March 3, 2026

New York bill would expand property tax exemption for combat zone service members

Proposed legislation would allow municipalities to grant up to a 25% property tax exemption to eligible combat zone veterans and active-duty personnel.

New York – State Sen. Jessica Scarcella-Spanton has introduced Senate Bill S08790, which would authorize local governments to offer a real property tax exemption for certain armed forces members who served in a combat zone.

The bill amends Section 458-d of the Real Property Tax Law and modifies language approved in 2025 under related legislation.

Who qualifies?

Under S08790, a “qualified owner” would be defined as:

A member of the armed forces
Who served on active duty in a combat zone
At any time during the calendar year immediately preceding the applicable taxable status date
With service documented by military orders or a certified letter from a commanding officer

The measure clarifies definitions of “active duty” and “armed forces” by referencing federal law under Title 10 of the United States Code. It also includes the Army and Air National Guard and the New York Naval Militia.

Property owners already receiving exemptions under Sections 458, 458-a, or 458-b of the Real Property Tax Law would not be eligible for this exemption on the same assessment roll.

How much is the exemption?

If adopted locally, municipalities could provide an exemption of:

Up to 25% of the assessed value of qualifying residential property
Capped at $20,000
Or $20,000 multiplied by the latest state equalization rate (or class ratio in special assessing units), whichever is less

The exemption would apply only to county, city, town, or village taxes — not school taxes.

Property requirements

The exemption would apply only to:

Residential property
Used exclusively as the qualified owner’s primary residence

If a portion of the property is used for non-residential purposes, that portion would remain taxable.

Applicants would be required to file annually with the local assessor using a form prescribed by the commissioner. False statements would be subject to penalties under state law.

Local option measure

The bill does not mandate the exemption statewide. Instead, counties, cities, towns, and villages would need to adopt a local law or resolution to implement it. Municipalities would also retain the authority to repeal the exemption, provided repeal occurs at least 90 days before the taxable status date.

The legislation would take effect concurrently with the previously enacted 2025 law referenced in the bill text.