Bill S7653-2009

Authorizes the use of class tax rates in certain assessing units; repealer

Authorizes the use of class tax rates in certain assessing units.

Details

Actions

  • Jun 24, 2010: referred to ways and means
  • Jun 24, 2010: DELIVERED TO ASSEMBLY
  • Jun 24, 2010: PASSED SENATE
  • Jun 14, 2010: ADVANCED TO THIRD READING
  • Jun 10, 2010: 2ND REPORT CAL.
  • Jun 9, 2010: 1ST REPORT CAL.919
  • Apr 29, 2010: REFERRED TO LOCAL GOVERNMENT

Votes

VOTE: COMMITTEE VOTE: - Local Government - Jun 9, 2010
Ayes (5): Oppenheimer, Valesky, Thompson, Johnson C, Little
Ayes W/R (2): Stewart-Cousins, Bonacic
Excused (1): Morahan

Memo

 BILL NUMBER:  S7653

TITLE OF BILL :

An act to amend the real property tax law and the real property law, in relation to authorizing the use of class tax rates in certain assessing units

PURPOSE OF THE BILL :

The purpose of this bill is to simplify the system for allocating taxes between the homestead and non-homestead classes in certain assessing units.

SUMMARY OF PROVISIONS :

Section 1 of the bill would amend Real Property Tax Law ("RPTL") § 1902 by adding a new subdivision 5 to provide that no new Approved Assessing Units ("AAU") will be certified under RPTL Article 19 after December 31, 2010.

Section 2 of the bill would amend RPTL § 1903 by adding a new subdivision 11 to permit existing AAUs to opt into the new RPTL Article 19-A (created by section 3 of the bill), rather than continuing to operate under RPTL Article 19.

Section 3 of the bill would create a new Article 19-A in the RPTL to govern the use of class tax rates by assessing units that conduct revaluations on and after January 1, 2011. Like RPTL Article 19, the new RPTL Article 19-A would authorize distinctions between the "homestead" (mostly residential) and "non-homestead" (mostly commercial) classes for purposes of real property taxation, but it would be considerably simpler to administer and understand. The new RPTL Article 19-A contains the following provisions:

* RPTL § 1911 establishes definitions for RPTL Article 19-A, including definitions of "homestead class" and "non-homestead class," which would be the same as they are under RPTL Article 19, except that the homestead class would also include co-operative apartments and could be further expanded at local option to include either (1) apartment buildings or (2) business property within a locally designated area, or both.

* RPTL § 1912 provides that any assessing unit that is doing a revaluation at 100% of value may apply to the State Board of Real Property Services ("SBRPS") for certification of its revaluation as "homestead-compliant." Upon receiving such certification, the governing body of the assessing unit may direct its assessor to classify each parcel of property as either homestead or non-homestead, as appropriate.

* RPTL § 1913 authorizes the governing body of such homestead-compliant assessing unit to impose its taxes using a different tax rate for each class of property. School districts and villages which use the assessing roll for the levy of their taxes may opt to impose such class tax rates as well. Under RPTL § 1913, the class tax rates would be set at the discretion of the governing body, subject to the constraints that (1) the non-homestead class tax rate could be no more than 25% higher than the homestead class tax rate, subject to a 10 to 20 year phase-in of that limitation if the "baseline differential" is greater than 25%, and (2) in no case could the homestead class tax rate be higher than the non-homestead class tax rate.

* RPTL § 1914, requires an assessing unit to complete a homestead-compliant revaluation at least once every 4 years, in order to remain in the program established by RPTL Article 19-A. Under RPTL

§ 1914, if such a revaluation is not undertaken, the assessing unit and the school districts and villages associated with it would lose their ability to establish class tax rates.

* RPTL § 1915 provides that the governing body of a homestead assessing unit may adopt a resolution terminating its status as a homestead assessing unit, the effect of which would be to make inapplicable to such assessing unit and the municipal corporations which levy taxes upon its assessment roll the provisions of RPTL Article 19-A.

* RPTL § 1916 provides that a copy of any local law or resolution adopted pursuant to RPTL Article 19-A must be filed with the SBRPS within 30 days after such adoption.

* RPTL § 1917 provides that all property in a homestead assessing unit must be assessed as required by RPTL § 305(2).

* RPTL § 1918 provides that an assessing unit that has been certified as an AAU under RPTL Article 19 would have the option to move into the new RPTL Article 19-A program, without having to complete a new revaluation as a condition for entry. If an assessing unit does so, however, it would be required to conduct a homestead-compliant revaluation no later than its fourth year under RPTL Article 19-A, and at least once every four years thereafter in order to remain in the program.

Sections 4 through 11 of the bill would make the necessary conforming changes to various other provisions of the RPTL.

Section 12 of the bill would make it effective January 1, 2011, provided that (1) an application for certification of a revaluation as homestead-compliant pursuant to RPTL § 1912 as added by this bill, may be submitted and approved prior to such date, and (2) a resolution to become a homestead assessing unit pursuant to RPTL § 1912, as added by this bill, may be adopted prior to such date.

EXISTING LAW :

RPTL Article 19 provides that an assessing unit (other than New York City and Nassau County) may become an AAU by completing a revaluation which meets the standards established by the SBRPS. RPTL § 1903 authorizes an AAU to establish different tax rates for the homestead and non-homestead classes. The AAU, however, has no discretion in setting class tax rates. Rather, RPTL Article 19 prescribes the use of an elaborately detailed formula to determine class rates.

This formula is difficult to understand; its key elements are base proportions, base percentages, class equalization rates, current percentages, current base proportions, and adjusted base proportions. The basic concept underpinning the formula is twofold: (1) it preserves the de facto class tax shares that existed prior to the revaluation, so that taxes will not shift from one class to another as a result of the revaluation, and (2) it requires the post-revaluation tax shares to be indexed to market changes, so that the disparity between the classes does not grow any wider.

Adding to the complexity of Article 19 is the fact that it applies not only at the AAU level but also at the "portion" level. Thus, a parallel set of complicated calculations must be performed for school districts, some villages and selected special districts which are wholly contained within the AAU. Yet another set of calculations must be performed for certain partially contained school districts and villages which qualify as "eligible split tax districts."

LEGISLATIVE HISTORY :

A similar bill (S.7579) was introduced at the request of the SBRPS in 2007-08. Whereas the 2007 bill would have mandated existing AAUs to switch to the new program, this bill would provide existing AAUs the option to switch to the new RPTL Article 19-A program.

STATEMENT IN SUPPORT :

The hallmarks of a sound tax system are simplicity and transparency. RPTL. Article 19 has neither of these attributes. It provides for the application of class tax rates that are derived from an arcane mathematical formula. This bill would enact a new RPTL Article 19-A that would maintain the homestead and non-homestead class construct. The new RPTL Article 19-A, however, would provide local governments and their property taxpayers with a straightforward and comprehensible method for public officials to determine class tax rates. Under the new RPTL Article 19-A, class tax rates would be determined in open public policymaking, subject to public scrutiny.

BUDGET IMPLICATIONS :

This bill would require assessing units to conduct revaluations in order to become homestead assessing units under RPTL Article 19-A. The municipal decision to seek homestead assessing unit status under RPTL Article 19-A, however, would be entirely voluntary. The bill, therefore, does not mandate any cost on local governments. The Office of Real Property Services ("ORPS") may need to devote resources to support these additional revaluations, but such support is part of its core mission and can be accomplished within its existing budget, To the extent the program induces existing AAUs to leave RPTL Article 19 and become homestead assessing units pursuant to RPTL Article 19-A, this bill would produce modest savings for ORPS, which would no longer be required to establish class equalization rates for such AAUs and to review their adjusted base proportions.

EFFECTIVE DATE : This bill would take effect on January 1, 2011.

Text

STATE OF NEW YORK ________________________________________________________________________ 7653 IN SENATE April 29, 2010 ___________
Introduced by Sen. C. JOHNSON -- (at request of the State Board of Real Property Services) -- 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 and the real property law, in relation to authorizing the use of class tax rates in certain assess- ing units THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 1902 of the real property tax law, as amended by chapter 355 of the laws of 1997, is amended and a new subdivision 5 is added to read as follows: 1. [Whenever] SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION, WHENEVER an assessing unit other than a special assessing unit or an approved assessing unit which has or has had in effect a local law adopted pursuant to subdivision one of section nineteen hundred three of this article undertakes a revaluation or an update, the governing body of such assessing unit may apply to the state board for certification or recertification as an "approved assessing unit". The state board shall monitor the progress of such revaluation or update for the purpose of determining whether or not such assessing unit will be eligible for certification or recertification as an approved assessing unit. 5. NO NEW APPROVED ASSESSING UNITS SHALL BE CERTIFIED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TEN. S 2. Section 1903 of the real property tax law is amended by adding a new subdivision 11 to read as follows: 11. ELECTION OF HOMESTEAD ASSESSING UNIT OPTION. THE GOVERNING BODY OF AN APPROVED ASSESSING UNIT MAY ELECT TO ADOPT THE PROVISIONS OF ARTICLE NINETEEN-A OF THIS CHAPTER IN THE MANNER PROVIDED BY SECTION NINETEEN HUNDRED EIGHTEEN OF SUCH ARTICLE, IN WHICH CASE THE PROVISIONS OF THIS ARTICLE SHALL NO LONGER BE APPLICABLE THERETO. S 3. The real property tax law is amended by adding a new article 19-A to read as follows: ARTICLE 19-A CLASS TAX RATES IN HOMESTEAD TAX DISTRICTS
SECTION 1911. DEFINITIONS. 1912. ESTABLISHMENT OF HOMESTEAD ASSESSING UNITS. 1913. USE OF CLASS TAX RATES. 1914. FOUR-YEAR CYCLE. 1915. TERMINATION. 1916. NOTIFICATION REQUIREMENTS. 1917. STANDARD OF ASSESSMENT TO REMAIN APPLICABLE. 1918. ELECTION BY APPROVED ASSESSING UNITS. S 1911. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE: 1. "ELIGIBLE SPLIT TAX DISTRICT" MEANS (A) A SCHOOL DISTRICT LOCATED IN MORE THAN ONE CITY OR TOWN, WHERE ONE-FIFTH OR MORE OF THE PARCELS IN THE FIRST YEAR IN THE SCHOOL DISTRICT ARE LOCATED IN ONE OR MORE HOMESTEAD ASSESSING UNITS, EXCEPT A VILLAGE, OR (B) A VILLAGE LOCATED IN MORE THAN ONE TOWN AND WHICH HAS ADOPTED THE PROVISIONS OF SUBDIVISION THREE OF SECTION FOUR- TEEN HUNDRED TWELVE OF THIS CHAPTER, WHERE ONE-FIFTH OR MORE OF THE PARCELS IN THE FIRST YEAR IN THE VILLAGE ARE LOCATED IN ONE OR MORE HOMESTEAD ASSESSING UNITS. 2. (A) "HOMESTEAD CLASS" MEANS: (1) ALL ONE, TWO OR THREE FAMILY DWELLING RESIDENTIAL REAL PROPERTY, INCLUDING SUCH DWELLINGS USED IN PART FOR NONRESIDENTIAL PURPOSES BUT WHICH ARE USED PRIMARILY FOR RESIDENTIAL PURPOSES, AND FARM DWELLINGS; (2) ALL OTHER RESIDENTIAL REAL PROPERTY CONSISTING OF MORE THAN THREE DWELLING UNITS HELD IN CONDOMINIUM FORM OF OWNERSHIP WHERE NO SUCH DWELLING UNIT PREVIOUSLY WAS ON AN ASSESSMENT ROLL AS A DWELLING UNIT IN OTHER THAN CONDOMINIUM FORM OF OWNERSHIP; (3) ALL OTHER RESIDENTIAL REAL PROPERTY CONSISTING OF MORE THAN THREE DWELLING UNITS HELD IN CO-OPERATIVE FORM OF OWNERSHIP; (4) ALL VACANT LAND PARCELS LOCATED IN AN ASSESSING UNIT WHICH HAS A ZONING LAW OR ORDINANCE IN EFFECT, PROVIDED THAT SUCH PARCEL IS LOCATED IN A ZONE THAT DOES NOT ALLOW A RESIDENTIAL USE OTHER THAN THAT DESCRIBED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH, PROVIDED FURTHER, THAT SUCH PARCEL DOES NOT EXCEED TEN ACRES; (5) LAND USED IN AGRICULTURAL PRODUCTION WHICH IS ELIGIBLE FOR AN AGRICULTURAL ASSESSMENT PURSUANT TO SECTION THREE HUNDRED FIVE OR THREE HUNDRED SIX OF THE AGRICULTURE AND MARKETS LAW, WHERE THE OWNER OF SUCH LAND HAS FILED AN ANNUAL APPLICATION FOR AN AGRICULTURAL ASSESSMENT, AND FARM BUILDINGS AND STRUCTURES THEREON, AS DEFINED IN SUBDIVISION THREE OF SECTION FOUR HUNDRED EIGHTY-THREE OF THIS CHAPTER; AND (6) IF THE HOMESTEAD ASSESSING UNIT ADOPTS A LOCAL LAW SO PROVIDING, RESIDENTIAL PROPERTY CONTAINING FOUR OR MORE DWELLING UNITS; AND (7) IF THE HOMESTEAD ASSESSING UNIT ADOPTS A LOCAL LAW SO PROVIDING, COMMERCIAL PROPERTY WITHIN A SPECIFIC GEOGRAPHICAL AREA AS DELINEATED WITHIN SUCH LOCAL LAW. (B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (G) OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF THIS CHAPTER, A MOBILE HOME OR TRAILER THAT DOES NOT QUALIFY AS A HOMESTEAD UNDER SUBPARAGRAPH FIVE OF PARAGRAPH (A) OF THIS SUBDIVISION SHALL NOT CONSTITUTE A HOMESTEAD FOR PURPOSES OF THIS ARTICLE UNLESS IT IS OWNER-OCCUPIED AND SEPARATELY ASSESSED. 3. "NON-HOMESTEAD CLASS" MEANS ALL PROPERTY NOT INCLUDED IN THE HOME- STEAD CLASS. 4. "TAX" MEANS FOR THE PURPOSES OF THIS ARTICLE A CHARGE IMPOSED UPON REAL PROPERTY BY OR ON BEHALF OF A COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT FOR MUNICIPAL OR SCHOOL DISTRICT PURPOSES, BUT DOES NOT INCLUDE A SPECIAL ASSESSMENT.
S 1912. ESTABLISHMENT OF HOMESTEAD ASSESSING UNITS. 1. THE GOVERNING BODY OF AN ASSESSING UNIT WHICH IS IMPLEMENTING A REVALUATION AT ONE HUNDRED PERCENT OF VALUE MAY APPLY TO THE STATE BOARD FOR CERTIFICATION OF ITS REVALUATION AS BEING HOMESTEAD-COMPLIANT. SUCH APPLICATION SHALL BE SUBMITTED AT LEAST ONE HUNDRED TWENTY DAYS BEFORE THE COMPLETION OF THE TENTATIVE ASSESSMENT ROLL UPON WHICH THE REVALUATION SHALL BE IMPLE- MENTED, PROVIDED THAT THE BOARD MAY ACCEPT AN APPLICATION AFTER THAT DEADLINE IF CIRCUMSTANCES WARRANT. THE BOARD SHALL CERTIFY THE REVALU- ATION AS BEING HOMESTEAD-COMPLIANT IF IT ISSUES OR EXPECTS TO ISSUE A TENTATIVE STATE EQUALIZATION RATE OF ONE HUNDRED FOR THE ASSESSMENT ROLL IN QUESTION, PROVIDED THAT SUCH CERTIFICATION SHALL BE NULLIFIED IF THE BOARD SHOULD ISSUE A TENTATIVE OR FINAL STATE EQUALIZATION RATE OF OTHER THAN ONE HUNDRED FOR THE ASSESSMENT ROLL IN QUESTION. 2. UPON RECEIVING SUCH CERTIFICATION, THE GOVERNING BODY OF THE ASSESSING UNIT MAY ADOPT A RESOLUTION DIRECTING THE ASSESSOR TO CLASSIFY ALL TAXABLE REAL PROPERTY AS HOMESTEAD OR NON-HOMESTEAD, AS THE CASE MAY BE, BEGINNING WITH THE TENTATIVE ASSESSMENT ROLL ON WHICH THE REVALU- ATION IS TO BE IMPLEMENTED. 3. SUCH RESOLUTION SHALL BE ADOPTED NO LATER THAN NINETY DAYS BEFORE THE COMPLETION OF THE TENTATIVE ASSESSMENT ROLL ON WHICH THE REVALUATION IS TO BE IMPLEMENTED. 4. UPON THE ADOPTION OF SUCH A RESOLUTION, THE ASSESSING UNIT SHALL BE CONSIDERED A "HOMESTEAD ASSESSING UNIT" FOR PURPOSES OF THIS ARTICLE. 5. (A) NO LATER THAN TEN DAYS AFTER THE ADOPTION OF SUCH A RESOLUTION, THE CLERK OF THE GOVERNING BODY OF THE HOMESTEAD ASSESSING UNIT SHALL FILE A COPY THEREOF WITH THE CHIEF EXECUTIVE OFFICER OF EACH MUNICIPAL CORPORATION WHICH LEVIES TAXES UPON THE ASSESSMENT ROLL OF THE HOMESTEAD ASSESSING UNIT. (B) IF THE MUNICIPAL CORPORATION IS AN ELIGIBLE SPLIT TAX DISTRICT, ITS GOVERNING BODY MAY ADOPT A RESOLUTION DIRECTING THE ASSESSOR OF EACH NON-HOMESTEAD ASSESSING UNIT IN WHICH IT IS LOCATED TO CLASSIFY THE TAXABLE REAL PROPERTY WITHIN ITS BORDERS AS HOMESTEAD OR NON-HOMESTEAD, AS THE CASE MAY BE. SUCH RESOLUTION SHALL BE ADOPTED NO LATER THAN THIR- TY DAYS BEFORE THE TAXABLE STATUS DATE OF THE FIRST ASSESSMENT ROLL TO WHICH IT IS TO APPLY, AND A COPY THEREOF SHALL BE FILED WITH THE AFFECTED ASSESSOR OR ASSESSORS NO LATER THAN TEN DAYS AFTER SUCH ADOPTION. 6. CLASSIFICATIONS ASSIGNED TO PARCELS BY AN ASSESSOR PURSUANT TO THIS SECTION SHALL BE SUBJECT TO ADMINISTRATIVE AND JUDICIAL REVIEW AS PROVIDED BY LAW. S 1913. USE OF CLASS TAX RATES. 1. A MUNICIPAL CORPORATION WHICH LEVIES TAXES UPON THE ASSESSMENT ROLL OF A HOMESTEAD ASSESSING UNIT AND WHICH MEETS THE ELIGIBILITY CRITERIA SPECIFIED HEREIN MAY ADOPT A LOCAL LAW WITHOUT REFERENDUM, OR IN THE CASE OF A SCHOOL DISTRICT A RESOL- UTION, DECLARING ITSELF TO BE A HOMESTEAD TAX DISTRICT FOR PURPOSES OF THIS ARTICLE. SUCH LOCAL LAW OR RESOLUTION SHALL BE ADOPTED NO LATER THAN SIXTY DAYS BEFORE THE LAST DATE PRESCRIBED BY LAW FOR THE LEVY OF TAXES TO WHICH SUCH LOCAL LAW OR RESOLUTION IS TO APPLY. 2. A MUNICIPAL CORPORATION SHALL BE ELIGIBLE TO ADOPT SUCH A LOCAL LAW OR RESOLUTION IF AND ONLY IF: (A) IT IS A HOMESTEAD ASSESSING UNIT; OR (B) IT IS WHOLLY CONTAINED WITHIN ONE OR MORE HOMESTEAD ASSESSING UNITS; OR (C) IT IS AN ELIGIBLE SPLIT TAX DISTRICT AND HAS FILED WITH EACH AFFECTED ASSESSOR A COPY OF ITS CLASSIFICATION RESOLUTION AS REQUIRED BY
PARAGRAPH (B) OF SUBDIVISION FIVE OF SECTION NINETEEN HUNDRED TWELVE OF THIS ARTICLE. 3. THE GOVERNING BODY OF A HOMESTEAD TAX DISTRICT MAY ANNUALLY ESTAB- LISH SEPARATE CLASS TAX RATES FOR EACH FISCAL YEAR BY RESOLUTION OF ITS GOVERNING BODY ADOPTED NO LATER THAN THE DATE ON WHICH THE BUDGET FOR THAT FISCAL YEAR IS APPROVED PURSUANT TO LAW. THE CLASS TAX RATES SO ESTABLISHED SHALL RESULT IN THE IMPOSITION UPON THE RESPECTIVE CLASSES THE TOTAL TAX REVENUES REQUIRED BY SUCH BUDGET, SUBJECT TO THE FOLLOW- ING: (A) THE NON-HOMESTEAD CLASS TAX RATE MAY BE EQUAL TO THE HOMESTEAD CLASS TAX RATE, OR IT MAY EXCEED THE HOMESTEAD CLASS TAX RATE BY A PERCENTAGE TO BE DETERMINED BY THE GOVERNING BODY EITHER BY LOCAL LAW OR ANNUAL RESOLUTION, PROVIDED THAT SUCH PERCENTAGE SHALL BE NO GREATER THAN TWENTY-FIVE PERCENT, SUBJECT TO THE TRANSITIONAL PROVISION SET FORTH IN SUBDIVISION FOUR OF THIS SECTION IF APPLICABLE. THE GOVERNING BODY MAY ALSO ADOPT A LOCAL LAW PROVIDING THAT THE NON-HOMESTEAD CLASS TAX RATE SHALL BE EQUAL TO THE HOMESTEAD CLASS TAX RATE, IN WHICH CASE THE SAME TAX RATE SHALL APPLY TO BOTH CLASSES AS LONG AS SUCH LOCAL LAW SHALL BE IN EFFECT. IN NO CASE MAY THE HOMESTEAD CLASS TAX RATE EXCEED THE NON-HOMESTEAD CLASS TAX RATE. (B) IF THE GOVERNING BODY SHOULD FAIL TO ADOPT CLASS TAX RATES FOR ANY FISCAL YEAR, THE CLASS TAX RATES FOR THAT FISCAL YEAR SHALL BEAR THE SAME RELATIONSHIP TO ONE ANOTHER AS THEY DID IN THE PRIOR FISCAL YEAR. (C) THE CLASS TAX RATES ESTABLISHED BY A HOMESTEAD TAX DISTRICT SHALL ONLY APPLY TO THE TAXES IMPOSED BY IT OR ON ITS BEHALF, AND TO ANY SPECIAL AD VALOREM LEVIES IMPOSED BY OR ON BEHALF OF ANY SPECIAL DISTRICTS THAT MAY HAVE BEEN ESTABLISHED BY THE HOMESTEAD TAX DISTRICT. THE CLASS TAX RATES ESTABLISHED FOR ANY SUCH SPECIAL DISTRICT NEED NOT BEAR THE SAME RELATIONSHIP TO ONE ANOTHER AS THEY DO FOR THE HOMESTEAD TAX DISTRICT OR FOR ANY OTHER SUCH SPECIAL DISTRICT. (D) IN THE CASE OF AN ELIGIBLE SPLIT TAX DISTRICT, THE GOVERNING BODY SHALL EQUALIZE THE CLASS TAX RATES SO AS TO ENSURE THAT THERE IS A SINGLE EFFECTIVE FULL VALUE TAX RATE FOR THE HOMESTEAD CLASS, AND A SINGLE EFFECTIVE FULL VALUE TAX RATE FOR THE NON-HOMESTEAD CLASS. FOR PURPOSES OF THIS PROVISION, THE "EFFECTIVE FULL VALUE TAX RATE" IS THE TAX RATE THAT WOULD BE IMPOSED IF ALL PROPERTY WERE ASSESSED AT FULL VALUE. 4. THE OFFICER WHO COMPUTES TAX RATES FOR THE HOMESTEAD TAX DISTRICT SHALL COMPUTE A "BASELINE DIFFERENTIAL" AS PROVIDED HEREIN FOR THE HOME- STEAD TAX DISTRICT PRIOR TO ITS FIRST LEVY OF TAXES AS A HOMESTEAD TAX DISTRICT. IF THE BASELINE DIFFERENTIAL SO COMPUTED EXCEEDS TWENTY-FIVE PERCENT, THEN THE GOVERNING BODY OF THE HOMESTEAD TAX DISTRICT MAY ADOPT A RESOLUTION DIRECTING THAT THE LIMITATION IMPOSED BY PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION UPON THE DIFFERENCE BETWEEN THE NON-HOMESTEAD AND HOMESTEAD CLASS TAX RATES SHALL BE PHASED IN AS FOLLOWS: (A) IN THE FISCAL YEAR IN WHICH TAXES ARE LEVIED UPON THE REVALUATION ROLL, THE DIFFERENCE BETWEEN THE NON-HOMESTEAD AND HOMESTEAD CLASS TAX RATES, EXPRESSED AS A PERCENTAGE, MAY BE GREATER THAN TWENTY-FIVE PERCENT BUT NO GREATER THAN THE BASELINE DIFFERENTIAL. (B) EACH YEAR THEREAFTER, THE DIFFERENCE BETWEEN THE NON-HOMESTEAD CLASS TAX RATE AND ONE HUNDRED TWENTY-FIVE PERCENT OF THE HOMESTEAD CLASS TAX RATE SHALL BE DECREASED AT SUCH A RATE AS WILL SERVE TO TOTAL- LY ELIMINATE THE DIFFERENCE OVER THE TRANSITIONAL PERIOD PRESCRIBED HEREIN.
(1) IF THE BASELINE DIFFERENTIAL IS GREATER THAN TWENTY-FIVE PERCENT BUT LESS THAN FIFTY PERCENT, THE TRANSITIONAL PERIOD SHALL BE TEN YEARS. (2) IF THE BASELINE DIFFERENTIAL IS GREATER THAN FIFTY PERCENT BUT LESS THAN ONE HUNDRED PERCENT, THE TRANSITIONAL PERIOD SHALL BE FIFTEEN YEARS. (3) IF THE BASELINE DIFFERENTIAL IS GREATER THAN ONE HUNDRED PERCENT, THE TRANSITIONAL PERIOD SHALL BE TWENTY YEARS. (C) THE BASELINE DIFFERENTIAL SHALL BE DETERMINED AS FOLLOWS: (1) DETERMINE THE TOTAL ASSESSED VALUE OF THE PROPERTY IN THE HOME- STEAD CLASS ON THE REVALUATION ASSESSMENT ROLL, AFTER ACCOUNTING FOR PHYSICAL CHANGES BETWEEN THE REVALUATION ASSESSMENT ROLL AND THE PRIOR ASSESSMENT ROLL. (2) DETERMINE THE TOTAL ASSESSED VALUE OF THE PROPERTY IN THE HOME- STEAD CLASS ON THE PRIOR ASSESSMENT ROLL. (3) DIVIDE THE RESULT OBTAINED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH BY THE RESULT OBTAINED IN SUBPARAGRAPH TWO OF THIS PARAGRAPH. (4) DETERMINE THE TOTAL ASSESSED VALUE OF THE PROPERTY IN THE NON-HOMESTEAD CLASS ON THE REVALUATION ASSESSMENT ROLL, AFTER ACCOUNTING FOR PHYSICAL CHANGES BETWEEN THE REVALUATION ASSESSMENT ROLL AND THE PRIOR ASSESSMENT ROLL. (5) DETERMINE THE TOTAL ASSESSED VALUE OF THE PROPERTY IN THE NON-HOMESTEAD CLASS ON THE PRIOR ASSESSMENT ROLL. (6) DIVIDE THE RESULT OBTAINED IN SUBPARAGRAPH FOUR OF THIS PARAGRAPH BY THE RESULT OBTAINED IN SUBPARAGRAPH FIVE OF THIS PARAGRAPH. (7) DETERMINE THE PERCENTAGE BY WHICH THE RESULT OBTAINED IN SUBPARA- GRAPH THREE OF THIS PARAGRAPH EXCEEDS THE RESULT OBTAINED IN SUBPARA- GRAPH SIX OF THIS PARAGRAPH. THE RESULT IS THE BASELINE DIFFERENTIAL. S 1914. FOUR-YEAR CYCLE. 1. IN ORDER TO REMAIN A HOMESTEAD ASSESSING UNIT, AT LEAST ONCE IN EVERY FOUR-YEAR PERIOD THE HOMESTEAD ASSESSING UNIT MUST COMPLETE A REVALUATION AT ONE HUNDRED PERCENT OF VALUE WHICH IS CERTIFIED BY THE STATE BOARD AS BEING HOMESTEAD-COMPLIANT. IF IT FAILS TO DO SO, THE PROVISIONS OF THIS ARTICLE SHALL CEASE TO BE APPLI- CABLE TO THE ASSESSING UNIT AND TO THE MUNICIPAL CORPORATIONS WHICH LEVY TAXES UPON ITS ASSESSMENT ROLL; PROVIDED THAT THE PROVISIONS OF THIS ARTICLE SHALL REMAIN APPLICABLE TO ANY SUCH MUNICIPAL CORPORATION WHICH MAY BE CONSIDERED AN ELIGIBLE SPLIT TAX DISTRICT BECAUSE IT IS PARTIALLY LOCATED WITHIN A DIFFERENT ASSESSING UNIT THAT REMAINS A HOMESTEAD ASSESSING UNIT. 2. AN ASSESSING UNIT WHICH HAS CEASED TO BE A HOMESTEAD ASSESSING UNIT DUE TO THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION MAY REGAIN SUCH STATUS ON A PROSPECTIVE BASIS BY COMPLETING ANOTHER REVALUATION AT ONE HUNDRED PERCENT OF VALUE WHICH IS CERTIFIED BY THE STATE BOARD AS BEING HOMESTEAD-COMPLIANT. S 1915. TERMINATION. 1. THE GOVERNING BODY OF A HOMESTEAD ASSESSING UNIT MAY ADOPT A RESOLUTION TERMINATING ITS STATUS AS A HOMESTEAD ASSESSING UNIT. WHERE SUCH A RESOLUTION HAS BEEN ADOPTED, THE PROVISIONS OF THIS ARTICLE SHALL CEASE TO BE APPLICABLE TO THE ASSESSING UNIT AND TO THE MUNICIPAL CORPORATIONS WHICH LEVY TAXES UPON ITS ASSESS- MENT ROLL; PROVIDED THAT THE PROVISIONS OF THIS ARTICLE SHALL REMAIN APPLICABLE TO ANY SUCH MUNICIPAL CORPORATION WHICH MAY BE CONSIDERED AN ELIGIBLE SPLIT TAX DISTRICT BECAUSE IT IS PARTIALLY LOCATED WITHIN A DIFFERENT ASSESSING UNIT THAT REMAINS A HOMESTEAD ASSESSING UNIT. 2. THE GOVERNING BODY OF A HOMESTEAD TAX DISTRICT MAY ADOPT A RESOL- UTION TERMINATING ITS STATUS AS A HOMESTEAD TAX DISTRICT. WHERE SUCH A RESOLUTION HAS BEEN ADOPTED, IT SHALL NO LONGER BE ELIGIBLE TO USE CLASS TAX RATES, AND ANY ASSESSOR WHO HAD BEEN REQUIRED TO CLASSIFY PROPERTY
AS HOMESTEAD OR NON-HOMESTEAD DUE TO THE STATUS OF THE MUNICIPAL CORPO- RATION AS A HOMESTEAD TAX DISTRICT SHALL NO LONGER BE REQUIRED TO DO SO. 3. AN ASSESSING UNIT WHICH HAS CEASED TO BE A HOMESTEAD ASSESSING UNIT DUE TO THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION MAY REGAIN SUCH STATUS ON A PROSPECTIVE BASIS BY COMPLETING ANOTHER REVALUATION AT ONE HUNDRED PERCENT OF VALUE WHICH IS CERTIFIED BY THE STATE BOARD AS BEING HOMESTEAD-COMPLIANT. S 1916. NOTIFICATION REQUIREMENTS. IN ADDITION TO ANY OTHER REQUIRE- MENT IMPOSED BY LAW, A COPY OF ANY LOCAL LAW OR RESOLUTION ADOPTED PURSUANT TO THIS ARTICLE SHALL BE FILED WITH THE STATE BOARD WITHIN THIRTY DAYS AFTER SUCH ADOPTION. S 1917. STANDARD OF ASSESSMENT TO REMAIN APPLICABLE. ALL PROPERTY IN A HOMESTEAD ASSESSING UNIT SHALL BE ASSESSED AS REQUIRED BY SUBDIVISION TWO OF SECTION THREE HUNDRED FIVE OF THIS CHAPTER. NOTHING CONTAINED IN THIS ARTICLE SHALL BE CONSTRUED TO AUTHORIZE ASSESSING THE HOMESTEAD CLASS AT A DIFFERENT PERCENTAGE OF VALUE THAN THE NON-HOMESTEAD CLASS. S 1918. ELECTION BY APPROVED ASSESSING UNITS. 1. (A) ANY ASSESSING UNIT WHICH HAD BEEN CERTIFIED BY THE STATE BOARD PRIOR TO JANUARY FIRST, TWO THOUSAND ELEVEN AS AN APPROVED ASSESSING UNIT PURSUANT TO SECTION NINETEEN HUNDRED TWO OF THIS CHAPTER MAY ADOPT A LOCAL LAW DECLARING ITSELF TO BE BOTH A HOMESTEAD ASSESSING UNIT AND A HOMESTEAD TAX DISTRICT FOR PURPOSES OF THIS ARTICLE. SUCH A LOCAL LAW SHALL BE ADOPTED NO LATER THAN SIXTY DAYS BEFORE THE TAXABLE STATUS DATE OF THE FIRST ASSESSMENT ROLL TO WHICH IT IS TO APPLY. UPON THE ENACTMENT OF SUCH A LOCAL LAW, THE ASSESSING UNIT SHALL HAVE THE POWERS AND DUTIES CONFERRED UPON HOMESTEAD ASSESSING UNITS AND HOMESTEAD TAX DISTRICTS BY THIS ARTI- CLE, INCLUDING THE POWER TO ESTABLISH CLASS TAX RATES PURSUANT TO SECTION NINETEEN HUNDRED THIRTEEN OF THIS ARTICLE; PROVIDED THAT NOTWITHSTANDING THE PROVISIONS OF SECTION NINETEEN HUNDRED FOURTEEN OF THIS ARTICLE, A FORMER APPROVED ASSESSING UNIT SHALL NOT BE REQUIRED TO COMPLETE A HOMESTEAD-COMPLIANT REVALUATION UNTIL THE FOURTH ASSESSMENT ROLL PREPARED AFTER HAVING BECOME A HOMESTEAD ASSESSING UNIT. (B) IF THE LOCAL LAW SO PROVIDES, THE ASSESSING UNIT MAY RETAIN WITH- OUT CHANGE THE DEFINITION OF "HOMESTEAD CLASS" THAT APPLIED THEREIN PURSUANT TO SUBDIVISION THIRTEEN OF SECTION NINETEEN HUNDRED ONE OF THIS CHAPTER ON THE LAST DAY OF ITS DESIGNATION AS AN APPROVED ASSESSING UNIT. 2. ANY MUNICIPAL CORPORATION THAT NO LONGER QUALIFIES AS A "PORTION" OR AN "ELIGIBLE SPLIT TAX DISTRICT" DUE TO ADOPTION OF A LOCAL LAW PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL BE CONSIDERED A HOME- STEAD TAX DISTRICT FOR PURPOSES OF THIS ARTICLE WITHOUT FURTHER ACTION ON ITS PART. AS SUCH, IT SHALL HAVE THE POWERS AND DUTIES CONFERRED UPON IT BY THIS ARTICLE, INCLUDING THE POWER TO ESTABLISH CLASS TAX RATES PURSUANT TO SECTION NINETEEN HUNDRED THIRTEEN OF THIS ARTICLE. FOR PURPOSES OF THIS SECTION, THE TERMS "PORTION" AND "ELIGIBLE SPLIT TAX DISTRICT" SHALL HAVE THE MEANINGS SET FORTH IN SECTION NINETEEN HUNDRED ONE OF THIS CHAPTER. 3. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION FOUR OF SECTION NINE- TEEN HUNDRED THIRTEEN OF THIS ARTICLE, THE "BASELINE DIFFERENTIAL" FOR A FORMER APPROVED ASSESSING UNIT, AND FOR ANY FORMER PORTION OR ELIGIBLE SPLIT TAX DISTRICT ASSOCIATED THEREWITH, SHALL BE COMPUTED BY DIVIDING ITS LATEST NON-HOMESTEAD TAX RATE BY ITS LATEST HOMESTEAD TAX RATE, AS DETERMINED FOR ITS FINAL LEVY OF TAXES UNDER ARTICLE NINETEEN OF THIS CHAPTER. IF THE BASELINE DIFFERENTIAL SO COMPUTED EXCEEDS TWENTY-FIVE PERCENT, THEN THE GOVERNING BODY OF THE HOMESTEAD TAX DISTRICT MAY ADOPT A RESOLUTION DIRECTING THAT THE LIMITATION IMPOSED BY PARAGRAPH (A) OF
SUBDIVISION THREE OF SECTION NINETEEN HUNDRED THIRTEEN OF THIS ARTICLE UPON THE DIFFERENCE BETWEEN THE NON-HOMESTEAD AND HOMESTEAD CLASS TAX RATES SHALL BE PHASED IN OVER TIME IN THE SAME MANNER AS IS PROVIDED IN SUBDIVISION FOUR OF SECTION NINETEEN HUNDRED THIRTEEN OF THIS ARTICLE. S 4. Paragraph (d) of subdivision 1 of section 339-y of the real prop- erty law, as amended by chapter 218 of the laws of 1986, subparagraph (ii) as amended by chapter 223 of the laws of 1989, is amended to read as follows: (d) The provisions of paragraph (b) of this subdivision shall not apply to such real property classified within: (i) on and after January first, nineteen hundred eighty-six, class one of section one thousand eight hundred two of the real property tax law; [or] (ii) on and after January first, nineteen hundred eighty-four, the homestead class of an approved assessing unit which has adopted the provisions of section one thousand nine hundred three of the real prop- erty tax law, or the homestead class of the portion outside an approved assessing unit of an eligible split school district which has adopted the provisions of section nineteen hundred three-a of the real property tax law; provided, however, that, in an approved assessing unit which adopted the provisions of section one thousand nine hundred three of the real property tax law prior to [the effective date of this subdivision] APRIL THIRTIETH, NINETEEN HUNDRED EIGHTY-THREE, paragraph (b) of this subdivision shall apply to all such real property (i) which is classi- fied within the homestead class pursuant to paragraph one of subdivision (e) of section one thousand nine hundred one of the real property tax law and (ii) which, regardless of classification, was on the assessment roll prior to [the effective date of this subdivision] APRIL THIRTIETH, NINETEEN HUNDRED EIGHTY-THREE unless the governing body of such approved assessing unit provides by local law adopted after a public hearing, prior to the taxable status date of such assessing unit next occurring after December thirty-first, nineteen hundred eighty-three, that such paragraph (b) shall not apply to such real property to which this clause applies. Provided further, however, real property subject to the provisions of this subparagraph shall be assessed pursuant to subdivi- sion two of section five hundred eighty-one of the real property tax law[.]; OR (III) ON AND AFTER JANUARY FIRST, TWO THOUSAND ELEVEN, THE HOMESTEAD CLASS OF A HOMESTEAD TAX DISTRICT ESTABLISHED PURSUANT TO SECTION NINE- TEEN HUNDRED TWELVE OF THE REAL PROPERTY TAX LAW, PROVIDED THAT REAL PROPERTY SUBJECT TO THE PROVISIONS OF THIS SUBPARAGRAPH SHALL BE ASSESSED PURSUANT TO SUBDIVISION TWO OF SECTION FIVE HUNDRED EIGHTY-ONE OF THE REAL PROPERTY TAX LAW. S 5. Subdivision 8 of section 425 of the real property tax law, as added by section 1 of part B of chapter 389 of the laws of 1997, is amended to read as follows: 8. Effect of exemption. The exemption authorized by this section shall have the effect specified in section one thousand three hundred six-a of this chapter. The exemption shall not be considered when determining state aid to education pursuant to section thirty-six hundred two of the education law, when determining school district debt limits pursuant to law, when determining the amount of taxes to be levied by or on behalf of a school district, when calculating tax rates for a school district, when apportioning taxes between or among school districts, when appor- tioning taxes among classes in a special assessing unit under article eighteen of this chapter, or when apportioning taxes between classes in
an approved assessing unit OR A HOMESTEAD TAX DISTRICT under article nineteen OR NINETEEN-A of this chapter. S 6. Subdivision 1 of section 511 of the real property tax law, as amended by chapter 319 of the laws of 1998, is amended to read as follows: 1. In the year of a revaluation or update of assessments, the assessor shall, and in any other year may, not later than sixty days prior to the date set by law for the filing of the tentative assessment roll, mail to each owner of real property therein, an assessment disclosure notice in the format provided in paragraph (a) of subdivision two of this section. However, pursuant to a resolution adopted by the governing board of the assessing unit, other than a special assessing unit or an approved assessing unit which has adopted the provisions of section nineteen hundred three of this chapter OR A HOMESTEAD ASSESSING UNIT ESTABLISHED PURSUANT TO SECTION NINETEEN HUNDRED TWELVE OF THIS CHAPTER, such assessment disclosure notice shall include in lieu thereof the items specified in paragraph (b) of subdivision two of this section. S 7. Paragraph (b) of subdivision 1 of section 581 of the real proper- ty tax law, as amended by chapter 223 of the laws of 1989, is amended to read as follows: (b) The provisions of paragraph (a) of this subdivision shall not apply to such real property classified within: (i) on and after January first, nineteen hundred eighty-six, class one of section one thousand eight hundred two of this chapter; [or] (ii) on and after January first, nineteen hundred eighty-four, the homestead class of an approved assessing unit which has adopted the provisions of section one thousand nine hundred three of this chapter, or the homestead class of the portion outside an approved assessing unit of an eligible split school district which has adopted the provisions of section nineteen hundred three-a of this chapter; provided, however, that, in an approved assessing unit which adopted the provisions of section one thousand nine hundred three of this chapter prior to the effective date of this subdivision, paragraph (a) of this subdivision shall apply to all such real property (i) which is classified within the homestead class pursuant to [paragraph one of subdivision (e) of] section one thousand nine hundred one of this chapter and (ii) which, regardless of classification, was on the assessment roll prior to [the effective date of this subdivision] APRIL THIRTIETH, NINETEEN HUNDRED EIGHTY-THREE unless the governing body of such approved assessing unit provides by local law adopted after a public hearing, prior to the taxa- ble status date of such assessing unit next occurring after December thirty-first, nineteen hundred eighty-three, that such paragraph (a) shall not apply to such real property to which this clause applies[.]; OR (III) ON AND AFTER JANUARY FIRST, TWO THOUSAND ELEVEN, THE HOMESTEAD CLASS OF A HOMESTEAD TAX DISTRICT. S 8. Subdivision 2 of section 581 of the real property tax law, as added by chapter 223 of the laws of 1989, is amended to read as follows: 2. Real property owned or leased by a cooperative corporation or on a condominium basis which is located in an approved assessing unit OR A HOMESTEAD TAX DISTRICT, or which is not located in an approved assessing unit OR A HOMESTEAD TAX DISTRICT but which is located in an eligible split school district which has adopted the provisions of section nine- teen hundred three-a of this chapter, and is not subject to the provisions of paragraph (a) of subdivision one of this section, shall be assessed pursuant to the provisions of this subdivision.
(a) The assessor of an assessing unit in which such real property is located shall compute an assessment which would be placed on such parcel were the parcel not owned or leased by a cooperative corporation or on a condominium basis, which value shall be known as the restricted assessed valuation. (b) The assessor of such assessing unit in which such real property is located shall compute an assessment which would be placed on such parcel without regard to the restrictions found in paragraph (a) of this subdi- vision or section three hundred thirty-nine-y of the real property law, which value shall be known as the assessed valuation. (c) The assessor of such assessing unit shall enter the assessed valu- ation on the assessment roll of such assessing unit and the restricted assessed valuation in a separate column of the assessment roll of such assessing unit. (d) A municipal corporation which levies taxes pursuant to article nineteen OR NINETEEN-A of this chapter shall levy such taxes against the assessed valuation of such parcels for taxes imposed by or on behalf of such municipal corporation. (e) A municipal corporation which does not levy taxes pursuant to article nineteen OR NINETEEN-A of this chapter shall levy such taxes against the restricted assessed valuation of such parcels for taxes levied by or on behalf of such municipal corporation. S 9. Clause (i) of subparagraph 1 of paragraph (a) of subdivision 3 of section 720 of the real property tax law, as amended by chapter 679 of the laws of 1986, is amended to read as follows: (i) residential: all one, two and three family residential real prop- erty including such dwellings used in part for non-residential purposes but which are used primarily for residential purposes, except such prop- erty held in cooperative or condominium forms of ownership provided, however, that in any approved assessing unit which has adopted the provisions of section nineteen hundred three of this chapter AND IN ANY HOMESTEAD TAX DISTRICT, the residential type shall be the homestead class as defined in this chapter; S 10. Paragraph (b) of subdivision 1 of section 1111 of the real prop- erty tax law, as added by chapter 532 of the laws of 1994, is amended to read as follows: (b) "Residential property" means property which is improved by a one, two or three family structure used exclusively for residential purposes other than property subject to the assessment limitations of section five hundred eighty-one of this chapter and article nine-B of the real property law. A parcel shall be deemed to be residential property for purposes of this article if the applicable tax roll shows that (i) the assessor has assigned to the parcel a property classification code in the residential category, or (ii) the parcel has been included in the homestead class in an approved assessing unit OR A HOMESTEAD TAX DISTRICT, or in class one in a special assessing unit. S 11. The real property tax law is amended by adding a new section 1617 to read as follows: S 1617. CLASS TAX RATE OPTIONS. 1. A CONSOLIDATED ASSESSING UNIT SHALL BECOME A HOMESTEAD ASSESSING UNIT UNDER ARTICLE NINETEEN-A OF THIS CHAP- TER UPON THE ADOPTION OF RESOLUTIONS SO PROVIDING BY ALL OF THE CONSTIT- UENT MUNICIPALITIES THEREOF, AND MAY TERMINATE ITS STATUS AS A HOMESTEAD ASSESSING UNIT IN THE SAME MANNER. 2. IN AN APPROVED ASSESSING UNIT OR HOMESTEAD ASSESSING UNIT THAT HAS BECOME A CONSTITUENT MUNICIPALITY OF A CONSOLIDATED ASSESSING UNIT ESTABLISHED PURSUANT TO THIS ARTICLE, THE PROVISIONS OF ARTICLE NINETEEN
OR NINETEEN-A OF THIS CHAPTER, WHICHEVER HAD BEEN APPLICABLE, SHALL CONTINUE TO BE APPLICABLE TO THE SAME EXTENT AS IF THE ASSESSING UNIT HAD NOT BECOME PART OF A CONSOLIDATED ASSESSING UNIT, PROVIDED THAT THE CONSTITUENT MUNICIPALITY MAY WAIVE THE PROVISIONS OF THIS SUBDIVISION BY LOCAL LAW. S 12. This act shall take effect January 1, 2011, provided that: (a) an application for certification of a revaluation as homestead- compliant pursuant to section 1912 of the real property tax law as added by section three of this act may be submitted and approved prior to such date; and (b) a resolution to become a homestead assessing unit pursuant to section 1912 of the real property tax law as added by section three of this act may be adopted prior to such date.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus