This bill has been amended

Bill S1000-2013

Relates to the taxation of property owned by a cooperative corporation

Relates to the taxation of property owned by a cooperative corporation.

Details

Actions

  • Jan 8, 2014: REFERRED TO LOCAL GOVERNMENT
  • Jan 9, 2013: REFERRED TO LOCAL GOVERNMENT

Memo

BILL NUMBER:S1000

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 339-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,

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

FISCAL IMPLICATIONS: To be determined

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, 2015.


Text

STATE OF NEW YORK ________________________________________________________________________ 1000 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. LITTLE -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government 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 FIFTEEN. 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 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 FIFTEEN. 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, 2015.

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