What's happening
This bill phases in property tax assessment increases for co-ops and condominiums over twelve years instead of all at once.
Why it matters
Protects residents from sudden tax hikes. By phasing in property tax assessment increases for co-ops and condominiums over twelve years, the bill helps homeowners avoid abrupt, large increases in their yearly property tax bills, making it easier for residents—especially those on fixed or moderate incomes—to budget and remain in their homes.
Provides predictability and stability for co-op and condo finances. The gradual approach to assessment increases allows building boards and associations to plan long-term budgets, reserve funding, and maintenance schedules without being destabilized by sudden jumps in property taxes.
Ensures fair tax distribution and government planning. By requiring that both the phased-in (transition) assessments and the full increased assessments are recorded, the bill ensures that state and local governments retain accurate data for equalization rates and tax class calculations, which helps maintain fairness across different types of properties and communities.
Limits impact of repeated increases. If a co-op or condo gets another assessment increase before the prior one is fully phased in, the new increase is also phased in over twelve years and layered on top, preventing a “pile-up” of immediate tax burdens for residents.
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Who cares
Headline styles
Phase-In Condo Tax Increases
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to local government
- Returned to senate
- Died in assembly
- Referred to real property taxation
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1482
- Committee discharged and committed to rules
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Phase-In Condo Tax Increases
In Assembly Committee · Real Property Taxation · Sponsor Edward Braunstein
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2552
2019-2020 Regular Sessions
IN SENATE
January 28, 2019
Introduced by Sen. STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to limitations on assessed value for any parcel that is held in cooperative or condominium forms of ownership
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
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.
LBD02674-01-9
S. 2552 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. 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 to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to limitations on assessed value for any parcel that is held in cooperative or condominium forms of ownership
Purpose or general idea of bill
Relates to limitations on assessed value for any parcel that is held in cooperative or condominium forms of ownership.
Summary of specific provisions
Section 1 amends Real Property Tax Law
Section 1805(3) to modify the phased in changes to assessed value of condominiums and cooperatives, from a five year phase-in to a 12 year phase-in.
Section 2 is the effective date.
Justification
The real property tax law requires the City of New York to phase-in changes to the assessed value of class two properties (condominiums and cooperatives) over a five year period. A twenty percent phase-in is required by law for each of the five years.
Property tax assessments can raise the value of a property significantly in some cases and such increased assessments usually translate into a larger property tax bill for the owners of the property. This situation can produce hefty property tax increases, which are particularly onerous on families and senior citizens who own condominiums and cooperatives in New York City.
This bill would stretch the phase-in of updated assessed value of prop- erty over a twelve year period rather than a five year period. It would provide more time for property owners to manage and absorb the tax increases formulated as a result of the increased assessed property value.
In addition, this phase-in schedule would not adversely impact antic- ipated revenues to New York City since the new property assessment value is not capped or changed in any way, it only adjusts the timing of the implementation of the new assessment to a twelve year phase-in rather than five.
Prior legislative history
2017-2018: A.8584 - Referred to Real Property Taxation.
Fiscal impact
None to State.
Effective date
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.