Senate Bill S617A

                                 BILL NUMBER:  S617      REVISED MEMO 01/21/2015

 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, 2017.

 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, 2017 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, 2017 in any municipal corporation,
              

other than New York City and Nassau County.

Section 3 Contains the effective date

 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 :

2013-2014: 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.

 LOCAL 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, 2017.