S133A-2011 Actions

• Jan 11, 2012: PRINT NUMBER 133A
• Jan 11, 2012: AMEND AND RECOMMIT TO LOCAL GOVERNMENT
• Jan 4, 2012: REFERRED TO LOCAL GOVERNMENT
• Jan 5, 2011: REFERRED TO LOCAL GOVERNMENT

S133A-2011 Memo

BILL NUMBER:S133a

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 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, 2013.

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 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, 2014 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:
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 table status dates occurring on or
after January 1, 2014.

S133A-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 133--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 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 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  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 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.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD00146-02-2

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