Provides that residential real property which sustained 50% or greater damage in Hurricane Sandy, and is rebuilt shall be assessed at its pre-Sandy market value

BILL NUMBER:S6372

Title of bill

An act to amend the real property tax law, in relation to assessment of residential real property catastrophically impacted by superstorm Sandy

Purpose

This bill would benefit owners of residential real property that sustained 50% or greater damage in Hurricane Sandy, and when it is rebuilt shall be assessed at its pre-Sandy market value.

Summary of provisions

Section one of the bill amends section 305 of the Real Property Tax Law by adding a new subdivision (4) which states that (4(b)) catastrophically impacted property, which is repaired, improved, or reconstructed to repair damage caused by Superstorm Sandy and comply with state and local building codes and height restrictions, shall be assessed at the total assessed value thereof shall be a value which is equal to the improved value of such real property prior to the damage caused by Superstorm Sandy, and not the full value of such property. Subdivision (4(a(i))) defines "Catastrophically impacted property" as residential real property which lost fifty percent or more of its improved value as a result of Superstorm Sandy. (4(a(ii))) defines "Improved value" as the market value of the real property excluding the land. (4(a(iii))) defines "Superstorm Sandy" as the storms, rains, winds, and floods which occurred during the period beginning on October twenty-ninth, two thousand twelve and ending November third, two thousand twelve. (4(a(iv))) defines "Total assessed value" as the total assessed value of a parcel prior to any and all exemption adjustments.

Section two of the bill would make the act effective immediately and shall apply to tax rolls issued on or after such date.

Justification

Superstorm Sandy was a storm of unprecedented strength and destruction in New York State. For homes that were substantially damaged by Sandy (more than 50% damaged) they are required to rebuild to conform with the most recent building codes and height restrictions. Upon completion, these homes will be considered "new construction" and thus their property tax rate will be re-assessed, at the full value of the home. This has the potential to create an immediate and rather significant property tax increase on these homeowners who are only trying to restore their homes and return to a sense of normalcy after the storm.

This bill would hold steady the effective assessed value on these homes as they stood pre-Sandy. In the City of New York the 6% tax cap rate would apply in future years, in order to prevent an immediate and unusual tax burden on the homeowners affected by Sandy.

Legislative history

New Bill.

Fiscal implications

None available.

Effective date

This act shall take effect immediately and shall apply to tax rolls issued on or after such date.