S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7653

                            I N  S E N A T E

                             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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15985-03-0

S. 7653                             2

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. 7653                             3

  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

S. 7653                             4

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.

S. 7653                             5

  (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

S. 7653                             6

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

S. 7653                             7

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

S. 7653                             8

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.

S. 7653                             9

  (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

S. 7653                            10

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.