NY State Senate Bill 2015-S8095

Senate Bill S8095

Signed By Governor

2015-2016 Legislative Session

Relates to the eligibility of J-51 tax abatements to reflect cost of living adjustments

download bill text pdf

Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 29, 2016	signed chap.388
Sep 20, 2016	delivered to governor
Jun 17, 2016	returned to senate passed assembly ordered to third reading rules cal.509 substituted for a10651
Jun 16, 2016	referred to ways and means delivered to assembly passed senate
Jun 14, 2016	ordered to third reading cal.1750
Jun 13, 2016	referred to rules

Votes

- Jun 16, 2016 - Floor Vote
  S8095
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 16, 2016
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Montgomery
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Ortt
      
      Panepinto
      
      Parker
      
      Peralta
      
      Perkins
      
      Persaud
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Venditto
      
      Young
      
      excused (1)
      
      Diaz
  Jun 14, 2016 - Rules Committee Vote
  S8095
  
  20
  
  Aye
  
  0
  
  Nay
  
  3
  
  Aye with Reservations
  
  1
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 14, 2016
      
      aye (20)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Farley
      
      Flanagan
      
      Gianaris
      
      Hannon
      
      Hassell-Thompson
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Nozzolio
      
      Perkins
      
      Robach
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (3)
      
      Krueger
      
      Montgomery
      
      Seward
      
      absent (1)
      
      Espaillat
      
      excused (1)
      
      Parker

2015-S8095 (ACTIVE) - Details

See Assembly Version of this Bill:: A10651
Law Section:: Real Property Tax Law
Laws Affected:: Amd §489, RPT L

2015-S8095 (ACTIVE) - Summary

Relates to the eligibility of J-51 tax abatements to reflect cost-of-living adjustments.

2015-S8095 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S8095        REVISED MEMO 06/13/2016

 TITLE OF BILL :  An act to amend the real property tax law, in
relation to the eligibility for J-51 tax abatements to reflect cost of
living adjustments

 PURPOSE OR GENERAL IDEA OF BILL :

To adjust the J-51 tax abatement minimum assessed property value
eligibility to reflect yearly changes in cost of living.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1. Amends Subdivision 17 of section 489 of the Real Property
Tax Law regarding eligibility for benefits of subdivision 17. In this
subdivision, cooperatively owned buildings or condominiums whose value
exceeds the assessed valuation limitation specified in subdivision 17,
paragraph (c) shall only be eligible for the benefits of subdivision
17 if alterations or improvements for which the dwelling, building, or
structure that applied for the benefits, were carried out with
substantial government assistance.

Subdivision 17, paragraph (c) assessed value limitation: for the final
assessment rolls completed prior to 2017, the assessed value
limitation shall be $30,000.

For the final assessment roll to be completed in 2017, the assessed
value limitation shall be $32,000 - increased by the cost-of-living
adjustment percentage of 2017.

The cost-of-living adjustment percentage shall be equal to the
"applicable increase percentage" used by the US Commissioner of Social
Security to determine the monthly social security benefits paid to
individuals in 2017.

For every year after 2017, the applicable assessed value limitation,
cost-of-living adjustment percentage and applicable increase
percentage shall all be advanced by one year, and the assessed
valuation limitation shall be the previously applicable limitation,
increased by the new cost-of-living adjustment percentage, provided
that such limitation shall not exceed $35, 000.

If there is no applicable increase because the general benefit has
increased as defined by 42 U.S.C. 415(i), then the applicable increase
percentage will be the percentage which would have yielded that
general benefit increase.

Section 2 contains the effective date.

 JUSTIFICATION :

The J-51 tax abatement is a property tax exemption and abatement
received by buildings for renovating a residential apartment building.
Since 1992, co-op units and condos that had an assessed value less
than $40,000 were eligible to receive this abatement.

However, in 2013, the eligibility cap was reduced to units that have
an assessed value of less than $30,000. As a result of this change,
fewer middle-income co-ops and condo owners are eligible for these
abatements.

This bill would increase the J-51 tax abatement cap yearly to reflect
adjustments in the cost of living, as set by the U.S. commissioner of
social security in determining monthly benefits. Therefore, the
abatement cap would be indexed for inflation and will consistently
accommodate middle income coop and condo owners.
 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S8095 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8095

                            I N  S E N A T E

                              June 13, 2016
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the real property tax law, in relation to the  eligibil-
  ity for J-51 tax abatements to reflect cost of living adjustments

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 17 of section 489 of the real property tax law,
as added by chapter 4 of the  laws  of  2013,  is  amended  to  read  as
follows:
  17.  (a)  For  purposes of this subdivision, "substantial governmental
assistance" shall mean:
  (i) grants, loans or subsidies from any federal, state or local agency
or instrumentality in furtherance of a program for  the  development  of
affordable  housing  approved  by  the  local housing agency, including,
without limitation, financing or insurance provided by the state of  New
York mortgage agency of the New York city residential mortgage insurance
corporation; or
  (ii)  a  written  agreement  between a housing development fund corpo-
ration and the local housing agency  limiting  the  incomes  of  persons
entitled to purchase shares or rent housing accommodations therein.
  (b) Any local law or ordinance providing for benefits pursuant to this
section  must  also  provide  the following with respect to conversions,
alterations or improvements completed on or after December thirty-first,
two thousand eleven:
  (i) except as otherwise provided  in  this  section  with  respect  to
multiple  dwellings,  buildings and structures owned and operated either
by limited-profit housing companies established pursuant to article  two
of  the  private  housing  finance law or redevelopment companies estab-
lished pursuant to article five of the private housing finance  law,  or
with  respect  to  a group of multiple dwellings that was developed as a
planned community  and  that  is  owned  as  two  separate  condominiums
containing  a total of ten thousand or more dwelling units, any multiple
dwelling, building or structure that is owned  as  a  cooperative  or  a
condominium  that  has  an  average  assessed  value [of thirty thousand

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD15825-02-6

S. 8095                             2

dollars or more] per dwelling unit THAT EXCEEDS THE  ASSESSED  VALUATION
LIMITATION  AS  PROVIDED IN PARAGRAPH (C) OF THIS SUBDIVISION shall only
be eligible for such benefits if the  alterations  or  improvements  for
which  such multiple dwelling, building or structure has applied for the
benefits pursuant to this section  were  carried  out  with  substantial
governmental assistance; and
  (ii)  no  benefits  pursuant  to this section shall be granted for the
conversion of any non-residential building or structure into a  class  A
multiple  dwelling  unless such conversion was carried out with substan-
tial governmental assistance.
  (C) ASSESSED VALUE LIMITATION. (I) FOR FINAL ASSESSMENT  ROLLS  TO  BE
COMPLETED PRIOR TO TWO THOUSAND SEVENTEEN, THE ASSESSED VALUE LIMITATION
SHALL BE THIRTY THOUSAND DOLLARS.
  (II)  FOR  THE  FINAL  ASSESSMENT ROLL TO BE COMPLETED IN TWO THOUSAND
SEVENTEEN THE ASSESSED VALUE LIMITATION  SHALL  BE  THIRTY-TWO  THOUSAND
DOLLARS  INCREASED  BY  THE  COST-OF-LIVING ADJUSTMENT PERCENTAGE OF TWO
THOUSAND SEVENTEEN.  FOR THE PURPOSES OF THIS COMPUTATION, THE  COST-OF-
LIVING ADJUSTMENT PERCENTAGE OF TWO THOUSAND SEVENTEEN SHALL BE EQUAL TO
THE  "APPLICABLE  INCREASE PERCENTAGE" USED BY THE UNITED STATES COMMIS-
SIONER OF SOCIAL SECURITY TO DETERMINE THE MONTHLY SOCIAL SECURITY BENE-
FITS PAYABLE IN TWO THOUSAND SEVENTEEN TO INDIVIDUALS,  AS  PROVIDED  BY
SUBSECTION (I) OF SECTION FOUR HUNDRED FIFTEEN OF TITLE FORTY-TWO OF THE
UNITED STATES CODE.
  (III) FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED IN EACH ENSUING YEAR,
THE  APPLICABLE  ASSESSED  VALUE  LIMITATION,  COST-OF-LIVING ADJUSTMENT
PERCENTAGE AND APPLICABLE INCREASE PERCENTAGE SHALL ALL BE  ADVANCED  BY
ONE  YEAR, AND THE ASSESSED VALUATION LIMITATION SHALL BE THE PREVIOUSLY
APPLICABLE ASSESSED VALUE LIMITATION INCREASED BY THE NEW COST-OF-LIVING
ADJUSTMENT PERCENTAGE. IF THERE SHOULD BE A YEAR FOR WHICH THERE  IS  NO
APPLICABLE  INCREASE  PERCENTAGE  DUE  TO  A GENERAL BENEFIT INCREASE AS
DEFINED BY SUBDIVISION THREE OF SUBSECTION (I) OF SECTION  FOUR  HUNDRED
FIFTEEN  OF  TITLE  FORTY-TWO  OF THE UNITED STATES CODE, THE APPLICABLE
INCREASE PERCENTAGE FOR PURPOSES OF THIS COMPUTATION SHALL BE DEEMED  TO
BE  THE  PERCENTAGE  WHICH  WOULD  HAVE  YIELDED  THAT  GENERAL  BENEFIT
INCREASE.
  (IV) NOTWITHSTANDING ANYTHING TO THE CONTRARY  CONTAINED  HEREIN,  THE
ASSESSED VALUE LIMITATION SHALL NOT AT ANY TIME EXCEED THIRTY-FIVE THOU-
SAND DOLLARS.
  S 2. This act shall take effect immediately.

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