Relates to the eligibility of J-51 tax abatements to reflect cost of living adjustments.
TITLE OF BILL: An act to amend the real property tax law, in relation to the eligibility for J-51 tax abatements to reflect cost of living adjustments
PURPOSE OR GENERAL IDEA OF BILL: To adjust the J-51 tax abatement minimum assessed property value eligibility to reflect yearly changes in cost of living.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Amends Subdivision 17 of section 489 of the real property tax law regarding eligibility for benefits of subdivision 17. In this subdivision, cooperatively owned buildings or condominiums whose value exceeds the assessed valuation limitation specified in subdivision 17, paragraph (c) shall only be eligible for the benefits of subdivision 17 if alterations or improvements for which the dwelling, building, or structure that applied for the benefits, were carried out with substantial government assistance.
Subdivision 17, paragraph (c) assessed value limitation: for the final assessment rolls completed prior to 2015, the assessed value limitation shall be $30,000.
For the final assessment roil to be completed in 2015, the assessed value limitation shall be the previously applicable limitation -$30,000 - increased by the cost-of-living adjustment percentage of 2015.
The cost-of-living adjustment percentage shall be equal to the "applicable increase percentage" used by the US Commissioner of Social Security to determine the monthly social security benefits paid to individuals in 2015.
For every year after 2015, the applicable assessed value limitation, cost-of-living adjustment percentage and applicable increase percentage shall all be advanced by one year, and the assessed valuation limitation shall be the previously applicable limitation, increased by the new cost-of-living adjustment percentage.
If there is no applicable increase because the general benefit has increased as defined by 42 U.S.C. 415(i), then the applicable increase percentage will be the percentage which would have yielded that general benefit increase.
Section 2 contains the effective date.
JUSTIFICATION: The J-51 tax abatement is a property tax exemption and abatement received by buildings for renovating a residential apartment building. Since 1992, co-op units and condos that had an assessed value less than $40,000 were eligible to receive this abatement. However, in 2013, the eligibility cap was reduced to units that have an assessed value of less than $30,000. As a result of this change, fewer middle-income co-ops and condo owners are eligible for these abatements.
This bill would increase the J-51 tax abatement cap yearly to reflect adjustments in the cost of living, as set by the U.S. commissioner of social security in determining monthly benefits. Therefore, the abatement cap would be indexed for inflation and will consistently accommodate middle income co-op and condo owners.
PRIOR LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE:; This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6362 IN SENATE January 21, 2014 ___________Introduced by Sen. AVELLA -- 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 the eligibil- ity for J-51 tax abatements to reflect cost of living adjustments THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 17 of section 489 of the real property tax law, as added by chapter 4 of the laws of 2013, is amended to read as follows: 17. (a) For purposes of this subdivision, "substantial governmental assistance" shall mean: (i) grants, loans or subsidies from any federal, state or local agency or instrumentality in furtherance of a program for the development of affordable housing approved by the local housing agency, including, without limitation, financing or insurance provided by the state of New York mortgage agency of the New York city residential mortgage insurance corporation; or (ii) a written agreement between a housing development fund corpo- ration and the local housing agency limiting the incomes of persons entitled to purchase shares or rent housing accommodations therein. (b) Any local law or ordinance providing for benefits pursuant to this section must also provide the following with respect to conversions, alterations or improvements completed on or after December thirty-first, two thousand eleven: (i) except as otherwise provided in this section with respect to multiple dwellings, buildings and structures owned and operated either by limited-profit housing companies established pursuant to article two of the private housing finance law or redevelopment companies estab- lished pursuant to article five of the private housing finance law, or with respect to a group of multiple dwellings that was developed as a planned community and that is owned as two separate condominiums containing a total of ten thousand or more dwelling units, any multiple dwelling, building or structure that is owned as a cooperative or a condominium that has an average assessed value
[of thirty thousandper dwelling unit THAT EXCEEDS THE ASSESSED VALUATION LIMITATION AS PROVIDED IN PARAGRAPH (C) OF THIS SUBDIVISION shall only be eligible for such benefits if the alterations or improvements for which such multiple dwelling, building or structure has applied for the benefits pursuant to this section were carried out with substantial governmental assistance; and (ii) no benefits pursuant to this section shall be granted for the conversion of any non-residential building or structure into a class A multiple dwelling unless such conversion was carried out with substan- tial governmental assistance. (C) ASSESSED VALUE LIMITATION. (I) FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED PRIOR TO TWO THOUSAND FIFTEEN, THE ASSESSED VALUE LIMITATION SHALL BE THIRTY THOUSAND DOLLARS. (II) FOR THE FINAL ASSESSMENT ROLL TO BE COMPLETED IN TWO THOUSAND FIFTEEN THE ASSESSED VALUE LIMITATION SHALL BE THE PREVIOUSLY APPLICABLE ASSESSED VALUE LIMITATION OF THIRTY THOUSAND DOLLARS INCREASED BY THE COST-OF-LIVING ADJUSTMENT PERCENTAGE OF TWO THOUSAND FIFTEEN. FOR THE PURPOSES OF THIS COMPUTATION, THE COST-OF-LIVING ADJUSTMENT PERCENTAGE OF TWO THOUSAND FIFTEEN SHALL BE EQUAL TO THE "APPLICABLE INCREASE PERCENTAGE" USED BY THE UNITED STATES COMMISSIONER OF SOCIAL SECURITY TO DETERMINE THE MONTHLY SOCIAL SECURITY BENEFITS PAYABLE IN TWO THOUSAND FIFTEEN TO INDIVIDUALS, AS PROVIDED BY SUBSECTION (I) OF SECTION FOUR HUNDRED FIFTEEN OF TITLE FORTY-TWO OF THE UNITED STATES CODE. (III) FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED IN EACH ENSUING YEAR, THE APPLICABLE ASSESSED VALUE LIMITATION, COST-OF-LIVING ADJUSTMENT PERCENTAGE AND APPLICABLE INCREASE PERCENTAGE SHALL ALL BE ADVANCED BY ONE YEAR, AND THE ASSESSED VALUATION LIMITATION SHALL BE THE PREVIOUSLY APPLICABLE ASSESSED VALUE LIMITATION INCREASED BY THE NEW COST-OF-LIVING ADJUSTMENT PERCENTAGE. IF THERE SHOULD BE A YEAR FOR WHICH THERE IS NO APPLICABLE INCREASE PERCENTAGE DUE TO A GENERAL BENEFIT INCREASE AS DEFINED BY SUBDIVISION THREE OF SUBSECTION (I) OF SECTION FOUR HUNDRED FIFTEEN OF TITLE FORTY-TWO OF THE UNITED STATES CODE, THE APPLICABLE INCREASE PERCENTAGE FOR PURPOSES OF THIS COMPUTATION SHALL BE DEEMED TO BE THE PERCENTAGE WHICH WOULD HAVE YIELDED THAT GENERAL BENEFIT INCREASE. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13451-01-4 S. 6362 2
dollars or more]