NY A02804

Creates a new real property tax exemption for reservists (members of federal reserve forces) and their spouses or unremarried surviving spouses on primary residences used exclusively for residential purposes.

Provides a 15% assessed value exemption (capped at $12,000 or the product of $12,000 multiplied by the latest state equalization rate), with additional exemptions for combat service (10% additional, capped at $8,000) and service-connected disabilities (50% of disability rating, capped at $40,000).

Exemption applies to county, city, town and village property taxes but excludes school taxes; local municipalities may reduce or increase maximum exemption amounts within specified ranges, with higher limits available for "high-appreciation municipalities."

Exemption continues in perpetuity after initial application unless disability rating changes or other qualifying circumstances change; applications for cities with population over one million are timely if filed by March 15.

Allows municipalities to optionally extend exemption eligibility to Gold Star Parents (parents of service members who died in combat during periods of war) and permits transfer and proration of exemptions when qualified owners sell and purchase replacement properties within the same municipality.