senate Bill S1001A

2013-2014 Legislative Session

Requires market-based assessments on real property owned or leased by a cooperative corporation or on a condominium basis

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 17, 2014 print number 1001a
amend and recommit to local government
Jan 08, 2014 referred to local government
Jan 09, 2013 referred to local government

Bill Amendments

Original
A (Active)
Original
A (Active)

S1001 - Bill Details

See Assembly Version of this Bill:
A6268A
Current Committee:
Senate Local Government
Law Section:
Real Property Tax Law
Laws Affected:
Amd §581, RPT L; amd §339-y, RP L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S133A, A5339A
2009-2010: S256, A1574, A9790

S1001 - Bill Texts

view summary

Requires market-based assessments of real property owned or leased by a cooperative corporation or on a condominium basis which is converted or constructed on or after January 1, 2016.

view sponsor memo
BILL NUMBER:S1001

TITLE OF BILL:
An act
to amend the real property tax law and the real property law, in
relation to the assessment of condominiums and cooperatives

PURPOSE:
To allow municipal corporations to pass a local law or resolution that
would make the provisions of paragraph (a) of subdivision 581 of
subdivision 581 of the real property law not apply to real property,
owned or leased by a cooperative corporation or on a condominium
basis, that is converted or constructed on and after January 1, 2015

SUMMARY OF PROVISIONS:

Section 1 adds paragraph (d) to section 581 of the real property tax
law, allowing municipal corporations to remove the limitations in
that section on assessments on condominiums and cooperatives
converted or constructed on and after January 1, 2015 in any
municipal corporation other than New York City and Nassau County.

Section 2 adds paragraph (g) to section 339-y of the real property
law, allowing municipal corporations to remove the limitations in
that section on assessments on condominiums and cooperatives
converted or constructed on and after January 1, 2015 in any
municipal corporation, other than New York City and Nassau County.

EXISTING LAW:

Section 399-y of the Real Property Law, limits the assessments which
can be placed on condominium units other than those classified in the
homestead class in municipalities applying a dual tax rate. Section
581 of the RPTL limits the assessments which can be placed on
condominium units, other than those classified in the homestead
class, in municipalities applying dual tax rates, residential
cooperatives and municipal dwellings. Chapter 293 of the laws of 1997
enables municipal corporations, other than New York City and Nassau
County, to provide that "converted condominiums" (i.e., residential
condominium units which have been converted to condominium ownership
from conventional ownership) shall be assessed without regard to the
assessment restrictions otherwise applicable to condominiums (RPTL,
581(1); Real Property
Law, § 339-y(1)(0). This is also allows local governments to decline to
grant these benefits to converted condominiums, thereby removing the
incentive to convert existing housing condominium ownership to reduce
taxes. Preexisting condominiums are not affected by the changes made
by chapter 293, which is similar to this proposal.

JUSTIFICATION:
As currently written, the real property tax law and real property law
does not allow the sum of the assessments of individual cooperative
or condominium units to exceed the value of the entire complex if it
was valued as a single entity. The restriction tends to reduce
condominium and cooperative assessments by preventing the use of
sales of units in the assessment process. The Office of Real Property
Services, assessors and other local officials generally consider the


restrictions an unreasonable state mandate which unfairly limits the
revenue-raising abilities of local governments. Assessors and
appraisers also cite the difficulties they encounter when they are
forced to ignore market information--usually the best indicator of
value-in developing estimates of taxable value. This bill would allow
municipal corporations to value newly constructed and converted
cooperative and condominium units as they would other real property
to alleviate any negative impacts placed on the locality by the
current statute.

LEGISLATIVE HISTORY:
2011-12 S.133-A Referred to Local Government; A. 5339-A Referred to
Real Property Taxation
2009-10: S.255 Referred to Local Government;
A.5124 Held for consideration in Ways & Means
2008: S.7727 3rd Reading: A.10730 Ways & Means

FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to assessment
rolls prepared on the basis of taxable status dates occurring on or
after January 1, 2015.

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

                                  1001

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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

AN ACT to amend the real property tax law and the real property law,  in
  relation to the assessment of condominiums and cooperatives

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

  Section 1. Subdivision 1 of section 581 of the real property  tax  law
is amended by adding a new paragraph (d) to read as follows:
  (D)  THE  PROVISIONS  OF  PARAGRAPH  (A) OF THIS SUBDIVISION SHALL NOT
APPLY IN A MUNICIPAL CORPORATION, OTHER THAN A SPECIAL  ASSESSING  UNIT,
TO  A  CONDOMINIUM  OR  COOPERATIVE  UNIT  UNLESS  IT WAS SUBJECT TO THE
PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVISION ON  JANUARY  FIRST,  TWO
THOUSAND FIFTEEN.
  S  2.  Subdivision  1  of  section  339-y  of the real property law is
amended by adding a new paragraph (g) to read as follows:
  (G) THE PROVISIONS OF PARAGRAPH (B)  OF  THIS  SUBDIVISION  SHALL  NOT
APPLY  IN  A MUNICIPAL CORPORATION, OTHER THAN A SPECIAL ASSESSING UNIT,
TO A CONDOMINIUM UNIT UNLESS IT WAS SUBJECT TO THE PROVISIONS  OF  PARA-
GRAPH (B) OF THIS SUBDIVISION ON JANUARY FIRST, TWO THOUSAND FIFTEEN.
  S 3. This act shall take effect immediately and shall apply to assess-
ment rolls prepared on the basis of taxable status dates occurring on or
after January 1, 2015.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01148-01-3

S1001A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A6268A
Current Committee:
Senate Local Government
Law Section:
Real Property Tax Law
Laws Affected:
Amd §581, RPT L; amd §339-y, RP L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S133A, A5339A
2009-2010: S256, A1574, A9790

S1001A (ACTIVE) - Bill Texts

view summary

Requires market-based assessments of real property owned or leased by a cooperative corporation or on a condominium basis which is converted or constructed on or after January 1, 2016.

view sponsor memo
BILL NUMBER:S1001A

TITLE OF BILL: An act to amend the real property tax law and the real
property law, in relation to the assessment of condominiums and
cooperatives

PURPOSE: To allow municipal corporations to pass a local law or
resolution that would make the provisions of paragraph (a) of
subdivision 581 of subdivision 581 of the real property law not apply
to real property, owned or leased by a cooperative corporation or on a
condominium basis, that is converted or constructed on and after
January 1, 2016

SUMMARY OF PROVISIONS:

Section 1 adds paragraph (d) to section 581 of the real property tax
law, allowing municipal corporations to remove the limitations in that
section on assessments on condominiums and cooperatives converted or
constructed on and after January 1, 2016 in any municipal corporation
other than New York City and Nassau County.

Section 2 adds paragraph (g) to section 339-y of the real property
law, allowing municipal corporations to remove the limitations in that
section on assessments on condominiums and cooperatives converted or
constructed on and after January 1, 2016 in any municipal corporation,
other than New York City and Nassau County.

EXISTING LAW:

Section 399-y of the Real Property Law, limits the assessments which
can be placed on condominium units other than those classified in the
homestead class in municipalities applying a dual tax rate. Section
581 of the RPTL limits the assessments which can be placed on
condominium units, other than those classified in the homestead class,
in municipalities applying dual tax rates, residential cooperatives
and municipal dwellings, Chapter 293 of the laws of 1997 enables
municipal corporations, other than New York City and Nassau County, to
provide that "converted condominiums" (i.e., residential condominium
units which have been converted to condominium ownership from
conventional ownership) shall be assessed without regard to the
assessment restrictions otherwise applicable to condominiums (RPTL,
581(1); Real Property Law, § 339-y(1)(f)). This is also allows local
governments to decline to grant these benefits to converted
condominiums, thereby removing the incentive to convert existing
housing condominium ownership to reduce taxes. Preexisting
condominiums are not affected by the changes made by chapter 293,
which is similar to this proposal.

JUSTIFICATION: As currently written, the real property tax law and
real property law does not allow the sum of the assessments of
individual cooperative or condominium units to exceed the value of the
entire complex if it was valued as a single entity. The restriction
tends to reduce condominium and cooperative assessments by preventing
the use of sales of units in the assessment process. The Office of
Real Property Services, assessors and other local officials generally
consider the restrictions an unreasonable state mandate which unfairly
limits the revenue-raising abilities of local governments. Assessors


and appraisers also cite the difficulties they encounter when they are
forced to ignore market information--usually the best indicator of
value-in developing estimates of taxable value. This bill would allow
municipal corporations to value newly constructed and converted
cooperative and condominium units as they would other real property to
alleviate any negative impacts placed on the locality by the current
statute.

LEGISLATIVE HISTORY: 2013: S. 1001 Referred to Local Government; A.
6268 Referred to real Property Taxation 2011-12 S. 133-A Referred to
Local Government; A. 5339-A Referred to Real Property Taxation
2009-10: S. 255 Referred to Local Government; A. 5124 Held for
consideration in Ways & Means 2008: S. 7727 3rd Reading: A. 10730 Ways
& Means

FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect immediately and shall
apply to assessment rolls prepared on the basis of taxable status
dates occurring on or after January 1, 2016.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1001--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government -- recom-
  mitted 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 real property law,  in
  relation to the assessment of condominiums and cooperatives

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

  Section 1. Subdivision 1 of section 581 of the real property  tax  law
is amended by adding a new paragraph (d) to read as follows:
  (D)  THE  PROVISIONS  OF  PARAGRAPH  (A) OF THIS SUBDIVISION SHALL NOT
APPLY IN A MUNICIPAL CORPORATION, OTHER THAN A SPECIAL  ASSESSING  UNIT,
TO  A  CONDOMINIUM  OR  COOPERATIVE  UNIT  UNLESS  IT WAS SUBJECT TO THE
PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVISION ON  JANUARY  FIRST,  TWO
THOUSAND SIXTEEN.
  S  2.  Subdivision  1  of  section  339-y  of the real property law is
amended by adding a new paragraph (g) to read as follows:
  (G) THE PROVISIONS OF PARAGRAPH (B)  OF  THIS  SUBDIVISION  SHALL  NOT
APPLY  IN  A MUNICIPAL CORPORATION, OTHER THAN A SPECIAL ASSESSING UNIT,
TO A CONDOMINIUM UNIT UNLESS IT WAS SUBJECT TO THE PROVISIONS  OF  PARA-
GRAPH (B) OF THIS SUBDIVISION ON JANUARY FIRST, TWO THOUSAND SIXTEEN.
  S 3. This act shall take effect immediately and shall apply to assess-
ment rolls prepared on the basis of taxable status dates occurring on or
after January 1, 2016.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01148-02-4

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