What's happening
This bill allows, rather than requires, the use of the income approach for property tax assessments of certain income-restricted residential rentals.
Why it matters
Provides local assessors with flexibility. By changing the requirement from "shall" to "may," the bill gives property tax assessors discretion to use the income approach for valuing income-restricted rentals, potentially allowing them to consider other valuation methods if more appropriate.
Could impact tax liabilities for affordable housing. Allowing alternative assessment methods might result in higher or lower property tax bills for owners of income-restricted rental properties, affecting the economics of affordable housing development and operation.
May influence the supply and maintenance of affordable housing. Changes in how these properties are valued—and thus taxed—could affect the willingness of developers and property owners to participate in income-restricted housing programs, with potential downstream effects on housing affordability and availability.
Reflects policy shift in balancing municipal revenue and housing support. The bill highlights a tension between maximizing local property tax bases and supporting affordable housing initiatives, indicating a move toward more local control and potentially greater variability in tax treatment across different jurisdictions.
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Who cares
Headline styles
Value Rentals by Net Income
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
2 Multi-sponsors
History
- Held for consideration in real property taxation
- Referred to real property taxation
- Referred to real property taxation
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5598
2019-2020 Regular Sessions
IN ASSEMBLY
February 13, 2019
Introduced by M. of A. MANKTELOW -- Multi-Sponsored by -- M. of A. HAWLEY, McDONOUGH -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to the assessment of residential real property
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 581-a of the real property tax law, as added by chapter 714 of the laws of 2005, is amended to read as follows:
§ 581-a. Assessment of residential real property. Notwithstanding any other provision of law, the assessed valuation of real property used for residential rental purposes where at least twenty percent of the residential units are subject to an agreement with a municipality, the state, the federal government, or an instrumentality thereof, which agreement restricts occupancy of those units to tenants who qualify in accordance with an income test, [shall] may be determined using the income approach as applied to the actual net operating income, after deducting for reserves required by any federal, state or municipal programs. For the purposes of this section "net operating income" shall mean the actual or anticipated net income that remains after all operating expenses are deducted from effective gross income, but before mortgage debt service and book depreciation are deducted. The assessed valuation of real property used for such residential rental purposes [shall] may be determined using the actual net operating income, and, if such option is exercised, shall not include federal, state or municipal income tax credits, subsidized mortgage financing, or project grants, where such subsidies are used to offset the project development cost in order to provide for lower initial rents as determined by regulations promulgated by the division of housing and community renewal.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08942-01-9
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.