Bill S4998A-2015

Relates to a partial abatement of real property taxes for condominiums and cooperatives in a city having a population of one million or more

Relates to a partial abatement of real property taxes for condominiums and cooperatives in a city having a population of one million or more; establishes when partial abatements are available for calendar years 2015-2019.

Details

Actions

  • May 19, 2015: PRINT NUMBER 4998A
  • May 19, 2015: AMEND AND RECOMMIT TO CITIES
  • Apr 28, 2015: REFERRED TO CITIES

Memo

BILL NUMBER:S4998A

TITLE OF BILL:

An act to amend the real property tax law, in relation to a partial abatement of real property taxes for condominiums and cooperatives in a city having a population of one million or more

PURPOSE:

To extend for five years a real property tax abatement program for cooperative and condominium units in cities of one million or more, to address the inequitable tax treatment of co op and condo owners.

SUMMARY OF PROVISIONS:

Extends the abatement program for five additional years (for FY commencing 2015, 2016, 2017, 2018, 2019). Paragraphs d-1 through d-4 provide the benefit schedule for dwelling units that serve as the primary residence of their unit owner and up to two additional units located within the same property that are also owned by such owner.

The benefits are as follows:

o For fiscal years commencing in 2015, 2016, 2017, 2018, 2019, dwelling units in property whose average unit assessed value is less than or equal to $50,000 shall receive a partial abatement of 28.1%.

o In fiscal years commencing in 2015, 2016, 2017, 2018, 2019, dwelling units in property whose average unit assessed value is more than $50,000, but less than or equal to $55,000, shall receive a partial abatement 25.2%

o In fiscal years commencing in 2015,2016,2017,2018,2019 dwelling units in property whose average unit assessed value is more than $55,000, but less than or equal to $60,000, shall receive a partial abatement of 22.5%.

o In fiscal years commencing in 2015, 2016, 2017, 2018, 2019, dwelling units in property whose average unit assessed value is more than $60,000, shall receive a partial abatement of 17.5%

JUSTIFICATION:

It is well established that the real property tax system in New York City burdens owners of co-op and condominium units with significantly larger tax bills than the owners of comparably valued one-, two- and three-family homes. Recognizing this inequity, New York State authorized and the City of New York implemented -- a partial property tax abatement program for co-op and condo owner's since 1996. which was extended through 2014. While the abatement is no substitute for the long-overdue reform of tax policy to correct this inequity, extending the current abatement program will at least continue the current level of relief for hundreds of thousands of New York City co-op and condo owners.

LEGISLATIVE HISTORY:

Similar legislation has been adopted since 1996, most recently S.7091 in 2012

FISCAL IMPLICATIONS:

None to the state

EFFECTIVE DATE:

Immediately


Text

STATE OF NEW YORK ________________________________________________________________________ 4998--A 2015-2016 Regular Sessions IN SENATE April 28, 2015 ___________
Introduced by Sens. GOLDEN, KRUEGER -- read twice and ordered printed, and when printed to be committed to the Committee on Cities -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted to said committee AN ACT to amend the real property tax law, in relation to a partial abatement of real property taxes for condominiums and cooperatives in a city having a population of one million or more THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraphs (a) and (b) of subdivision 2 of section 467-a of the real property tax law, as amended by chapter 4 of the laws of 2013, are amended to read as follows: (a) In a city having a population of one million or more, dwelling units owned by unit owners who, as of the applicable taxable status date, own no more than three dwelling units in any one property held in the condominium form of ownership, shall be eligible to receive a partial abatement of real property taxes, as set forth in paragraphs (c), (d), (d-1), (d-2), (d-3), (d-4), (d-5) and (d-6) of this subdivi- sion; provided, however, that a property held in the condominium form of ownership that is receiving complete or partial real property tax exemption or tax abatement pursuant to any other provision of this chap- ter or any other state or local law, except as provided in paragraph (f) of this subdivision, shall not be eligible to receive a partial abate- ment pursuant to this section; and provided, further, that sponsors shall not be eligible to receive a partial abatement pursuant to this section; and provided, further, that in the fiscal [year] YEARS commenc- ing in calendar years two thousand twelve, two thousand thirteen, [or] two thousand fourteen, TWO THOUSAND FIFTEEN, TWO THOUSAND SIXTEEN, TWO THOUSAND SEVENTEEN, TWO THOUSAND EIGHTEEN OR TWO THOUSAND NINETEEN, no more than a maximum of three dwelling units owned by any unit owner in a single building, one of which must be the primary residence of such unit
owner, shall be eligible to receive a partial abatement pursuant to paragraphs (d-1), (d-2), (d-3) and (d-4) of this [section] SUBDIVISION. (b) In a city having a population of one million or more, dwelling units owned by tenant-stockholders who, as of the applicable taxable status date, own no more than three dwelling units in any one property held in the cooperative form of ownership, shall be eligible to receive a partial abatement of real property taxes, as set forth in paragraphs (c), (d), (d-1), (d-2), (d-3), (d-4), (d-5) and (d-6) of this subdivi- sion; provided, however, that a property held in the cooperative form of ownership that is receiving complete or partial real property tax exemption or tax abatement pursuant to any other provision of this chap- ter or any other state or local law, except as provided in paragraph (f) of this subdivision, shall not be eligible to receive a partial abate- ment pursuant to this section; and provided, further, that sponsors shall not be eligible to receive a partial abatement pursuant to this section; and provided, further, that in the fiscal [year] YEARS commenc- ing in calendar years two thousand twelve, two thousand thirteen [or] two thousand fourteen, TWO THOUSAND FIFTEEN, TWO THOUSAND SIXTEEN, TWO THOUSAND SEVENTEEN, TWO THOUSAND EIGHTEEN OR TWO THOUSAND NINETEEN, no more than a maximum of three dwelling units owned by any tenant-stock- holder in a single building, one of which must be the primary residence of such tenant-stockholder, shall be eligible to receive a partial abatement pursuant to paragraphs (d-1), (d-2), (d-3) and (d-4) of this [section] SUBDIVISION. For purposes of this section, a tenant-stock- holder of a cooperative apartment corporation shall be deemed to own the dwelling unit which is represented by his or her shares of stock in such corporation. Any abatement so granted shall be credited by the appropri- ate taxing authority against the tax due on the property as a whole. The reduction in real property taxes received thereby shall be credited by the cooperative apartment corporation against the amount of such taxes attributable to eligible dwelling units at the time of receipt. S 2. Paragraphs (d-1), (d-2), (d-3) and (d-4) of subdivision 2 of section 467-a of the real property tax law, as added by chapter 4 of the laws of 2013, are amended to read as follows: (d-1) In the fiscal years commencing in calendar [year] YEARS two thousand twelve, two thousand thirteen and two thousand fourteen, eligi- ble dwelling units in property whose average unit assessed value is less than or equal to fifty thousand dollars shall receive a partial abate- ment of the real property taxes attributable to or due on such dwelling units of twenty-five percent, twenty-six and one-half percent and twen- ty-eight and one-tenth percent respectively. IN THE FISCAL YEARS COMMENCING IN CALENDAR YEARS TWO THOUSAND FIFTEEN, TWO THOUSAND SIXTEEN, TWO THOUSAND SEVENTEEN, TWO THOUSAND EIGHTEEN AND TWO THOUSAND NINETEEN, ELIGIBLE DWELLING UNITS IN PROPERTY WHOSE AVERAGE UNIT ASSESSED VALUE IS LESS THAN OR EQUAL TO FIFTY THOUSAND DOLLARS SHALL RECEIVE A PARTIAL ABATEMENT OF THE REAL PROPERTY TAXES ATTRIBUTABLE TO OR DUE ON SUCH DWELLING UNITS OF TWENTY-EIGHT AND ONE-TENTH PERCENT. (d-2) In the fiscal years commencing in calendar [year] YEARS two thousand twelve, two thousand thirteen and two thousand fourteen, eligi- ble dwelling units in property whose average unit assessed value is more than fifty thousand dollars, but less than or equal to fifty-five thou- sand dollars, shall receive a partial abatement of the real property taxes attributable to or due on such dwelling units of twenty-two and one-half percent, twenty-three and eight-tenths percent and twenty-five and two-tenths percent respectively. IN THE FISCAL YEARS COMMENCING IN CALENDAR YEARS TWO THOUSAND FIFTEEN, TWO THOUSAND SIXTEEN, TWO THOUSAND
SEVENTEEN, TWO THOUSAND EIGHTEEN AND TWO THOUSAND NINETEEN, ELIGIBLE DWELLING UNITS IN PROPERTY WHOSE AVERAGE UNIT ASSESSED VALUE IS LESS THAN OR EQUAL TO FIFTY THOUSAND DOLLARS SHALL RECEIVE A PARTIAL ABATE- MENT OF THE REAL PROPERTY TAXES ATTRIBUTABLE TO OR DUE ON SUCH DWELLING UNITS OF TWENTY-FIVE AND TWO-TENTHS PERCENT. (d-3) In the fiscal years commencing in calendar [year] YEARS two thousand twelve, two thousand thirteen and two thousand fourteen, eligi- ble dwelling units in property whose average unit assessed value is more than fifty-five thousand dollars, but less than or equal to sixty thou- sand dollars, shall receive a partial abatement of the real property taxes attributable to or due on such dwelling units of twenty percent, twenty-one and two-tenths percent, and twenty-two and five-tenths percent respectively. IN THE FISCAL YEARS COMMENCING IN CALENDAR YEARS TWO THOUSAND FIFTEEN, TWO THOUSAND SIXTEEN, TWO THOUSAND SEVENTEEN, TWO THOUSAND EIGHTEEN AND TWO THOUSAND NINETEEN, ELIGIBLE DWELLING UNITS IN PROPERTY WHOSE AVERAGE UNIT ASSESSED VALUE IS LESS THAN OR EQUAL TO FIFTY THOUSAND DOLLARS SHALL RECEIVE A PARTIAL ABATEMENT OF THE REAL PROPERTY TAXES ATTRIBUTABLE TO OR DUE ON SUCH DWELLING UNITS OF TWENTY- TWO AND FIVE-TENTHS PERCENT. (d-4) In the fiscal years commencing in calendar [year] YEARS two thousand twelve, two thousand thirteen and two thousand fourteen, TWO THOUSAND FIFTEEN, TWO THOUSAND SIXTEEN, TWO THOUSAND SEVENTEEN, TWO THOUSAND EIGHTEEN, AND TWO THOUSAND NINETEEN, eligible dwelling units in property whose average unit assessed value is more than sixty thousand dollars shall receive a partial abatement of the real property taxes attributable to or due on such dwelling units of seventeen and one-half percent. S 3. Paragraphs (a), (b) and (c) of subdivision 3 of section 467-a of the real property tax law, as amended by chapter 4 of the laws of 2013, are amended to read as follows: (a) An application for an abatement pursuant to this section for the fiscal year commencing in calendar year nineteen hundred ninety-six shall be made no later than the fifteenth day of September, nineteen hundred ninety-six. An application for an abatement pursuant to this section for the fiscal year commencing in calendar year nineteen hundred ninety-seven shall be made no later than the first day of April, nine- teen hundred ninety-seven. An application for an abatement pursuant to this section for the fiscal year commencing in calendar year nineteen hundred ninety-eight shall be made no later than the first day of April, nineteen hundred ninety-eight. An application for an abatement pursuant to this section for the fiscal year commencing in calendar year nineteen hundred ninety-nine shall be made in accordance with this subdivision and subdivision three-a of this section. An application for an abatement pursuant to this section for the fiscal year commencing in calendar year two thousand shall be made no later than the fifteenth day of February, two thousand. An application for an abatement pursuant to this section for the fiscal year commencing in calendar year two thousand one shall be made in accordance with this subdivision and subdivision three-b of this section. An application for an abatement pursuant to this section for the fiscal year commencing in calendar year two thousand two shall be made no later than the fifteenth day of February, two thousand two. An application for an abatement pursuant to this section for the fiscal year commencing in calendar year two thousand three shall be made no later than the fifteenth day of February, two thousand three. An appli- cation for an abatement pursuant to this section for the fiscal year commencing in calendar year two thousand four shall be made in accord-
ance with this subdivision and subdivision three-c of this section. An application for an abatement pursuant to this section for the fiscal year commencing in calendar year two thousand five shall be made no later than the fifteenth day of February, two thousand five. An applica- tion for an abatement pursuant to this section for the fiscal year commencing in calendar year two thousand six shall be made no later than the fifteenth day of February, two thousand six. An application for an abatement pursuant to this section for the fiscal year commencing in calendar year two thousand seven shall be made no later than the fifteenth day of February, two thousand seven. An application for abate- ment pursuant to this section for the fiscal year commencing in calendar year two thousand eight shall be made in accordance with this subdivi- sion and subdivision three-d of this section. An application for an abatement pursuant to this section for the fiscal year commencing in calendar year two thousand nine shall be made no later than the fifteenth day of February, two thousand nine. An application for an abatement pursuant to this section for the fiscal year commencing in calendar year two thousand ten shall be made no later than the fifteenth day of February, two thousand ten. An application for an abatement pursuant to this section for the fiscal year commencing in calendar year two thousand eleven shall be made no later than the fifteenth day of February, two thousand eleven. An application for an abatement pursuant to this section for the fiscal years commencing in calendar years two thousand twelve and two thousand thirteen shall be made in accordance with subdivision three-e of this section. The date or dates by which applications for an abatement pursuant to this section shall be made for the fiscal year beginning in calendar year two thousand fourteen shall be established by the commissioner of finance by rule, provided that such date or dates shall not be later than the fifteenth day of February for such calendar year. APPLICATIONS FOR AN ABATEMENT PURSUANT TO THIS SECTION FOR THE FISCAL YEARS COMMENCING IN CALENDAR YEARS TWO THOUSAND FIFTEEN, TWO THOUSAND SIXTEEN AND TWO THOUSAND SEVENTEEN SHALL BE MADE NO LATER THAN THE FIFTEENTH DAY OF MARCH FOR EACH RESPECTIVE CALENDAR YEAR. (b) (I) An application for an abatement pursuant to this section shall be submitted to the commissioner of finance by the board of managers of a condominium or the board of directors of a cooperative apartment corporation, provided that the commissioner of finance may by rule require the owner of a dwelling unit to submit an application to supple- ment information contained in the application submitted by the board of managers of a condominium or the board of directors of a cooperative apartment corporation and may by rule apply and adjust, as appropriate, any provisions of this section that relate to applications submitted by such boards to applications submitted by such owners. (II) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH OR ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER OF FINANCE MAY BY RULE REQUIRE THAT APPLICATIONS BE SUBMITTED BY DWELLING UNIT OWNERS INSTEAD OF, OR IN ADDITION TO, THOSE SUBMITTED BY THE BOARD OF MANAGERS OF A CONDOMINIUM OR THE BOARD OF DIRECTORS OF A COOPERATIVE APARTMENT CORPORATION FOR APPLICATIONS FOR FISCAL YEARS COMMENCING IN CALENDAR YEAR TWO THOUSAND FIFTEEN OR LATER. (c) (I) No abatement pursuant to this section shall be granted unless the applicant files an application for an abatement within the time periods prescribed in paragraph (a) of this subdivision or subdivision three-a, three-b, three-c, three-d or three-e of this section, provided,
however, that the commissioner of finance may, for good cause shown, extend the time for filing an application. (II) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH OR ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER OF FINANCE MAY PROVIDE BY RULE THAT APPLICATIONS ARE NOT REQUIRED TO BE FILED ON AN ANNUAL BASIS. S 4. This act shall take effect immediately.

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