NY State Senate Bill 2019-S5324B

Archive: Last Bill Status - In Senate Committee Local Government Committee

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to local government
Jun 13, 2019	print number 5324b
Jun 13, 2019	amend and recommit to local government
May 31, 2019	print number 5324a
May 31, 2019	amend and recommit to local government
Apr 25, 2019	referred to local government

Bill Amendments

Original

B (Active)

2019-S5324 - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §1805, RPT L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S785
2023-2024: S11

2019-S5324 - Summary

Provides that the cap on assessment increases for class one dwellings shall not apply to dwellings assessed at over three million dollars where the owners have a gross household income not exceeding $250,000.

2019-S5324 - Sponsor Memo

                                
 
BILL NUMBER: S5324

SPONSOR: GOUNARDES
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to eliminating the cap on assessed value growth for certain class one
properties

 
PURPOSE OR GENERAL IDEA OF BILL:

To eliminate the cap on assessed value growth for Class 1 properties
with a market value of over three million dollars in special assessing
units

 
SUMMARY OF PROVISIONS:

Section 1 amends Section 1805 of the Real Property Tax Law to provide
that the cap on assessed value growth for Class 1 properties should
apply only to properties with a market value below three million
dollars.

Section 2 provides that the act shall take effect immediately.

 
JUSTIFICATION:,

New York City breaks all real property within its boundaries into four
different categories for purposes of assessment and taxation: Class 1 is
all residential buildings with one, two or three dwelling units, Class 2
is all residential buildings with four or more units, Class 3 is utility
properties like power plants and substations, and Class 4 is all other
commercial and industrial buildings. Each of the classes must bear a
specific percentage of the overall tax levy for the City, known as a
"class share." The share for Class 1 properties has historically been
around 15%, meaning that 15% of the overall taxes collected in a certain
year will be paid by Class 1 homeowners. As the Regional Plan Associ-
ation notes in its 2018 report "Residential Property Taxation in New
York City," because of these predetermined percentages any reforms to
the property tax system that do not affect the division of class shares,
like exemption policies, assessment caps, or valuation methods, have the
effect almost exclusively of shifting a tax burden within a class rather
than between classes.

A shift within Class 1 of the tax burden in order to provide relief to
low and middle-income homeowners is exactly what this bill intends.  The
cap on assessed value growth for all Class 1 properties, which limits
increases on the assessed value to 6% a year or 20% over five years, was
originally written to protect against spikes in home valuations that
would lead to sudden and dramatic increases in property tax bills, but
has long since outlived its purpose. It fails to reflect the tremendous
appreciation of real estate in the City (between the years of 2000 and
2017 the value of real property more than tripled from $382 billion to
$1.47 trillion) and results in homeowners in long-gentrified neighbor-
hoods bearing a disproportionately small burden of the tax levy since
almost all of the market value of their homes escapes assessment. This
puts their bills on par with those of middle-class homeowners in south-
ern Brooklyn who struggle to make ends meet and provide for their fami-
lies in an increasingly expensive city. This bill would correct this
injustice by clarifying that the cap on assessed value growth should
apply only to homes worth less than $3 million.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This bill would take effect immediately

2019-S5324 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5324
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 25, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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 eliminating
   the cap on assessed value growth for certain class one properties
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  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 WITH A MARKET VALUE,  AS  DETERMINED
 BY  THE  ASSESSOR,  UNDER  THREE  MILLION DOLLARS WHICH IS classified in
 class one in any one year, as measured from the assessment on the previ-
 ous 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 indi-
 vidual 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.
   § 2. This act shall take effect immediately and shall apply to assess-
 ment rolls completed on and after such date.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11236-03-9

2019-S5324A - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §1805, RPT L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S785
2023-2024: S11

2019-S5324A - Summary

2019-S5324A - Sponsor Memo

                                
 
BILL NUMBER: S5324A

SPONSOR: GOUNARDES
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to eliminating the cap on assessed value growth for certain class one
properties

 
PURPOSE OR GENERAL IDEA OF BILL:

To eliminate the cap on assessed value growth for Class 1 properties in
special assessing units with a market value of over three million
dollars where the gross household income is $250,000 or more

 
SUMMARY OF PROVISIONS:

Section 1 amends Section 1805 of the Real Property Tax Law to provide
that the cap on assessed value growth for Class 1 properties should
apply only to properties with a market value below three million dollars
and where the owners are eligible for the school tax relief exemption
program based on gross household income.

Section 2 provides that the act shall take effect immediately.

 
JUSTIFICATION:

New York City breaks all real property within its boundaries into four
different categories for purposes of assessment and taxation:  Class 1
is all residential buildings with one, two or three dwelling units,
Class 2 is all residential buildings with four or more units, Class 3 is
utility properties like power plants and substations, and Class 4 is all
other commercial and industrial buildings. Each of the classes must bear
a specific percentage of the overall tax levy for the City, known as a
"class share." The share for Class 1 properties has historically been
around 15%, meaning that 15% of the overall taxes collected in a certain
year will be paid by Class 1 homeowners. As the Regional Plan Associ-
ation notes in its 2018 report "Residential Property Taxation in New
York City," because of these predetermined percentages any reforms to
the property tax system that do not affect the division of class shares,
like exemption policies, assessment caps, or valuation methods, have the
effect almost exclusively of shifting a tax burden within a class rather
than between classes.

A shift within Class 1 of the tax burden in order to provide relief to
low and middle-income homeowners is exactly what's needed. The cap on
assessed value growth for all Class 1 properties, which limits increases
on the assessed value to 6% a year or 20% over five years, was
originally written to protect against spikes in home valuations that
would lead to sudden and dramatic increases in property tax bills, but
has long since outlived its purpose. It fails to reflect the tremendous
appreciation of real estate in the City (between the years of 2000 and
2017 the value of real property more than tripled from $382 billion to
$1.47 trillion) and results in homeowners in long-gentrified neighbor-
hoods bearing a disproportionately small burden of the tax levy since
almost all of the market value of their homes escapes assessment. This
puts their property tax bills on par with those of middle-class homeown-
ers throughout the city who struggle to make ends meet and provide for
their families in an increasingly expensive city.


This bill would correct this injustice by clarifying that the cap on
assessed value growth should apply only to homes worth less than $3
million who are eligible for the STAR exemption pursuant to section 425
of the Real Property Tax Law.

Because the STAR program for tax exemptions is limited to households
below a certain income threshold, which is currently $250,000, this bill
ensures that only households who are truly lower or middle-class will
continue to receive the assessment cap (household incomes above $250,000
still qualify for STAR but as a tax credit rather than exemption and are
defined by a different section of law). This means that households worth
more than $3 million with a household gross income greater than $250,000
will wind up paying their fair share of property taxes that reflect the
true value of their homes, thus picking up a greater portion of the
Class 1 tax share.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This bill would take effect immediately

2019-S5324A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5324--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 25, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed  to  be  committed  to  the  Committee  on Local Government --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 AN  ACT  to  amend the real property tax law, in relation to eliminating
   the cap on assessed value growth for certain class one properties
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  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 WITH A MARKET VALUE,  AS  DETERMINED
 BY  THE  ASSESSOR,  UNDER  THREE  MILLION DOLLARS WHICH IS classified in
 class one in any one year AND WHICH IS ELIGIBLE FOR A SCHOOL TAX  RELIEF
 EXEMPTION  UNDER SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER ON THE
 BASIS OF AFFILIATED INCOME AS PROVIDED IN SUCH SECTION, 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.
   § 2. This act shall take effect immediately and shall apply to assess-
 ment rolls completed on and after such date.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11236-04-9

2019-S5324B (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §1805, RPT L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S785
2023-2024: S11

2019-S5324B (ACTIVE) - Summary

2019-S5324B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5324B

SPONSOR: GOUNARDES
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to eliminating the cap on assessed value growth for certain class one
properties

 
PURPOSE OR GENERAL IDEA OF BILL:

To eliminate the cap on assessed value growth for Class 1 properties in
special assessing units with a market value of over three million
dollars where the gross household income greater than $250,000

 
SUMMARY OF PROVISIONS:

Section 1 amends Section 1805 of the Real Property Tax Law to provide
that the cap on assessed value growth for Class 1 properties should
apply only to properties with a market value below three million dollars
with a gross household income of no more than $250,000.

Section 2 provides that the act shall take effect immediately.

 
JUSTIFICATION:

New York City breaks all real property within its boundaries into four
different categories for purposes of assessment and taxation:  Class 1
is all residential buildings with one, two or three dwelling units,
Class 2 is all residential buildings with four or more units, Class 3 is
utility properties like power plants and substations, and Class 4 is all
other commercial and industrial buildings. Each of the classes must bear
a specific percentage of the overall tax levy for the City, known as a
"class share." The share for Class 1 properties has historically been
around 15%, meaning that 15% of the overall taxes collected in a certain
year will be paid by Class 1 homeowners. As the Regional Plan Associ-
ation notes in its 2018 report "Residential Property Taxation in New
York City," because of these predetermined percentages any reforms to
the property tax system that do not affect the division of class shares,
like exemption policies, assessment caps, or valuation methods, have the
effect almost exclusively of shifting a tax burden within a class rather
than between classes.  A shift within Class 1 of the tax burden in order
to provide relief to low and middle-income homeowners is exactly what's
needed. The cap on assessed value growth for all Class 1 properties,
which limits increase s on the assessed value to 6% a year or 20% over
five years, was originally written to protect against spikes in home
valuations that would lead to sudden and dramatic increases in property
tax bills, but has long since outlived its purpose. It fails to reflect
the tremendous appreciation of real estate in the City (between the
years of 2000 and 2017 the value of real property more than tripled from
$382 billion to $1.47 trillion) and results in homeowners in long-gen-
trified neighborhoods bearing a disproportionately small burden of the
tax levy since almost all of the market value of their homes escapes
assessment. This puts their property tax bills on par with those of
middle-class homeowners throughout the city who struggle to make ends
meet and provide for their families in an increasingly expensive locale.

This bill would correct this injustice by clarifying that the cap on
assessed value growth should apply only to homes worth less than $3
million with a gross household income or $250,000 or lower. In doing so
this bill ensures that only households who are truly lower or middle-
class will continue to receive the assessment cap. Higher-end properties
will pay more of their fair share in property taxes to reflect the vast-
ly appreciated market value of their homes, thus offering relief to the
other homeowners within Class 1.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This bill would take effect immediately

2019-S5324B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5324--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 25, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed  to  be  committed  to  the  Committee  on Local Government --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted  to  said committee -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee

 AN ACT to amend the real property tax law, in  relation  to  eliminating
   the cap on assessed value growth for certain class one properties
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. 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 WITH A MARKET VALUE, AS DETERMINED
 BY THE ASSESSOR, UNDER THREE MILLION  DOLLARS  WHICH  IS  classified  in
 class  one  in any one year AND WHERE THE OWNERS OF SUCH PROPERTY HAVE A
 GROSS HOUSEHOLD INCOME NOT EXCEEDING TWO HUNDRED FIFTY THOUSAND DOLLARS,
 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 subdi-
 vision 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.
   §  2. 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 completed on and after such date.  Effective immediate-
 ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
 necessary for the implementation of this act on its effective  date  are
 authorized to be made and completed on or before such effective date.

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11236-06-9

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Senate Bill S5324B

Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

Bill Amendments

2019-S5324 - Details

2019-S5324 - Summary

2019-S5324 - Sponsor Memo

2019-S5324 - Bill Text download pdf

2019-S5324A - Details

2019-S5324A - Summary

2019-S5324A - Sponsor Memo

2019-S5324A - Bill Text download pdf

2019-S5324B (ACTIVE) - Details

2019-S5324B (ACTIVE) - Summary

2019-S5324B (ACTIVE) - Sponsor Memo

2019-S5324B (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5324B

Share this bill

Sponsored By

Andrew Gounardes

Archive: Last Bill Status - In Senate Committee Local Government Committee

Bill Amendments

2019-S5324 - Details

2019-S5324 - Summary

2019-S5324 - Sponsor Memo

2019-S5324 - Bill Text download pdf

2019-S5324A - Details

2019-S5324A - Summary

2019-S5324A - Sponsor Memo

2019-S5324A - Bill Text download pdf

2019-S5324B (ACTIVE) - Details

2019-S5324B (ACTIVE) - Summary

2019-S5324B (ACTIVE) - Sponsor Memo

2019-S5324B (ACTIVE) - Bill Text download pdf

Comments