Relates to the taxation of property owned by a cooperative corporation

BILL NUMBER:S1000A

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

To allow a municipal corporation 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 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 all municipal corporations, except 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 cooperative converted or constructed on and after January 1, 2016 in any municipal corporations except 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.

Legislative history

2013: S. 1000 Referred to Local Governments; A. 682 Referred to Ways & Means 2011-12: S. 546 Referred to Local Governments; A. 4981 Ways & Means 2009-10: S. 255 Referred to Local Government; A. 5724 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.