Requires the establishment of a state commercial assessment ratio for counties.
TITLE OF BILL: An act to amend the real property tax law, in relation to creating a county commercial assessment ratio
PURPOSE: To establish a state commercial assessment ratio for major type B property for use in article 7 proceedings reviewing assessments of major type B commercial properties for counties.
SUMMARY OF PROVISIONS: This bill creates a new section of the RPTL by adding section 1215, which establishes a commercial assessment ratio for major type B commercial property and amends section 720 of the RPTL permitting its use in article 7 proceedings reviewing the assessments of major type B commercial property.
JUSTIFICATION: Many assessing units have experienced unprecedented appreciation in residential property values over the last few years while commercial property values have remained constant or have appreciated slightly. This appreciation in residential property values has caused the state equalization rates for these assessing units to drop drastically. Therefore, the current state equalization rate does not accurately reflect the changes in the values of commercial property. The annual establishment of state equalization rates alone in a rising residential market is creating artificial over-assessment of commercial property. This bill attempts to correct this by creating a commercial assessment ratio that counties can use.
LEGISLATIVE HISTORY: 2011-2012: S.6749 - Referred to Local Government
FISCAL IMPLICATIONS: Needs to be determined.
EFFECTIVE DATE: The act shall take effect immediately and apply beginning with the 2013 assessment rolls.
STATE OF NEW YORK ________________________________________________________________________ 2216 2013-2014 Regular Sessions IN SENATE January 14, 2013 ___________Introduced by Sen. CARLUCCI -- 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, in relation to creating a county commercial assessment ratio 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 1215 to read as follows: S 1215. ESTABLISHMENT OF A STATE COMMERCIAL ASSESSMENT RATIO FOR COUN- TIES. 1. FOR PURPOSES OF THIS SECTION: (A) "MARKET VALUE RATIO" MEANS THE RATIO OF ASSESSED VALUE TO FULL VALUE OF THE TAXABLE REAL PROPERTY ON A FINAL ASSESSMENT ROLL; (B) "MAJOR TYPE B" PROPERTY MEANS A GROUP OF TAXABLE PARCELS DESIG- NATED AS COMMERCIAL PROPERTY INCLUDING APARTMENTS, INDUSTRIAL PROPERTY, RECREATION AND ENTERTAINMENT PROPERTY, TAXABLE COMMUNITY SERVICES PROP- ERTY, AND PUBLIC SERVICES PROPERTY NOT CONTAINED WITH MAJOR TYPE D PROP- ERTY: EXCEPT IN A HOMESTEAD ASSESSING UNIT, MAJOR TYPE B PROPERTY ALSO INCLUDES RESIDENTIAL PROPERTY NOT IN MAJOR TYPE A; (C) "NON-REASSESSMENT MUNICIPALITY" MEANS ANY MUNICIPALITY THAT IS NOT DESIGNATED AS A REASSESSMENT MUNICIPALITY; (D) "MAJOR TYPE A" PROPERTY MEANS RESIDENTIAL REAL PROPERTY OTHER THAN APARTMENTS, EXCEPT THAT FOR A HOMESTEAD ASSESSING UNIT, MAJOR TYPE A DESIGNATES THE HOMESTEAD CLASS AS DEFINED IN SECTION NINETEEN HUNDRED ONE OF THIS CHAPTER; AND (E) "MAJOR TYPE D" DESIGNATES PUBLIC SERVICES UTILITY REAL PROPERTY, NOT INCLUDING CEILING RAILROAD AND SPECIAL FRANCHISE PROPERTY. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THERE SHALL BE ESTABLISHED A COMMERCIAL ASSESSMENT RATIO AS FOLLOWS: (A) UPON FINAL COMPLETION EACH YEAR OF THE ASSESSMENT ROLL OF EACH CITY, TOWN AND VILLAGE, THE COMMISSIONER SHALL ESTABLISH THE COMMERCIAL ASSESSMENT RATIO FOR SUCH CITY, TOWN OR VILLAGE PROVIDED THAT (I) THEEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05321-02-3 S. 2216 2
COMMISSIONER IS REQUIRED BY LAW TO ESTABLISH A STATE EQUALIZATION RATE FOR SUCH CITY, TOWN OR VILLAGE, AND HAS ESTABLISHED SUCH EQUALIZATION RATE, AND (II) THAT SUCH CITY, TOWN OR VILLAGE IS NOT A SPECIAL ASSESS- ING UNIT AS DEFINED IN SECTION EIGHTEEN HUNDRED ONE OF THIS CHAPTER, AND (III) THE CITY, TOWN OR VILLAGE IS NOT COMPLETING A REVALUATION OR UPDATE. IN THE CASE OF A CITY IN A COUNTY HAVING A COUNTY DEPARTMENT OF ASSESSMENT WITH THE POWER TO ASSESS REAL PROPERTY, THE COMMISSIONER ALSO SHALL ESTABLISH A COMMERCIAL ASSESSMENT RATIO FOR THAT PORTION OF THE COUNTY ROLL CONTAINING THE ASSESSMENTS OF TAXABLE REAL PROPERTY IN SUCH CITY. (B) SUCH COMMERCIAL ASSESSMENT RATIO SHALL BE THE MARKET VALUE RATIO FOR MAJOR TYPE B PROPERTY FOR NON-REASSESSMENT MUNICIPALITIES ESTAB- LISHED PURSUANT TO THE RULES, REGULATIONS AND PROCEDURES PROMULGATED BY THE COMMISSIONER FOR THE ESTABLISHMENT OF STATE EQUALIZATION RATES. 3. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY ASSESSING UNIT UNLESS THE COUNTY IN WHICH SUCH ASSESSING UNIT IS LOCATED ADOPTS SUCH PROVISIONS THROUGH LOCAL LAW OR RESOLUTION. S 2. Subparagraph 3 of paragraph (b) of subdivision 3 of section 720 of the real property tax law is amended by adding a new clause (e) to read as follows: (E) ALL ASSESSING UNITS, OTHER THAN SPECIAL ASSESSING UNITS AS DEFINED IN SECTION EIGHTEEN HUNDRED ONE OF THIS CHAPTER, AND UPON THE REVIEW OF AN ASSESSMENT OF MAJOR TYPE B PROPERTY AS DEFINED IN SECTION TWELVE HUNDRED FIFTEEN OF THIS CHAPTER, THE COMMERCIAL ASSESSMENT RATIO ESTAB- LISHED FOR THE ROLL CONTAINING THE ASSESSMENT UNDER REVIEW. S 3. This act shall take effect immediately and shall apply beginning with the 2013 assessment roll.