S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4261
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 2, 2017
                                ___________
 
 Introduced  by  M. of A. QUART -- Multi-Sponsored by -- M. of A. MOYA --
   read once and referred to the Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to providing  for
   the  elimination  of  the separate utility class (class 3) in New York
   city

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The section heading and the opening paragraph of subdivi-
 sion 1 of section 1802 of the real property tax law, the section heading
 as added by chapter 1057 of the laws of 1981 and the  opening  paragraph
 of  subdivision  1  as separately amended by chapters 123 and 529 of the
 laws of 1990, are amended to read as follows:
   Classification of real  property  in  a  special  assessing  unit  NOT
 LOCATED WHOLLY WITHIN A CITY.
   All  real  property,  for  the  purposes of this article, in a special
 assessing unit NOT LOCATED WHOLLY WITHIN A CITY shall be  classified  as
 follows:
   §  2.  The  real  property  tax law is amended by adding a new section
 1802-a to read as follows:
   § 1802-A. CLASSIFICATION OF REAL PROPERTY IN A SPECIAL ASSESSING  UNIT
 LOCATED  WHOLLY WITHIN A CITY. 1. ALL REAL PROPERTY, FOR THE PURPOSES OF
 THIS ARTICLE, IN A SPECIAL ASSESSING UNIT LOCATED WHOLLY WITHIN  A  CITY
 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 PROP-
 ERTY  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 PREVIOUS ASSESSMENT ROLL; AND PROVIDED  THAT,  NOTWITHSTANDING  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08899-01-7

 A. 4261                             2
 
 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  CONDOMINIUM  FORM  OF OWNERSHIP; AND (C) RESIDENTIAL REAL PROPERTY
 CONSISTING OF ONE FAMILY HOUSE STRUCTURES OWNED BY THE  OCCUPANT,  SITU-
 ATED  ON LAND HELD IN COOPERATIVE OWNERSHIP BY OWNER OCCUPIERS, PROVIDED
 THAT; (I) SUCH HOUSE STRUCTURES AND LAND CONSTITUTED  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 OTHER THAN SUCH LAND IN THE
 BOROUGH OF MANHATTAN SOUTH OF OR ADJACENT TO THE  SOUTH  SIDE  OF  110TH
 STREET,  PROVIDED  THAT ANY SUCH VACANT LAND WHICH IS NOT ZONED RESIDEN-
 TIAL 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 RESI-
 DENTIAL PROPERTY IMMEDIATELY PRIOR TO AND SINCE JANUARY FIRST,  NINETEEN
 HUNDRED  EIGHTY-NINE,  AND  HAVE A TOTAL AREA NOT EXCEEDING TEN THOUSAND
 SQUARE FEET.
   CLASS TWO: ALL OTHER RESIDENTIAL REAL PROPERTY WHICH IS NOT DESIGNATED
 AS CLASS ONE, EXCEPT HOTELS AND  MOTELS  AND  OTHER  SIMILAR  COMMERCIAL
 PROPERTY.
   CLASS  THREE: ALL OTHER REAL PROPERTY WHICH IS NOT DESIGNATED AS CLASS
 ONE OR CLASS TWO.
   2. IN ADDITION TO ANY REQUIREMENTS OF LAW OR RULE OF THE COMMISSIONER,
 THE ASSESSMENT ROLL SHALL CONTAIN A SEPARATE COLUMN FOR THE ENTRY OF THE
 CLASS DESIGNATION REQUIRED BY THIS SECTION. THE ASSESSOR SHALL ENTER THE
 APPROPRIATE CLASS DESIGNATION IN THIS COLUMN FOR EACH PARCEL  LISTED  ON
 THE ASSESSMENT ROLL.
   3.  THE  DETERMINATION  OF  INCLUSION  WITHIN A CLASS PURSUANT TO THIS
 SECTION SHALL BE  SUBJECT  TO  ADMINISTRATIVE  AND  JUDICIAL  REVIEW  AS
 PROVIDED BY LAW FOR THE REVIEW OF ASSESSMENTS.
   §  3.  Subdivision  3 of section 1805 of the real property tax law, as
 amended by chapter 143 of the laws of 1989, 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:
   3. If the assessment appearing on an assessment roll completed  on  or
 after  January  first,  nineteen  hundred  eighty-two for any parcel not
 subject to the provisions of subdivision one or  two  of  this  section,
 other  than  a  parcel  classified in class three IN A SPECIAL ASSESSING
 UNIT NOT LOCATED WHOLLY WITHIN THE CITY, 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  assess-
 ment  roll  on which such greater assessment appears and for each of the
 succeeding four 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 assess-
 ment roll: in the first year, twenty percent; in the second year,  forty
 percent;  in  the  third year, sixty percent; in the fourth year, eighty
 percent; and in the fifth year, one hundred percent. If  the  assessment
 of  a  parcel  is increased during a period for which transition assess-
 ments have been established because of any prior  assessment  increases,

 A. 4261                             3
 
 such  new  increase  shall  be  phased-in over a five-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  assess-
 ment. Notwithstanding the foregoing, during the period of any such tran-
 sition, 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, arti-
 cle 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.
   § 4. This act shall take effect immediately and shall be applicable to
 assessment rolls with a taxable status  date  following  such  effective
 date.