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Assessor's Manual, Volume 4, ExemptionAdministration

Exemption Administration Manual - Part 1
Residential - Other Than Multiple Dwellings

Section 4.01 - RPTL Section 458-b

Veterans (Cold War)

 
Exemption Code(s):  Cold War veteran, 10 percent benefit   4115_
   Cold War veteran, 15 percent benefit 4116_
   Cold War veteran, with disability 4117_

Year Originally Enacted: 2007

Related Statutes: RPTL §§ 458, 458-a

SUMMARY: To the extent allowed by local option, the primary residence of a veteran of the United States armed forces who served during the Cold War is partially exempt from general municipal taxes. No exemption is allowed for special ad valorem levies or special assessments. This exemption may not be granted for the same municipal taxing purpose to property currently receiving an exemption pursuant to RPTL §458 or RPTL §458-a.  An eligible veteran who receives the eligible funds exemption (RPTL §458) may also receive this exemption solely for the purpose of school taxation.

The percentage exemption that applies to the assessed value of a qualifying property depends on both the nature of the veteran's service and the local law adopted by the taxing jurisdiction. Veterans who were on active duty during the Cold War period are eligible for a basic exemption of one of two benefit levels, as allowed by local option: (1) 10% exemption, not to exceed a basic state maximum of $8,000 or the product of $8,000 multiplied by the latest state equalization rate, special equalization rate or, in the case of a special assessing unit, the latest class ratio, whichever is less or (2) 15% exemption, not to exceed a basic state maximum of $12,000 or the product of $12,000 multiplied by the latest state equalization rate, special equalization rate or, in the case of a special assessing unit, the latest class ratio, whichever is less. Cold War veterans who sustained service-connected disabilities, as evidenced by receipt of a disability compensation rating from the Veteran's Administration or the Department of Defense, are eligible for an additional exemption, equal to one-half of their disability rating, not to exceed a basic state maximum of $40,000 or the product of $40,000 multiplied by the latest state equalization rate or, in the case of a special assessing unit, the latest class ratio, whichever is less.

A taxing jurisdiction which allows the Cold War veterans exemption has the further option of using one of the following ten (or sixteen, in the case of a "high appreciation municipality") reduced or increased exemption amounts (or the product of such a reduced or increased amount multiplied by the latest state equalization rate, special equalization rate or, in the case of a special assessing unit, the latest class ratio, whichever is less), instead of the maximum amounts allowed by state law for whichever of the two benefit levels adopted in local law (see E. Calculation of Exemption below):

Reduced Maximum

Pursuant to Local Law

10% Option

15% Option

Disability

$4,000

$6,000

$20,000

$6,000

$9,000

$30,000

State Law Basic Maximum

$8,000

$12,000

$40,000

Increased Maximums

Pursuant to Local Law

$10,000

$15,000

$50,000

$12,000

$18,000

$60,000

$14,000

$21,000

$70,000

$16,000

$24,000

$80,000

$18,000

$27,000

$90,000

$20,000

$30,000

$100,000

$22,000

$33,000

$110,000

$24,000

$36,000

$120,000

$26,000

$39,000

$130,000

$28,000

$42,000

$140,000

$30,000

$45,000

$150,000

 

In "high appreciation municipalities" (defined below) the governing board may adopt still higher limits of:

10% Option

15% Option

Disability

$32,000

$48,000

$160,000

$34,000

$51,000

$170,000

$36,000

$54,000

$180,000

$38,000

$57,000

$190,000

$40,000

$60,000

$200,000

$42,000

$63,000

$210,000

$44,000

$66,000

$220,000

$46,000

$69,000

$230,000

$48,000

$72,000

$240,000

$50,000

$75,000

$250,000

 

A "high-appreciation municipality" means: (1) New York City, (2) a county for which the  Office of Real Property Tax Services (ORPTS) has established a sales price differential factor for purposes of the school tax relief [STAR] exemption (Real Property Tax Law, sec. 425) for three consecutive years, or (3) a city, town, or village located within such a county, ORPTS maintains a list of such counties on its website here.

Thus the maximum exemption allowed is either 60 or 65 percent (depending on which benefit level the municipality has adopted), where a veteran served during the Cold War and has a 100% service-connected disability. (See Calculation of Exemption below for more specific information.)

The duration of the basic exemption is 10 years, and commences with the first taxable status date occurring on or after the effective date of the local law allowing the exemption. For those owners who acquire eligible property after this date, the 10-year period will be measured from the assessment roll based on the first taxable status date occurring at least 60 days after acquisition of the residential property, provided that should the veteran apply for and be granted an exemption on the assessment roll based on a taxable status date within 60 days after the date of acquisition of the property, the 10-year period is measured from the first assessment roll in which the exemption occurs. If, before the expiration of the 10-year period the exempt property is sold or replaced with other residential real property, this exemption may be granted for the unexpired portion of the 10-year period. The duration of the disability exemption is permanent.

  1. ELIGIBILITY REQUIREMENTS
    1. Ownership Requirements: The property must be owned by a Cold War veteran, the spouse of a Cold War veteran, or the unremarried surviving spouse of a deceased Cold War veteran. Where property is owned by more than one qualified owner, the exemption to which each is entitled may be combined. Where a veteran is also the unremarried surviving spouse of a veteran, that person may also receive any exemption to which the deceased spouse was entitled. If the title has been transferred to a trust, the property is eligible for the exemption if the trustee or trust beneficiary otherwise qualifies.

      A Cold War veteran is defined as a person, male or female, who served on active duty in the United States armed forces between September 2, 1945 and December 26, 1991, and who was discharged or released under honorable conditions.

    2. Property Location Requirements:  None.
       
    3. Property Use Requirements: The property must be used exclusively for residential purposes. It must also be the primary residence of a Cold War veteran or the unremarried surviving spouse of a Cold War veteran unless that person is absent from the property due to medical reasons or institutionalization. In the event that a portion of the property is not used exclusively for residential purposes, that portion is not entitled to the exemption. In such cases, the assessor may apportion the assessed value and apply the exemption only to the residential portion of the property.
       
    4. Certification by State or Local Government: None.
       
    5. Required Construction Start Date or Other Time Requirement:  None.
       
  2. LOCAL OPTION: Yes - Each county, city, town, village, and school district opting to authorize the exemption is allowed certain choices:
    1. Exemption -- Each eligible taxing jurisdiction may choose one of the two benefit levels: 10 or 15 percent of assessed value, each subject to maximum exempt values authorized by state law (see Summary above). The option to exempt must be exercised through adoption of a local law, and in all cases, a public hearing must be held prior to adoption of the local law.
       
    2. Limit of Exemption -- A municipality adopting the exemption has the additional option of passing a local law establishing one of the two lower sets of maximum exempt values for the benefit level adopted in the original local law allowing the exemption or one of eight (or fourteen in the case of a "high appreciation municipality") higher sets (see Summary above).
       
    3. Cooperative Apartments - Each taxing jurisdiction may adopt a local law to allow that portion of a cooperative apartment corporation held by an otherwise veteran tenant/stockholder to be eligible for an exemption from real property taxes. If allowed, the amount of the exemption must be determined by the assessor, based upon the proportion of outstanding stock held by an eligible shareholder, and credited against shareholder, and credited against the taxes charged to the corporation. Eligible stockholders would receive an adjustment to their monthly maintenance fees by the cooperative apartment corporation to reflect the benefit of the exemption. However, this exemption may not be granted to apartments subject to the provisions of either Article 2, 4, 5 or 11 of the Private Housing Finance Law.
       
    4. Recission of Exemption -- A local law adopted pursuant to this exemption may be repealed by the governing body of taxing jurisdiction at least 90 days prior to the jurisdiction's taxable status date.
       
  3. LIMITATION ON EXEMPTION:
      General
    Municipal
    Taxes
    School
    District
    Taxes
    Special
    Ad Valorem
    Levies
    Special
    Assessments
    1. Amount Yes* Yes* No
    exemption
    allowed
    No
    exemption
    allowed
    2. Duration 10 Years** 10 Years** No
    exemption
    allowed
    No
    exemption
    allowed
    3. Taxing Jurisdiction a. County or County
    Special Districts
    Ex*** NA Tax Tax
    b. City Ex*** NA Tax Tax
    c. Town or Town
    Special District
    Ex*** NA Tax Tax
    d. Village Ex*** NA NA Tax
    e. School District NA Ex*** NA NA
       Ex-Exempt      Tax-Taxable      NA-Not Applicable
    * See Calculation of Exemption below.
    ** Applies to the basic exemption only; the disability exemption is permanent.
    *** If allowed by local option.
     
  4. PAYMENTS IN LIEU OF TAXES: None.
     
  5. CALCULATION OF EXEMPTION:
    1. General Municipal and School District Taxes: This exemption applies to general municipal taxes and school taxes in amounts depending on the nature of the Cold War veteran's service:
      1. Cold War veteran without disability rating

        The amount of the exemption further depends on which of two benefit levels has been adopted by local law, as follows:

        Benefit Level 1

        The lesser of either 10 percent of assessed value or one of the following dollar amounts multiplied by the latest state equalization rate (or special equalization rate) or, in the case of a special assessing unit, the latest class ratio:

        (a)

        if below maximum reduced by local law (option 1)

        $4,000

        (b)

        if below maximum reduced by local law (option 2)

        $6,000

        (c)

        if state authorized maximum not reduced or
        increased by law

        $8,000

        (d)

        if above maximum increased by local law (option 3)

        $10,000

        (e)

        if above maximum increased by local law (option 4)

        $12,000

        (f)

        if above maximum increased by local law (option 5)

        $14,000

        (g)

        if above maximum increased by local law (option 6)

        $16,000

        (h)

        if above maximum increased by local law (option 7)

        $18,000

        (i)

        if above maximum increased by local law (option 8)

        $20,000

        (j)

        if above maximum increased by local law (option 9)

        $22,000

        (k)

        if above maximum increased by local law (option 10)

        $24,000

        (l)

        if above maximum increased by local law (option 11)

        $26,000

        (m)

        if above maximum increased by local law (option 12)

        $28,000

        (n)

        if above maximum increased by local law (option 13)

        $30,000

        (o)

        if above maximum increased by local law (option 14, high-appreciation municipalities only*)

        $32,000

        (p)

        if above maximum increased by local law (option 15, high-appreciation municipalities only*)

        $34,000

        (q)

        if above maximum increased by local law (option 16, high-appreciation municipalities only*)

        $36,000

        (r)

        if above maximum increased by local law (option 17, high-appreciation municipalities only*)

        $38,000

        (s)

        if above maximum increased by local law (option 18, high-appreciation municipalities only*)

        $40,000

        (t)

        if above maximum increased by local law (option 19, high-appreciation municipalities only*)

        $42,000

        (u)

        if above maximum increased by local law (option 20, high-appreciation municipalities only*)

        $44,000

        (v)

        if above maximum increased by local law (option 21, high-appreciation municipalities only*)

        $46,000

        (w)

        if above maximum increased by local law (option 22, high-appreciation municipalities only*)

        $48,000

        (x)

        if above maximum increased by local law (option 23, high-appreciation municipalities only*)

        $50,000

        * A "high-appreciation municipality" means: (1) New York City, (2) a county for which ORPTS has established a sales price differential factor for purposes of the school tax relief [STAR] exemption (Real Property Tax Law, sec. 425) for three consecutive years, or (3) a city, town, village or school district which is wholly or partly located within such a county. ORPTS maintains a list of such counties on its website here.

        Benefit Level 2

        The lesser of either 15 percent of assessed value or one of the following dollar amounts multiplied by the latest state equalization rate (or special equalization rate), or in the case of a special assessing unit, the latest class ratio:

        (a)

        if below maximum reduced by local law (option 1)

        $6,000

        (b)

        if below maximum reduced by local law (option 2)

        $9,000

        (c)

        if state authorized maximum not reduced or
        increased by law

        $12,000

        (d)

        if above maximum increased by local law (option 3)

        $15,000

        (e)

        if above maximum increased by local law (option 4)

        $18,000

        (f)

        if above maximum increased by local law (option 5)

        $21,000

        (g)

        if above maximum increased by local law (option 6)

        $24,000

        (h)

        if above maximum increased by local law (option 7)

        $27,000

        (i)

        if above maximum increased by local law (option 8)

        $30,000

        (j)

        if above maximum increased by local law (option 9)

        $33,000

        (k)

        if above maximum increased by local law (option 10)

        $36,000

        (l)

        if above maximum increased by local law (option 11)

        $39,000

        (m)

        if above maximum increased by local law (option 12)

        $42,000

        (n)

        if above maximum increased by local law (option 13)

        $45,000

        (o)

        if above maximum increased by local law (option 14, high-appreciation municipalities only*)

        $48,000

        (p)

        if above maximum increased by local law (option 15, high-appreciation municipalities only*)

        $51,000

        (q)

        if above maximum increased by local law (option 16, high-appreciation municipalities only*)

        $54,000

        (r)

        if above maximum increased by local law (option 17, high-appreciation municipalities only*)

        $57,000

        (s)

        if above maximum increased by local law (option 18, high-appreciation municipalities only*)

        $60,000

        (t)

        if above maximum increased by local law (option 19, high-appreciation municipalities only*)

        $63,000

        (u)

        if above maximum increased by local law (option 20, high-appreciation municipalities only*)

        $66,000

        (v)

        if above maximum increased by local law (option 21, high-appreciation municipalities only*)

        $69,000

        (w)

        if above maximum increased by local law (option 22, high-appreciation municipalities only*)

        $72,000

        (x)

        if above maximum increased by local law (option 23, high-appreciation municipalities only*)

        $75,000

        * A "high-appreciation municipality" means: (1) New York City, (2) a county for which ORPTS has established a sales price differential factor for purposes of the school tax relief [STAR] exemption (Real Property Tax Law, sec. 425) for three consecutive years, or (3) a city, town, village or school district which is wholly or partly located within such a county. ORPTS maintains a list of such counties on its website here.


         
      2. Cold War veteran with disability rating

        The exempt amount is the amount as determined in (A) above plus the lesser of either ½ of the disability rating multiplied by the assessed value or one of the following dollar amounts multiplied by the latest state equalization rate (or special equalization rate), or in the case of a special assessing unit, the latest class ratio:

        (a)

        if below maximum reduced by local law (option 1)

        $20,000

        (b)

        if below maximum reduced by local law (option 2)

        $30,000

        (c)

        if state authorized maximum not reduced or
        increased by law

        $40,000

        (d)

        if above maximum increased by local law (option 3)

        $50,000

        (e)

        if above maximum increased by local law (option 4)

        $60,000

        (f)

        if above maximum increased by local law (option 5)

        $70,000

        (g)

        if above maximum increased by local law (option 6)

        $80,000

        (h)

        if above maximum increased by local law (option 7)

        $90,000

        (i)

        if above maximum increased by local law (option 8)

        $100,000

        (j)

        if above maximum increased by local law (option 9)

        $110,000

        (k)

        if above maximum increased by local law (option 10)

        $120,000

        (l)

        if above maximum increased by local law (option 11)

        $130,000

        (m)

        if above maximum increased by local law (option 12)

        $140,000

        (n)

        if above maximum increased by local law (option 13)

        $150,000

        (o)

        if above maximum increased by local law (option 14, high-appreciation municipalities only**)

        $160,000

        (p)

        if above maximum increased by local law (option 15, high-appreciation municipalities only**)

        $170,000

        (q)

        if above maximum increased by local law (option 16, high-appreciation municipalities only**)

        $180,000

        (r)

        if above maximum increased by local law (option 17, high-appreciation municipalities only**)

        $190,000

        (s)

        if above maximum increased by local law (option 18, high-appreciation municipalities only**)

        $200,000

        (t)

        if above maximum increased by local law (option 19, high-appreciation municipalities only**)

        $210,000

        (u)

        if above maximum increased by local law (option 20, high-appreciation municipalities only**)

        $220,000

        (v)

        if above maximum increased by local law (option 21, high-appreciation municipalities only**)

        $230,000

        (w)

        if above maximum increased by local law (option 22, high-appreciation municipalities only**)

        $240,000

        (x)

        if above maximum increased by local law (option 23, high-appreciation municipalities only**)

        $250,000

        ** A "high-appreciation municipality" means: (1) New York City, (2) a county for which ORPTS has established a sales price differential factor for purposes of the school tax relief [STAR] exemption (Real Property Tax Law, sec. 425) for three consecutive years, or (3) a city, town, village or school district which is wholly or partly located within such a county. ORPTS maintains a list of such counties on its website here.

    2. Special Ad Valorem Levies and Special Assessments: No exemption allowed.
       
  6. CODING OF EXEMPTION ON ASSESSMENT ROLL:
    Code Description of Alternative Codes Possible
    4115_ Cold War veteran, 10 percent benefit
    4116_ Cold War veteran, 15 percent benefit
    4117_ Cold War veteran with disability

    Note:

    1. If a veteran has been granted a disability exemption, two codes are necessary (either 4115_ or 4116_ and 4117_).

    Assessment Roll Section(s): Taxable (RPS Section 1).
    NOTE: These codes should not be used to identify property that is exempt under RPTL §458 (veterans exemption based on eligible funds or disability) or §458-a (alternative exemption for wartime veterans). For coding of such property, see the Exemption Profiles for each statute.

  7. FILING REQUIREMENTS (Owner or Occupant of Property):

    1.   All Veterans:

    Form RP-458-b  -- Application for Cold War Veterans Exemption from Real Property Taxation (see sample form and instructions following exemption profile).

    2.   Disabled Veterans:

    Form RP-458-b-Dis -- Renewal Application for Cold War Veterans Exemption from Real Property Taxation Based on Change in Service-Connected Disability Compensation Rating (see sample form following exemption profile).

    Notes:
    1. If more than one veteran owner of a single property applies for exemption under RPTL §458-b, each owner must file a separate application form.
    2. An applicant must refile on or before taxable status date if the disability percentage increases or decreases, or may refile if other changes have occurred which affect qualification for an increased or decreased amount of exemption.
       
  8. REPORTING REQUIREMENTS (Assessor): None.
     
  9. SIMILAR EXEMPTIONS:
    Subject Statute
    Veterans (alternative exemption for wartime veterans) RPTL §458-a
    Veterans (exemption based on eligible funds or disability) RPTL §458

NOTE: For further information, see Veterans' Exemptions Questions and Answers

Exemption Application Forms:

Forms RP-458-b
RP-458-b-I  RP-458-b-Dis

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