Relates to an assessment of real property damaged by the severe storm that occurred on the twenty-ninth and thirtieth of October, two thousand twelve in a special assessing unit that is not a city

BILL NUMBER:S5800

Title of bill

An act to amend the real property tax law, in relation to an assessment of real property damaged by the severe storm that occurred on the twenty-ninth and thirtieth of October, two thousand twelve in a special assessing unit that is not a city

Purpose

This legislation provides for the assessment of real property in a special assessing unit that is not a city, which was damaged by Hurricane Sandy.

Summary of provisions

The real property tax law is amended by adding a new section 1805-b to read as follows:

The assessment of real property damaged by the severe storm that occurred on the twenty-ninth and thirtieth of October, two thousand twelve in a special assessing unit that is not a city, notwithstanding any provision of any general, special or local law to the contrary, any special assessing unit that is not a city is hereby authorized and empowered to adopt and amend local laws in accordance with this section to provide that the assessed value of affected real property, as defined to the limitations provided. Following the adoption of this act by a special assessing unit that is not a city, any town, school district or village which uses the assessment roll of such special assessing unit that is not a city for the levy of taxes, may also adopt a local law or resolution to grant the exemption authorized pursuant to this bill.

Section 2 of this bill states this act shall take effect immediately.

Existing law

None.

Justification

This bill would provide real property tax relief to non-city residents who have already repaired or rebuilt properties that were damaged by Hurricane Sandy or who will repair or rebuild properties through fiscal year 2020. Even if the repair or rebuilding merely restores a building to its condition prior to the storm, the assessed value, and therefore the real property taxes, of some of these properties will be higher after the rebuilding than it was prior to the storm.

In order to further assist these property owners, this bill authorizes Nassau County to enact a local law limiting the amount that assessed values can increase as a result of the repair or rebuilding of properties severely damaged by Hurricane Sandy.

The amount of increase in assessed value will be limited to the amount that it would have increased if Hurricane Sandy had not occurred for

affected property which, for purposes of this legislation. 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 adjust the limitation on increases in assessed value by the percentage that is attributable to the excess square footage of the property.

As the worst natural disaster ever to hit New York State, 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 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.

Legislative history

None.

Fiscal implications

None to the state.

Effective date

This act shall take effect immediately.