senate Bill S726A

Relates to classifying properties held in condominium and cooperative form for assessment purposes as class one-a properties

download pdf

Sponsor

Co-Sponsors

Bill Status


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

actions

  • 09 / Jan / 2013
    • REFERRED TO LOCAL GOVERNMENT
  • 08 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT
  • 21 / May / 2014
    • AMEND (T) AND RECOMMIT TO LOCAL GOVERNMENT
  • 21 / May / 2014
    • PRINT NUMBER 726A
  • 03 / Jun / 2014
    • 1ST REPORT CAL.1160
  • 09 / Jun / 2014
    • 2ND REPORT CAL.
  • 10 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2014
    • PASSED SENATE
  • 20 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 23 / Jun / 2014
    • REFERRED TO REAL PROPERTY TAXATION

Summary

Classifies properties held in condominium and cooperative form for assessment purposes as class one-a properties; requires that the annual tax rate percentage change for class one-a properties does not exceed the annual tax rate percentage change for class one properties.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A3947A
Versions:
S726
S726A
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Real Property Tax Law
Laws Affected:
Amd RPT L, generally; amd §§11-208.1, 11-238, 11-319, 11-320, 11-354, 11-401, 11-401.1, 11-404 & 11-405, NYC Ad Cd; add §3-b, Gen Muni L; add §2023-c, Ed L
Versions Introduced in 2011-2012 Legislative Cycle:
S5118A, A8118A

Sponsor Memo

BILL NUMBER:S726A

TITLE OF BILL: An act to amend the real property tax law and the
administrative code of the city of New York, in relation to
classifying properties held in condominium and cooperative form for
assessment purposes as class one-a properties; and to amend the
general municipal law and the education law, in relation to
establishing limitations upon school district and local government tax
levies in the city of New York

PURPOSE OR GENERAL IDEA OF BILL:

The legislation will create a new residential property tax class for
coops and condos in the city of New York to bring these properties
more in line with the way in which residential one, two and three
family homes are assessed.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends subdivision 1 of section 1802 of the real
property tax law by creating class one-a to include all other
residential real property held in condominium or cooperative form of
ownership which is not designated as class one as well as other
technical amendments to conform the section to the addition of the new
class one-a.

Section 2 of the bill amends subdivision 1. paragraph (c) of
subdivision 2 and subdivision 4 of section 307-a of the real property
tax law to include the new class one-a.

Section 3 of the bill amends paragraph (d) of subdivision 2 of section
425 of the real property tax law to add tax class one-a the
"equalization adjustment" provisions of the tax law.

Section 4 through 20 amend various sections of the real property tax
law and the administrative code of the city of New York to add tax
class one-a to each of these sections.

Section 21 amends section 3-b of the general municipal law by adding a
new subdivision 3 that requires the annual percentage change for real
property tax rates for class one-a properties not exceed the annual
percentage change for class one properties.

Section 22 amends the education law by adding a new section 2023-c to
require that the annual percentage change in school district tax
levies for class one-a properties not exceed the annual percentage
change for class one properties.

Section 23 provides for this act to take effect on the first of
January next succeeding the date on which it shall have become a law
and shall apply to assessment rolls prepared pursuant to a taxable
status date occurring on or after such date; provided, however, that
effective immediately, the addition, amendment and/or repeal of any
rule or regulation necessary for the implementation of this act on its
effective date are authorized and directed to be made and completed on
or before such effective date.


JUSTIFICATION:

This bill will create a new property tax class for co-ops and condos
in order bring the property tax assessments in line with how taxes are
assessed on class one properties which include one, two and three
family homes. Currently coops and condos are classified as class two
properties which include commercial residential properties. The manner
in which they are currently assessed involves a comparison to
"comparable" residential rental properties (excluding one, two or
three family homes) which is inherently flawed. In fact, a more
appropriate comparison for coops and condos is to residential one, two
and three family homes or as discussed below certainly to other coops
and condos and not residential rental properties.

While coops and condos belong in a class one type of category they
cannot be brought completely within the current class one because
doing so would cause a significant increase in the current tax levies
associated with class one properties. Furthermore, to bring coops and
condos into the current class one category without carrying over their
existing tax levies would result in a massive loss of revenue to the
city of New York. Therefore the most reasonable and responsible change
is to create a new class one-a category for coops and condos which
will carry with it the current tax levies that are attached to such
properties from class two to class one-a.

The creation of this new class will result in coops and condos being
assessed based on comparable sales prices to other coops and condos
which will be a much more equitable evaluation process. In addition,
properties in the new class one-a will also be covered by the current
property tax caps that exists for Class 1 properties which cap any
single yearly property tax increase at 6% and 20% over a five year
period. The bill will also require that the annual percentage changes
in real property taxes, including school taxes, for class one-a
properties will not exceed the annual percentage changes for class one
properties.

PRIOR LEGISLATIVE HISTORY:

2011-12: S.5118A/A.8118A (DenDekker)

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

The act shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to assessment
rolls prepared pursuant to a taxable status date occurring on or after
such date; provided, however, that effective immediately, the
addition, amendment and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date are
authorized and directed to be made and completed on or before such
effective date.

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

                                 726--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sens. AVELLA, STAVISKY -- read twice and ordered printed,
  and when printed to be committed to the Committee on Local  Government
  -- recommitted to the Committee on Local Government in accordance with
  Senate  Rule  6, sec. 8 -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the real property tax law and the administrative code of
  the city of New York, in relation to classifying  properties  held  in
  condominium  and  cooperative  form  for  assessment purposes as class
  one-a properties; and to amend  the  general  municipal  law  and  the
  education  law,  in  relation  to establishing limitations upon school
  district and local government tax levies in the city of New York

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

  Section 1. Subdivision 1 of section 1802 of the real property tax law,
as separately amended by chapters 123 and 529 of the laws of 1990, para-
graph  class  one  as  amended  by  chapter  332 of the laws of 2008, is
amended to read as follows:
  1. All real property, for the purposes of this article, in  a  special
assessing unit 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 property 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 on a previ-
        ous  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03714-02-4

S. 726--A                           2

        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 condomin-
        ium  form  of  ownership;  and  (c)  residential  real  property
        consisting of one family house structures owned by the occupant,
        situated on land held in cooperative ownership by owner  occupi-
        ers,  provided  that; (i) such house structures and land consti-
        tuted 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 (i) other than such  land
        in  the borough of Manhattan, provided that any such vacant land
        which is not zoned  residential  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 residential prop-
        erty immediately prior to and since January 1, 1989, and have  a
        total area not exceeding 10,000 square feet; and (ii) located in
        the  borough of Manhattan north of or adjacent to the north side
        of 110th street provided such vacant land was classified  within
        this  class on the assessment roll with a taxable status date of
        January 5, 2008 and the owner of such land has  entered  into  a
        recorded  agreement  with  a  governmental  entity  on or before
        December 31, 2008 requiring construction of  housing  affordable
        to  persons  or  families  of  low income in accordance with the
        provisions of the private housing finance  law.  Notwithstanding
        the foregoing, such vacant land shall be classified according to
        its  use on the assessment roll with a taxable status date imme-
        diately  following  commencement   of   construction,   provided
        further,  that  construction  pursuant  to  an approved plan for
        affordable housing shall commence no  later  than  December  31,
        2010; and (e) all vacant land located within a special assessing
        unit  which  is not a city, provided that such vacant land which
        is not zoned residential must be situated  immediately  adjacent
        to real property defined in subparagraph (a), (b) or (c) of this
        paragraph and be owned by the same person or persons who own the
        real  property defined in such subparagraph immediately prior to
        and since January 1, 2003;
  CLASS ONE-A: ALL OTHER RESIDENTIAL REAL PROPERTY HELD  IN  CONDOMINIUM
        OR  COOPERATIVE  FORM  OF  OWNERSHIP  WHICH IS NOT DESIGNATED AS
        CLASS ONE;
  Class two: all other residential real property which is not designated
        as class one OR CLASS ONE-A, except hotels and motels and  other
        similar commercial property;
  Class  three:  utility  real  property  and property subject to former
        section four hundred seventy of this chapter;
  Class four: all other real property which is not designated  as  class
        one, CLASS ONE-A, class two, or class three.
  S  2.  Subdivision 1, paragraph (c) of subdivision 2 and subdivision 4
of section 307-a of the real property tax law, as added by section 1  of
part  G  of  chapter  63  of  the  laws  of 2003, are amended to read as
follows:

S. 726--A                           3

  1. Generally.  Notwithstanding any provision of any  general,  special
or  local law to the contrary, any city with a population of one million
or more is hereby authorized and empowered to adopt and amend local laws
in accordance with this section imposing an additional  tax  on  certain
class  one AND CLASS ONE-A properties, as such properties are defined in
section eighteen hundred two of this chapter, excluding vacant land.
  (c) "Net real property tax" means the real property tax assessed on  A
class  one  OR CLASS ONE-A property after deduction for any exemption or
abatement received pursuant to this chapter.
  4. Property subject to additional tax. Such surcharge shall be imposed
on class one AND CLASS  ONE-A  property,  excluding  vacant  land,  that
provides  rental income and is not the primary residence of the owner or
owners of such class one OR CLASS ONE-A property, or the  primary  resi-
dence of the parent or child of such owner or owners.
  S 3. Paragraph (d) of subdivision 2 of section 425 of the real proper-
ty  tax  law, as added by section 1 of part B of chapter 389 of the laws
of 1997 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:
  (d) Equalization adjustment. To account for the variance in the  level
of  assessment among assessing units, the figure determined in paragraph
(c) of this subdivision shall be multiplied by an "equalization factor,"
which shall be the appropriate state equalization rate or special equal-
ization rate established by the commissioner. Provided, that in the case
of a special assessing unit, (i) the equalization factor for  class  one
in each school district portion shall be the class equalization rate for
class  one  in the portion, [and] (ii) THE EQUALIZATION FACTOR FOR CLASS
ONE-A IN EACH SCHOOL DISTRICT PORTION SHALL BE THE EQUALIZATION RATE FOR
CLASS ONE IN THE PORTION, MULTIPLIED BY THE LATEST TAX  RATE  FOR  CLASS
ONE  IN  THE  PORTION, AND THEN DIVIDED BY THE LATEST TAX RATE FOR CLASS
ONE-A IN THE PORTION, AND (III) the equalization factor for class two in
each school district portion shall be the equalization factor for  class
one  in  the portion, multiplied by the latest tax rate for class one in
the portion, and then divided by the latest tax rate for  class  two  in
the portion. Provided further, that in any instance when school district
taxes are levied upon an assessment roll which predates the latest final
assessment roll, the equalization factor shall be the state equalization
rate  for the assessment roll upon which school district taxes are to be
levied.
  S 4. Paragraph (f) of subdivision 1 of section 467-a of the real prop-
erty tax law, as added by chapter 273 of the laws of 1996, is amended to
read as follows:
  (f) "Property" means real property designated as  class  [two]  ONE-A,
pursuant  to  section  eighteen hundred two of this chapter, held in the
cooperative or condominium form of ownership.
  S 5. Subdivision 7 of section 499-aaa of the real property tax law, as
added by chapter 461 of the laws of 2008, is amended to read as follows:
  7. "Eligible building" shall mean a class one, CLASS ONE-A, class  two
or  class  four  real property, as defined in subdivision one of section
eighteen hundred two of this chapter, located within  a  city  having  a
population of one million or more persons. No building shall be eligible
for more than one tax abatement pursuant to this title.
  S  6.  Subdivision 7 of section 499-aaaa of the real property tax law,
as added by chapter 473 of the laws of  2008,  is  amended  to  read  as
follows:
  7.  "Eligible building" shall mean a class one, CLASS ONE-A, class two
or class four real property, as defined in subdivision  one  of  section

S. 726--A                           4

eighteen  hundred  two  of  this chapter, located within a city having a
population of one million or more persons. No building shall be eligible
for more than one tax abatement pursuant to this title.
  S 7. Paragraph (b) of subdivision 3 of section 522 of the real proper-
ty  tax  law, as added by chapter 714 of the laws of 1982, is amended to
read as follows:
  (b) in a  special  assessing  unit,  the  determination,  pursuant  to
section  eighteen  hundred two of this chapter, of whether real property
is included in class one, ONE-A, two, three or four.
  S 8. Subdivision 10 of section 523-b of the real property tax law,  as
added by chapter 593 of the laws of 1998, is amended to read as follows:
  10.  On  or before April first, each year the commission shall mail to
each applicant, who has filed an application for the correction  of  the
assessment,  a  notice  of the commission's determination of such appli-
cant's assessment. Such notice shall also contain the  statement  as  to
the final determination of the assessment review commission, or a state-
ment  that  the  commission  has  not yet made a determination as to the
final assessed valuation which shall be made as soon as the  petitioners
application  is reviewed or heard. If the applicants property is a prop-
erty defined in subdivision one of section eighteen hundred two of  this
chapter  as  "Class  1", the commissions determination shall contain the
statement: "If you  are  dissatisfied  with  the  determination  of  the
Assessment  Review  Commission  and  you  are the owner of a one, two or
three family residential structure or 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
you reside at such residence, you  may  seek  judicial  review  of  your
assessment  either under title one of article seven of the real property
tax law or under small claims assessment review law  provided  by  title
one-A  of article seven of the real property tax law." Such notice shall
also state that the last date to file petitions for judicial review  and
the  location  where  small  claims  assessment  review petitions may be
obtained.
  Each applicant that has filed an application of a property as  defined
in  subdivision  one  of section eighteen hundred two of this chapter as
"CLASS 1-A, "Class 2", "Class 3" or "Class 4", shall receive a notice as
to the final determination of the  assessment  review  commission  or  a
statement that the commission has not yet made a determination as to the
final  assessed valuation which shall be made as soon as the petitioners
application is reviewed or heard. Such applicants  determinations  shall
contain  the  statement: "If you are dissatisfied with the determination
of the Assessment Review Commission you may seek judicial review of your
assessment under title one of article seven of  the  real  property  tax
law."  Such  notice shall also state the last date to file petitions for
judicial review. A final determination when rendered shall  contain  the
same statement. Failure to mail any such notice or failure of the appli-
cant  to  receive  the same shall not affect the validity of the assess-
ment.
  S 9. Paragraph (b) of subdivision 3 of section 701 of the real proper-
ty tax law, as added by chapter 714 of the laws of 1982, is  amended  to
read as follows:
  (b)  In  a  special  assessing  unit,  the  determination, pursuant to
section eighteen hundred two of this chapter, of whether  real  property
is included in class one, ONE-A, two, three or four.

S. 726--A                           5

  S  10. Subparagraph 2 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:
  (2)  "Major  type of property" in special assessing units, for assess-
ments on rolls completed after December thirty-first,  nineteen  hundred
eighty-one,  shall  mean  classes  one,  ONE-A,  two,  three and four as
defined in subdivision one of section eighteen hundred two of this chap-
ter.
  S 11. The opening paragraph of subdivision 1 of section  1805  of  the
real property tax law, as amended by chapter 935 of the laws of 1984, is
amended to read as follows:
  The  assessor  of  any  special  assessing unit shall not increase the
assessment of any individual parcel classified in  class  one  OR  CLASS
ONE-A  in  any one year, as measured from the assessment on the previous
year's assessment roll, by more than six percent and shall not  increase
such assessment by more than twenty percent in any five-year period. The
first  such  five-year  period  shall  be  measured  from the individual
assessment appearing  on  the  assessment  roll  completed  in  nineteen
hundred eighty; provided that if such parcel would not have been subject
to  the  provisions  of  this subdivision in nineteen hundred eighty had
this subdivision then been in effect, the first  such  five-year  period
shall  be  measured from the first year after nineteen hundred eighty in
which this subdivision applied to such parcel or would have  applied  to
such parcel had this subdivision been in effect in such year.
  If, in respect to any individual parcel classified in class one on the
assessment  roll  completed and applicable for the year nineteen hundred
eighty-two, the assessment for  the  year  nineteen  hundred  eighty-one
exceeds by more than twenty percent the assessment for the year nineteen
hundred eighty, such assessor shall compute the actual assessments to be
entered  on  assessment  rolls  applicable to the years nineteen hundred
eighty-two through nineteen hundred ninety as follows:
  S 12. Subdivisions e and f of section 11-208.1 of  the  administrative
code  of  the  city  of  New York, subdivision e as amended by local law
number 41 of the city of New York for the year 1986 and subdivision f as
amended by chapter 385 of the laws of  2006,  are  amended  to  read  as
follows:
  e. As used in this section, the term "income-producing property" means
property  owned  for the purpose of securing an income from the property
itself, but shall not include property with an assessed value  of  forty
thousand  dollars  or  less,  or  residential property containing ten or
fewer dwelling units or property classified in class one, ONE-A  or  two
as  defined  in article eighteen of the real property tax law containing
six or fewer dwelling units and one retail store.
  f. Except in accordance with proper judicial  order  or  as  otherwise
provided  by law, it shall be unlawful for the commissioner, any officer
or employee of the  department,  the  president  or  a  commissioner  or
employee  of  the  tax commission, any person engaged or retained by the
department or the tax commission on an independent  contract  basis,  or
any  person,  who, pursuant to this section, is permitted to inspect any
income and expense statement or to whom a copy, an abstract or a portion
of any such statement is furnished, to divulge  or  make  known  in  any
manner  except  as  provided  in  this subdivision, the amount of income
and/or expense or any particulars set forth or  disclosed  in  any  such
statement  required  under this section. The commissioner, the president
of the tax commission, or any commissioner or officer or employee of the
department or the tax commission charged with the custody of such state-

S. 726--A                           6

ments shall not be required to produce any income and expense  statement
or evidence of anything contained in them in any action or proceeding in
any  court,  except  on  behalf of the department or the tax commission.
Nothing  herein  shall be construed to prohibit the delivery to an owner
or his or her duly authorized representative of a certified copy of  any
statement  filed  by  such owner pursuant to this section or to prohibit
the publication of statistics so classified as to prevent the  identifi-
cation  of  particular statements and the items thereof, or making known
aggregate income and expense information disclosed with respect to prop-
erty classified as class four as defined in article eighteen of the real
property tax law without identifying information about individual  leas-
es,  or  making  known  a range as determined by the commissioner within
which the income and expenses of a property classified as CLASS ONE-A OR
class two falls, or the inspection by the legal representatives  of  the
department  or  of  the tax commission of the statement of any owner who
shall bring an action to correct the assessment. Any  violation  of  the
provisions of this subdivision shall be punished by a fine not exceeding
one thousand dollars or by imprisonment not exceeding one year, or both,
at  the  discretion  of  the court, and if the offender be an officer or
employee of the department or the tax commission, the offender shall  be
dismissed from office.
  S  13.  Subdivision  a of section 11-238 of the administrative code of
the city of New York, as amended by local law number 27 of the  city  of
New York for the year 2006, is amended to read as follows:
  a.  Imposition  of  surcharge. A real property tax surcharge is hereby
imposed on class one AND CLASS ONE-A property,  as  defined  in  section
eighteen  hundred  two  of  the  real property tax law, excluding vacant
land, that provides rental income and is not the  primary  residence  of
the  owner  or  owners of such class one OR CLASS ONE-A property, or the
primary residence of the parent or child of such owner or owners, in  an
amount  equal  to zero percent of the net real property taxes for fiscal
years beginning on or after July first, two thousand  six.  As  used  in
this  section,  "net  real  property  tax"  means  the real property tax
assessed on class one property after  deduction  for  any  exemption  or
abatement received pursuant to the real property tax law or this title.
  S  14. Subdivisions a, a-1, a-2, a-3, a-4 and a-5 of section 11-319 of
the administrative code of the city of New  York, subdivisions  a,  a-1,
a-2  and  a-3  as amended and subdivisions a-4 and a-5 as added by local
law number 15 of the city of New York for the year 2011, are amended  to
read as follows:
  a.  A  tax  lien  or  tax  liens on a property or any component of the
amount thereof may be sold by the city as authorized by subdivision b of
this section, when such tax lien or tax liens shall have remained unpaid
in whole or in part for one year, provided, however, that a tax lien  or
tax  liens  on  any  class one property or on class [two] ONE-A property
[that is a residential condominium or residential cooperative], as  such
classes  of  property are defined in subdivision one of section eighteen
hundred two of the real property tax law, may be sold by the  city  only
when the real property tax component of such tax lien or tax liens shall
have remained unpaid in whole or in part for three years or, in the case
of  any  class  two  residential  property  owned by a company organized
pursuant to article XI of the state private housing finance law [that is
not a residential condominium or a  residential  cooperative],  as  such
class  of  property  is  defined  in subdivision one of section eighteen
hundred two of the real property tax law, for two years, and  equals  or
exceeds  the  sum  of five thousand dollars or, in the case of abandoned

S. 726--A                           7

class one property or abandoned class [two] ONE-A property  [that  is  a
residential   condominium  or  residential  cooperative],  for  eighteen
months, and after  such  sale,  shall  be  transferred,  in  the  manner
provided  by  this chapter, and provided, further, however, that (i) the
real property tax component of such tax lien may not be sold pursuant to
this subdivision on any residential real property in class one  that  is
receiving  an exemption pursuant to section 11-245.3 or 11-245.4 of this
title, or pursuant to section four hundred fifty-eight of the real prop-
erty tax law with respect  to  real  property  purchased  with  payments
received  as prisoner of war compensation from the United States govern-
ment, or pursuant to paragraph (b) or (c) of subdivision two of  section
four  hundred  fifty-eight-a  of the real property tax law, or where the
owner of such residential real property in class one is receiving  bene-
fits  in  accordance  with department of finance memorandum 05-3, or any
successor memorandum thereto, relating to active duty  military  person-
nel,  or  where the owner of such residential real property in class one
has been allowed a credit pursuant to  subsection  (e)  of  section  six
hundred  six  of  the tax law for the calendar year in which the date of
the first publication, pursuant to subdivision a of  section  11-320  of
this  chapter,  of  the  notice of sale, occurs or for the calendar year
immediately preceding such date and  (ii)  the  sewer  rents  component,
sewer surcharges component or water rents component of such tax lien may
not  be  sold pursuant to this subdivision on any one family residential
real property in class one or on any two  or  three  family  residential
real  property  in  class one that is receiving an exemption pursuant to
section 11-245.3 or 11-245.4 of this title, or pursuant to section  four
hundred  fifty-eight  of  the real property tax law with respect to real
property purchased with payments received as  prisoner  of  war  compen-
sation  from  the United States government, or pursuant to paragraph (b)
or (c) of subdivision two of section four hundred fifty-eight-a  of  the
real  property  tax  law,  or where the owner of any two or three family
residential real property in class one is receiving benefits in  accord-
ance  with department of finance memorandum 05-3, or any successor memo-
randum thereto, relating to active duty military personnel, or where the
owner of any two or three family residential real property in class  one
has  been  allowed  a  credit  pursuant to subsection (e) of section six
hundred six of the tax law for the calendar year in which  the  date  of
the  first  publication,  pursuant to subdivision a of section 11-320 of
this chapter, of the notice of sale, occurs or  for  the  calendar  year
immediately preceding such date. A tax lien or tax liens on any property
classified as a class two property, except [a class two property that is
a  residential  condominium  or residential cooperative, or] a class two
residential property owned by a company organized pursuant to article XI
of the state private housing finance law  [that  is  not  a  residential
condominium  or  a residential cooperative], or class three property, as
such classes of property are defined in subdivision one of section eigh-
teen hundred two of the real property tax law, shall not be sold by  the
city  unless  such  tax  lien  or  tax liens include a real property tax
component as of the date of the first publication, pursuant to  subdivi-
sion  a  of  section  11-320  of  this  chapter,  of the notice of sale.
Notwithstanding any provision of this subdivision to the  contrary,  any
such  tax lien or tax liens that remain unpaid in whole or in part after
such date may be sold regardless of whether such tax lien or  tax  liens
include  a  real  property  tax  component. A tax lien or tax liens on a
property classified as a class four property, as such class of  property
is  defined  in  subdivision  one of section eighteen hundred two of the

S. 726--A                           8

real property tax law, shall not be sold by the  city  unless  such  tax
lien  or  tax liens include a real property tax component or sewer rents
component or sewer surcharges component  or  water  rents  component  or
emergency  repair charges component, where such emergency repair charges
accrued on or after January first, two thousand six and are made a  lien
pursuant  to  section  27-2144 of this code, as of the date of the first
publication, pursuant to subdivision a of section 11-320 of  this  chap-
ter,  of the notice of sale, provided, however, that any tax lien or tax
liens that remain unpaid in whole or in part after such date may be sold
regardless of whether such tax lien or tax liens include a real property
tax component, sewer rents component, sewer surcharges component,  water
rents  component  or emergency repair charges component. For purposes of
this subdivision, the words "real property tax"  shall  not  include  an
assessment or charge upon property imposed pursuant to section 25-411 of
the  administrative  code.  A  sale  of  a  tax  lien or tax liens shall
include, in addition to such lien or liens that have remained unpaid  in
whole or in part for one year, or, in the case of any class one property
or  class  [two]  ONE-A  property  [that is a residential condominium or
residential cooperative], when the real property tax component  of  such
lien  or  liens has remained unpaid in whole or in part for three years,
or, in the case of any class two residential property owned by a company
organized pursuant to article XI of the state  private  housing  finance
law  [that  is  not  a  residential condominium or a residential cooper-
ative], when the real property tax component of such lien or  liens  has
remained unpaid in whole or in part for two years, and equals or exceeds
the  sum  of five thousand dollars, any taxes, assessments, sewer rents,
sewer surcharges, water rents, any other charges that are  made  a  lien
subject  to  the provisions of this chapter, the costs of any advertise-
ments and notices given pursuant to this chapter, any other charges that
are due and payable, a surcharge pursuant  to  section  11-332  of  this
chapter,  and  interest  and  penalties thereon or such component of the
amount thereof as shall be determined by the  commissioner  of  finance.
The  commissioner  of  finance may promulgate rules defining "abandoned"
property, as such term is used in this subdivision.
  a-1. A subsequent tax lien or tax liens on a property or any component
of the amount thereof may be sold by the city pursuant to this  chapter,
provided, however, that notwithstanding any provision in this chapter to
the  contrary,  such  tax  lien  or  tax liens may be sold regardless of
whether such tax lien or tax liens have remained unpaid in whole  or  in
part  for one year and, notwithstanding any provision in this chapter to
the contrary, in the case of any class one property or class [two] ONE-A
property [that is a residential condominium or residential  cooperative]
or,  beginning  January  first,  two thousand twelve, in the case of any
class two residential property owned by a company organized pursuant  to
article XI of the state private housing finance law [that is not a resi-
dential  condominium or a residential cooperative], such tax lien or tax
liens may be sold if the real property tax component of such tax lien or
tax liens has remained unpaid in whole or in  part  for  one  year,  and
provided,  further, however, that (i) the real property tax component of
such tax lien may not be sold pursuant to this subdivision on any  resi-
dential real property in class one that is receiving an exemption pursu-
ant  to  section  11-245.3  or  11-245.4  of  this title, or pursuant to
section four hundred fifty-eight of  the  real  property  tax  law  with
respect to real property purchased with payments received as prisoner of
war compensation from the United States government, or pursuant to para-
graph   (b)   or   (c)  of  subdivision  two  of  section  four  hundred

S. 726--A                           9

fifty-eight-a of the real property tax law, or where the owner  of  such
residential  real property in class one is receiving benefits in accord-
ance with department of finance memorandum 05-3, or any successor  memo-
randum thereto, relating to active duty military personnel, or where the
owner  of such residential real property in class one has been allowed a
credit pursuant to subsection (e) of section six hundred six of the  tax
law  for  the  calendar year in which the date of the first publication,
pursuant to subdivision a of section 11-320  of  this  chapter,  of  the
notice  of  sale,  occurs or for the calendar year immediately preceding
such date and (ii) the sewer rents component, sewer surcharges component
or water rents component of such tax lien may not be  sold  pursuant  to
this  subdivision  on  any one family residential real property in class
one or on any two or three family residential real property in class one
that is receiving an exemption pursuant to section 11-245.3 or  11-245.4
of  this  title,  or pursuant to section four hundred fifty-eight of the
real property tax law with  respect  to  real  property  purchased  with
payments received as prisoner of war compensation from the United States
government,  or  pursuant  to paragraph (b) or (c) of subdivision two of
section four hundred fifty-eight-a of the  real  property  tax  law,  or
where  the owner of any two or three family residential real property in
class one is receiving benefits in accordance with department of finance
memorandum 05-3, or any successor memorandum thereto, relating to active
duty military personnel, or where the owner of any two or  three  family
residential  real property in class one has been allowed a credit pursu-
ant to subsection (e) of section six hundred six of the tax law for  the
calendar  year  in  which the date of the first publication, pursuant to
subdivision a of section 11-320 of this chapter, of the notice of  sale,
occurs  or  for  the  calendar year immediately preceding such date. For
purposes of this subdivision, the  term  "subsequent  tax  lien  or  tax
liens" shall mean any tax lien or tax liens on property that become such
on  or after the date of sale of any tax lien or tax liens on such prop-
erty that have been sold pursuant to this  chapter,  provided  that  the
prior  tax  lien  or tax liens remain unpaid as of the date of the first
publication, pursuant to subdivision a of section 11-320 of  this  chap-
ter,  of  the notice of sale of the subsequent tax lien or tax liens.  A
subsequent tax lien or tax liens on any property classified as  a  class
two  property, except [a class two property that is a residential condo-
minium or residential cooperative, or] a class two residential  property
owned by a company organized pursuant to article XI of the state private
housing finance law [that is not a residential condominium or a residen-
tial  cooperative], or class three property, as such classes of property
are defined in subdivision one of section eighteen hundred  two  of  the
real  property  tax  law,  shall not be sold by the city unless such tax
lien or tax liens include a real property tax component as of  the  date
of the first publication, pursuant to subdivision a of section 11-320 of
this  chapter,  of  the notice of sale. Notwithstanding any provision of
this subdivision to the contrary, any such tax lien or  tax  liens  that
remain unpaid in whole or in part after such date may be sold regardless
of whether such tax lien or tax liens include a real property tax compo-
nent.  A  subsequent tax lien or tax liens on a property classified as a
class four property, as such class of property is defined in subdivision
one of section eighteen hundred two of the real property tax law,  shall
not be sold by the city unless such tax lien or tax liens include a real
property  tax  component  or  sewer  rents component or sewer surcharges
component or water rents component or emergency  repair  charges  compo-
nent,  where  such  emergency repair charges accrued on or after January

S. 726--A                          10

first, two thousand six and are made a lien pursuant to section  27-2144
of  this  code,  as  of  the  date of the first publication, pursuant to
subdivision a of section 11-320 of this chapter, of the notice of  sale,
provided,  however, that any tax lien or tax liens that remain unpaid in
whole or in part after such date may be sold regardless of whether  such
tax lien or tax liens include a real property tax component, sewer rents
component, sewer surcharges component, water rents component or emergen-
cy repair charges component. For purposes of this subdivision, the words
"real property tax" shall not include an assessment or charge upon prop-
erty  imposed  pursuant  to  section  25-411 of the administrative code.
Nothing in  this  subdivision  shall  be  deemed  to  limit  the  rights
conferred  by section 11-332 of this chapter on the holder of a tax lien
certificate with respect to a subsequent tax lien.
  a-2. In addition to any sale authorized pursuant to subdivision  a  or
subdivision  a-1  of  this  section and notwithstanding any provision of
this chapter to the contrary, beginning on December first, two  thousand
seven,  the  water rents, sewer rents and sewer surcharges components of
any tax lien on any class of real property, as  such  real  property  is
classified  in  subdivision  one  of section eighteen hundred two of the
real property tax law, may be sold by the city pursuant to this chapter,
where such water rents, sewer rents or  sewer  surcharges  component  of
such  tax  lien,  as  of  the date of the first publication, pursuant to
subdivision a of section 11-320 of this chapter, of the notice of  sale:
(i) shall have remained unpaid in whole or in part for one year and (ii)
equals or exceeds the sum of one thousand dollars or, beginning on March
first, two thousand eleven, in the case of any two or three family resi-
dential  real property in class one, for one year, and equals or exceeds
the sum of two thousand dollars, or, beginning  on  January  first,  two
thousand twelve, in the case of any class two residential property owned
by a company organized pursuant to article XI of the state private hous-
ing  finance law [that is not a residential condominium or a residential
cooperative], as such class of property is defined in subdivision one of
section eighteen hundred two of the  real  property  tax  law,  for  two
years, and equals to exceeds the sum of five thousand dollars; provided,
however,  that  such water rents, sewer rents or sewer surcharges compo-
nent of such tax lien may not be sold pursuant to  this  subdivision  on
any  one  family residential real property in class one or on any two or
three family residential real property in class one that is receiving an
exemption pursuant to section 11-245.3 or 11-245.4  of  this  title,  or
pursuant  to  section  four hundred fifty-eight of the real property tax
law with respect to real property purchased with  payments  received  as
prisoner  of  war  compensation  from  the  United States government, or
pursuant to paragraph (b) or (c) of  subdivision  two  of  section  four
hundred  fifty-eight-a  of the real property tax law, or where the owner
of any two or three family residential real property  in  class  one  is
receiving  benefits  in accordance with department of finance memorandum
05-3, or any successor memorandum thereto, relating to active duty mili-
tary personnel, or where the owner of any two or three  family  residen-
tial  real  property  in class one has been allowed a credit pursuant to
subsection (e) of section six hundred six of the tax law for the  calen-
dar  year in which the date of the first publication, pursuant to subdi-
vision a of section 11-320 of this  chapter,  of  the  notice  of  sale,
occurs  or  for the calendar year immediately preceding such date. After
such sale, any such water rents, sewer rents or sewer surcharges  compo-
nent  of such tax lien may be transferred in the manner provided by this
chapter.

S. 726--A                          11

  a-3. In addition to any sale authorized pursuant to subdivision  a  or
subdivision  a-1  of  this  section and notwithstanding any provision of
this chapter to the contrary, beginning on December first, two  thousand
seven, a subsequent tax lien on any class of real property, as such real
property  is  classified  in subdivision one of section eighteen hundred
two of the real property tax law, may be sold by the  city  pursuant  to
this  chapter,  regardless  of  whether such subsequent tax lien, or any
component of the amount thereof, shall have remained unpaid in whole  or
in  part  for  one  year,  and regardless of whether such subsequent tax
lien, or any component of the amount thereof, equals or exceeds the  sum
of  one thousand dollars or beginning on March first, two thousand elev-
en, in the case of any two or three family residential real property  in
class  one,  a  subsequent  tax lien on such property may be sold by the
city pursuant to this chapter, regardless of whether such subsequent tax
lien, or any component of the amount thereof, shall have remained unpaid
in whole or in part for one year, and regardless of whether such  subse-
quent  tax  lien,  or  any  component  of  the amount thereof, equals or
exceeds the sum of two thousand dollars, or, beginning on January first,
two thousand twelve, in the case of any class two  residential  property
owned by a company organized pursuant to article XI of the state private
housing finance law [that is not a residential condominium or a residen-
tial  cooperative],  as such class of property is defined in subdivision
one of section eighteen hundred two of the  real  property  tax  law,  a
subsequent tax lien on such property may be sold by the city pursuant to
this  chapter,  regardless  of  whether such subsequent tax lien, or any
component of the amount thereof, shall have remained unpaid in whole  or
in  part  for  two  years, and regardless of whether such subsequent tax
lien, or any component of the amount thereof, equals or exceeds the  sum
of  five  thousand  dollars; provided, however, that such subsequent tax
lien may not be sold pursuant to this  subdivision  on  any  one  family
residential  real  property  in  class one or on any two or three family
residential real property in class one that is  receiving  an  exemption
pursuant  to  section 11-245.3 or 11-245.4 of this title, or pursuant to
section four hundred fifty-eight of  the  real  property  tax  law  with
respect to real property purchased with payments received as prisoner of
war compensation from the United States government, or pursuant to para-
graph   (b)   or   (c)  of  subdivision  two  of  section  four  hundred
fifty-eight-a of the real property tax law, or where the  owner  of  any
two  or three family residential real property in class one is receiving
benefits in accordance with department of finance  memorandum  05-3,  or
any  successor  memorandum  thereto,  relating  to  active duty military
personnel, or where the owner of any two  or  three  family  residential
real  property  in  class  one  has  been  allowed  a credit pursuant to
subsection (e) of section six hundred six of the tax law for the  calen-
dar  year in which the date of the first publication, pursuant to subdi-
vision a of section 11-320 of this  chapter,  of  the  notice  of  sale,
occurs  or  for the calendar year immediately preceding such date. After
such sale, any such subsequent tax lien, or any component of the  amount
thereof,  may be transferred in the manner provided by this chapter. For
purposes of this subdivision, the term "subsequent tax lien" shall  mean
the  water  rents,  sewer rents or sewer surcharges component of any tax
lien on property that becomes such on or after the date of sale  of  any
water  rents,  sewer rents or sewer surcharges component of any tax lien
on such property that has been sold pursuant to this  chapter,  provided
that  the  prior  tax  lien  remains  unpaid as of the date of the first
publication, pursuant to subdivision a of section 11-320 of  this  chap-

S. 726--A                          12

ter,  of  the notice of sale of the subsequent tax lien. Nothing in this
subdivision shall be deemed to limit the  rights  conferred  by  section
11-332  of  this  chapter  on  the holder of a tax lien certificate with
respect to a subsequent tax lien.
  a-4.  In  addition  to  any sale authorized pursuant to subdivision a,
a-1, a-2 or a-3 of this section and  notwithstanding  any  provision  of
this  chapter  to  the  contrary, beginning on March first, two thousand
eleven, the emergency repair charges component or  alternative  enforce-
ment  expenses  and  fees component, where such emergency repair charges
accrued on or after January first, two thousand six and are made a  lien
pursuant  to  section  27-2144  of  this code, or where such alternative
enforcement expenses and fees  are  made  a  lien  pursuant  to  section
27-2153  of this code, of any tax lien on any class of real property, as
such real property is defined in subdivision  one  of  section  eighteen
hundred two of the real property tax law, may be sold by the city pursu-
ant  to  this  chapter, where such emergency repair charges component or
alternative enforcement expenses and fees component of such tax lien, as
of the date of the first  publication,  pursuant  to  subdivision  a  of
section  11-320  of  this chapter, of the notice of sale: (i) shall have
remained unpaid in whole or in part for one year,  and  (ii)  equals  or
exceeds  the sum of one thousand dollars or, beginning on January first,
two thousand twelve, in the case of any class two  residential  property
owned by a company organized pursuant to article XI of the state private
housing finance law [that is not a residential condominium or a residen-
tial  cooperative],  as such class of property is defined in subdivision
one of section eighteen hundred two of the real property  tax  law,  for
two  years,  and  equals  or  exceeds  the sum of five thousand dollars;
provided, however, that  such  emergency  repair  charges  component  of
alternative enforcement expenses and fees component of such tax lien may
not be sold pursuant to this subdivision on any one, two or three family
residential  real  property in class one, except a three family residen-
tial property in class  one  where  such  property  is  subject  to  the
provisions  of section 27-2153 of this code and is not the primary resi-
dence of the owner.  After such sale, any such emergency repair  charges
component or alternative enforcement expenses and fees component of such
tax lien may be transferred in the manner provided by this chapter.
  a-5.  In  addition  to  any sale authorized pursuant to subdivision a,
a-1, a-2 or a-3 of this section and  notwithstanding  any  provision  of
this  chapter  to  the  contrary, beginning on March first, two thousand
eleven, a subsequent tax lien on any class of real property,  or  begin-
ning  on January first, two thousand twelve in the case of any class two
residential property owned by a company organized pursuant to article XI
of the state private housing finance law  [that  is  not  a  residential
condominium or a residential cooperative], a subsequent tax lien on such
property,  may  be sold by the city pursuant to this chapter, regardless
of the length of time such subsequent tax lien, or any component of  the
amount thereof, shall have remained unpaid, and regardless of the amount
of  such  subsequent  tax lien. After such sale, any such subsequent tax
lien, or any component of the amount thereof, may be transferred in  the
manner  provided  by this chapter. For purposes of this subdivision, the
term "subsequent tax lien"  shall  mean  the  emergency  repair  charges
component  or alternative enforcement expenses and fees component, where
such emergency repair charges accrued on or  after  January  first,  two
thousand  six  and  are  made a lien pursuant to section 27-2144 of this
code, or where such alternative of enforcement  expenses  and  fees  are
made a lien pursuant to section 27-2153 of this code, of any tax lien on

S. 726--A                          13

property that becomes such on or after the date of sale of any emergency
repair  charges  component  or alternative enforcement expenses and fees
component, of any tax lien on such property that has been sold  pursuant
to  this  chapter, provided that the prior tax lien remains unpaid as of
the date of the first publication, pursuant to subdivision a of  section
11-320  of  this  chapter,  of  the notice of sale of the subsequent tax
lien. Nothing in this subdivision shall be deemed to  limit  the  rights
conferred  by section 11-332 of this chapter on the holder of a tax lien
certificate with respect to a subsequent tax lien.
  S 15.  Subparagraph (i) of paragraph 2 of subdivision b  and  subpara-
graph  (ii)  of  paragraph  1  of subdivision h of section 11-320 of the
administrative code of the city of New York, subparagraph (i)  of  para-
graph  2 of subdivision b as amended by local law number 147 of the city
of New York for the year 2013 and subparagraph (ii) of  paragraph  1  of
subdivision  h  as  added by local law number 15 of the city of New York
for the year 2011, are amended to read as follows:
  (i) Such notices shall also include,  with  respect  to  any  property
owner in class one, CLASS ONE-A or class two, as such classes of proper-
ty are defined in subdivision one of section eighteen hundred two of the
real  property  tax  law, an exemption eligibility checklist. Within ten
business days of receipt of a completed exemption eligibility  checklist
from such property owner, provided that such receipt occurs prior to the
date  of  sale  of any tax lien or tax liens on his or her property, the
department of finance shall review such checklist to determine, based on
the information provided by the property owner,  whether  such  property
owner  could be eligible for any exemption, credit or other benefit that
would entitle them to be excluded from a  tax  lien  sale  and,  if  the
department determines that such property owner could be eligible for any
such  exemption, credit or other benefit, shall mail such property owner
an application for the appropriate exemption, credit or  other  benefit.
If,  within  twenty business days of the date the department mailed such
application, the department has not  received  a  completed  application
from  such property owner, the department shall mail such property owner
a second application, and shall telephone the  property  owner,  if  the
property owner has included his or her telephone number on the exemption
eligibility checklist.
  (ii)  all  class two residential property owned by a company organized
pursuant to article XI of the state private housing finance law [that is
not a residential condominium or a residential cooperative] on which any
tax lien has been sold pursuant to subdivision a, a-2 or a-4 of  section
11-319 of this title.
  S  16. Subdivision (a) of section 11-354 of the administrative code of
the city of New York, as amended by local law number 37 of the  city  of
New York for the year 1996, is amended to read as follows:
  (a) Notwithstanding any other provision of law and notwithstanding any
omission  to  hold  a tax lien sale, whenever any tax, assessment, sewer
rent, sewer surcharge, water rent,  any  charge  that  is  made  a  lien
subject to the provisions of this chapter or chapter four of this title,
or  interest and penalties thereon, has been due and unpaid for a period
of at least one year from the date on which the tax, assessment or other
legal charge represented thereby became a lien, or in the  case  of  any
class one property or any class [two] ONE-A property [that is a residen-
tial condominium or residential cooperative], as such classes of proper-
ty are defined in subdivision one of section eighteen hundred two of the
real  property tax law, or in the case of a multiple dwelling owned by a
company organized pursuant to article XI of the private housing  finance

S. 726--A                          14

law with the consent and approval of the department of housing preserva-
tion and development, for a period of at least three years from the date
on  which  the  tax, assessment or other legal charge became a lien, the
city,  as  owner  of  a  tax lien, may maintain an action in the supreme
court to foreclose such lien. Such  action  shall  be  governed  by  the
procedures set forth in section 11-335 of this chapter; provided, howev-
er,  that  such  parcel  shall  only  be sold to the highest responsible
bidder. Such purchaser shall be deemed qualified as a responsible bidder
pursuant to such criteria as are established in rules promulgated by the
commissioner of finance after  consultation  with  the  commissioner  of
housing preservation and development.
  S  17. The opening paragraph of subdivision 4 of section 11-401 of the
administrative code of the city of New  York,  as  added  by  local  law
number  37 of the city of New York for the year 1996, is amended to read
as follows:
  "Distressed property." Any parcel of class one, CLASS ONE-A  or  class
two  real property that is subject to a tax lien or liens with a lien or
liens to value ratio, as determined  by  the  commissioner  of  finance,
equal  to  or  greater  than  fifteen  percent and that meets one of the
following two criteria:
  S 18. Subdivisions a and b of section 11-401.1 of  the  administrative
code  of  the  city  of New York, as added by local law number 37 of the
city of New York for the year 1996, are amended to read as follows:
  a. The commissioner of finance shall, not less than sixty days preced-
ing the date of the sale of a tax lien  or  tax  liens,  submit  to  the
commissioner  of  housing  preservation and development a description by
block and lot, or by such other identification as  the  commissioner  of
finance may deem appropriate, of any parcel of class one, CLASS ONE-A or
class  two  real property on which there is a tax lien that may be fore-
closed by the city. The commissioner of housing preservation and  devel-
opment shall determine, and direct the commissioner of finance, not less
than ten days preceding the date of the sale of a tax lien or tax liens,
whether  any such parcel is a distressed property as defined in subdivi-
sion four of section 11-401 of this chapter. Any tax lien on a parcel so
determined to be a distressed property shall not  be  included  in  such
sale.  In  connection with a subsequent sale of a tax lien or tax liens,
the commissioner of finance may, not less than sixty days preceding  the
date  of  the sale, resubmit to the commissioner of housing preservation
and development a description by block and lot, or by such  other  iden-
tification  as  the commissioner of finance may deem appropriate, of any
parcel of class one, CLASS ONE-A or class two  real  property  that  was
previously determined to be a distressed property pursuant to this para-
graph  and  on  which  there  is a tax lien that may be included in such
sale. The commissioner of housing  preservation  and  development  shall
determine,  and  direct  the  commissioner of finance, not less than ten
days preceding the date of the  sale,  whether  such  parcel  remains  a
distressed  property.  If  the  commissioner of housing preservation and
development determines that the parcel is  not  a  distressed  property,
then the tax lien on the parcel may be included in the sale.
  b.  The commissioner of housing preservation and development may peri-
odically review whether a parcel of class one, CLASS ONE-A or class  two
real property that is subject to subdivision c of this section or subdi-
vision  j of section 11-412.1 of this chapter remains a distressed prop-
erty. If the commissioner determines that the parcel is not a distressed
property as defined in subdivision four of section 11-401 of this  chap-
ter, then the parcel shall not be subject to such subdivisions.

S. 726--A                          15

  S  19.  Subdivision  b of section 11-404 of the administrative code of
the city of New York, as amended by local law number 37 of the  city  of
New York for the year 1996, is amended to read as follows:
  b. A tax lien on any class one property or any class [two] ONE-A prop-
erty  [that is a residential condominium or residential cooperative], as
such classes of property are defined in subdivision one of section eigh-
teen hundred two of the real property  tax  law,  and  on  any  multiple
dwelling  owned  by  a  company  organized pursuant to article XI of the
private housing finance law with the consent and approval of the depart-
ment of housing preservation and development, shall not be foreclosed in
the manner provided in this chapter until such tax lien has been due and
unpaid for a period of at least three years from the date on  which  the
tax, assessment or other legal charge represented thereby became a lien.
  S  20.  Paragraph 5 of subdivision c of section 11-405 of the adminis-
trative code of the city of New York, as added by local law number 37 of
the city of New York for the year 1996, is amended to read as follows:
  (5) Notwithstanding paragraph one, two or three of  this  subdivision,
with  respect to installment agreements duly made, executed and filed on
or after the date on which this paragraph takes effect, the commissioner
of finance may also exclude or thereafter  remove  from  such  list  any
parcel  of class one, CLASS ONE-A or class two real property, other than
a parcel described in paragraph four of this subdivision, as to which an
agreement has been duly made, executed and filed with such  commissioner
for  the  payment  of  the  delinquent taxes, assessments or other legal
charges, and the interest and penalties thereon,  in  installments.  The
first  installment thereof shall be paid upon the filing of the install-
ment agreement with the commissioner and shall be in an amount equal  to
not  less  than  fifteen  percent of the total amount of such delinquent
taxes, assessments or other legal charges and the interest and penalties
thereon. The remaining installments, which shall be twice the number  of
unpaid  quarters  of  real  estate  taxes or the equivalent thereof, but
which shall in no event exceed thirty-two in number,  shall  be  payable
quarterly on the first days of July, October, January and April. For the
purposes  of  calculating  the  number  of  such remaining installments,
unpaid real estate taxes that are due and payable on other than a  quar-
terly basis shall be deemed to be payable on a quarterly basis.
  S 21.  Section 3-b of the general municipal law is amended by adding a
new subdivision 3 to read as follows:
  3.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, BEGIN-
NING IN THE FISCAL YEAR COMMENCING ON OR AFTER JULY FIRST, TWO  THOUSAND
FIFTEEN,  THE ANNUAL PERCENTAGE CHANGE IN THE REAL PROPERTY TAX RATE FOR
TAXES LEVIED BY THE CITY OF NEW YORK AND THE COUNTIES CONTAINED  THEREIN
FOR CITY AND COUNTY PROPOSES FOR CLASS ONE-A PROPERTIES SHALL NOT EXCEED
THE  ANNUAL PERCENTAGE CHANGE IN SUCH TAX RATE FOR CLASS ONE PROPERTIES,
AS SUCH CLASSES OF PROPERTY ARE DEFINED IN SUBDIVISION  ONE  OF  SECTION
EIGHTEEN  HUNDRED TWO OF THE REAL PROPERTY TAX LAW. FOR PURPOSES OF THIS
SUBDIVISION "ANNUAL  PERCENTAGE  CHANGE"  SHALL  MEAN  THE    PERCENTAGE
DIFFERENCE BETWEEN THE RATE OF TAX IMPOSED DURING THE COMING FISCAL YEAR
AND THE RATE OF TAX IMPOSED DURING THE FISCAL YEAR IMMEDIATELY PRECEDING
THE COMING FISCAL YEAR.
  S  22.  The education law is amended by adding a new section 2023-c to
read as follows:
  S 2023-C.  LIMITATIONS UPON NEW YORK CITY SCHOOL DISTRICT TAX  LEVIES.
NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, BEGINNING IN
THE FISCAL YEAR COMMENCING ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN,
THE  ANNUAL  PERCENTAGE CHANGE IN THE TAX RATE FOR TAXES LEVIED BY OR ON

S. 726--A                          16

BEHALF OF ANY SCHOOL DISTRICT IN THE CITY OF NEW YORK AND  THE  COUNTIES
CONTAINED  THEREIN  FOR SCHOOL DISTRICT PURPOSES FOR CLASS ONE-A PROPER-
TIES SHALL NOT EXCEED THE ANNUAL PERCENTAGE CHANGE IN SUCH TAX RATE  FOR
CLASS  ONE PROPERTIES, AS SUCH CLASSES OF PROPERTY ARE DEFINED IN SUBDI-
VISION ONE OF SECTION EIGHTEEN HUNDRED TWO OF THE REAL PROPERTY TAX LAW.
FOR PURPOSES OF THIS SUBDIVISION "ANNUAL PERCENTAGE CHANGE"  SHALL  MEAN
THE  PERCENTAGE  DIFFERENCE  BETWEEN  THE RATE OF TAX IMPOSED DURING THE
COMING FISCAL YEAR AND THE RATE OF TAX IMPOSED DURING  THE  FISCAL  YEAR
IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.
  S 23. This act shall take effect on the first of January next succeed-
ing  the  date  on  which  it shall have become a law and shall apply to
assessment rolls prepared pursuant to a taxable status date occurring on
or after such date; provided, however, that effective  immediately,  the
addition,  amendment  and/or  repeal of any rule or regulation necessary
for the implementation of this act on its effective date are  authorized
and directed to be made and completed on or before such effective 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.