senate Bill S6362

Relates to the eligibility of J-51 tax abatements to reflect cost of living adjustments

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Sponsor

Bill Status


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

  • 21 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT

Summary

Relates to the eligibility of J-51 tax abatements to reflect cost of living adjustments.

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Bill Details

See Assembly Version of this Bill:
A8566
Versions:
S6362
Legislative Cycle:
2013-2014
Current Committee:
Senate Local Government
Law Section:
Real Property Tax Law
Laws Affected:
Amd ยง489, RPT L

Sponsor Memo

BILL NUMBER:S6362

TITLE OF BILL: An act to amend the real property tax law, in relation
to the eligibility for J-51 tax abatements to reflect cost of living
adjustments

PURPOSE OR GENERAL IDEA OF BILL: To adjust the J-51 tax abatement
minimum assessed property value eligibility to reflect yearly changes
in cost of living.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Amends Subdivision 17 of section 489 of the real property
tax law regarding eligibility for benefits of subdivision 17. In this
subdivision, cooperatively owned buildings or condominiums whose value
exceeds the assessed valuation limitation specified in subdivision 17,
paragraph (c) shall only be eligible for the benefits of subdivision
17 if alterations or improvements for which the dwelling, building, or
structure that applied for the benefits, were carried out with
substantial government assistance.

Subdivision 17, paragraph (c) assessed value limitation: for the final
assessment rolls completed prior to 2015, the assessed value
limitation shall be $30,000.

For the final assessment roil to be completed in 2015, the assessed
value limitation shall be the previously applicable limitation --
$30,000 - increased by the cost-of-living adjustment percentage of
2015.

The cost-of-living adjustment percentage shall be equal to the
"applicable increase percentage" used by the US Commissioner of Social
Security to determine the monthly social security benefits paid to
individuals in 2015.

For every year after 2015, the applicable assessed value limitation,
cost-of-living adjustment percentage and applicable increase
percentage shall all be advanced by one year, and the assessed
valuation limitation shall be the previously applicable limitation,
increased by the new cost-of-living adjustment percentage.

If there is no applicable increase because the general benefit has
increased as defined by 42 U.S.C. 415(i), then the applicable increase
percentage will be the percentage which would have yielded that
general benefit increase.

Section 2 contains the effective date.

JUSTIFICATION: The J-51 tax abatement is a property tax exemption and
abatement received by buildings for renovating a residential apartment
building. Since 1992, co-op units and condos that had an assessed
value less than $40,000 were eligible to receive this abatement.
However, in 2013, the eligibility cap was reduced to units that have
an assessed value of less than $30,000. As a result of this change,
fewer middle-income co-ops and condo owners are eligible for these
abatements.


This bill would increase the J-51 tax abatement cap yearly to reflect
adjustments in the cost of living, as set by the U.S. commissioner of
social security in determining monthly benefits. Therefore, the
abatement cap would be indexed for inflation and will consistently
accommodate middle income co-op and condo owners.

PRIOR LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE:; This act shall take effect immediately.

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

                                  6362

                            I N  S E N A T E

                            January 21, 2014
                               ___________

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

AN ACT to amend the real property tax law, in relation to the  eligibil-
  ity for J-51 tax abatements to reflect cost of living adjustments

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

  Section 1. Subdivision 17 of section 489 of the real property tax law,
as added by chapter 4 of the  laws  of  2013,  is  amended  to  read  as
follows:
  17.  (a)  For  purposes of this subdivision, "substantial governmental
assistance" shall mean:
  (i) grants, loans or subsidies from any federal, state or local agency
or instrumentality in furtherance of a program for  the  development  of
affordable  housing  approved  by  the  local housing agency, including,
without limitation, financing or insurance provided by the state of  New
York mortgage agency of the New York city residential mortgage insurance
corporation; or
  (ii)  a  written  agreement  between a housing development fund corpo-
ration and the local housing agency  limiting  the  incomes  of  persons
entitled to purchase shares or rent housing accommodations therein.
  (b) Any local law or ordinance providing for benefits pursuant to this
section  must  also  provide  the following with respect to conversions,
alterations or improvements completed on or after December thirty-first,
two thousand eleven:
  (i) except as otherwise provided  in  this  section  with  respect  to
multiple  dwellings,  buildings and structures owned and operated either
by limited-profit housing companies established pursuant to article  two
of  the  private  housing  finance law or redevelopment companies estab-
lished pursuant to article five of the private housing finance  law,  or
with  respect  to  a group of multiple dwellings that was developed as a
planned community  and  that  is  owned  as  two  separate  condominiums
containing  a total of ten thousand or more dwelling units, any multiple
dwelling, building or structure that is owned  as  a  cooperative  or  a
condominium  that  has  an  average  assessed  value [of thirty thousand

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13451-01-4

S. 6362                             2

dollars or more] per dwelling unit THAT EXCEEDS THE  ASSESSED  VALUATION
LIMITATION  AS  PROVIDED IN PARAGRAPH (C) OF THIS SUBDIVISION shall only
be eligible for such benefits if the  alterations  or  improvements  for
which  such multiple dwelling, building or structure has applied for the
benefits pursuant to this section  were  carried  out  with  substantial
governmental assistance; and
  (ii)  no  benefits  pursuant  to this section shall be granted for the
conversion of any non-residential building or structure into a  class  A
multiple  dwelling  unless such conversion was carried out with substan-
tial governmental assistance.
  (C) ASSESSED VALUE LIMITATION. (I) FOR FINAL ASSESSMENT  ROLLS  TO  BE
COMPLETED  PRIOR  TO TWO THOUSAND FIFTEEN, THE ASSESSED VALUE LIMITATION
SHALL BE THIRTY THOUSAND DOLLARS.
  (II) FOR THE FINAL ASSESSMENT ROLL TO BE  COMPLETED  IN  TWO  THOUSAND
FIFTEEN THE ASSESSED VALUE LIMITATION SHALL BE THE PREVIOUSLY APPLICABLE
ASSESSED  VALUE  LIMITATION  OF THIRTY THOUSAND DOLLARS INCREASED BY THE
COST-OF-LIVING ADJUSTMENT PERCENTAGE OF TWO THOUSAND  FIFTEEN.  FOR  THE
PURPOSES  OF  THIS COMPUTATION, THE COST-OF-LIVING ADJUSTMENT PERCENTAGE
OF TWO THOUSAND FIFTEEN SHALL  BE  EQUAL  TO  THE  "APPLICABLE  INCREASE
PERCENTAGE" USED BY THE UNITED STATES COMMISSIONER OF SOCIAL SECURITY TO
DETERMINE  THE  MONTHLY SOCIAL SECURITY BENEFITS PAYABLE IN TWO THOUSAND
FIFTEEN TO INDIVIDUALS, AS PROVIDED BY SUBSECTION (I)  OF  SECTION  FOUR
HUNDRED FIFTEEN OF TITLE FORTY-TWO OF THE UNITED STATES CODE.
  (III) FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED IN EACH ENSUING YEAR,
THE  APPLICABLE  ASSESSED  VALUE  LIMITATION,  COST-OF-LIVING ADJUSTMENT
PERCENTAGE AND APPLICABLE INCREASE PERCENTAGE SHALL ALL BE  ADVANCED  BY
ONE  YEAR, AND THE ASSESSED VALUATION LIMITATION SHALL BE THE PREVIOUSLY
APPLICABLE ASSESSED VALUE LIMITATION INCREASED BY THE NEW COST-OF-LIVING
ADJUSTMENT PERCENTAGE. IF THERE SHOULD BE A YEAR FOR WHICH THERE  IS  NO
APPLICABLE  INCREASE  PERCENTAGE  DUE  TO  A GENERAL BENEFIT INCREASE AS
DEFINED BY SUBDIVISION THREE OF SUBSECTION (I) OF SECTION  FOUR  HUNDRED
FIFTEEN  OF  TITLE  FORTY-TWO  OF THE UNITED STATES CODE, THE APPLICABLE
INCREASE PERCENTAGE FOR PURPOSES OF THIS COMPUTATION SHALL BE DEEMED  TO
BE  THE  PERCENTAGE  WHICH  WOULD  HAVE  YIELDED  THAT  GENERAL  BENEFIT
INCREASE.
  S 2. This act shall take effect immediately.

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