BILL NUMBER:S4585

TITLE OF BILL:

An act to amend the real property tax law, in relation to assessment
of residential real property catastrophically impacted by superstorm
Sandy

PURPOSE:

This bill would benefit owners of residential real property that
sustained 50% or greater damage in Hurricane Sandy, and when it is
rebuilt shall be assessed at its pre-Sandy market value.

SUMMARY OF PROVISIONS:

Section one of the bill amends section 305 of the Real Property Tax
Law by adding a new subdivision (4) which states that (4(b))
catastrophically impacted property, which is repaired, improved, or
reconstructed to repair damage caused by Superstorm Sandy and comply
with state and local building codes and height restrictions, shall be
assessed at the total assessed value thereof shall be a value which is
equal to the improved value of such real property prior to the damage
caused by Superstorm Sandy, and not the full value of such property.
Subdivision (4(a(i))) defines "Catastrophically impacted property" as
residential real property which lost fifty percent or more of its
              

improved value as a result of Superstorm Sandy.  (4(a(ii))) defines
"Improved value" as the market value of the real property excluding
the land. (4(a(iii))) defines "Superstorm Sandy" as the storms, rains,
winds, and floods which occurred during the period beginning on
October twenty-ninth, two thousand twelve and ending November third,
two thousand twelve. (4(a(iv))) defines "Total assessed value" as the
total assessed value of a parcel prior to any and all exemption
adjustments.

Section two of the bill would make the act effective immediately and
shall apply to tax rolls issued on or after such date.

JUSTIFICATION:

Superstorm Sandy was a storm of unprecedented strength and destruction
in New York State. For homes that were substantially damaged by Sandy
(more than 50% damaged) they are required to rebuild to conform with
the most recent building codes and height restrictions. Upon
completion, these homes will be considered "new construction" and thus
their property tax rate will be re-assessed, at the full value of the
home. This has the potential to create an immediate and rather
significant property tax increase on these homeowners who are only
trying to restore their homes and return to a sense of normalcy after
the storm.

This bill would hold steady the effective assessed value on these
homes as they stood pre-Sandy. In the City of New York the 6% tax cap
rate would apply in future years, in order to prevent an immediate and
unusual tax burden on the homeowners affected by Sandy.

LEGISLATIVE HISTORY:


01/21/14 REFERRED TO LOCAL GOVERNMENT:

FISCAL IMPLICATIONS:

None available.

EFFECTIVE DATE:

This act shall take effect immediately and shall apply to tax rolls
issued on or after such date.