Senate Bill S5460

                                 
BILL NUMBER: S5460

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the real property tax law and the real property law, in
relation to the taxation of property owned by a cooperative corporation

 
PURPOSE:

The purpose of this legislation is to allow municipal corporations to
value newly constructed and converted cooperative and condominium units
as they would for real property to alleviate any negative impacts placed
on the locality by the current statute.

 
SUMMARY OF PROVISIONS:

Section 1 of this bill would amend subdivision 1 of section 581 of the
Real Property Tax Law by adding a new paragraph: (d) The provisions of
paragraph (a) of this subdivision shall not apply to real property owned
or leased by a cooperative corporation or on a condominium basis in a
municipal corporation, other than a special assessing unit, which has
              

adopted, prior to the taxable statue date of the assessment roll upon
which its taxes will be levied, a local law or, for a school district, a
resolution providing that the provisions of paragraph (a) of this subdi-
vision shall not apply to such real property within that municipal
corporation; provided, however, the provisions of this paragraph shall
not apply to real property owned or leased by a cooperative corporation
or on a condominium basis that had been previously subject to the
provisions of paragraph (a) of this subdivision prior to January 1,
2025. The provisions of this paragraph shall not apply to condos or
co-ops that are participating in an affordable housing tax credit
program or has a regulatory agreement with a federal, state, or local
agency related to affordable housing requirements.

Section 2 of this bill would amend subdivision 1 of section 339-y of the
Real Property Law by adding a new paragraph: (g) The provisions of para-
graph (b) of this subdivision shall not apply to real property owned or
leased by a cooperative corporation or on a condominium basis in a
municipal corporation other than a special assessing unit, which has
adopted, prior to the taxable status data of the assessment roll upon
which its taxes will be levied, a local law or, for a school district, a
resolution providing that the provisions of paragraph (b) of this subdi-
vision shall not apply to such real property within that municipal
corporation; provided, however, the provisions of this paragraph shall
not apply to real property owned or leased by a cooperative corporation
or on a condominium basis that had been previously subject to the
provisions of paragraph (b) of this subdivision prior to January 1,
2025. The provisions of this paragraph shall not apply to condos or
co-ops that are participating in an affordable housing tax credit
program or has a regulatory agreement with a federal, state, or local
agency related to affordable housing requirements.

Section 3 of this bill provides that the effective date shall take
effect immediately and shall apply to assessment rolls prepared on the
basis of taxable status dates occurring on or after January 1, 2025.

 
JUSTIFICATION:

As currently written, the Real Property Tax Law and the 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 unrea-
sonable state mandate that unfairly limits the revenue-raising abilities
of local governments. Assessors and appraisers also cite the difficul-
ties 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:

2023-24: S.4065A- (Mannion)- Referred to Local Gov't

2021-22: S.5946-B (Reichlin-Melnick) - Veto Memo 142.

2019-20: S.7057-A (Carlucci) - Referred to Local Government.

2017-18: S.1191-B (Little) - Ordered to Third Reading.

2015-16: S.618-A (Little) - Referred to Local Government.

2013-14: S.1000-A (Little) - Referred to Local Government.

2011-12: S.546-A (Little) - Referred to Local Government.

2009-10: S. 255 (Little) - Referred to Local Government.

2007-08: S. 7727 (Little) - Advanced to Third Reading.

 
FISCAL IMPLICATIONS:

None.

 
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, 2026.