Phase In Condo Tax Hikes

Section 1. Section 1805 of the real property tax law is amended by adding a new subdivision 7 to read as follows:

7. Notwithstanding any provision of law to the contrary, if the assessment appearing on an assessment roll beginning with the assessment roll completed the same year as the effective date of this subdivision and for each subsequent assessment roll for any parcel that is held in cooperative or condominium forms of ownership, is greater than the assessment appearing on the previous year's assessment roll the assessor shall determine a transition assessment for such parcel for the first assessment roll on which such greater assessment appears and for each of the succeeding eleven assessment rolls by computing the difference between such greater assessment and the assessment appearing on such previous year's assessment roll and adding the following percentages of such difference to the assessment appearing on such previous year's assessment roll: in the first year, eight and one-third percent; in the second year, sixteen and two-thirds percent; in the third year, twentyfive percent; in the fourth year, thirty-three and one-third percent; in the fifth year, forty-one and two-thirds percent; in the sixth year, fifty percent; in the seventh year, fifty-eight and one-third percent; in the eighth year, sixty-six and two-thirds percent; in the ninth year, seventy-five percent; in the tenth year, eighty-three and one-third percent; in the eleventh year, ninety-one and two-thirds percent; and in the twelfth year, one hundred percent. If the assessment of a parcel is increased during a period for which transition assessments have been

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

[ ] is old law to be omitted.

LBD13035-02-7

A. 8584 2

established because of any prior assessment increases, such new increase shall be phased-in over a twelve-year period as set forth in this subdivision, and such phased-in increases shall be added to the transitional assessments previously established for the prior increase; provided, however, that if in any year any such transition assessment exceeds the actual assessment for such year, taxes imposed on such parcel for such year shall be based on such lesser actual assessment. Notwithstanding the foregoing, during the period of any such transition, the assessment roll shall contain an entry of the full amount of such greater assessment which shall be used by the commissioner in its determination of class ratios pursuant to paragraph (b) of subdivision one of section twelve hundred two of this chapter. In establishing state equalization rates, class equalization rates, special state equalization rates and special state equalization ratios under article twelve, article twelve-A and article twelve-B of this chapter, the commissioner shall use the transition assessments as provided for in this subdivision in its determinations, or where the actual assessment is the lesser, such actual assessment shall be so used.

§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to assessment rolls prepared pursuant to a taxable status date occurring on or after such date; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.