LBD03714-01-3
S. 726 2
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
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 ONE-A: ALL OTHER RESIDENTIAL REAL PROPERTY HELD IN CONDOMINIUM
OR COOPERATIVE FORM OF OWNERSHIP WHICH IS NOT DESIGNATED AS
CLASS ONE;
Class two: all other residential real property which is not designated
as class one OR CLASS ONE-A, except hotels and motels and other
similar commercial 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 ONE-A, class two, or class three.
S 2. Subdivision 1, paragraph (c) of subdivision 2 and subdivision 4
of section 307-a of the real property tax law, as added by section 1 of
part G of chapter 63 of the laws of 2003, are amended to read as
follows:
1. Generally. Notwithstanding any provision of any general, special
or local law to the contrary, any city with a population of one million
or more is hereby authorized and empowered to adopt and amend local laws
in accordance with this section imposing an additional tax on certain
S. 726 3
class one AND CLASS ONE-A properties, as such properties are defined in
section eighteen hundred two of this chapter, excluding vacant land.
(c) "Net real property tax" means the real property tax assessed on A
class one OR CLASS ONE-A property after deduction for any exemption or
abatement received pursuant to this chapter.
4. Property subject to additional tax. Such surcharge shall be imposed
on class one AND CLASS ONE-A property, excluding vacant land, that
provides rental income and is not the primary residence of the owner or
owners of such class one OR CLASS ONE-A property, or the primary resi-
dence of the parent or child of such owner or owners.
S 3. Paragraph (d) of subdivision 2 of section 425 of the real proper-
ty tax law, as added by section 1 of part B of chapter 389 of the laws
of 1997 and as further amended by subdivision (b) of section 1 of part W
of chapter 56 of the laws of 2010, is amended to read as follows:
(d) Equalization adjustment. To account for the variance in the level
of assessment among assessing units, the figure determined in paragraph
(c) of this subdivision shall be multiplied by an "equalization factor,"
which shall be the appropriate state equalization rate or special equal-
ization rate established by the commissioner. Provided, that in the case
of a special assessing unit, (i) the equalization factor for class one
in each school district portion shall be the class equalization rate for
class one in the portion, [and] (ii) THE EQUALIZATION FACTOR FOR CLASS
ONE-A IN EACH SCHOOL DISTRICT PORTION SHALL BE THE EQUALIZATION RATE FOR
CLASS ONE IN THE PORTION, MULTIPLIED BY THE LATEST TAX RATE FOR CLASS
ONE IN THE PORTION, AND THEN DIVIDED BY THE LATEST TAX RATE FOR CLASS
ONE-A IN THE PORTION, AND (III) the equalization factor for class two in
each school district portion shall be the equalization factor for class
one in the portion, multiplied by the latest tax rate for class one in
the portion, and then divided by the latest tax rate for class two in
the portion. Provided further, that in any instance when school district
taxes are levied upon an assessment roll which predates the latest final
assessment roll, the equalization factor shall be the state equalization
rate for the assessment roll upon which school district taxes are to be
levied.
S 4. Paragraph (f) of subdivision 1 of section 467-a of the real prop-
erty 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] ONE-A,
pursuant to section eighteen hundred two of this chapter, held in the
cooperative or condominium form of ownership.
S 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 ONE-A, class two
or class four 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.
S 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 ONE-A, class two
or class four 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.
S. 726 4
S 7. Paragraph (b) of subdivision 3 of section 522 of the real proper-
ty 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, ONE-A, two, three or four.
S 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 appli-
cant's assessment. Such notice shall also contain the statement as to
the final determination of the assessment review commission, or a state-
ment 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 prop-
erty 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 1-A, "Class 2", "Class 3" or "Class 4", 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 appli-
cant to receive the same shall not affect the validity of the assess-
ment.
S 9. Paragraph (b) of subdivision 3 of section 701 of the real proper-
ty 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, ONE-A, two, three or four.
S 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:
S. 726 5
(2) "Major type of property" in special assessing units, for assess-
ments on rolls completed after December thirty-first, nineteen hundred
eighty-one, shall mean classes one, ONE-A, two, three and four as
defined in subdivision one of section eighteen hundred two of this chap-
ter.
S 11. The opening paragraph of subdivision 1 of section 1805 of the
real property tax law, as amended by chapter 935 of the laws of 1984, is
amended to read as follows:
The assessor of any special assessing unit shall not increase the
assessment of any individual parcel classified in class one OR CLASS
ONE-A in any one year, as measured from the assessment on the previous
year's assessment roll, by more than six percent and shall not increase
such assessment by more than twenty 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; provided that if such parcel would not have been subject
to the provisions of this subdivision in nineteen hundred eighty had
this subdivision then been in effect, the first such five-year period
shall be measured from the first year after nineteen hundred eighty in
which this subdivision applied to such parcel or would have applied to
such parcel had this subdivision been in effect in such year.
If, in respect to any individual parcel classified in class one on the
assessment roll completed and applicable for the year nineteen hundred
eighty-two, the assessment for the year nineteen hundred eighty-one
exceeds by more than twenty percent the assessment for the year nineteen
hundred eighty, such assessor shall compute the actual assessments to be
entered on assessment rolls applicable to the years nineteen hundred
eighty-two through nineteen hundred ninety as follows:
S 12. 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, ONE-A or two
as defined in article eighteen of the real property tax law containing
six or fewer dwelling units and one retail store.
f. Except in accordance with proper judicial order or as otherwise
provided by law, it shall be unlawful for the commissioner, any officer
or employee of the department, the president or a commissioner or
employee of the tax commission, any person engaged or retained by the
department or the tax commission on an independent contract basis, or
any person, who, pursuant to this section, is permitted to inspect any
income and expense statement or to whom a copy, an abstract or a portion
of any such statement is furnished, to divulge or make known in any
manner except as provided in this subdivision, the amount of income
and/or expense or any particulars set forth or disclosed in any such
statement required under this section. The commissioner, the president
of the tax commission, or any commissioner or officer or employee of the
department or the tax commission charged with the custody of such state-
ments shall not be required to produce any income and expense statement
or evidence of anything contained in them in any action or proceeding in
any court, except on behalf of the department or the tax commission.
S. 726 6
Nothing herein shall be construed to prohibit the delivery to an owner
or his or her duly authorized representative of a certified copy of any
statement filed by such owner pursuant to this section or to prohibit
the publication of statistics so classified as to prevent the identifi-
cation of particular statements and the items thereof, or making known
aggregate income and expense information disclosed with respect to prop-
erty classified as class four as defined in article eighteen of the real
property tax law without identifying information about individual leas-
es, or making known a range as determined by the commissioner within
which the income and expenses of a property classified as CLASS ONE-A OR
class two falls, or the inspection by the legal representatives of the
department or of the tax commission of the statement of any owner who
shall bring an action to correct the assessment. Any violation of the
provisions of this subdivision shall be punished by a fine not exceeding
one thousand dollars or by imprisonment not exceeding one year, or both,
at the discretion of the court, and if the offender be an officer or
employee of the department or the tax commission, the offender shall be
dismissed from office.
S 13. Subdivision a of section 11-238 of the administrative code of
the city of New York, as amended by local law number 27 of the city of
New York for the year 2006, is amended to read as follows:
a. Imposition of surcharge. A real property tax surcharge is hereby
imposed on class one AND CLASS ONE-A property, as defined in section
eighteen hundred two of the real property tax law, excluding vacant
land, that provides rental income and is not the primary residence of
the owner or owners of such class one OR CLASS ONE-A property, or the
primary residence of the parent or child of such owner or owners, in an
amount equal to zero percent of the net real property taxes for fiscal
years beginning on or after July first, two thousand six. As used in
this section, "net real property tax" means the real property tax
assessed on class one property after deduction for any exemption or
abatement received pursuant to the real property tax law or this title.
S 14. Subdivisions a, a-1, a-2, a-3, a-4 and a-5 of section 11-319 of
the administrative code of the city of New York, subdivisions a, a-1,
a-2 and a-3 as amended and subdivisions a-4 and a-5 as added by local
law number 15 of the city of New York for the year 2011, are amended to
read as follows:
a. A tax lien or tax liens on a property or any component of the
amount thereof may be sold by the city as authorized by subdivision b of
this section, when such tax lien or tax liens shall have remained unpaid
in whole or in part for one year, provided, however, that a tax lien or
tax liens on any class one property or on class [two] ONE-A property
[that is a residential condominium or residential cooperative], as such
classes of property are defined in subdivision one of section eighteen
hundred two of the real property tax law, may be sold by the city only
when the real property tax component of such tax lien or tax liens shall
have remained unpaid in whole or in part for three years or, in the case
of any class two residential property owned by a company organized
pursuant to article XI of the state private housing finance law [that is
not a residential condominium or a residential cooperative], as such
class of property is defined in subdivision one of section eighteen
hundred two of the real property tax law, for two years, and equals or
exceeds the sum of five thousand dollars or, in the case of abandoned
class one property or abandoned class [two] ONE-A property [that is a
residential condominium or residential cooperative], for eighteen
months, and after such sale, shall be transferred, in the manner
S. 726 7
provided by this chapter, and provided, further, however, that (i) the
real property tax component of such tax lien may not be sold pursuant to
this subdivision on any residential real property in class one that is
receiving an exemption pursuant to section 11-245.3 or 11-245.4 of this
title, or pursuant to section four hundred fifty-eight of the real prop-
erty tax law with respect to real property purchased with payments
received as prisoner of war compensation from the United States govern-
ment, or pursuant to paragraph (b) or (c) of subdivision two of section
four hundred fifty-eight-a of the real property tax law, or where the
owner of such residential real property in class one is receiving bene-
fits in accordance with department of finance memorandum 05-3, or any
successor memorandum thereto, relating to active duty military person-
nel, or where the owner of such residential real property in class one
has been allowed a credit pursuant to subsection (e) of section six
hundred six of the tax law for the calendar year in which the date of
the first publication, pursuant to subdivision a of section 11-320 of
this chapter, of the notice of sale, occurs or for the calendar year
immediately preceding such date and (ii) the sewer rents component,
sewer surcharges component or water rents component of such tax lien may
not be sold pursuant to this subdivision on any one family residential
real property in class one or on any two or three family residential
real property in class one that is receiving an exemption pursuant to
section 11-245.3 or 11-245.4 of this title, or pursuant to section four
hundred fifty-eight of the real property tax law with respect to real
property purchased with payments received as prisoner of war compen-
sation from the United States government, or pursuant to paragraph (b)
or (c) of subdivision two of section four hundred fifty-eight-a of the
real property tax law, or where the owner of any two or three family
residential real property in class one is receiving benefits in accord-
ance with department of finance memorandum 05-3, or any successor memo-
randum thereto, relating to active duty military personnel, or where the
owner of any two or three family residential real property in class one
has been allowed a credit pursuant to subsection (e) of section six
hundred six of the tax law for the calendar year in which the date of
the first publication, pursuant to subdivision a of section 11-320 of
this chapter, of the notice of sale, occurs or for the calendar year
immediately preceding such date. A tax lien or tax liens on any property
classified as a class two property, except [a class two property that is
a residential condominium or residential cooperative, or] a class two
residential property owned by a company organized pursuant to article XI
of the state private housing finance law [that is not a residential
condominium or a residential cooperative], or class three property, as
such classes of property are defined in subdivision one of section eigh-
teen hundred two of the real property tax law, shall not be sold by the
city unless such tax lien or tax liens include a real property tax
component as of the date of the first publication, pursuant to subdivi-
sion a of section 11-320 of this chapter, of the notice of sale.
Notwithstanding any provision of this subdivision to the contrary, any
such tax lien or tax liens that remain unpaid in whole or in part after
such date may be sold regardless of whether such tax lien or tax liens
include a real property tax component. A tax lien or tax liens on a
property classified as a class four property, as such class of property
is defined in subdivision one of section eighteen hundred two of the
real property tax law, shall not be sold by the city unless such tax
lien or tax liens include a real property tax component or sewer rents
component or sewer surcharges component or water rents component or
S. 726 8
emergency repair charges component, where such emergency repair charges
accrued on or after January first, two thousand six and are made a lien
pursuant to section 27-2144 of this code, as of the date of the first
publication, pursuant to subdivision a of section 11-320 of this chap-
ter, of the notice of sale, provided, however, that any tax lien or tax
liens that remain unpaid in whole or in part after such date may be sold
regardless of whether such tax lien or tax liens include a real property
tax component, sewer rents component, sewer surcharges component, water
rents component or emergency repair charges component. For purposes of
this subdivision, the words "real property tax" shall not include an
assessment or charge upon property imposed pursuant to section 25-411 of
the administrative code. A sale of a tax lien or tax liens shall
include, in addition to such lien or liens that have remained unpaid in
whole or in part for one year, or, in the case of any class one property
or class [two] ONE-A property [that is a residential condominium or
residential cooperative], when the real property tax component of such
lien or liens has remained unpaid in whole or in part for three years,
or, in the case of any class two residential property owned by a company
organized pursuant to article XI of the state private housing finance
law [that is not a residential condominium or a residential cooper-
ative], when the real property tax component of such lien or liens has
remained unpaid in whole or in part for two years, and equals or exceeds
the sum of five thousand dollars, any taxes, assessments, sewer rents,
sewer surcharges, water rents, any other charges that are made a lien
subject to the provisions of this chapter, the costs of any advertise-
ments and notices given pursuant to this chapter, any other charges that
are due and payable, a surcharge pursuant to section 11-332 of this
chapter, and interest and penalties thereon or such component of the
amount thereof as shall be determined by the commissioner of finance.
The commissioner of finance may promulgate rules defining "abandoned"
property, as such term is used in this subdivision.
a-1. A subsequent tax lien or tax liens on a property or any component
of the amount thereof may be sold by the city pursuant to this chapter,
provided, however, that notwithstanding any provision in this chapter to
the contrary, such tax lien or tax liens may be sold regardless of
whether such tax lien or tax liens have remained unpaid in whole or in
part for one year and, notwithstanding any provision in this chapter to
the contrary, in the case of any class one property or class [two] ONE-A
property [that is a residential condominium or residential cooperative]
or, beginning January first, two thousand twelve, in the case of any
class two residential property owned by a company organized pursuant to
article XI of the state private housing finance law [that is not a resi-
dential condominium or a residential cooperative], such tax lien or tax
liens may be sold if the real property tax component of such tax lien or
tax liens has remained unpaid in whole or in part for one year, and
provided, further, however, that (i) the real property tax component of
such tax lien may not be sold pursuant to this subdivision on any resi-
dential real property in class one that is receiving an exemption pursu-
ant to section 11-245.3 or 11-245.4 of this title, or pursuant to
section four hundred fifty-eight of the real property tax law with
respect to real property purchased with payments received as prisoner of
war compensation from the United States government, or pursuant to para-
graph (b) or (c) of subdivision two of section four hundred
fifty-eight-a of the real property tax law, or where the owner of such
residential real property in class one is receiving benefits in accord-
ance with department of finance memorandum 05-3, or any successor memo-
S. 726 9
randum thereto, relating to active duty military personnel, or where the
owner of such residential real property in class one has been allowed a
credit pursuant to subsection (e) of section six hundred six of the tax
law for the calendar year in which the date of the first publication,
pursuant to subdivision a of section 11-320 of this chapter, of the
notice of sale, occurs or for the calendar year immediately preceding
such date and (ii) the sewer rents component, sewer surcharges component
or water rents component of such tax lien may not be sold pursuant to
this subdivision on any one family residential real property in class
one or on any two or three family residential real property in class one
that is receiving an exemption pursuant to section 11-245.3 or 11-245.4
of this title, or pursuant to section four hundred fifty-eight of the
real property tax law with respect to real property purchased with
payments received as prisoner of war compensation from the United States
government, or pursuant to paragraph (b) or (c) of subdivision two of
section four hundred fifty-eight-a of the real property tax law, or
where the owner of any two or three family residential real property in
class one is receiving benefits in accordance with department of finance
memorandum 05-3, or any successor memorandum thereto, relating to active
duty military personnel, or where the owner of any two or three family
residential real property in class one has been allowed a credit pursu-
ant to subsection (e) of section six hundred six of the tax law for the
calendar year in which the date of the first publication, pursuant to
subdivision a of section 11-320 of this chapter, of the notice of sale,
occurs or for the calendar year immediately preceding such date. For
purposes of this subdivision, the term "subsequent tax lien or tax
liens" shall mean any tax lien or tax liens on property that become such
on or after the date of sale of any tax lien or tax liens on such prop-
erty that have been sold pursuant to this chapter, provided that the
prior tax lien or tax liens remain unpaid as of the date of the first
publication, pursuant to subdivision a of section 11-320 of this chap-
ter, of the notice of sale of the subsequent tax lien or tax liens. A
subsequent tax lien or tax liens on any property classified as a class
two property, except [a class two property that is a residential condo-
minium or residential cooperative, or] a class two residential property
owned by a company organized pursuant to article XI of the state private
housing finance law [that is not a residential condominium or a residen-
tial cooperative], or class three property, as such classes of property
are defined in subdivision one of section eighteen hundred two of the
real property tax law, shall not be sold by the city unless such tax
lien or tax liens include a real property tax component as of the date
of the first publication, pursuant to subdivision a of section 11-320 of
this chapter, of the notice of sale. Notwithstanding any provision of
this subdivision to the contrary, any such tax lien or tax liens that
remain unpaid in whole or in part after such date may be sold regardless
of whether such tax lien or tax liens include a real property tax compo-
nent. A subsequent tax lien or tax liens on a property classified as a
class four property, as such class of property is defined in subdivision
one of section eighteen hundred two of the real property tax law, shall
not be sold by the city unless such tax lien or tax liens include a real
property tax component or sewer rents component or sewer surcharges
component or water rents component or emergency repair charges compo-
nent, where such emergency repair charges accrued on or after January
first, two thousand six and are made a lien pursuant to section 27-2144
of this code, as of the date of the first publication, pursuant to
subdivision a of section 11-320 of this chapter, of the notice of sale,
S. 726 10
provided, however, that any tax lien or tax liens that remain unpaid in
whole or in part after such date may be sold regardless of whether such
tax lien or tax liens include a real property tax component, sewer rents
component, sewer surcharges component, water rents component or emergen-
cy repair charges component. For purposes of this subdivision, the words
"real property tax" shall not include an assessment or charge upon prop-
erty imposed pursuant to section 25-411 of the administrative code.
Nothing in this subdivision shall be deemed to limit the rights
conferred by section 11-332 of this chapter on the holder of a tax lien
certificate with respect to a subsequent tax lien.
a-2. In addition to any sale authorized pursuant to subdivision a or
subdivision a-1 of this section and notwithstanding any provision of
this chapter to the contrary, beginning on December first, two thousand
seven, the water rents, sewer rents and sewer surcharges components of
any tax lien on any class of real property, as such real property is
classified in subdivision one of section eighteen hundred two of the
real property tax law, may be sold by the city pursuant to this chapter,
where such water rents, sewer rents or sewer surcharges component of
such tax lien, as of the date of the first publication, pursuant to
subdivision a of section 11-320 of this chapter, of the notice of sale:
(i) shall have remained unpaid in whole or in part for one year and (ii)
equals or exceeds the sum of one thousand dollars or, beginning on March
first, two thousand eleven, in the case of any two or three family resi-
dential real property in class one, for one year, and equals or exceeds
the sum of two thousand dollars, or, beginning on January first, two
thousand twelve, in the case of any class two residential property owned
by a company organized pursuant to article XI of the state private hous-
ing finance law [that is not a residential condominium or a residential
cooperative], as such class of property is defined in subdivision one of
section eighteen hundred two of the real property tax law, for two
years, and equals to exceeds the sum of five thousand dollars; provided,
however, that such water rents, sewer rents or sewer surcharges compo-
nent of such tax lien may not be sold pursuant to this subdivision on
any one family residential real property in class one or on any two or
three family residential real property in class one that is receiving an
exemption pursuant to section 11-245.3 or 11-245.4 of this title, or
pursuant to section four hundred fifty-eight of the real property tax
law with respect to real property purchased with payments received as
prisoner of war compensation from the United States government, or
pursuant to paragraph (b) or (c) of subdivision two of section four
hundred fifty-eight-a of the real property tax law, or where the owner
of any two or three family residential real property in class one is
receiving benefits in accordance with department of finance memorandum
05-3, or any successor memorandum thereto, relating to active duty mili-
tary personnel, or where the owner of any two or three family residen-
tial real property in class one has been allowed a credit pursuant to
subsection (e) of section six hundred six of the tax law for the calen-
dar year in which the date of the first publication, pursuant to subdi-
vision a of section 11-320 of this chapter, of the notice of sale,
occurs or for the calendar year immediately preceding such date. After
such sale, any such water rents, sewer rents or sewer surcharges compo-
nent of such tax lien may be transferred in the manner provided by this
chapter.
a-3. In addition to any sale authorized pursuant to subdivision a or
subdivision a-1 of this section and notwithstanding any provision of
this chapter to the contrary, beginning on December first, two thousand
S. 726 11
seven, a subsequent tax lien on any class of real property, as such real
property is classified in subdivision one of section eighteen hundred
two of the real property tax law, may be sold by the city pursuant to
this chapter, regardless of whether such subsequent tax lien, or any
component of the amount thereof, shall have remained unpaid in whole or
in part for one year, and regardless of whether such subsequent tax
lien, or any component of the amount thereof, equals or exceeds the sum
of one thousand dollars or beginning on March first, two thousand elev-
en, in the case of any two or three family residential real property in
class one, a subsequent tax lien on such property may be sold by the
city pursuant to this chapter, regardless of whether such subsequent tax
lien, or any component of the amount thereof, shall have remained unpaid
in whole or in part for one year, and regardless of whether such subse-
quent tax lien, or any component of the amount thereof, equals or
exceeds the sum of two thousand dollars, or, beginning on January first,
two thousand twelve, in the case of any class two residential property
owned by a company organized pursuant to article XI of the state private
housing finance law [that is not a residential condominium or a residen-
tial cooperative], as such class of property is defined in subdivision
one of section eighteen hundred two of the real property tax law, a
subsequent tax lien on such property may be sold by the city pursuant to
this chapter, regardless of whether such subsequent tax lien, or any
component of the amount thereof, shall have remained unpaid in whole or
in part for two years, and regardless of whether such subsequent tax
lien, or any component of the amount thereof, equals or exceeds the sum
of five thousand dollars; provided, however, that such subsequent tax
lien may not be sold pursuant to this subdivision on any one family
residential real property in class one or on any two or three family
residential real property in class one that is receiving an exemption
pursuant to section 11-245.3 or 11-245.4 of this title, or pursuant to
section four hundred fifty-eight of the real property tax law with
respect to real property purchased with payments received as prisoner of
war compensation from the United States government, or pursuant to para-
graph (b) or (c) of subdivision two of section four hundred
fifty-eight-a of the real property tax law, or where the owner of any
two or three family residential real property in class one is receiving
benefits in accordance with department of finance memorandum 05-3, or
any successor memorandum thereto, relating to active duty military
personnel, or where the owner of any two or three family residential
real property in class one has been allowed a credit pursuant to
subsection (e) of section six hundred six of the tax law for the calen-
dar year in which the date of the first publication, pursuant to subdi-
vision a of section 11-320 of this chapter, of the notice of sale,
occurs or for the calendar year immediately preceding such date. After
such sale, any such subsequent tax lien, or any component of the amount
thereof, may be transferred in the manner provided by this chapter. For
purposes of this subdivision, the term "subsequent tax lien" shall mean
the water rents, sewer rents or sewer surcharges component of any tax
lien on property that becomes such on or after the date of sale of any
water rents, sewer rents or sewer surcharges component of any tax lien
on such property that has been sold pursuant to this chapter, provided
that the prior tax lien remains unpaid as of the date of the first
publication, pursuant to subdivision a of section 11-320 of this chap-
ter, of the notice of sale of the subsequent tax lien. Nothing in this
subdivision shall be deemed to limit the rights conferred by section
S. 726 12
11-332 of this chapter on the holder of a tax lien certificate with
respect to a subsequent tax lien.
a-4. In addition to any sale authorized pursuant to subdivision a,
a-1, a-2 or a-3 of this section and notwithstanding any provision of
this chapter to the contrary, beginning on March first, two thousand
eleven, the emergency repair charges component or alternative enforce-
ment expenses and fees component, where such emergency repair charges
accrued on or after January first, two thousand six and are made a lien
pursuant to section 27-2144 of this code, or where such alternative
enforcement expenses and fees are made a lien pursuant to section
27-2153 of this code, of any tax lien on any class of real property, as
such real property is defined in subdivision one of section eighteen
hundred two of the real property tax law, may be sold by the city pursu-
ant to this chapter, where such emergency repair charges component or
alternative enforcement expenses and fees component of such tax lien, as
of the date of the first publication, pursuant to subdivision a of
section 11-320 of this chapter, of the notice of sale: (i) shall have
remained unpaid in whole or in part for one year, and (ii) equals or
exceeds the sum of one thousand dollars or, beginning on January first,
two thousand twelve, in the case of any class two residential property
owned by a company organized pursuant to article XI of the state private
housing finance law [that is not a residential condominium or a residen-
tial cooperative], as such class of property is defined in subdivision
one of section eighteen hundred two of the real property tax law, for
two years, and equals or exceeds the sum of five thousand dollars;
provided, however, that such emergency repair charges component of
alternative enforcement expenses and fees component of such tax lien may
not be sold pursuant to this subdivision on any one, two or three family
residential real property in class one, except a three family residen-
tial property in class one where such property is subject to the
provisions of section 27-2153 of this code and is not the primary resi-
dence of the owner. After such sale, any such emergency repair charges
component or alternative enforcement expenses and fees component of such
tax lien may be transferred in the manner provided by this chapter.
a-5. In addition to any sale authorized pursuant to subdivision a,
a-1, a-2 or a-3 of this section and notwithstanding any provision of
this chapter to the contrary, beginning on March first, two thousand
eleven, a subsequent tax lien on any class of real property, or begin-
ning on January first, two thousand twelve in the case of any class two
residential property owned by a company organized pursuant to article XI
of the state private housing finance law [that is not a residential
condominium or a residential cooperative], a subsequent tax lien on such
property, may be sold by the city pursuant to this chapter, regardless
of the length of time such subsequent tax lien, or any component of the
amount thereof, shall have remained unpaid, and regardless of the amount
of such subsequent tax lien. After such sale, any such subsequent tax
lien, or any component of the amount thereof, may be transferred in the
manner provided by this chapter. For purposes of this subdivision, the
term "subsequent tax lien" shall mean the emergency repair charges
component or alternative enforcement expenses and fees component, where
such emergency repair charges accrued on or after January first, two
thousand six and are made a lien pursuant to section 27-2144 of this
code, or where such alternative of enforcement expenses and fees are
made a lien pursuant to section 27-2153 of this code, of any tax lien on
property that becomes such on or after the date of sale of any emergency
repair charges component or alternative enforcement expenses and fees
S. 726 13
component, of any tax lien on such property that has been sold pursuant
to this chapter, provided that the prior tax lien remains unpaid as of
the date of the first publication, pursuant to subdivision a of section
11-320 of this chapter, of the notice of sale of the subsequent tax
lien. Nothing in this subdivision shall be deemed to limit the rights
conferred by section 11-332 of this chapter on the holder of a tax lien
certificate with respect to a subsequent tax lien.
S 15. Subparagraph (i) of paragraph 2 of subdivision b and subpara-
graph (ii) of paragraph 1 of subdivision h of section 11-320 of the
administrative code of the city of New York, as added by local law
number 15 of the city of New York for the year 2011, are amended to read
as follows:
(i) Such notices shall also include, with respect to any property
owner in class one, CLASS ONE-A or class two, as such classes of proper-
ty are defined in subdivision one of section eighteen hundred two of the
real property tax law, an exemption eligibility checklist. Within ten
business days of receipt of a completed exemption eligibility checklist
from such property owner, provided that such receipt occurs prior to the
date of sale of any tax lien or tax liens on his or her property, the
department of finance shall review such checklist to determine, based on
the information provided by the property owner, whether such property
owner could be eligible for any exemption, credit or other benefit that
would entitle them to be excluded from a tax lien sale and, if the
department determines that such property owner could be eligible for any
such exemption, credit or other benefit, shall mail such property owner
an application for the appropriate exemption, credit or other benefit.
If, within twenty business days of the date the department mailed such
application, the department has not received a completed application
from such property owner, the department shall mail such property owner
a second application, and shall telephone the property owner, if the
property owner has included his or her telephone number on the exemption
eligibility checklist.
(ii) all class two residential property owned by a company organized
pursuant to article XI of the state private housing finance law [that is
not a residential condominium or a residential cooperative] on which any
tax lien has been sold pursuant to subdivision a, a-2 or a-4 of section
11-319 of this title.
S 16. Subdivision (a) of section 11-354 of the administrative code of
the city of New York, as amended by local law number 37 of the city of
New York for the year 1996, is amended to read as follows:
(a) Notwithstanding any other provision of law and notwithstanding any
omission to hold a tax lien sale, whenever any tax, assessment, sewer
rent, sewer surcharge, water rent, any charge that is made a lien
subject to the provisions of this chapter or chapter four of this title,
or interest and penalties thereon, has been due and unpaid for a period
of at least one year from the date on which the tax, assessment or other
legal charge represented thereby became a lien, or in the case of any
class one property or any class [two] ONE-A property [that is a residen-
tial condominium or residential cooperative], as such classes of proper-
ty are defined in subdivision one of section eighteen hundred two of the
real property tax law, or in the case of a multiple dwelling owned by a
company organized pursuant to article XI of the private housing finance
law with the consent and approval of the department of housing preserva-
tion and development, for a period of at least three years from the date
on which the tax, assessment or other legal charge became a lien, the
city, as owner of a tax lien, may maintain an action in the supreme
S. 726 14
court to foreclose such lien. Such action shall be governed by the
procedures set forth in section 11-335 of this chapter; provided, howev-
er, that such parcel shall only be sold to the highest responsible
bidder. Such purchaser shall be deemed qualified as a responsible bidder
pursuant to such criteria as are established in rules promulgated by the
commissioner of finance after consultation with the commissioner of
housing preservation and development.
S 17. The opening paragraph of subdivision 4 of section 11-401 of the
administrative code of the city of New York, as added by local law
number 37 of the city of New York for the year 1996, is amended to read
as follows:
"Distressed property." Any parcel of class one, CLASS ONE-A or class
two real property that is subject to a tax lien or liens with a lien or
liens to value ratio, as determined by the commissioner of finance,
equal to or greater than fifteen percent and that meets one of the
following two criteria:
S 18. Subdivisions a and b of section 11-401.1 of the administrative
code of the city of New York, as added by local law number 37 of the
city of New York for the year 1996, are amended to read as follows:
a. The commissioner of finance shall, not less than sixty days preced-
ing the date of the sale of a tax lien or tax liens, submit to the
commissioner of housing preservation and development a description by
block and lot, or by such other identification as the commissioner of
finance may deem appropriate, of any parcel of class one, CLASS ONE-A or
class two real property on which there is a tax lien that may be fore-
closed by the city. The commissioner of housing preservation and devel-
opment shall determine, and direct the commissioner of finance, not less
than ten days preceding the date of the sale of a tax lien or tax liens,
whether any such parcel is a distressed property as defined in subdivi-
sion four of section 11-401 of this chapter. Any tax lien on a parcel so
determined to be a distressed property shall not be included in such
sale. In connection with a subsequent sale of a tax lien or tax liens,
the commissioner of finance may, not less than sixty days preceding the
date of the sale, resubmit to the commissioner of housing preservation
and development a description by block and lot, or by such other iden-
tification as the commissioner of finance may deem appropriate, of any
parcel of class one, CLASS ONE-A or class two real property that was
previously determined to be a distressed property pursuant to this para-
graph and on which there is a tax lien that may be included in such
sale. The commissioner of housing preservation and development shall
determine, and direct the commissioner of finance, not less than ten
days preceding the date of the sale, whether such parcel remains a
distressed property. If the commissioner of housing preservation and
development determines that the parcel is not a distressed property,
then the tax lien on the parcel may be included in the sale.
b. The commissioner of housing preservation and development may peri-
odically review whether a parcel of class one, CLASS ONE-A or class two
real property that is subject to subdivision c of this section or subdi-
vision j of section 11-412.1 of this chapter remains a distressed prop-
erty. If the commissioner determines that the parcel is not a distressed
property as defined in subdivision four of section 11-401 of this chap-
ter, then the parcel shall not be subject to such subdivisions.
S 19. Subdivision b of section 11-404 of the administrative code of
the city of New York, as amended by local law number 37 of the city of
New York for the year 1996, is amended to read as follows:
S. 726 15
b. A tax lien on any class one property or any class [two] ONE-A prop-
erty [that is a residential condominium or residential cooperative], as
such classes of property are defined in subdivision one of section eigh-
teen hundred two of the real property tax law, and on any multiple
dwelling owned by a company organized pursuant to article XI of the
private housing finance law with the consent and approval of the depart-
ment of housing preservation and development, shall not be foreclosed in
the manner provided in this chapter until such tax lien has been due and
unpaid for a period of at least three years from the date on which the
tax, assessment or other legal charge represented thereby became a lien.
S 20. Paragraph 5 of subdivision c of section 11-405 of the adminis-
trative code of the city of New York, as added by local law number 37 of
the city of New York for the year 1996, is amended to read as follows:
(5) Notwithstanding paragraph one, two or three of this subdivision,
with respect to installment agreements duly made, executed and filed on
or after the date on which this paragraph takes effect, the commissioner
of finance may also exclude or thereafter remove from such list any
parcel of class one, CLASS ONE-A or class two real property, other than
a parcel described in paragraph four of this subdivision, as to which an
agreement has been duly made, executed and filed with such commissioner
for the payment of the delinquent taxes, assessments or other legal
charges, and the interest and penalties thereon, in installments. The
first installment thereof shall be paid upon the filing of the install-
ment agreement with the commissioner and shall be in an amount equal to
not less than fifteen percent of the total amount of such delinquent
taxes, assessments or other legal charges and the interest and penalties
thereon. The remaining installments, which shall be twice the number of
unpaid quarters of real estate taxes or the equivalent thereof, but
which shall in no event exceed thirty-two in number, shall be payable
quarterly on the first days of July, October, January and April. For the
purposes of calculating the number of such remaining installments,
unpaid real estate taxes that are due and payable on other than a quar-
terly basis shall be deemed to be payable on a quarterly basis.
S 21. Section 3-b of the general municipal law is amended by adding a
new subdivision 3 to read as follows:
3. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, BEGIN-
NING IN THE FISCAL YEAR COMMENCING ON OR AFTER JULY FIRST, TWO THOUSAND
FIFTEEN, THE ANNUAL PERCENTAGE CHANGE IN THE REAL PROPERTY TAX RATE FOR
TAXES LEVIED BY THE CITY OF NEW YORK AND THE COUNTIES CONTAINED THEREIN
FOR CITY AND COUNTY PROPOSES FOR CLASS ONE-A PROPERTIES SHALL NOT EXCEED
THE ANNUAL PERCENTAGE CHANGE IN SUCH TAX RATE FOR CLASS ONE PROPERTIES,
AS SUCH CLASSES OF PROPERTY ARE DEFINED IN SUBDIVISION ONE OF SECTION
EIGHTEEN HUNDRED TWO OF THE REAL PROPERTY TAX LAW. FOR PURPOSES OF THIS
SUBDIVISION "ANNUAL PERCENTAGE CHANGE" SHALL MEAN THE PERCENTAGE
DIFFERENCE BETWEEN THE RATE OF TAX IMPOSED DURING THE COMING FISCAL YEAR
AND THE RATE OF TAX IMPOSED DURING THE FISCAL YEAR IMMEDIATELY PRECEDING
THE COMING FISCAL YEAR.
S 22. The education law is amended by adding a new section 2023-b to
read as follows:
S 2023-B. LIMITATIONS UPON NEW YORK CITY SCHOOL DISTRICT TAX LEVIES.
NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, BEGINNING IN
THE FISCAL YEAR COMMENCING ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN,
THE ANNUAL PERCENTAGE CHANGE IN THE TAX RATE FOR TAXES LEVIED BY OR ON
BEHALF OF ANY SCHOOL DISTRICT IN THE CITY OF NEW YORK AND THE COUNTIES
CONTAINED THEREIN FOR SCHOOL DISTRICT PURPOSES FOR CLASS ONE-A PROPER-
TIES SHALL NOT EXCEED THE ANNUAL PERCENTAGE CHANGE IN SUCH TAX RATE FOR
S. 726 16
CLASS ONE PROPERTIES, AS SUCH CLASSES OF PROPERTY ARE DEFINED IN SUBDI-
VISION ONE OF SECTION EIGHTEEN HUNDRED TWO OF THE REAL PROPERTY TAX LAW.
FOR PURPOSES OF THIS SUBDIVISION "ANNUAL PERCENTAGE CHANGE" SHALL MEAN
THE PERCENTAGE DIFFERENCE BETWEEN THE RATE OF TAX IMPOSED DURING THE
COMING FISCAL YEAR AND THE RATE OF TAX IMPOSED DURING THE FISCAL YEAR
IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.
S 23. This act shall take effect on the first of January next succeed-
ing 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.
