BILL NUMBER: S7057

SPONSOR: CARLUCCI
 
TITLE OF BILL:

An act to amend the real property tax law and the real property law, in
relation to the taxation of property owned by a cooperative corporation

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this legislation is to allow municipal corporations to
value newly constructed and converted cooperative and condominium units
as they would for real property to alleviate any negative impacts placed
on the locality by the current statute.

 
SUMMARY OF PROVISIONS:

Section 1. Subdivision 1 of section 581 of the Real Property Tax Law is
amended by adding a new paragraph: (d) The provisions of paragraph (a)
of this subdivision shall not apply to real property owned or leased by
a cooperative corporation or on a condominium basis in a municipal
              

corporation, other than a special assessing unit, which has adopted,
prior to the taxable statue date of the assessment roll upon which its
taxes will be levied, a local law or, for a school district, a resol-
ution providing that the provisions of paragraph (a) of this subdivision
shall not apply to such real property within that municipal corporation;
provided, however, the provisions of this paragraph shall not apply to
real property owned or leased by a cooperative corporation or on a
condominium basis that had been previously subject to the provisions of
paragraph (a) of this subdivision prior to January 1, 2020.

Section 2. Subdivision 1 of section 339-y of the Real Property Law is
amended by adding a new paragraph: (g) The provisions of paragraph (b)
of this subdivision shall not apply to real property owned or leased by
a cooperative corporation or on a condominium basis in a municipal
corporation other than a special assessing unit, which has adopted,
prior to the taxable status date of the assessment roll upon which its
taxes will be levied, a local law or, for a school district, a resol-
ution providing that the provisions of paragraph (b) of this subdivision
shall not apply to such real property within that municipal corporation;
provided, however, the provisions of this paragraph shall not apply to
real property owned or leased by a cooperative corporation or on a
condominium basis that had been previously subject to the provisions of
paragraph (b) of this subdivision prior to January 1, 2020.

Section 3. Establishes the effective date.

 
JUSTIFICATION:

As currently written, the Real Property Tax Law and the Real Property
Law does not allow the sum of the assessments of individual cooperative
or condominium units to exceed the value of the entire complex if it was
valued as a single entity. The restriction tends to reduce condominium
and cooperative assessments by preventing the use of sales of units in
the assessment process. The Office of Real Property Services, assessors
and other local officials generally consider the restrictions an unrea-
son-able state mandate that unfairly limits the revenue-raising abili-
ties of local governments.  Assessors and appraisers also cite the
difficulties they encounter when they are forced to ignore market infor-
mation--usually the best indicator of value in developing estimates of
taxable value. This bill would allow municipal corporations to value
newly constructed and converted cooperative and condominium units as
they would other real property to alleviate any negative impacts placed
on the locality by the current statute.

 
PRIOR LEGISLATIVE HISTORY:

A.2874-A and 8.1191-B of 2017/2018

A.5484-A and 8.618-A of 2015/2016

A.685-A and 8.1000-A of 2013/2014

A.4981-A and 8.546-A of 2011/2012

A.5724 and 5.255 of 2009/2010

A.10730 and 5.7727 of 2007/2008

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

There are no fiscal implications associated with the passage of this
bill.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to assessment
rolls prepared on the basis of taxable status dates occurring on or
after January 1, 2020.