senate Bill S1053

Eliminates the separate utility class in New York city

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO LOCAL GOVERNMENT
  • 08 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT

Summary

Eliminates the separate utility class (class 3) in New York city.

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Bill Details

See Assembly Version of this Bill:
A2261
Versions:
S1053
Legislative Cycle:
2013-2014
Current Committee:
Senate Local Government
Law Section:
Real Property Tax Law
Laws Affected:
Amd §§1802 & 1805, add §1802-a, RPT L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S150A, A3184A, A9979
2009-2010: S8023, A8926, S8023

Sponsor Memo

BILL NUMBER:S1053

TITLE OF BILL:
An act
to amend the real property tax law, in relation to providing for the
elimination of the separate utility class (class 3) in New York city

PURPOSE OR GENERAL IDEA OF BILL:
To provide for the merger of class three and four into a new single
class for the special assessing unit of New York city. The merger of
class shares of present classes three and four results in no revenue
loss to New York city.

SUMMARY OF SPECIFIC PROVISIONS:
Amends sections 1802 and 1805 of Article 18 of the Real Property Tax
Law to eliminate the definition and references to the utility
property class and to create a three class system with the present
class three and class four merged in New York city.

JUSTIFICATION:
In New York City, Con Edison constitutes seventy seven percent of the
assessed valuation of class three. Reductions in assessed values have
produced little or no tax relief because of increases in the class
three tax rates which have nullified the assessment reductions. Most
important, lower property taxes for public utilities mean lower
energy costs which provides relief to utility customers and helps New
York City attract and retain business.

As a practical matter because of the limited number of taxpayers in
the class there is no way under existing law for the public utilities
to challenge the assessed valuations of their properties within the
separate utility class and permanently reduce their property taxes
below the 1981-82 fixed share of the real property tax levy. This is
regardless of how meritorious their case may be.

Even the relief provided by the 1990 amendment to the real property
tax law which permitted land, buildings, and structures to be
transferred to class four from class three, did not include a great
portion of public utility property, mainly the special franchise
properties which are located in the public streets and ways.

This proposed legislation does not purport to create a fully equitable
taxation system among all classes of taxpayers in the special
assessing unit, but it would at least place public utilities on the
same basis as other commercial and industrial taxpayers.

More important, lower property taxes for public utilities mean lower
energy costs which in turn will help New York city keep existing
business and attract new businesses as well as give some relief to
all existing customers.

PRIOR LEGISLATIVE HISTORY:
S.8023/A.8926 of 2009-2010; Referred to Cities
S.150A/A.9979 of 2011-2012; Referred to Local Government

EFFECTIVE DATE:


Immediately and applicable to assessment rolls with a taxable status
date following its effective date.

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

                                  1053

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the real property tax law, in relation to providing  for
  the  elimination  of  the separate utility class (class 3) in New York
  city

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The section heading and the opening paragraph of subdivi-
sion 1 of section 1802 of the real property tax law, the section heading
as added by chapter 1057 of the laws of 1981 and the  opening  paragraph
of  subdivision  1  as separately amended by chapters 123 and 529 of the
laws of 1990, are amended to read as follows:
  Classification of real  property  in  a  special  assessing  unit  NOT
LOCATED WHOLLY WITHIN A CITY.
  All  real  property,  for  the  purposes of this article, in a special
assessing unit NOT LOCATED WHOLLY WITHIN A CITY shall be  classified  as
follows:
  S  2.  The  real  property  tax law is amended by adding a new section
1802-a to read as follows:
  S 1802-A. CLASSIFICATION OF REAL PROPERTY IN A SPECIAL ASSESSING  UNIT
LOCATED  WHOLLY WITHIN A CITY. 1. ALL REAL PROPERTY, FOR THE PURPOSES OF
THIS ARTICLE, IN A SPECIAL ASSESSING UNIT LOCATED WHOLLY WITHIN  A  CITY
SHALL BE CLASSIFIED AS FOLLOWS:
  CLASS  ONE: (A) ALL ONE, TWO AND THREE FAMILY RESIDENTIAL REAL PROPER-
TY, INCLUDING SUCH DWELLINGS USED IN PART  FOR  NONRESIDENTIAL  PURPOSES
BUT WHICH ARE USED PRIMARILY FOR RESIDENTIAL PURPOSES, EXCEPT SUCH PROP-
ERTY  HELD  IN  COOPERATIVE OR CONDOMINIUM FORMS OF OWNERSHIP OTHER THAN
(I) PROPERTY DEFINED IN SUBPARAGRAPHS (B) AND (C) OF THIS PARAGRAPH  AND
(II)  PROPERTY  WHICH CONTAINS NO MORE THAN THREE DWELLING UNITS HELD IN
CONDOMINIUM FORM OF OWNERSHIP AND WHICH WAS CLASSIFIED WITHIN THIS CLASS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02067-01-3

S. 1053                             2

ON A PREVIOUS ASSESSMENT ROLL; AND PROVIDED  THAT,  NOTWITHSTANDING  THE
PROVISIONS OF PARAGRAPH (G) OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED
TWO  OF THIS CHAPTER, A MOBILE HOME OR A TRAILER SHALL NOT BE CLASSIFIED
WITHIN  THIS  CLASS UNLESS IT IS OWNER-OCCUPIED AND SEPARATELY ASSESSED;
AND (B) RESIDENTIAL REAL PROPERTY NOT MORE THAN THREE STORIES IN  HEIGHT
HELD  IN  CONDOMINIUM  FORM OF OWNERSHIP, PROVIDED THAT NO DWELLING UNIT
THEREIN PREVIOUSLY WAS ON AN ASSESSMENT ROLL AS A DWELLING UNIT IN OTHER
THAN CONDOMINIUM FORM OF OWNERSHIP; AND (C)  RESIDENTIAL  REAL  PROPERTY
CONSISTING  OF  ONE FAMILY HOUSE STRUCTURES OWNED BY THE OCCUPANT, SITU-
ATED ON LAND HELD IN COOPERATIVE OWNERSHIP BY OWNER OCCUPIERS,  PROVIDED
THAT;  (I)  SUCH HOUSE STRUCTURES AND LAND CONSTITUTED BUNGALOW COLONIES
IN EXISTENCE PRIOR TO NINETEEN HUNDRED FORTY; AND (II) THE LAND IS  HELD
IN  COOPERATIVE OWNERSHIP FOR THE SOLE PURPOSE OF MAINTAINING ONE FAMILY
RESIDENCES FOR MEMBERS OWN USE; AND (D) ALL VACANT LAND LOCATED WITHIN A
SPECIAL ASSESSING UNIT WHICH IS A CITY  OTHER  THAN  SUCH  LAND  IN  THE
BOROUGH  OF  MANHATTAN  SOUTH  OF OR ADJACENT TO THE SOUTH SIDE OF 110TH
STREET, PROVIDED THAT ANY SUCH VACANT LAND WHICH IS NOT  ZONED  RESIDEN-
TIAL  MUST  BE SITUATED IMMEDIATELY ADJACENT TO PROPERTY IMPROVED WITH A
RESIDENTIAL STRUCTURE AS DEFINED IN SUBPARAGRAPHS (A) AND  (B)  OF  THIS
PARAGRAPH, BE OWNED BY THE SAME OWNER AS SUCH IMMEDIATELY ADJACENT RESI-
DENTIAL  PROPERTY IMMEDIATELY PRIOR TO AND SINCE JANUARY FIRST, NINETEEN
HUNDRED EIGHTY-NINE, AND HAVE A TOTAL AREA NOT  EXCEEDING  TEN  THOUSAND
SQUARE FEET.
  CLASS TWO: ALL OTHER RESIDENTIAL REAL PROPERTY WHICH IS NOT DESIGNATED
AS  CLASS  ONE,  EXCEPT  HOTELS  AND MOTELS AND OTHER SIMILAR COMMERCIAL
PROPERTY.
  CLASS THREE: ALL OTHER REAL PROPERTY WHICH IS NOT DESIGNATED AS  CLASS
ONE OR CLASS TWO.
  2. IN ADDITION TO ANY REQUIREMENTS OF LAW OR RULE OF THE COMMISSIONER,
THE ASSESSMENT ROLL SHALL CONTAIN A SEPARATE COLUMN FOR THE ENTRY OF THE
CLASS DESIGNATION REQUIRED BY THIS SECTION. THE ASSESSOR SHALL ENTER THE
APPROPRIATE  CLASS  DESIGNATION IN THIS COLUMN FOR EACH PARCEL LISTED ON
THE ASSESSMENT ROLL.
  3. THE DETERMINATION OF INCLUSION WITHIN  A  CLASS  PURSUANT  TO  THIS
SECTION  SHALL  BE  SUBJECT  TO  ADMINISTRATIVE  AND  JUDICIAL REVIEW AS
PROVIDED BY LAW FOR THE REVIEW OF ASSESSMENTS.
  S 3. Subdivision 3 of section 1805 of the real property  tax  law,  as
amended  by  chapter  143 of the laws of 1989, and as further amended by
subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
2010, is amended to read as follows:
  3.  If  the assessment appearing on an assessment roll completed on or
after January first, nineteen hundred  eighty-two  for  any  parcel  not
subject  to  the  provisions  of subdivision one or two of this section,
other than a parcel classified in class three  IN  A  SPECIAL  ASSESSING
UNIT  NOT LOCATED WHOLLY WITHIN THE CITY, is greater than the assessment
appearing on the previous year's  assessment  roll  the  assessor  shall
determine  a transition assessment for such parcel for the first assess-
ment roll on which such greater assessment appears and for each  of  the
succeeding  four  assessment  rolls  by computing the difference between
such greater assessment and the assessment appearing  on  such  previous
year's  assessment  roll  and  adding  the following percentages of such
difference to the assessment appearing on such previous  year's  assess-
ment  roll: in the first year, twenty percent; in the second year, forty
percent; in the third year, sixty percent; in the  fourth  year,  eighty
percent;  and  in the fifth year, one hundred percent. If the assessment
of a parcel is increased during a period for  which  transition  assess-

S. 1053                             3

ments  have  been established because of any prior assessment increases,
such new increase shall be phased-in over  a  five-year  period  as  set
forth  in  this subdivision, and such phased-in increases shall be added
to  the  transitional  assessments  previously established for the prior
increase; provided, however, that if in any  year  any  such  transition
assessment exceeds the actual assessment for such year, taxes imposed on
such  parcel  for such year shall be based on such lesser actual assess-
ment. Notwithstanding the foregoing, during the period of any such tran-
sition, the assessment roll shall contain an entry of the full amount of
such greater assessment which shall be used by the commissioner  in  its
determination  of  class ratios pursuant to paragraph (b) of subdivision
one of section twelve hundred two of this chapter. In establishing state
equalization rates, class equalization rates, special state equalization
rates and special state equalization ratios under article twelve,  arti-
cle  twelve-A  and  article  twelve-B  of this chapter, the commissioner
shall use the transition assessments as provided for in this subdivision
in its determinations, or where the actual  assessment  is  the  lesser,
such actual assessment shall be so used.
  S 4. This act shall take effect immediately and shall be applicable to
assessment  rolls  with  a  taxable status date following such effective
date.

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