Change Condo Tax Classification

Section 1. Subdivision 1 of section 1802 of the real property tax law, as separately amended by chapters 123 and 529 of the laws of 1990, paragraph class one as amended by chapter 332 of the laws of 2008, is amended to read as follows:

1. All real property, for the purposes of this article, in a special assessing unit shall be classified as follows:

Class one: (a) all one, two and three family residential real proper-

ty, including such dwellings used in part for nonresidential

purposes but which are used primarily for residential purposes,

except such property held in cooperative or condominium forms of

ownership other than (i) property defined in subparagraphs (b)

and (c) of this paragraph and (ii) property which contains no

more than three dwelling units held in condominium form of

ownership and which was classified within this class on a previ-

ous assessment roll; and provided that, notwithstanding the

provisions of paragraph (g) of subdivision twelve of section one

hundred two of this chapter, a mobile home or a trailer shall

not be classified within this class unless it is owner-occupied

and separately assessed; and (b) residential real property not

more than three stories in height held in condominium form of

ownership, provided that no dwelling unit therein previously was

on an assessment roll as a dwelling unit in other than condomin-

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD01285-02-7

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ium form of ownership; and (c) residential real property

consisting of one family house structures owned by the occupant,

situated on land held in cooperative ownership by owner occupi-

ers, provided that; (i) such house structures and land consti-

tuted bungalow colonies in existence prior to nineteen hundred

forty; and (ii) the land is held in cooperative ownership for

the sole purpose of maintaining one family residences for

members own use; and (d) all vacant land located within a

special assessing unit which is a city (i) other than such land

in the borough of Manhattan, provided that any such vacant land

which is not zoned residential must be situated immediately

adjacent to property improved with a residential structure as

defined in subparagraphs (a) and (b) of this paragraph, be owned

by the same owner as such immediately adjacent residential prop-

erty immediately prior to and since January 1, 1989, and have a

total area not exceeding 10,000 square feet; and (ii) located in

the borough of Manhattan north of or adjacent to the north side

of 110th street provided such vacant land was classified within

this class on the assessment roll with a taxable status date of

January 5, 2008 and the owner of such land has entered into a

recorded agreement with a governmental entity on or before

December 31, 2008 requiring construction of housing affordable

to persons or families of low income in accordance with the

provisions of the private housing finance law. Notwithstanding

the foregoing, such vacant land shall be classified according to

its use on the assessment roll with a taxable status date imme-

diately following commencement of construction, provided

further, that construction pursuant to an approved plan for

affordable housing shall commence no later than December 31,

2010; and (e) all vacant land located within a special assessing

unit which is not a city, provided that such vacant land which

is not zoned residential must be situated immediately adjacent

to real property defined in subparagraph (a), (b) or (c) of this

paragraph and be owned by the same person or persons who own the

real property defined in such subparagraph immediately prior to

and since January 1, 2003;

Class one-a: all other residential real property held in condominium

or cooperative form of ownership which is not designated as

class one; the department of finance of any city enacting a

local law pursuant to this section shall reclassify class one-a

properties used primarily to generate rental income to class

two. The department of finance of any city enacting a local law

pursuant to this section shall have, in addition to any other

functions, powers and duties which have been or may be conferred

on it by law, the power to make and promulgate rules to carry

out the purposes of this section including, but not limited to,

rules defining the class one-a properties primarily used to

generate rental income, and relating to the timing, form and

manner of any certification required to be submitted under this

section. If a property previously reclassified from class one-a

to class two ceases to be used primarily to generate rental

income, the department shall reclassify such property to class

one-a. The department shall use a five-year period when deter-

mining whether a property is used primarily to generate rental

income;

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Class two: all other residential real property which is not designated

as class one or class one-a, except hotels and motels and other

similar commercial property;

Class three: utility real property and property subject to former

section four hundred seventy of this chapter;

Class four: all other real property which is not designated as class

one, class one-a, class two, or class three.

§ 1-a. The real property tax law is amended by adding a new section 1803-c to read as follows:

§ 1803-c. Allocation of taxes among classes in a city with a population of one million or more. 1. For the calendar year two thousand eighteen, notwithstanding the provisions of sections eighteen hundred three, eighteen hundred three-a, and eighteen hundred three-b of this article to the contrary, the New York city commissioner of finance shall establish a new class one-a pursuant to subdivision one of section eighteen hundred two of this article and shall calculate shares for class one, class one-a, class two, class three and class four where the base year used in the calculation of the current base proportion shall be the 2017 assessment roll and the sum of class one-a and class two shall not exceed the prior year adjusted base proportion for such classes.

2. After two thousand nineteen, assessment rolls prepared according to January 1, 2019, the adjusted base proportions for class one and class one-a, shall not exceed each class' prior adjusted base proportion by more than five percent.

3. In a city having a population of one million or more, such city's tax fixing resolution shall set a tax rate for class one-a in the same manner as all class shares are calculated pursuant to sections eighteen hundred three, eighteen hundred three-a and eighteen hundred three-b of this article.

4. The assessment ratio for class one-a shall be six percent.

§ 2. Subdivision 1, paragraph (c) of subdivision 2 and subdivision 4 of section 307-a of the real property tax law, as added by section 1 of part G of chapter 63 of the laws of 2003, are amended to read as follows:

1. Generally. Notwithstanding any provision of any general, special or local law to the contrary, any city with a population of one million or more is hereby authorized and empowered to adopt and amend local laws in accordance with this section imposing an additional tax on certain class one and class one-a properties, as such properties are defined in section eighteen hundred two of this chapter, excluding vacant land.

(c) "Net real property tax" means the real property tax assessed on a class one or class one-a property after deduction for any exemption or abatement received pursuant to this chapter.

4. Property subject to additional tax. Such surcharge shall be imposed on class one and class one-a property, excluding vacant land, that provides rental income and is not the primary residence of the owner or owners of such class one or class one-a property, or the primary residence of the parent or child of such owner or owners.

§ 3. Paragraph (f) of subdivision 1 of section 467-a of the real property tax law, as added by chapter 273 of the laws of 1996, is amended and a new paragraph (i) is added to read as follows:

(f) "Property" means real property designated as class [two] one-a, pursuant to section eighteen hundred two of this chapter, held in the cooperative or condominium form of ownership.

(i) "Market value" shall be calculated by the New York city department of finance based upon comparable sales.

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§ 4. Paragraphs (d-1), (d-2), (d-3) and (d-4) of subdivision 2 of section 467-a of the real property tax law, as amended by section 62 of part A of chapter 20 of the laws of 2015, are amended and seven new paragraphs (d-7), (d-8), (d-9), (d-10), (d-11), (d-12) and (d-13) are added to read as follows:

(d-1) In the fiscal years commencing in calendar years two thousand twelve, two thousand thirteen and two thousand fourteen, eligible dwelling units in property whose average unit assessed value is less than or equal to fifty thousand dollars shall receive a partial abatement of the real property taxes attributable to or due on such dwelling units of twenty-five percent, twenty-six and one-half percent and twenty-eight and one-tenth percent respectively. In the fiscal years commencing in calendar years two thousand fifteen, two thousand sixteen[, two thousand seventeen and two thousand eighteen] eligible dwelling units in property whose average unit assessed value is less than or equal to fifty thousand dollars shall receive a partial abatement of the real property taxes attributable to or due on such dwelling units of twenty-eight and one-tenth percent.

(d-2) In the fiscal years commencing in calendar years two thousand twelve, two thousand thirteen and two thousand fourteen, eligible dwelling units in property whose average unit assessed value is more than fifty thousand dollars, but less than or equal to fifty-five thousand dollars, shall receive a partial abatement of the real property taxes attributable to or due on such dwelling units of twenty-two and one-half percent, twenty-three and eight-tenths percent and twenty-five and twotenths percent respectively. In the fiscal years commencing in calendar years two thousand fifteen, two thousand sixteen[, two thousand seventeen and two thousand eighteen] eligible dwelling units in property whose average unit assessed value is more than fifty thousand dollars, but less than or equal to fifty-five thousand dollars, shall receive a partial abatement of the real property taxes attributable to or due on such dwelling units of twenty-five and two-tenths percent.

(d-3) In the fiscal years commencing in calendar years two thousand twelve, two thousand thirteen and two thousand fourteen, eligible dwelling units in property whose average unit assessed value is more than fifty-five thousand dollars, but less than or equal to sixty thousand dollars, shall receive a partial abatement of the real property taxes attributable to or due on such dwelling units of twenty percent, twenty-one and two-tenths percent, and twenty-two and five-tenths percent respectively. In the fiscal years commencing in calendar years two thousand fifteen, two thousand sixteen[, two thousand seventeen and two thousand eighteen] eligible dwelling units in property whose average unit assessed value is more than fifty-five thousand dollars, but less than or equal to sixty thousand dollars, shall receive a partial abatement of the real property taxes attributable to or due on such dwelling units of twenty-two and five-tenths percent.

(d-4) In the fiscal years commencing in calendar years two thousand twelve, two thousand thirteen, two thousand fourteen, two thousand fifteen, two thousand sixteen[, two thousand seventeen and two thousand eighteen,] eligible dwelling units in property whose average unit assessed value is more than sixty thousand dollars shall receive a partial abatement of the real property taxes attributable to or due on such dwelling units of seventeen and one-half percent.

(d-7) Eligible dwelling units in property whose average unit market value is less than or equal to six hundred fifty thousand dollars shall receive a partial abatement of real property taxes attributable to or

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due on such dwelling units, not to exceed thirty-three percent in the fiscal year commencing in calendar year two thousand eighteen and thereafter.

(d-8) Eligible dwelling units in property whose average unit market value is between six hundred fifty thousand one dollars to seven hundred fifty thousand dollars shall receive a partial abatement of the real property taxes attributable to or due on such dwelling units, not to exceed twenty-two and five-tenths percent in the fiscal year commencing in calendar year two thousand eighteen and thereafter.

(d-9) Eligible dwelling units in property whose average unit market value is between seven hundred fifty thousand one and one million five hundred thousand dollars shall receive a partial abatement of the real property taxes attributable to or due on such dwelling units, not to exceed seventeen and five-tenths percent in the fiscal year commencing in calendar year two thousand eighteen and thereafter.