S546A-2011 Actions

• Jan 11, 2012: PRINT NUMBER 546A
• Jan 11, 2012: AMEND AND RECOMMIT TO LOCAL GOVERNMENT
• Jan 4, 2012: REFERRED TO LOCAL GOVERNMENT
• Jan 5, 2011: REFERRED TO LOCAL GOVERNMENT

S546A-2011 Memo

BILL NUMBER:S546A

TITLE OF BILL:
An act
to amend the real property tax law and the real property law, in
relation to the taxation of property owned by a cooperative corporation

PURPOSE:
To allow a municipal corporation to pass a local law or resolution
that would make the provisions of paragraph (a) of subdivision 581 of
the real property tax law not apply to real property, owned or leased
by a cooperative corporation on a condominium basis, that is
converted or constructed on and after January 1, 2014.

SUMMARY OF PROVISIONS:
Section 1 adds paragraph (d) to section 581 of the real property tax
law, allowing municipal corporations to remove the limitations in
that section on assessments on condominiums and cooperatives
converted or constructed on and after January 1, 2014 in all municipal
corporations, except New York City and Nassau County.

Section 2 adds paragraph (g) to section 399-y of the real property law
allowing municipal corporations to remove the limitations in that
section on assessments on condominiums and cooperative converted or
constructed on and after January 1, 2014 in any municipal corporations
except New York City and Nassau County.

Section 3 - Effective date.

JUSTIFICATION:
As currently written, the real property tax law and real property law
does not allow the sum of the assessments of individual cooperative
or condominium units to exceed the value of the entire complex if it
was valued as a single entity. The restriction tends to reduce
condominium and cooperative assessments by preventing the use of
sales of units in the assessment process.
The Office of Real Property Services, assessors and other local
officials generally consider the restrictions an unreasonable state
mandate which unfairly limits the revenue-raising abilities of local
governments. Assessors and appraisers also Cite the difficulties they
encounter when they are forced to ignore market information--usually
the best indicator of value--in developing
estimates of taxable value. This bill would allow municipal
corporations to value newly constructed and converted cooperative and
condominium units as they would other real property to alleviate any
negative impacts placed on the locality by the current statute.

LEGISLATIVE HISTORY:
2011:    S.546 Referred to Local Governments; A.4981 Ways & Means
2009-10: S.255 Referred to Local Government; A.5724 Ways & Means
2008:    S.7727 3rd Reading: A.10730 Ways & Means

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to assessment
rolls prepared on the basis of taxable status dates occurring on or
after January 1, 2014.

S546A-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                   546--A

                         2011-2012 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 5, 2011
                                 ___________

  Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
    printed to be committed to the Committee on Local Government -- recom-
    mitted to the Committee on Local Government in accordance with  Senate
    Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
    reprinted as amended and recommitted to said committee

  AN ACT to amend the real property tax law and the real property law,  in
    relation  to  the  taxation  of property owned by a cooperative corpo-
    ration

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  Subdivision 1 of section 581 of the real property tax law
  is amended by adding a new paragraph (d) to read as follows:

    (D) THE PROVISIONS OF PARAGRAPH (A)  OF  THIS  SUBDIVISION  SHALL  NOT
  APPLY  TO  REAL PROPERTY OWNED OR LEASED BY A COOPERATIVE CORPORATION OR
  ON A CONDOMINIUM BASIS IN A MUNICIPAL CORPORATION, OTHER THAN A  SPECIAL
  ASSESSING  UNIT,  WHICH HAS ADOPTED, PRIOR TO THE TAXABLE STATUS DATE OF
  THE ASSESSMENT ROLL UPON WHICH ITS TAXES WILL BE LEVIED, A LOCAL LAW OR,
  FOR A SCHOOL DISTRICT, A RESOLUTION PROVIDING  THAT  THE  PROVISIONS  OF
  PARAGRAPH  (A) OF THIS SUBDIVISION SHALL NOT APPLY TO SUCH REAL PROPERTY
  WITHIN THAT MUNICIPAL CORPORATION; PROVIDED, HOWEVER, THE PROVISIONS  OF
  THIS  PARAGRAPH  SHALL  NOT  APPLY TO REAL PROPERTY OWNED OR LEASED BY A
  COOPERATIVE CORPORATION OR ON A CONDOMINIUM BASIS THAT HAD  BEEN  PREVI-
  OUSLY  SUBJECT  TO  THE  PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVISION
  PRIOR TO JANUARY FIRST, TWO THOUSAND FOURTEEN.
    S 2. Subdivision 1 of section  339-y  of  the  real  property  law  is
  amended by adding a new paragraph (g) to read as follows:

    (G)  THE  PROVISIONS  OF  PARAGRAPH  (B) OF THIS SUBDIVISION SHALL NOT
  APPLY TO REAL PROPERTY OWNED OR LEASED BY A COOPERATIVE  CORPORATION  OR
  ON  A  CONDOMINIUM BASIS IN A MUNICIPAL CORPORATION OTHER THAN A SPECIAL
  ASSESSING UNIT, WHICH HAS ADOPTED, PRIOR TO THE TAXABLE STATUS  DATE  OF

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD00144-02-2

 S. 546--A                           2

  THE ASSESSMENT ROLL UPON WHICH ITS TAXES WILL BE LEVIED, A LOCAL LAW OR,
  FOR  A  SCHOOL  DISTRICT,  A RESOLUTION PROVIDING THAT THE PROVISIONS OF
  PARAGRAPH (B) OF THIS SUBDIVISION SHALL NOT APPLY TO SUCH REAL  PROPERTY
  WITHIN  THAT MUNICIPAL CORPORATION; PROVIDED, HOWEVER, THE PROVISIONS OF
  THIS PARAGRAPH SHALL NOT APPLY TO REAL PROPERTY OWNED  OR  LEASED  BY  A
  COOPERATIVE  CORPORATION  OR ON A CONDOMINIUM BASIS THAT HAD BEEN PREVI-
  OUSLY SUBJECT TO THE PROVISIONS OF PARAGRAPH  (B)  OF  THIS  SUBDIVISION
  PRIOR TO JANUARY FIRST, TWO THOUSAND FOURTEEN.
    S 3. This act shall take effect immediately and shall apply to assess-
  ment rolls prepared on the basis of taxable status dates occurring on or
  after January 1, 2014.