Reclassify Condo and Co-op Taxes

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-

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

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

[ ] is old law to be omitted.

LBD02934-01-9

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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 two: [all other] residential real property held in cooperative

or condominium form of ownership which is not designated as

class one[, except hotels and motels and other similar commer-

cial 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 two, [or] class three[.], or class five;

Class five: all other residential real property which is not desig-

nated as class one, except hotels and motels and other similar

commercial property, or class two.

§ 2. The opening paragraph of subdivision 2 of section 1805 of the real property tax law, as amended by chapter 586 of the laws of 1992, is amended to read as follows:

The assessment roll of a special assessing unit wholly contained within a city shall identify those parcels classified in class two or class five which have fewer than eleven residential units. The assessor of any such special assessing unit shall not increase the assessment of any parcel so identified in any one year, as measured from the actual assessment on the previous year's assessment roll, by more than eight percent and shall not increase such assessment by more than thirty

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percent in any five-year period. The first such five-year period shall be measured from the individual assessment appearing on the assessment roll completed in nineteen hundred eighty-one provided that, if such parcel would not have been subject to the provisions of this subdivision in nineteen hundred eighty-one had this subdivision then been in effect, the first such five-year period shall be measured from the first year after nineteen hundred eighty-one in which this subdivision applied to such parcel or would have applied to such parcel had this subdivision been in effect in such year.

§ 3. Subdivision 6 of section 1805 of the real property tax law, as added by chapter 711 of the laws of 2005, is amended to read as follows:

6. Notwithstanding any provision of law to the contrary, in any special assessing unit wholly contained within a city, beginning with the assessment roll completed in two thousand five and for each subsequent assessment roll, the assessor shall not increase the assessment of any existing property classified in class two or class five that has fewer than eleven residential units, with respect to any increase in value attributable to additions to or improvements of such property that were not reflected on the assessment roll for a previous year, by more than one-third of the amount that such assessment would increase, in the absence of this subdivision, with respect to any increase in value attributable to additions to or improvements of such property that were not reflected on the assessment roll for a previous year. Notwithstanding the provisions of subdivision five of this section, the remainder of the increase in value attributable to such additions or improvements that were not reflected on the assessment roll for a previous year shall be subject to the limitations on increases provided in subdivision two of this section. This subdivision shall not apply to the construction of a new building or structure. This subdivision shall not apply where, as a result of such additions to or improvements of the existing property classified in class five, there are more than ten residential units in such property.

§ 4. 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 to read as follows:

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

§ 5. Subdivision 7 of section 499-aaa of the real property tax law, as added by chapter 461 of the laws of 2008, is amended to read as follows:

7. "Eligible building" shall mean a class one, class two [or], class four or class five real property, as defined in subdivision one of section eighteen hundred two of this chapter, located within a city having a population of one million or more persons. No building shall be eligible for more than one tax abatement pursuant to this title.

§ 6. Subdivision 7 of section 499-aaaa of the real property tax law, as added by chapter 473 of the laws of 2008, is amended to read as follows:

7. "Eligible building" shall mean a class one, class two [or], class four or class five real property, as defined in subdivision one of section eighteen hundred two of this chapter, located within a city having a population of one million or more persons. No building shall be eligible for more than one tax abatement pursuant to this title.

§ 7. Paragraph (b) of subdivision 3 of section 522 of the real property tax law, as added by chapter 714 of the laws of 1982, is amended to read as follows:

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(b) in a special assessing unit, the determination, pursuant to section eighteen hundred two of this chapter, of whether real property is included in class one, two, three [or], four or five.

§ 8. Subdivision 10 of section 523-b of the real property tax law, as added by chapter 593 of the laws of 1998, is amended to read as follows:

10. On or before April first, each year the commission shall mail to each applicant, who has filed an application for the correction of the assessment, a notice of the commission's determination of such applicant's assessment. Such notice shall also contain the statement as to the final determination of the assessment review commission, or a statement that the commission has not yet made a determination as to the final assessed valuation which shall be made as soon as the petitioners application is reviewed or heard. If the applicants property is a property defined in subdivision one of section eighteen hundred two of this chapter as "Class 1", the commissions determination shall contain the statement: "If you are dissatisfied with the determination of the Assessment Review Commission and you are the owner of a one, two or three family residential structure or 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, and you reside at such residence, you may seek judicial review of your assessment either under title one of article seven of the real property tax law or under small claims assessment review law provided by title one-A of article seven of the real property tax law." Such notice shall also state [that] the last date to file petitions for judicial review and the location where small claims assessment review petitions may be obtained.

Each applicant that has filed an application of a property as defined in subdivision one of section eighteen hundred two of this chapter as "Class 2", "Class 3" [or], "Class 4" or "Class 5", shall receive a notice as to the final determination of the assessment review commission or a statement that the commission has not yet made a determination as to the final assessed valuation which shall be made as soon as the petitioners application is reviewed or heard. Such applicants determinations shall contain the statement: "If you are dissatisfied with the determination of the Assessment Review Commission you may seek judicial review of your assessment under title one of article seven of the real property tax law." Such notice shall also state the last date to file petitions for judicial review. A final determination when rendered shall contain the same statement. Failure to mail any such notice or failure of the applicant to receive the same shall not affect the validity of the assessment.

§ 9. Paragraph (b) of subdivision 3 of section 701 of the real property tax law, as added by chapter 714 of the laws of 1982, is amended to read as follows:

(b) In a special assessing unit, the determination, pursuant to section eighteen hundred two of this chapter, of whether real property is included in class one, two, three [or], four or five.

§ 10. Subparagraph 2 of paragraph (a) of subdivision 3 of section 720 of the real property tax law, as amended by chapter 679 of the laws of 1986, is amended to read as follows:

(2) "Major type of property" in special assessing units, for assessments on rolls completed after December thirty-first, nineteen hundred eighty-one, shall mean classes one, two, three [and], four and five as

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defined in subdivision one of section eighteen hundred two of this chapter.

§ 11. Subdivisions e and f of section 11-208.1 of the administrative code of the city of New York, subdivision e as amended by local law number 41 of the city of New York for the year 1986 and subdivision f as amended by chapter 385 of the laws of 2006, are amended to read as follows:

e. As used in this section, the term "income-producing property" means property owned for the purpose of securing an income from the property itself, but shall not include property with an assessed value of forty thousand dollars or less, or residential property containing ten or fewer dwelling units or property classified in class one [or], two or five as defined in article eighteen of the real property tax law containing six or fewer dwelling units and one retail store.