (meaning the ground itself, excluding structures) or "buildings on land." The key provision is that these municipalities can then set different property tax rates for these two classes, with a higher tax rate specifically applied to the land value. This new approach can be applied to all properties or specific types of properties, and any plan must ensure that the total amount of taxes collected by the municipality remains the same as it would have been under the old system, a concept known as "revenue neutrality." Additionally, a municipality can choose to apply this land value taxation to a specific neighborhood or area within its jurisdiction, and existing property tax exemptions will be applied in the same way, first reducing the taxable value of buildings and then, if any exemption amount remains, reducing the taxable value of the land.

Government Affairs

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