Requires the establishment of a state commercial assessment ratio for counties

BILL NUMBER:S2216A

Title of bill

An act to amend the real property tax law, in relation to creating a county commercial assessment ratio

Purpose

To establish a state commercial assessment ratio for major type B property for use in article 7 proceedings reviewing assessments of major type B commercial properties for counties.

Summary of provisions

This bill creates a new section of the RPTL by adding section 1215, which establishes a commercial assessment ratio for major type B commercial property and amends section 720 of the RPTL permitting its use in article 7 proceedings reviewing the assessments of major type B commercial property.

Justification

Many assessing units have experienced unprecedented appreciation in residential property values over the last few years while commercial property values have remained constant or have appreciated slightly. This appreciation in residential property values has caused the state equalization rates for these assessing units to drop drastically. Therefore, the current state equalization rate does not accurately reflect the changes in the values of commercial property. The annual establishment of state equalization rates alone in a rising residential market is creating artificial over-assessment of commercial property. This bill attempts to correct this by creating a commercial assessment ratio that counties can use.

Legislative history

2011-2012: S.6749 - Referred to Local Government

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately and shall apply beginning with the assessment roll next succeeding the date on which it shall have become a law.