What's happening
This bill allows local governments to assess golf courses based on their highest and best use, not just current use.
Why it matters
Could lead to higher property taxes for golf course owners. By allowing assessments based on "highest and best use" (such as potential for residential or commercial development), the taxable value of golf course properties could rise substantially compared to assessments based solely on their current use as golf courses.
May influence land use and development decisions. Higher property taxes could make it less financially viable to maintain land as golf courses, potentially encouraging owners to sell or redevelop these properties for other uses, which could change community character or reduce green space.
Gives local governments more flexibility and revenue options. This change empowers local governments to choose how they assess golf courses, potentially increasing local tax revenues and providing municipalities with a new tool to address budget needs or development goals.
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Who cares
Headline styles
Reassess Golf Course Taxes
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
No co-sponsors yet.
History
- Referred to local government
- 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.
Tax Golf Courses Differently
In Assembly Committee · Codes · Sponsor Sandy Galef
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4420
2019-2020 Regular Sessions
IN SENATE
March 11, 2019
Introduced by Sen. CARLUCCI -- 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 the taxable status date and the assessment of golf courses
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 302 of the real property tax law is amended by adding a new subdivision 6 to read as follows:
6. Notwithstanding any other provision of law to the contrary, an assessing unit may pass a local law to provide that for the assessment of golf courses, the assessed valuation shall be based upon the property's highest and best use rather than its current use. Such local law shall be passed no later than sixty days prior to the completion and filing of the first tentative assessment roll to which it is applicable.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01904-01-9
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 the taxable status date and the assessment of golf courses
Purpose or general idea of bill
The purpose of this legislation is to allow the passage of a local law in regards to the assessment of golf courses.
Summary of provisions
Section 1. Section 302 of the Real Property Tax Law is amended by adding a new subdivision 6 to read as follows: 6. Notwithstanding any other provision of law to the contrary, an assessing unit may pass a local law to provide that for the assessment of golf courses, the assessed valu- ation shall be based upon the property's highest and best use rather than its current use. Such local law shall be passed no later than 60 days prior to the completion and filing of the first tentative assess- ment roll to which it is applicable.
Section 2. Establishes the effective date. DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
This portion of this memorandum is not applicable at this time.
Justification
Golf courses are unique, and often challenging to value. There are several types of courses (private, semiprivate, public, not-for-profit, municipal, etc.) with varying business models and economic returns. Golf courses do not typically sell on the open market, making the Sales Comparison Approach unreliable and typically disregarded. The income approach is the generally accepted approach to valuing golf courses, but it often requires reliance on per-round fees paid at neighboring cours- es. For private country clubs, this has meant considering public and municipal course fees, which do not mirror the economics of a private club which often receives significant revenue from initiation and membership fees, restaurants, sports shops, etc. In other instances, such as a member owned not-for-profit golf course, the cash flow and revenue of the club may beunimpressive. However, the property may be located in a prime-real estate area where developers are willing to pay a premium for developable land. Such value is not considered in these assessments.
This bill gives a community the option to assess golf courses based upon their highest and best use. The Appraisal Institute defines highest and best use as follows: the reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. This appraisal principal allows the consideration of other economically profitable uses of a property when determining its value. For the valu- ation of golf courses only, it could be used by assessors, at local option, to provide a more accurate assessment of the property.
This legislation provides another option for communities to explore should they have a golf course(s) that they feel is being assessed at the wrong value.
Prior legislative history
A.9677 and S. 8045 of 2017/2018
Fiscal implications for state and local governments
There are no fiscal implications to New York State or our local govern- ments in association with the passage of this legislation.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.