Bill > A03339

This bill directs the New York State Department of Taxation and Finance to establish a pilot program for local land value taxation (LVT) in up to five municipalities. Under this program, participating municipalities would classify real estate into two categories: land (or land without buildings) and buildings on land, and then set different property tax rates for each category, with a higher rate applied to land itself. Municipalities with over 50,000 residents can designate a specific neighborhood to participate. To be considered for the pilot program, a municipality's legislative body must pass a local law, and its school district must pass a resolution authorizing the application. The purpose of land value taxation is typically to incentivize development by taxing the underlying land value more heavily than improvements, which can encourage landowners to develop vacant or underutilized properties. The Department of Taxation and Finance will create the application procedure and selection criteria, and will notify the municipality's chief executive, the Senate president, and the Assembly speaker if selected for the pilot program. The bill would take effect immediately upon passage.

Budget and Finance

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