What's happening
This bill classifies certain owner-occupied cooperative and condominium properties as class one for property tax assessment purposes.
Why it matters
Expands eligibility for lower property tax rates to more owner-occupied condos and co-ops. By classifying owner-occupied cooperative apartments and condominium units as class one, these properties could be assessed like one-to-three family homes, often resulting in lower property taxes than current rules for condos/co-ops.
Reduces tax disparities between property types. This change addresses longstanding complaints that owner-occupied condos and co-ops are taxed at higher effective rates compared to similar single-family homes, promoting greater equity among homeowners.
May increase affordability and stability for middle-class homeowners. Lower property tax bills could make it easier for residents to afford and remain in their homes, particularly in neighborhoods with many owner-occupied condos and co-ops, potentially reducing displacement and contributing to community stability.
Potential impact on municipal tax revenue. Expanding class one to include more properties may reduce overall property tax collections from affected units, which could shift the tax burden to other property types or require budget adjustments by local governments.
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Who cares
Owner-occupants of condominiums
The bill would make owner occupancy the condition for class one treatment, replacing restrictions based on building height and a unit’s prior assessment history.
Homeowners on cooperatively owned land
The bill would broaden class one eligibility by removing the one-family-house limitation and requirements tied to pre-1940 bungalow colonies and the cooperative’s purpose.
Owners of non-owner-occupied condominiums
The bill would remove the class one provision for condominiums with no more than three units previously classified in that class and require owner occupancy under the condominium eligibility provision.
Local property tax assessors
The bill would require assessors to apply revised class one eligibility rules beginning January 1 following enactment.
Headline styles
Tax Break for Co-ops
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to real property taxation
- Referred to real property taxation
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5101
2017-2018 Regular Sessions
IN ASSEMBLY
February 6, 2017
Introduced by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. COLTON, COOK, DINOWITZ, FINCH, GLICK, PERRY, RIVERA -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to classifying certain cooperative and condominium properties as class one properties for assessment purposes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph class one of subdivision 1 of section 1802 of the real property tax law, as amended by chapter 332 of the laws of 2008, is amended to read 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
condominium form of ownership] such dwelling unit is occupied by
its owner; and (c) residential real property [consisting of one
family house structures] owned by the occupant, situated on land
held in cooperative ownership by owner occupiers[, provided
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09079-01-7
A. 5101 2
that; (i) such house structures and land constituted 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 subpara-
graphs (a) and (b) of this paragraph, be owned by the same owner
as such immediately adjacent residential property 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 immediately 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 resi-
dential 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;
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.