Provides certain real property a 15% tax exemption

1 Co-sponsor

• Mark Grisanti

BILL NUMBER:S538

Title of bill

An act to amend the real property tax law, in relation to providing certain real property a 15% tax exemption

Purpose

To provide a 15% real property tax exemption for certain real property where the tax classification resulted in a 25-40% higher tax assessment.

Summary of specific provisions

Section 1 amends the real property tax law to add a new section 421-n to create an exemption certain residential property from local taxation for real property held in condominium form of ownership that satisfies the elements of article nine-b, but for the failure of the developer or owner to file a separate assessment application. The exemption from local taxation shall apply to county, city, school, town and village taxation.

The application for exemption must be filed by all owners of the real property and provided all criteria are met, the exemption shall continue in full force for all subsequent, tax years with no need to re-file.

The local legislative body has the authority to adopt a law allowing for the exemption and to repeal up to 90 days prior to the taxable status date of the municipality.

Section 2 is the effective date.

Justification

New York State patio home communities are classified as either single family homes or condominiums. In accordance with the real property tax law 339Y, the developer requests the tax classification from the state prior to the start of construction. Property taxes for the two different classifications are significantly different. The single family home property assessment value is based on a percentage of the fair market value of the home. The condo property assessment is based on a percentage of rental income the home could generate. This classification difference results in a 25-40% tax discrepancy-between the two identical homes. To create taxation equity between these identical homes, this legislation allows the local body the authority to offer a 15% tax exemption to these homes that did not receive the discounted tax classification. The legislation also allows the locality to terminate the 15% exemption if necessary.

Legislative history

2012: S.7832/A.9851 Referred to Rules

Fiscal implication

To be determined.

Effective date

This act shall take effect immediately.