Bill S1001A-2013

Requires market-based assessments on real property owned or leased by a cooperative corporation or on a condominium basis

Requires market-based assessments of real property owned or leased by a cooperative corporation or on a condominium basis which is converted or constructed on or after January 1, 2016.

Details

Actions

  • Jan 17, 2014: PRINT NUMBER 1001A
  • Jan 17, 2014: AMEND AND RECOMMIT TO LOCAL GOVERNMENT
  • Jan 8, 2014: REFERRED TO LOCAL GOVERNMENT
  • Jan 9, 2013: REFERRED TO LOCAL GOVERNMENT

Memo

BILL NUMBER:S1001A

TITLE OF BILL: An act to amend the real property tax law and the real property law, in relation to the assessment of condominiums and cooperatives

PURPOSE: To allow municipal corporations to pass a local law or resolution that would make the provisions of paragraph (a) of subdivision 581 of subdivision 581 of the real property law not apply to real property, owned or leased by a cooperative corporation or on a condominium basis, that is converted or constructed on and after January 1, 2016

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, 2016 in any municipal corporation other than 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 cooperatives converted or constructed on and after January 1, 2016 in any municipal corporation, other than New York City and Nassau County.

EXISTING LAW:

Section 399-y of the Real Property Law, limits the assessments which can be placed on condominium units other than those classified in the homestead class in municipalities applying a dual tax rate. Section 581 of the RPTL limits the assessments which can be placed on condominium units, other than those classified in the homestead class, in municipalities applying dual tax rates, residential cooperatives and municipal dwellings, Chapter 293 of the laws of 1997 enables municipal corporations, other than New York City and Nassau County, to provide that "converted condominiums" (i.e., residential condominium units which have been converted to condominium ownership from conventional ownership) shall be assessed without regard to the assessment restrictions otherwise applicable to condominiums (RPTL, 581(1); Real Property Law, § 339-y(1)(f)). This is also allows local governments to decline to grant these benefits to converted condominiums, thereby removing the incentive to convert existing housing condominium ownership to reduce taxes. Preexisting condominiums are not affected by the changes made by chapter 293, which is similar to this proposal.

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: 2013: S. 1001 Referred to Local Government; A. 6268 Referred to real Property Taxation 2011-12 S. 133-A Referred to Local Government; A. 5339-A Referred to Real Property Taxation 2009-10: S. 255 Referred to Local Government; A. 5124 Held for consideration in 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, 2016.


Text

STATE OF NEW YORK ________________________________________________________________________ 1001--A 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 -- 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 assessment of condominiums and cooperatives 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 IN A MUNICIPAL CORPORATION, OTHER THAN A SPECIAL ASSESSING UNIT, TO A CONDOMINIUM OR COOPERATIVE UNIT UNLESS IT WAS SUBJECT TO THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVISION ON JANUARY FIRST, TWO THOUSAND SIXTEEN. 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 IN A MUNICIPAL CORPORATION, OTHER THAN A SPECIAL ASSESSING UNIT, TO A CONDOMINIUM UNIT UNLESS IT WAS SUBJECT TO THE PROVISIONS OF PARA- GRAPH (B) OF THIS SUBDIVISION ON JANUARY FIRST, TWO THOUSAND SIXTEEN. 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, 2016.

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