S7832-2011 Actions

• Aug 8, 2012: REFERRED TO RULES

S7832-2011 Memo

BILL NUMBER:S7832

TITLE OF BILL:
An act to amend the real property tax law, in relation to providing
certain real property a 15% tax exemption

PURPOSE:
To provide a 15% real property tax exemption for certain real property
where the tax classification resulted in a 25-40% higher tax
assessment.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the real property tax law to add a new section 421-n
to create an exemption certain residential property from local
taxation for real property held in condominium form of ownership that
satisfies the elements of article nine-b, but for the failure of the
developer or owner to file a separate assessment application.

The exemption from local taxation shall apply to county, city, school,
town and village taxation.

The application for exemption must be filed by all owners of the real
property and provided all criteria are met, the exemption shall
continue in full force for all subsequent, tax years with no need to
re-file.

The local legislative body has the authority to adopt a law allowing
for the exemption and to repeal up to 90 days prior to the taxable
status date of the municipality.

Section 2 is the effective date.

JUSTIFICATION:
New York State patio home communities are classified as either single
family homes or condominiums. In accordance with the real property tax
law 339Y, the developer requests the tax classification from the state
prior to the start of construction. Property taxes for the two
different classifications are significantly different. The single
family home property assessment value is based on a percentage of the
fair market value of the home. The condo property assessment is based
on a percentage of rental income the home could generate. This
classification difference results in a 25-40% tax discrepancy-between
the two identical homes. To create taxation equity between these
identical homes, this legislation allows the local body the authority
to offer a 15% tax exemption to these homes that did not receive the
discounted tax classification. The legislation also allows the
locality to terminate the 15% exemption if necessary.

LEGISLATIVE HISTORY:
New Legislation.

FISCAL IMPLICATION:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately.

S7832-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         7832
 I N  SENATE
 August 8, 2012
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
 printed to be committed to the Committee on Rules
 

AN ACT to amend the real property tax  law,  in  relation  to  providing
 certain real property a 15% tax exemption
 

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

 

Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 421-n to read as follows:

 

S  421-N.  EXEMPTION  OF CERTAIN RESIDENTIAL PROPERTY FROM LOCAL TAXA
 TION. 1. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL
 LAW TO THE CONTRARY, THE LOCAL LEGISLATIVE BODY OF  ANY  CITY,  TOWN  OR
 VILLAGE  IS  HEREBY  AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND A LOCAL
 LAW TO PROVIDE THAT REAL PROPERTY:

 (A) HELD IN CONDOMINIUM FORM OF OWNERSHIP;
 (B) THAT OTHERWISE SATISFIES THE PROVISIONS AND COMMON ELEMENTS ESTAB
 LISHED BY ARTICLE NINE-B OF THE REAL PROPERTY LAW FOR  CLASSIFYING  REAL
 PROPERTY AS A CONDOMINIUM; AND
 (C) BUT FOR THE FAILURE OF THE DEVELOPER OR OWNER OF SUCH REAL PROPER
 TY  TO  FILE  THE  NECESSARY APPLICATION REQUIRED TO OBTAIN THE SEPARATE
 ASSESSMENT AND TAXATION PROVIDED IN SECTION THREE HUNDRED  THIRTY-NINE-Y
 OF THE REAL PROPERTY LAW, MAY HAVE BEEN ELIGIBLE FOR SUCH ASSESSMENT AND
 TAXATION, SHALL BE EXEMPT FROM TAXATION TO THE EXTENT OF FIFTEEN PERCENT
 OF THE ASSESSED VALUE OF SUCH PROPERTY.
 2.  THE  EXEMPTION  FROM  TAXATION  PROVIDED  BY THIS SECTION SHALL BE
 APPLICABLE TO COUNTY, CITY, SCHOOL, TOWN AND VILLAGE TAXATION.
 3. APPLICATION FOR EXEMPTION MUST BE MADE BY THE OWNER, OR ALL OF  THE
 OWNERS,  OF  SUCH  PROPERTY  ON A FORM PRESCRIBED BY THE COMMISSIONER OF
 TAXATION AND FINANCE. THE OWNER OR OWNERS SHALL FILE THE COMPLETED  FORM
 IN  THE  ASSESSOR'S  OFFICE ON OR BEFORE THE APPROPRIATE TAXABLE  STATUS
 DATE. PROVIDED THAT ALL ELIGIBILITY CRITERIA OF THIS  SECTION  ARE  MET,
 THE  EXEMPTION SHALL CONTINUE IN FULL FORCE AND EFFECT FOR ALL APPROPRI
 ATE SUBSEQUENT TAX YEARS AND THE OWNER OR OWNERS OF THE  PROPERTY  SHALL
 NOT BE REQUIRED TO RE-FILE EACH YEAR.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD15196-01-2
 
       S. 7832                             2
 4. A LOCAL LAW ADOPTED PURSUANT TO THIS SUBDIVISION MAY BE REPEALED BY
 THE  GOVERNING  BOARD  OF  THE APPLICABLE COUNTY, CITY, TOWN OR VILLAGE.
 SUCH REPEAL SHALL OCCUR AT LEAST NINETY DAYS PRIOR TO THE TAXABLE STATUS
 DATE OF SUCH COUNTY, CITY, TOWN OR VILLAGE.
 5.  NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION, NO LATER
 THAN NINETY DAYS BEFORE THE TAXABLE  STATUS  DATE  NEXT  OCCURRING,  THE
 GOVERNING  BOARD  OF ANY COUNTY, CITY, TOWN OR VILLAGE MAY ADOPT A LOCAL
 LAW TO PROVIDE THAT NO EXEMPTION  SHALL  BE  GRANTED  PURSUANT  TO  THIS
 SECTION  FOR  THE PURPOSE OF TAXES LEVIED FOR SUCH COUNTY, CITY, TOWN OR
 VILLAGE.
 

S 2. This act shall take effect immediately.

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