Relates to the taxation of property owned by a cooperative corporation

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 or general idea of bill

To allow a municipal corporations to pass a local law or resolution that would make the provisions of paragraph (a) of subdivision 581 of the real property tax 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, 2011.

Summary of specific provisions

Section 1 adds paragraph (d) to section 581.1 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, 2011 in any municipal corporation, other than New York City and Nassau County.

Section 2 adds paragraph (g) to section 399-y of the real property law allowing municipal corporations to remove the limitations ill that section on assessments on condominiums and cooperatives converted or constructed on and after January 1, 2011 in any municipal corporation, other than New York City and Nassau County.

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.

Prior legislative history

2008: S.7727 3rd Reading: A.10730 Ways & Means

Fiscal implications

None.

Effective date

Immediately and apply to assessment rolls prepared on the basis of taxable status dates occurring on or after January 1, 2011.