Authorizes cities having a population of one million or more to grant a partial real property tax abatement during the 2014 - 2015 fiscal year for residential property repaired after a severe storm

1. The Department of Finance reduced the assessed valuation of the building on the property for fiscal year 2014 from the assessed valuation for fiscal year 2013 as a result of damage caused by Hurricane Sandy.

2. The Department of Finance increased the assessed valuation of the building for fiscal year 2015 from its assessed valuation for fiscal year 2014.

3. The assessed valuation of the building for fiscal year 2015 exceeds that for fiscal year 2013.

For class one and smaller class two properties that satisfy these conditions, the amount of the abatement will be the amount by which the tax on the property for fiscal year 2015 exceeds the tax for fiscal year 2013. For class four and larger class two properties that satisfy these conditions, the amount of the abatement will be the difference between the physical add-back in fiscal year 2015 and the physical decrease in fiscal year 2014. To the extent the square footage used to determine the assessed valuation of the building on the property for fiscal year 2015 exceeds that for fiscal year 2013, the bill provides that the Department of Finance will recalculate the abatement to reduce it by the portion of the tax for fiscal year 2015 that is attributable to the excess square footage of the building.

The bill also includes provisions for the correction of erroneous abatements and the collection of the amount of abatements granted in error, and for the adjustment of abatements granted to properties for which the assessed valuation and the corresponding real property tax have been reduced.

Section two provides that the bill shall take effect immediately.

Reasons for support

In its recent report, "One City, Rebuilding Together: A Report on the City of New York's Response to Hurricane Sandy and the Path Forward," the City set forth a number of policies to streamline the recovery process and prioritize rebuilding. The policies outlined in the report include, but are not limited to, improving the experience of homeowners navigating the preconstruction process, enhancing coordination amongst city, state and federal

partners, and engaging local communities in the rebuilding process. Notably, the report also recommends providing additional financial relief to homeowners. This legislation does just that.

This bill would provide real property tax relief to New York City residents who repaired or rebuilt properties that were severely damaged by Hurricane Sandy. Even if the repair or rebuilding merely restored a building to its condition prior to the storm, the assessed valuation and therefore, the real property taxes, of some of these properties will be higher in fiscal year 2015 than in fiscal year 2013. In order to assist these property owners, this bill authorizes New York City to enact a local law granting a partial abatement of real property taxes so that the owners of these properties will not incur such an increase in real property taxes for fiscal year 2015.

The amount of the real property tax abatement will reflect the increase in the real property tax attributable to improvements on the eligible property which, for purposes of this legislation, includes certain class one, class two and class four properties. In the event that the repair or rebuilding resulted in an increase in the square footage of the affected property, the bill provides that the Department of Finance will recalculate the abatement to reduce it by the portion of the tax for fiscal year 2015 that is attributable to the excess square footage of the property.

The worst natural disaster ever to hit the City of New York, Hurricane Sandy, cost forty-four New Yorkers their lives. Many more residents lost homes or businesses, and entire communities were sent reeling by the storm's devastating impact. There is a great deal more work to do to help the hardest-hit communities get back on their feet and we must continue to be vigilant in marshaling City resources to provide relief to those who need it most.

Unfortunately, the statutory real property tax assessment structure does not contemplate the unique circumstance that many property owners find themselves in as a result of Hurricane Sandy: that these property owners would, in effect, suffer a tax penalty for rebuilding their storm-torn properties.

This real property tax abatement provides an absolutely necessary measure of relief to owners of class one, class two and class four properties who began the rebuilding process to return to normalcy.

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

Effective date

Immediately.