Bill S7257-2013

Authorizes cities having a population of one million or more to grant a partial real property tax abatement during the 2014 - 2015 fiscal year for residential property repaired after a severe storm

Authorizes cities having a population of one million or more to grant a partial real property tax abatement, during the 2014 - 2015 fiscal year, for certain residential property damaged in a severe storm on October 29 - 30, 2012 and subsequently repaired.

Details

Actions

  • May 20, 2014: SUBSTITUTED BY A9578
  • May 19, 2014: ADVANCED TO THIRD READING
  • May 14, 2014: 2ND REPORT CAL.
  • May 13, 2014: 1ST REPORT CAL.707
  • May 8, 2014: REFERRED TO CITIES

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Cities - May 13, 2014
Ayes (6): Lanza, Ball, DeFrancisco, Grisanti, Squadron, Breslin

Memo

BILL NUMBER:S7257

TITLE OF BILL: An act to amend the real property tax law, in relation to establishing a partial abatement of real property taxes on real property that was rebuilt after being seriously damaged by the severe storm that occurred on the twenty-ninth and thirtieth of October, two thousand twelve in a city having a population of one million or more

SUMMARY OF PROVISIONS:

Section one of this bill adds a new section 467-h to the Real Property Tax Law to authorize New York City to grant a partial abatement of real property taxes for certain class one, class two and class four properties. The properties that will be eligible for this abatement must satisfy the following conditions as of the applicable taxable status date:

1. The Department of Finance reduced the assessed valuation of the building on the property for fiscal year 2014 from the assessed valuation for fiscal year 2013 as a result of damage caused by Hurricane Sandy.

2. The Department of Finance increased the assessed valuation of the building for fiscal year 2015 from its assessed valuation for fiscal year 2014.

3. The assessed valuation of the building for fiscal year 2015 exceeds that for fiscal year 2013.

For class one and smaller class two properties that satisfy these conditions, the amount of the abatement will be the amount by which the tax on the property for fiscal year 2015 exceeds the tax for fiscal year 2013. For class four and larger class two properties that satisfy these conditions, the amount of the abatement will be the difference between the physical add-back in fiscal year 2015 and the physical decrease in fiscal year 2014. To the extent the square footage used to determine the assessed valuation of the building on the property for fiscal year 2015 exceeds that for fiscal year 2013, the bill provides that the Department of Finance will recalculate the abatement to reduce it by the portion of the tax for fiscal year 2015 that is attributable to the excess square footage of the building.

The bill also includes provisions for the correction of erroneous abatements and the collection of the amount of abatements granted in error, and for the adjustment of abatements granted to properties for which the assessed valuation and the corresponding real property tax have been reduced.

Section two provides that the bill shall take effect immediately.

REASONS FOR SUPPORT: In its recent report, "One City, Rebuilding Together: A Report on the City of New York's Response to Hurricane Sandy and the Path Forward," the City set forth a number of policies to streamline the recovery process and prioritize rebuilding. The policies outlined in the report include, but are not limited to, improving the experience of homeowners navigating the preconstruction process, enhancing coordination amongst city, state and federal

partners, and engaging local communities in the rebuilding process. Notably, the report also recommends providing additional financial relief to homeowners. This legislation does just that.

This bill would provide real property tax relief to New York City residents who repaired or rebuilt properties that were severely damaged by Hurricane Sandy. Even if the repair or rebuilding merely restored a building to its condition prior to the storm, the assessed valuation and therefore, the real property taxes, of some of these properties will be higher in fiscal year 2015 than in fiscal year 2013. In order to assist these property owners, this bill authorizes New York City to enact a local law granting a partial abatement of real property taxes so that the owners of these properties will not incur such an increase in real property taxes for fiscal year 2015.

The amount of the real property tax abatement will reflect the increase in the real property tax attributable to improvements on the eligible property which, for purposes of this legislation, includes certain class one, class two and class four properties. In the event that the repair or rebuilding resulted in an increase in the square footage of the affected property, the bill provides that the Department of Finance will recalculate the abatement to reduce it by the portion of the tax for fiscal year 2015 that is attributable to the excess square footage of the property.

The worst natural disaster ever to hit the City of New York, Hurricane Sandy, cost forty-four New Yorkers their lives. Many more residents lost homes or businesses, and entire communities were sent reeling by the storm's devastating impact. There is a great deal more work to do to help the hardest-hit communities get back on their feet and we must continue to be vigilant in marshaling City resources to provide relief to those who need it most.

Unfortunately, the statutory real property tax assessment structure does not contemplate the unique circumstance that many property owners find themselves in as a result of Hurricane Sandy: that these property owners would, in effect, suffer a tax penalty for rebuilding their storm-torn properties.

This real property tax abatement provides an absolutely necessary measure of relief to owners of class one, class two and class four properties who began the rebuilding process to return to normalcy.

Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.

EFFECTIVE DATE:

Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7257 IN SENATE May 8, 2014 ___________
Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Cities AN ACT to amend the real property tax law, in relation to establishing a partial abatement of real property taxes on real property that was rebuilt after being seriously damaged by the severe storm that occurred on the twenty-ninth and thirtieth of October, two thousand twelve 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. The real property tax law is amended by adding a new section 467-h to read as follows: S 467-H. PARTIAL ABATEMENT FOR CERTAIN REBUILT REAL PROPERTY SERIOUSLY DAMAGED BY THE SEVERE STORM THAT OCCURRED ON THE TWENTY-NINTH AND THIR- TIETH OF OCTOBER, TWO THOUSAND TWELVE IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE. 1. GENERALLY. NOTWITHSTANDING ANY PROVISION OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, ANY CITY HAVING A POPU- LATION OF ONE MILLION OR MORE IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IN ACCORDANCE WITH THIS SECTION TO GRANT A PARTIAL ABATEMENT OF REAL PROPERTY TAXES FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND FOURTEEN, IN THE AMOUNT PROVIDED IN THIS SECTION TO ELIGIBLE REAL PROPERTY AS DEFINED IN SUBDIVISION THREE OF THIS SECTION ON THE FIRST OF JULY, TWO THOUSAND FOURTEEN. IF LEGAL TITLE TO ELIGIBLE REAL PROPERTY IS HELD BY ONE OR MORE TRUSTEES, THE BENEFICIAL OWNER OR OWNERS SHALL BE DEEMED TO OWN THE PROPERTY FOR PURPOSES OF THIS SECTION. NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE TO THE CONTRARY, A PROPERTY THAT IS RECEIVING BENEFITS PURSUANT TO ANY OTHER SECTION OF THIS ARTICLE SHALL NOT BE PROHIBITED FROM RECEIVING A PARTIAL ABATEMENT PURSUANT TO THIS SECTION IF SUCH PROPERTY IS OTHERWISE ELIGIBLE TO RECEIVE SUCH ABATEMENT. 2. DEFINITIONS. AS USED IN THIS SECTION: A. "ACTUAL ASSESSED VALUATION" MEANS THE ASSESSED VALUATION OF REAL PROPERTY PRIOR TO THE CALCULATION OF ANY TRANSITIONAL ASSESSED VALUATION PURSUANT TO SUBDIVISION THREE OF SECTION EIGHTEEN HUNDRED FIVE OF THIS
CHAPTER, AND WHICH IS NOT REDUCED BY ANY EXEMPTION FROM REAL PROPERTY TAXES. B. "ANNUAL TAX" MEANS THE AMOUNT OF REAL PROPERTY TAX THAT IS IMPOSED ON A PROPERTY FOR A FISCAL YEAR, DETERMINED AFTER REDUCTION FOR ANY AMOUNT FROM WHICH THE PROPERTY IS EXEMPT, OR WHICH IS ABATED, PURSUANT TO APPLICABLE LAW. C. "ANNUAL TAX ATTRIBUTABLE TO IMPROVEMENTS" MEANS THE AMOUNT OF REAL PROPERTY TAX THAT IS IMPOSED ON A PROPERTY FOR A FISCAL YEAR, DETERMINED AFTER REDUCTION FOR ANY AMOUNT FROM WHICH THE PROPERTY IS EXEMPT, OR WHICH IS ABATED, PURSUANT TO APPLICABLE LAW, MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO THE ASSESSED VALUATION OF THE PROPER- TY FOR SUCH FISCAL YEAR THAT IS ATTRIBUTABLE TO THE IMPROVEMENTS ON THE PROPERTY, AND THE DENOMINATOR OF WHICH IS THE TOTAL ASSESSED VALUATION OF THE PROPERTY FOR SUCH FISCAL YEAR. D. "ASSESSED VALUATION" MEANS THE ASSESSED VALUATION OF REAL PROPERTY THAT WAS USED TO DETERMINE THE ANNUAL TAX AS DEFINED IN PARAGRAPH B OF THIS SUBDIVISION, AND WHICH IS NOT REDUCED BY ANY EXEMPTION FROM REAL PROPERTY TAXES. FOR REAL PROPERTY CLASSIFIED AS CLASS TWO OR CLASS FOUR REAL PROPERTY AS DEFINED IN SUBDIVISION ONE OF SECTION EIGHTEEN HUNDRED TWO OF THIS CHAPTER TO WHICH SUBDIVISION THREE OF SECTION EIGHTEEN HUNDRED FIVE OF THIS CHAPTER APPLIES, UNLESS OTHERWISE PROVIDED, THE ASSESSED VALUATION IS THE LOWER OF THE ACTUAL ASSESSED VALUATION AS DEFINED IN PARAGRAPH A OF THIS SUBDIVISION AND TRANSITIONAL ASSESSED VALUATION AS DEFINED IN PARAGRAPH J OF THIS SUBDIVISION. E. "ASSESSED VALUATION ATTRIBUTABLE TO IMPROVEMENTS" MEANS THAT PORTION OF THE ASSESSED VALUATION OF REAL PROPERTY THAT WAS USED TO DETERMINE THE ANNUAL TAX ATTRIBUTABLE TO IMPROVEMENTS AS DEFINED IN PARAGRAPH C OF THIS SUBDIVISION, AND WHICH IS NOT REDUCED BY ANY EXEMPTION FROM REAL PROPERTY TAXES. F. "COMMISSIONER OF FINANCE" MEANS THE COMMISSIONER OF FINANCE OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE, OR HIS OR HER DESIGNEE. G. "DEPARTMENT OF FINANCE" MEANS THE DEPARTMENT OF FINANCE OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE. H. "IMPROVEMENTS" MEANS BUILDINGS AND OTHER ARTICLES AND STRUCTURES, SUBSTRUCTURES AND SUPERSTRUCTURES ERECTED UPON, UNDER OR ABOVE THE LAND, OR AFFIXED THERETO, INCLUDING BRIDGES AND WHARVES AND PIERS AND THE VALUE OF THE RIGHT TO COLLECT WHARFAGE, CRANAGE OR DOCKAGE THEREON. I. "TOTAL SQUARE FOOTAGE OF THE IMPROVEMENTS ON THE PROPERTY" MEANS, WITH RESPECT TO A FISCAL YEAR, THE SQUARE FOOTAGE USED BY THE DEPARTMENT OF FINANCE IN DETERMINING THE ASSESSED VALUATION ATTRIBUTABLE TO IMPROVEMENTS ON THE PROPERTY FOR SUCH FISCAL YEAR. J. "TRANSITIONAL ASSESSED VALUATION" IS THE ASSESSED VALUATION CALCU- LATED PURSUANT TO SUBDIVISION THREE OF SECTION EIGHTEEN HUNDRED FIVE OF THIS CHAPTER, AND WHICH IS NOT REDUCED BY ANY EXEMPTION FROM REAL PROP- ERTY TAXES. 3. ELIGIBLE REAL PROPERTY. FOR PURPOSES OF THIS SECTION, "ELIGIBLE REAL PROPERTY" MEANS ANY TAX LOT THAT CONTAINED, ON THE APPLICABLE TAXA- BLE STATUS DATE, CLASS ONE, CLASS TWO OR CLASS FOUR REAL PROPERTY AS SUCH CLASS OF REAL PROPERTY IS DEFINED IN SUBDIVISION ONE OF SECTION EIGHTEEN HUNDRED TWO OF THIS CHAPTER, AS TO WHICH: A. THE DEPARTMENT OF FINANCE REDUCED THE ASSESSED VALUATION ATTRIBUT- ABLE TO IMPROVEMENTS ON THE PROPERTY FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND THIRTEEN FROM THE ASSESSED VALUATION ATTRIBUTABLE TO IMPROVEMENTS ON THE PROPERTY FOR THE FISCAL YEAR BEGIN- NING ON THE FIRST OF JULY, TWO THOUSAND TWELVE AS A RESULT OF DAMAGE
CAUSED BY THE SEVERE STORM THAT OCCURRED ON THE TWENTY-NINTH AND THIRTI- ETH OF OCTOBER, TWO THOUSAND TWELVE; B. THE DEPARTMENT OF FINANCE INCREASED THE ASSESSED VALUATION ATTRIB- UTABLE TO IMPROVEMENTS ON THE PROPERTY FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND FOURTEEN FROM THE ASSESSED VALUATION ATTRIBUTABLE TO IMPROVEMENTS ON THE PROPERTY FOR THE FISCAL YEAR BEGIN- NING ON THE FIRST OF JULY, TWO THOUSAND THIRTEEN; AND C. THE ASSESSED VALUATION ATTRIBUTABLE TO IMPROVEMENTS ON THE PROPERTY FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND FOUR- TEEN EXCEEDS THE ASSESSED VALUATION ATTRIBUTABLE TO IMPROVEMENTS ON THE PROPERTY FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOU- SAND TWELVE. 4. AMOUNT OF PARTIAL ABATEMENT. A. EXCEPT AS PROVIDED IN PARAGRAPH C OF THIS SUBDIVISION, ELIGIBLE REAL PROPERTY SHALL RECEIVE A PARTIAL ABATEMENT OF THE REAL PROPERTY TAXES DUE ON SUCH PROPERTY EQUAL TO THE AMOUNT BY WHICH (1) THE ANNUAL TAX ON THE PROPERTY FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND FOURTEEN EXCEEDS (2) THE ANNUAL TAX ON THE PROPERTY FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND TWELVE. B. NOTWITHSTANDING PARAGRAPH A OF THIS SUBDIVISION AND EXCEPT AS PROVIDED IN PARAGRAPH C OF THIS SUBDIVISION, THE AMOUNT OF THE PARTIAL ABATEMENT OF THE REAL PROPERTY TAXES DUE ON ELIGIBLE REAL PROPERTY CLAS- SIFIED AS CLASS TWO OR CLASS FOUR REAL PROPERTY AS DEFINED IN SUBDIVI- SION ONE OF SECTION EIGHTEEN HUNDRED TWO OF THIS CHAPTER TO WHICH SUBDI- VISION THREE OF SECTION EIGHTEEN HUNDRED FIVE OF THIS CHAPTER APPLIES SHALL BE EQUAL TO THE AMOUNT OF (1) THE INCREASE IN THE ACTUAL ASSESSED VALUATION ATTRIBUTABLE TO AN ADDITION TO OR IMPROVEMENT OF THE PROPERTY AS PROVIDED IN SUBDIVISION FIVE OF SECTION EIGHTEEN HUNDRED FIVE OF THIS CHAPTER FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND FOURTEEN, (2) REDUCED BY THE INCREASE IN THE ACTUAL ASSESSED VALUATION ATTRIBUTABLE TO AN ADDITION TO OR IMPROVEMENT OF THE PROPERTY AS PROVIDED IN SUBDIVISION FIVE OF SECTION EIGHTEEN HUNDRED FIVE OF THIS CHAPTER FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND FOURTEEN, MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE TRAN- SITIONAL ASSESSED VALUATION FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND THIRTEEN, AND THE DENOMINATOR OF WHICH IS THE ACTUAL ASSESSED VALUATION FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND THIRTEEN, (3) MULTIPLIED BY THE REAL PROPERTY TAX RATE THAT IS APPLICABLE TO THE PROPERTY FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND FOURTEEN. ELIGIBLE REAL PROPERTY SHALL NOT BE ELIGIBLE FOR AN ABATEMENT UNDER THIS SECTION IF THE FRACTION CALCULATED IN SUBPARAGRAPH TWO OF THIS PARAGRAPH IS EQUAL TO OR GREATER THAN ONE. C. IN THE EVENT THAT THE TOTAL SQUARE FOOTAGE OF THE IMPROVEMENTS ON THE PROPERTY FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND FOURTEEN EXCEEDS THE TOTAL SQUARE FOOTAGE OF THE IMPROVEMENTS ON THE PROPERTY FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND TWELVE, THE AMOUNT OF THE PARTIAL ABATEMENT SHALL BE THE AMOUNT COMPUTED BY MULTIPLYING THE AMOUNT CALCULATED UNDER PARAGRAPH A OR B OF THIS SUBDIVISION BY A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO THE AMOUNT OF THE TOTAL SQUARE FOOTAGE OF THE IMPROVEMENTS ON THE PROPERTY FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND TWELVE, AND THE DENOMINATOR OF WHICH IS EQUAL TO THE AMOUNT OF THE TOTAL SQUARE FOOTAGE OF THE IMPROVEMENTS ON THE PROPERTY FOR THE FISCAL YEAR BEGIN- NING ON THE FIRST OF JULY, TWO THOUSAND FOURTEEN.
D. FOR PROPERTY HELD IN THE COOPERATIVE FORM OF OWNERSHIP, THE ABATE- MENT SHALL BE CREDITED TO EACH UNIT THEREIN IN AN AMOUNT EQUAL TO THAT PROPORTION OF THE AMOUNT CALCULATED UNDER THIS SUBDIVISION THAT IS ATTRIBUTABLE TO SUCH UNIT, AS DETERMINED BY THE PROPORTIONAL RELATION- SHIP OF THE OWNER'S SHARE OR SHARES OF STOCK IN THE COOPERATIVE CORPO- RATION THAT OWNS SUCH REAL PROPERTY TO THE TOTAL OUTSTANDING STOCK OF THE COOPERATIVE CORPORATION. E. ELIGIBLE REAL PROPERTY SHALL NOT BE ELIGIBLE FOR AN ABATEMENT UNDER THIS SECTION IF THE AMOUNT OF THE ABATEMENT CALCULATED PURSUANT TO THIS SUBDIVISION EXCEEDS THE ANNUAL TAX ON THE PROPERTY FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOUSAND FOURTEEN. 5. RECOVERY OF ERRONEOUS ABATEMENT. A. FOR PURPOSES OF THIS SECTION, AN "ERRONEOUS ABATEMENT" MEANS THAT: (1) AN ABATEMENT WAS GRANTED TO A PROPERTY THAT WAS NOT ENTITLED TO AN ABATEMENT UNDER THIS SECTION, OR (2) AN ABATEMENT WAS APPLIED OR CALCULATED IN ERROR UNDER THIS SECTION. IN SUCH EVENT, THE AMOUNT OF THE ERRONEOUS ABATEMENT SHALL BE EQUAL TO THE DIFFERENCE BETWEEN THE AMOUNT OF THE ABATEMENT ORIGINALLY RECEIVED AND THE AMOUNT TO WHICH THE PROPERTY WAS ENTITLED. B. IF THE COMMISSIONER OF FINANCE DETERMINES THAT A PROPERTY RECEIVED AN ERRONEOUS ABATEMENT, HE OR SHE SHALL RECOVER SUCH ERRONEOUS ABATEMENT BY DEDUCTING THE AMOUNT OF THE ERRONEOUS ABATEMENT FROM ANY REFUND OR REBATE OTHERWISE PAYABLE TO THE OWNER, AND ANY BALANCE OF THE AMOUNT OF THE ERRONEOUS ABATEMENT REMAINING UNPAID SHALL CONSTITUTE A TAX LIEN ON THE REAL PROPERTY, AS OF THE DUE AND PAYABLE DATE PROVIDED ON THE NEXT TAX BILL MAILED BY THE COMMISSIONER OF FINANCE CONTAINING SUCH AMOUNT. IF SUCH AMOUNT IS NOT PAID BY SUCH DUE AND PAYABLE DATE, INTEREST AT THE RATE APPLICABLE TO DELINQUENT REAL PROPERTY TAXES ON SUCH PROPERTY SHALL BE CHARGED AND COLLECTED ON SUCH AMOUNT FROM THE DUE AND PAYABLE DATE PROVIDED ON SUCH NOTICE TO THE DATE OF PAYMENT. SUCH TAX LIEN SHALL BE ENFORCEABLE IN ACCORDANCE WITH THE PROVISIONS OF LAW RELATING TO THE ENFORCEMENT OF TAX LIENS IN ANY SUCH CITY. 6. REDUCTION OF ASSESSED VALUE. IF THE TAXABLE ASSESSED VALUE OF A PROPERTY FOR THE FISCAL YEAR BEGINNING ON THE FIRST OF JULY, TWO THOU- SAND FOURTEEN IS REDUCED AFTER THE ASSESSMENT ROLL APPLICABLE TO SUCH FISCAL YEAR BECOMES FINAL, ANY ABATEMENT ALREADY GRANTED PURSUANT TO THIS SECTION SHALL BE ADJUSTED ACCORDINGLY. THE DIFFERENCE BETWEEN THE ORIGINAL ABATEMENT AND THE ADJUSTED ABATEMENT SHALL BE DEDUCTED FROM ANY CREDIT OTHERWISE DUE. 7. RULEMAKING. THE COMMISSIONER OF FINANCE SHALL BE AUTHORIZED TO PROMULGATE RULES NECESSARY TO EFFECTUATE THE PURPOSES OF THIS SECTION. S 2. This act shall take effect immediately.

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