Provides for process for rebate of real property taxes on certain real property seriously damaged by the severe storm of October 29 & 30, 2012 in cities of one million or more

The bill provides that the rebate be paid to the owner who owned the building on October 30, 2012. The amount of the rebate is equal to two-thirds of that portion of the annual tax on an eligible real property that is attributable to the assessed valuation of the improvements on the property. With respect to eligible cooperative property, each unit owner is entitled to that portion of the rebate calculated for the entire property that is attributable to the unit, as determined by the proportion of the shares of stock representing the unit to the total outstanding stock of the cooperative corporation. With respect to real property described in paragraph (c) of subdivision 1 of section 1802 of the Real Property Tax Law, that is, residential real property consisting of one-family owner-occupied houses situated on land held in cooperative ownership by owner occupiers that constituted bungalow colonies in existence prior to 1940, the amount of the rebate is calculated to reflect cases in which only some of the houses located in the cooperative development meet the bill's definition of eligible real property. For such property, the amount of the rebate is equal to two-thirds of that portion of the annual tax on the entire cooperative development of which the owner's building is a part, that is attributable to the assessed valuation of the improvements on the cooperative development, multiplied by a fraction, the numerator of which is equal to the number of buildings in the cooperative development that were designated by the Department

of Buildings as described above, and the denominator of which is the total number of buildings that were located in the cooperative development as of October 28, 2012, the day immediately prior to the onset of Hurricane Sandy, divided by the number of buildings in the cooperative development that were designated by the Department of Buildings as described above.

No rebate is made available for a property with no annual tax, or for a property with real property tax arrears in excess of $25.00 for fiscal year 2013 or any prior year. However, the bill provides that if the Commissioner of Finance denies a rebate because of tax arrears, the owner will be so notified and given the opportunity to become eligible for the rebate by paying the arrears in full within six months. Annual tax is defined in the bill as the amount of tax that is actually imposed on eligible real property, and does not include any amount from which an eligible real property is exempt, or which is abated, pursuant to applicable law. This bill also makes provisions for the mailing of the rebate to an appropriate forwarding address; and for the collection of erroneous payments.

Section two provides for the bill to take effect immediately.

Reasons for support

This legislation would provide real property tax relief to New York City residents whose properties were severely damaged by Hurricane Sandy. Under current law, the taxable status of real property in New York City was fixed for the 2013 fiscal year on January 5, 2012, the taxable status date for real property, and real property taxes billed for fiscal year 2013 must be based on the condition of the real property on that date. Beginning on October 29, 2012, and continuing thereafter, Hurricane Sandy caused a severe storm surge in areas of New York City that resulted in damage to a number of buildings. The Department of Buildings (DOB) has inspected the structural stability of buildings affected by the hurricane and tagged with a red placard and/or indicated on its records, those buildings that it determined to be seriously damaged and unsafe to enter or occupy or completely demolished as a result of the effects of the hurricane.

Current law does not provide a mechanism for reducing the assessed valuation of real property and the tax based thereon for fiscal year 2013 to reflect the serious damage and resulting decrease in value that was inflicted on real property by Hurricane Sandy. In order to assist owners and tenant-stockholders of properties on which there is a building that the Department of Buildings determined to be seriously damaged and unsafe to enter or occupy or completely demolished as a result of the effects of Hurricane Sandy, this bill authorizes a city with a population of one million or more to enact a local law to grant a rebate of real property taxes to owners and tenant-stockholders of eligible properties. The amount of the rebate reflects the reduction in value of the improvements on eligible property for a period of eight months (two-thirds of a year) from the date of Hurricane Sandy to the end of fiscal year 2013. These rebates would provide much needed relief to some of our most devastated citizens.

Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.