Bill > A03339

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 just the ground, excluding structures) or "buildings on land." They can then set different property tax rates for these two categories, with a higher rate specifically applied to the land value. This approach aims to encourage development by taxing undeveloped or underutilized land more heavily, while potentially reducing the tax burden on buildings. The bill also specifies that any such plan must be revenue-neutral for the municipality, meaning the total amount of taxes collected would remain the same as before the plan was implemented. Additionally, a municipality can choose to apply this land value taxation to all properties, specific types of properties, or even within designated neighborhoods. Exemptions for property taxes would be calculated the same way as under current systems, with any exempt value first applied to buildings and then to land if there's any remaining exemption.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A3339