S T A T E   O F   N E W   Y O R K
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                                  5733

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 1, 2009
                               ___________

Introduced  by  Sen.  FOLEY  -- 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  creating  a
  county commercial assessment ratio

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

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 1215 to read as follows:
  S 1215. ESTABLISHMENT OF A COUNTY COMMERCIAL ASSESSMENT RATIO.  1. FOR
PURPOSES OF THIS SECTION:
  (A)  "MARKET  VALUE  RATIO"  MEANS THE RATIO OF ASSESSED VALUE TO FULL
VALUE OF THE TAXABLE REAL PROPERTY ON A FINAL ASSESSMENT ROLL;
  (B) "MAJOR TYPE B" PROPERTY MEANS A GROUP OF  TAXABLE  PARCELS  DESIG-
NATED  AS COMMERCIAL PROPERTY INCLUDING APARTMENTS, INDUSTRIAL PROPERTY,
RECREATION AND ENTERTAINMENT PROPERTY, TAXABLE COMMUNITY SERVICES  PROP-
ERTY, AND PUBLIC SERVICES PROPERTY NOT CONTAINED WITH MAJOR TYPE D PROP-
ERTY:  EXCEPT  IN A HOMESTEAD ASSESSING UNIT, MAJOR TYPE B PROPERTY ALSO
INCLUDES RESIDENTIAL PROPERTY NOT IN MAJOR TYPE A;
  (C) "NON-REASSESSMENT MUNICIPALITY" MEANS ANY MUNICIPALITY THAT IS NOT
DESIGNATED AS A REASSESSMENT MUNICIPALITY;
  (D) "MAJOR TYPE A" PROPERTY MEANS RESIDENTIAL REAL PROPERTY OTHER THAN
APARTMENTS, EXCEPT THAT FOR A HOMESTEAD ASSESSING  UNIT,  MAJOR  TYPE  A
DESIGNATES  THE  HOMESTEAD  CLASS AS DEFINED IN SECTION NINETEEN HUNDRED
ONE OF THIS CHAPTER; AND
  (E) "MAJOR TYPE D" DESIGNATES PUBLIC SERVICES UTILITY  REAL  PROPERTY,
NOT INCLUDING CEILING RAILROAD AND SPECIAL FRANCHISE PROPERTY.
  2.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, FOR AN
ASSESSING UNIT CONTAINED IN ANY COUNTY WITH A POPULATION  OF  MORE  THAN
ONE  MILLION  FOUR  HUNDRED  THOUSAND  AS DETERMINED BY THE TWO THOUSAND
FEDERAL DECENNIAL CENSUS AND WHICH COUNTY IS NOT WHOLLY CONTAINED WITHIN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02842-01-9

              

S. 5733                             2

A CITY, THERE SHALL BE ESTABLISHED  A  COMMERCIAL  ASSESSMENT  RATIO  AS
FOLLOWS:
  (A)  UPON  FINAL  COMPLETION  EACH YEAR OF THE ASSESSMENT ROLL OF EACH
CITY, TOWN AND VILLAGE, THE STATE BOARD SHALL ESTABLISH  THE  COMMERCIAL
ASSESSMENT  RATIO  FOR  SUCH CITY, TOWN OR VILLAGE PROVIDED THAT (I) THE
STATE BOARD IS REQUIRED BY LAW TO ESTABLISH A  STATE  EQUALIZATION  RATE
FOR  SUCH  CITY,  TOWN OR VILLAGE, AND HAS ESTABLISHED SUCH EQUALIZATION
RATE, AND (II) THAT SUCH CITY, TOWN OR VILLAGE IS NOT A SPECIAL  ASSESS-
ING UNIT AS DEFINED IN SECTION EIGHTEEN HUNDRED ONE OF THIS CHAPTER, AND
(III)  THE  CITY,  TOWN  OR  VILLAGE  IS NOT COMPLETING A REVALUATION OR
UPDATE. IN THE CASE OF A CITY IN A COUNTY HAVING A COUNTY DEPARTMENT  OF
ASSESSMENT  WITH THE POWER TO ASSESS REAL PROPERTY, THE STATE BOARD ALSO
SHALL ESTABLISH A COMMERCIAL ASSESSMENT RATIO FOR THAT  PORTION  OF  THE
COUNTY  ROLL CONTAINING THE ASSESSMENTS OF TAXABLE REAL PROPERTY IN SUCH
CITY.
  (B) SUCH COMMERCIAL ASSESSMENT RATIO SHALL BE THE MARKET  VALUE  RATIO
FOR  MAJOR  TYPE  B  PROPERTY FOR NON-REASSESSMENT MUNICIPALITIES ESTAB-
LISHED PURSUANT TO THE RULES, REGULATIONS AND PROCEDURES PROMULGATED  BY
THE STATE BOARD FOR THE ESTABLISHMENT OF STATE EQUALIZATION RATES.
  3.  THE  PROVISIONS  OF  THIS SECTION SHALL NOT APPLY TO ANY ASSESSING
UNIT UNLESS THE COUNTY IN WHICH THE ASSESSING  UNIT  IS  LOCATED  ADOPTS
SUCH PROVISIONS BY LOCAL LAW OR RESOLUTION.
  S  2.  Subdivision  3  of section 720 of the real property tax law, as
amended by chapter 679 of the laws of 1986, subparagraph 2 of  paragraph
(b) as added by section 5-a of part B of chapter 389 of the laws of 1997
and  subparagraph  3  of  paragraph (b) as amended by chapter 318 of the
laws of 1998, is amended to read as follows:
  3. (a) For the purposes of this subdivision:
  (1) "Major type of property" in special assessing  units  for  assess-
ments  on rolls completed before January first, nineteen hundred eighty-
two and in other than special assessing units means each of the  follow-
ing:
  (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 the resi-
dential type shall be the homestead class as defined in this chapter;
  (ii) farm, forest and vacant: all real  property  used  primarily  for
agricultural  or  forestry purposes and all real property which contains
no significant improvement;
  (iii) public  utility:  all  real  property  primarily  used  for  the
provision  to  the  public of communications or transportation services,
electric power, water or gas;
  (iv) all other: all real property not  included  in  any  other  major
type.
  (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, two, three and four as defined in
subdivision one of section eighteen hundred two of this chapter.
  (3) "Stratified random  sample"  means  the  sorting  of  all  taxable
parcels  except  public  utility  property, on the assessment roll to be
used for the selection of parcels, into a number of  mutually  exclusive
categories  each of which is sampled independently in such a manner that

S. 5733                             3

each parcel in each such category shall have an equal opportunity to  be
selected.
  (b) Evidence on the issue of whether an assessment is unequal shall be
limited to the following as hereinafter provided.
  (1)  By the selected parcels method as determined by stratified random
sample.
  The parties shall mutually agree on  the  methods  of  stratification,
computation  of  ratio and selection of the parcels to be appraised, the
number of such parcels and the number of  witnesses  to  be  heard  with
respect  to  such issue. Such parcels shall be selected so as to consti-
tute a stratified random sample of all locally assessed taxable  parcels
on  the  assessment  roll  containing the assessment under review or the
latest assessment roll sampled by the board in  establishing  the  state
equalization  rate  for such roll; provided, however, for assessments on
rolls completed after December thirty-first,  nineteen  hundred  eighty-
one,  in special assessing units such parcels shall constitute a strati-
fied random sample of all locally assessed taxable property in the major
type of property in which  the  property  under  review  is  classified;
provided further, however, for assessment rolls completed after December
thirty-first,  nineteen  hundred  eighty-one, in special assessing units
public utility property shall be sampled as the parties agree, or if the
parties fail to agree, as the court directs. In special assessing  units
for  assessment rolls completed prior to January first, nineteen hundred
eighty-two and in other than  special  assessing  units  public  utility
property  shall  be  added  to  the  parcels selected for the stratified
random sample when such property is a significant portion of  the  total
locally  assessed  taxable assessed value of the assessing unit; in such
case, representative parcels shall be agreed  upon  by  the  parties  or
selected by the court if no such agreement is reached. In the event that
proceedings  for more than one year are consolidated for trial, evidence
may be introduced to adjust the ratio derived from the selected  parcels
provided  for in this subdivision so as to make such ratio applicable to
the other assessment rolls  included  in  such  consolidation.  For  the
purpose of this subdivision, stratification shall be based on major type
of  property  and  assessed  value within each such major type; provided
however, that for assessments on rolls completed after December  thirty-
first, nineteen hundred eighty-one, in special assessing units stratifi-
cation  shall be based on the assessed value of parcels within the major
type of property in which the assessment  under  review  is  classified.
Nothing  in  this  subdivision  shall prevent the parties from agreeing,
with approval of the court, to any other  method  of  stratification  in
place  of  or in addition to major type of property or assessed value of
property. Stratification shall be made in accordance with  the  informa-
tion  contained  on  the  assessment  roll  from which the parcels to be
appraised are to be selected.  The  assessment  under  review  shall  be
excluded from the stratification and the sample.
  In  addition  to  the  selected  parcels,  additional parcels shall be
selected in the same manner for use as substitutes for selected  parcels
for  which  the  parties  agree that an appraisal cannot be made. If the
parties fail to agree on the feasibility of appraising a selected parcel
or an appropriate substitute the court shall make such determinations.
  In the event the parties fail to agree on  such  methods  or  selected
parcels  or on the number of witnesses, upon application of either party
the court or referee shall select a qualified expert, who  shall  devise
such  methods and select the parcels to be appraised, or shall determine
the number or witnesses, or both, as the case may be. Before any  testi-

S. 5733                             4

mony  is  given  by  either  party as to the value of such parcels, each
party shall simultaneously file with the court or  referee,  on  a  date
fixed  by the court or referee, a written statement or tabulation of the
appraised  values  placed  upon  such  parcels  by  the witnesses of the
respective parties, and each party shall serve on the other at the  same
time  a  copy  of  such  statement or tabulation of values stated by his
witnesses.
  (2) By actual sales of real property within the assessing  units  that
occurred during the year in which the assessment under review was made:
  (3) By other methods.
  The parties shall be limited in their proof on the trial of such issue
to  such parcels and witnesses, except that in any event, whether or not
parcels are selected as [hereinabove] provided IN THIS SECTION, evidence
may be given by either party as to the following:
  [(a)] (I) in all assessing units other than special assessing units as
defined in section eighteen hundred  one  of  this  chapter,  the  state
equalization  rate  established  for  the roll containing the assessment
under review;
  [(b)] (II) in all special assessing units as defined in section  eigh-
teen  hundred  one  of this chapter, only for proceedings commenced with
respect to assessment rolls completed prior to January  first,  nineteen
hundred  eighty-two, the latest applicable equalization rate established
for the roll containing the assessment under review; or
  [(c)] (III) in all special assessing units as defined in section eigh-
teen hundred one of this chapter, only for  proceedings  commenced  with
respect to assessment rolls completed after December thirty-first, nine-
teen  hundred  eighty-one, the latest applicable class ratio established
for the roll containing the assessment under review; or
  [(d)] (IV) in all assessing units, the  uniform  percentage  of  value
stated  on  the  tax  bill  for the roll containing the assessment under
review.
  (V) IN ALL ASSESSING UNITS, OTHER  THAN  SPECIAL  ASSESSING  UNITS  AS
DEFINED  IN  SECTION  EIGHTEEN HUNDRED ONE OF THIS CHAPTER, AND UPON THE
REVIEW OF AN ASSESSMENT OF MAJOR TYPE B PROPERTY AS DEFINED  IN  SECTION
TWELVE  HUNDRED FIFTEEN OF THIS CHAPTER, THE COMMERCIAL ASSESSMENT RATIO
ESTABLISHED FOR THE ROLL CONTAINING THE ASSESSMENT UNDER REVIEW.
  S 3. This act shall take effect immediately and shall apply  beginning
with the 2009 assessment roll.