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This entry was published on 2014-09-22
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SECTION 1805
Limitation on increases of assessed value of individual parcels
Real Property Tax (RPT) CHAPTER 50-A, ARTICLE 18
§ 1805. Limitation on increases of assessed value of individual
parcels. 1. The assessor of any special assessing unit shall not
increase the assessment of any individual parcel classified in class one
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:

(a) compute the maximum permissible assessments for the years nineteen
hundred eighty-one through nineteen hundred eighty-five pursuant to the
limitations contained hereinabove as if the provisions of this
subdivision were in effect and applicable for assessment rolls prepared
in the year nineteen hundred eighty-one;

(b) subtract the maximum permissible assessment for the year nineteen
hundred eighty-one as computed in paragraph (a) hereof from the actual
assessment entered on the assessment roll completed and applicable for
the year nineteen hundred eighty-one and divide such result by four;

(c) the assessment for the year nineteen hundred eighty-two shall be
the maximum permissible assessment for such year as computed pursuant to
such paragraph (a) minus the quotient determined pursuant to paragraph
(b) hereinabove;

(d) the assessment for the year nineteen hundred eighty-three shall be
the maximum permissible assessment for such year as computed pursuant to
such paragraph (a) minus the quotient determined pursuant to paragraph
(b) hereinabove;

(e) the assessment for the year nineteen hundred eighty-four shall be
the maximum permissible assessment for such year as computed pursuant to
such paragraph (a) minus the quotient determined pursuant to paragraph
(b) hereinabove;

(f) the assessment for the year nineteen hundred eighty-five shall be
the maximum permissible assessment for such year as computed pursuant to
such paragraph (a) minus the quotient determined pursuant to paragraph
(b) hereinabove;

(g) commencing and applicable in the years nineteen hundred eighty-six
through nineteen hundred ninety, the limitations contained hereinabove
shall be computed as measured against the maximum permissible
assessments for the years nineteen hundred eighty-one through nineteen
hundred eighty-five as computed in paragraph (a) hereinabove and as
measured against the actual assessments for the years occurring after
nineteen hundred eighty-five.

2. The assessment roll of a special assessing unit wholly contained
within a city shall identify those parcels classified in class two which
have fewer than eleven residential units. The assessor of any such
special assessing unit shall not increase the assessment of any parcel
so identified in any one year, as measured from the actual assessment on
the previous year's assessment roll, by more than eight percent and
shall not increase such assessment by more than thirty 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-one provided that, if such parcel would not have
been subject to the provisions of this subdivision in nineteen hundred
eighty-one had this subdivision then been in effect, the first such
five-year period shall be measured from the first year after nineteen
hundred eighty-one 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 parcel so identified on the assessment roll
completed and applicable for the year nineteen hundred eighty-four, the
actual assessment for the year nineteen hundred eighty-three exceeds by
more than thirty percent the assessment for the year nineteen hundred
eighty-one, such assessor shall compute the actual assessments to be
entered on assessment rolls applicable to the years nineteen hundred
eighty-four through nineteen hundred ninety-two as follows:

(a) compute the maximum permissible assessments for the years nineteen
hundred eighty-two through nineteen hundred eighty-seven pursuant to the
limitations contained hereinabove as if the provisions of this
subdivision were in effect and applicable for assessment rolls prepared
in the year nineteen hundred eighty-two;

(b) subtract the maximum permissible assessment for the year nineteen
hundred eighty-two as computed in paragraph (a) hereof from the lesser
of the actual or transition assessment entered on the assessment roll
completed and applicable for the year nineteen hundred eighty-two;

(c) subtract the maximum permissible assessment for the year nineteen
hundred eighty-three as computed in such paragraph (a) from the lesser
of the actual or transition assessment entered on the assessment roll
completed and applicable for the year nineteen hundred eighty-three;

(d) add such results of the computations prescribed by paragraphs (b)
and (c) hereof as are greater than zero and divide such sum by four;

(e) the assessment for the year nineteen hundred eighty-four shall be
the maximum permissible assessment for such year as computed pursuant to
such paragraph (a) minus the quotient determined pursuant to paragraph
(d) hereinabove;

(f) the assessment for the year nineteen hundred eighty-five shall be
the maximum permissible assessment for such year as computed pursuant to
such paragraph (a) minus the quotient determined pursuant to paragraph
(d) hereinabove;

(g) the assessment for the year nineteen hundred eighty-six shall be
the maximum permissible assessment for such year as computed pursuant to
such paragraph (a) minus the quotient determined pursuant to paragraph
(d) hereinabove;

(h) the assessment for the year nineteen hundred eighty-seven shall be
the maximum permissible assessment for such year as computed pursuant to
such paragraph (a) minus the quotient determined pursuant to paragraph
(d) hereinabove;

(i) commencing and applicable in the years nineteen hundred
eighty-eight through nineteen hundred ninety-two, the limitations
contained hereinabove shall be computed as measured against the maximum
permissible assessments for the years nineteen hundred eighty-three
through nineteen hundred eighty-seven as computed in paragraph (a)
hereinabove and as measured against the actual assessments for the years
occurring after nineteen hundred eighty-seven.

3. If the assessment appearing on an assessment roll completed on or
after January first, nineteen hundred eighty-two for any parcel not
subject to the provisions of subdivision one or two of this section,
other than a parcel classified in class three, is greater than the
assessment appearing on the previous year's assessment roll the assessor
shall determine a transition assessment for such parcel for the first
assessment roll on which such greater assessment appears and for each of
the succeeding four assessment rolls by computing the difference between
such greater assessment and the assessment appearing on such previous
year's assessment roll and adding the following percentages of such
difference to the assessment appearing on such previous year's
assessment roll: in the first year, twenty percent; in the second year,
forty percent; in the third year, sixty percent; in the fourth year,
eighty percent; and in the fifth year, one hundred percent. If the
assessment of a parcel is increased during a period for which transition
assessments have been established because of any prior assessment
increases, such new increase shall be phased-in over a five-year period
as set forth in this subdivision, and such phased-in increases shall be
added to the transitional assessments previously established for the
prior increase; provided, however, that if in any year any such
transition assessment exceeds the actual assessment for such year, taxes
imposed on such parcel for such year shall be based on such lesser
actual assessment. Notwithstanding the foregoing, during the period of
any such transition, the assessment roll shall contain an entry of the
full amount of such greater assessment which shall be used by the
commissioner in its determination of class ratios pursuant to paragraph
(b) of subdivision one of section twelve hundred two of this chapter. In
establishing state equalization rates, class equalization rates, special
state equalization rates and special state equalization ratios under
article twelve, article twelve-A and article twelve-B of this chapter,
the commissioner shall use the transition assessments as provided for in
this subdivision in its determinations, or where the actual assessment
is the lesser, such actual assessment shall be so used.

4. Notwithstanding the provisions of subdivision three of this section
no transition assessment shall be computed for any individual parcel for
a year in which subdivision one or two of this section were applicable
to such parcel, nor for any real property owned by the state and which
is subject to taxation pursuant to title two of article five of this
chapter, nor for any real property for which a statute provides that a
state equalization rate or special equalization rate shall be employed
to determine the assessed value or the taxable assessed value.

5. Nothing in this section shall prevent placing on the assessment
roll new property, additions to or improvements of existing property or
formerly exempt property or the full or partial removal from the roll of
property by reason of fire, demolition, destruction or new exemption and
such increase or decrease in value shall not be included in the
computation of the limitations prescribed by this section. Any parcel
which would be assessed at a greater amount but for the provisions of
subdivision one or two of this section shall be excluded from any survey
or computation made by any body or officer for the purpose of
determining a level of assessment to be used in the administrative or
judicial review of assessments including, but not limited to, class
ratios computed pursuant to paragraph (b) of subdivision one of section
twelve hundred two of this chapter, ratios computed by selection of
parcels or from actual sales of real property under the provisions of
subdivision three of section seven hundred twenty of this chapter, and
residential assessment ratios computed pursuant to section seven hundred
thirty-eight of this chapter, but not including state equalization rates
or class equalization rates. In the event that a parcel appearing on the
assessment roll completed in nineteen hundred eighty or any subsequent
roll is subdivided or consolidated with another, such assessor shall
make an appropriate allocation of the assessed value of such parcel in
the determination of the limitations prescribed in this section.

6. Notwithstanding any provision of law to the contrary, in any
special assessing unit wholly contained within a city, beginning with
the assessment roll completed in two thousand five and for each
subsequent assessment roll, the assessor shall not increase the
assessment of any existing property classified in class two that has
fewer than eleven residential units, with respect to any increase in
value attributable to additions to or improvements of such property that
were not reflected on the assessment roll for a previous year, by more
than one-third of the amount that such assessment would increase, in the
absence of this subdivision, with respect to any increase in value
attributable to additions to or improvements of such property that were
not reflected on the assessment roll for a previous year.
Notwithstanding the provisions of subdivision five of this section, the
remainder of the increase in value attributable to such additions or
improvements that were not reflected on the assessment roll for a
previous year shall be subject to the limitations on increases provided
in subdivision two of this section. This subdivision shall not apply to
the construction of a new building or structure. This subdivision shall
not apply where, as a result of such additions to or improvements of the
existing property, there are more than ten residential units in such
property.