NY State Senate Bill 2021-S5715A

Senate Bill S5715A

Signed By Governor

2021-2022 Legislative Session

Requires assessors using the comparable sales method for assessments to consider certain comparable properties in formulating the assessment

download bill text pdf

Archive: Last Bill Status Via A894 - 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
Oct 25, 2021	signed chap.497
Oct 13, 2021	delivered to governor
Jun 03, 2021	returned to assembly passed senate 3rd reading cal.757 substituted for s5715a
Jun 03, 2021	substituted by a894c
May 20, 2021	amended on third reading 5715a
Apr 28, 2021	advanced to third reading
Apr 27, 2021	2nd report cal.
Apr 26, 2021	1st report cal.757
Mar 16, 2021	referred to local government

Votes

- Jun 3, 2021 - Floor Vote
  A894
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 3, 2021
      
      aye (63)
      
      Addabbo Jr.
      
      Akshar
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martucci
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rath III
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Weik
  Apr 26, 2021 - Local Government Committee Vote
  S5715A
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Local Government Committee Vote: Apr 26, 2021
      
      aye (7)
      
      Borrello
      
      Brooks
      
      Gaughran
      
      Hinchey
      
      Rath III
      
      Reichlin-Melnick
      
      Thomas

Bill Amendments

Original

A (Active)

2021-S5715 - Details

See Assembly Version of this Bill:: A894
Law Section:: Real Property Tax Law
Laws Affected:: Add §305-a, RPT L
Versions Introduced in 2019-2020 Legislative Session:: A4752

2021-S5715 - Summary

Requires assessors using the comparable sales, income capitalization or cost method for assessments to consider certain comparable properties in formulating the assessment of non-residential properties.

2021-S5715 - Sponsor Memo

                                
 
BILL NUMBER: S5715

SPONSOR: GAUGHRAN
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to requiring
assessors using the comparable sales method for assessments to consider
certain comparable properties in formulating the assessment

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would provide guidelines for assessors using the comparable
sales, income-capitalization, or cost method

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill amends the real property tax law, by adding a
new section 305-a as it relates to establishing guidelines for using in
assessing the value of mixed-use and nonresidential property. This
section shall not apply to New York City.

Section two of the bill relates to the effective date.

 
JUSTIFICATION:

This bill will provide clear guidance, to assessors when using the
comparable sales, income capitalization or cost method. The comparable
sales, income capitalization or cost methods use sales data of similar
properties to develop a value. There have been numerous court cases
where property owners are challenging their assessment using sales data
of properties which are not similar in use, type or location. The courts
have differed with their evaluation of opposing assessments in such
challenges due to the lack of guidance in statute. They are forced to
make-decisions on the validity of assessment reports from the munici-
pality and property owner based on precedent of previous rulings and
general practice.  This bill ensures there are clear and unambiguous
guidelines for assessments that use the comparable sales method.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:

The amended version ensures that new RPTL section 305-a would not apply
to cities with populations of one million or more and ensure that these
guidelines only apply when the comparable sales, income capitalization
or cost method is used on mixed-use or non-residential property.

 
FISCAL IMPLICATION:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately and apply to assessment rolls
prepared on and after January 1, 2022.

2021-S5715 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5715
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 16, 2021
                                ___________
 
 Introduced  by Sen. GAUGHRAN -- 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  requiring
   assessors using the comparable sales method for assessments to consid-
   er certain comparable properties in formulating the assessment

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 305-a to read as follows:
   §  305-A. ASSESSMENT USING THE COMPARABLE SALES, INCOME CAPITALIZATION
 OR COST METHOD.  1. AS USED IN THIS SECTION, THE FOLLOWING  TERMS  SHALL
 HAVE THE FOLLOWING MEANINGS:
   (A) "MIXED-USE PROPERTY" MEANS A PROPERTY WITH A BUILDING OR STRUCTURE
 USED FOR BOTH RESIDENTIAL AND COMMERCIAL PURPOSES.
   (B)  "NON-RESIDENTIAL  PROPERTY"  MEANS  A PROPERTY WITH A BUILDING OR
 STRUCTURE USED FOR COMMERCIAL PURPOSES.
   2. WHEN DETERMINING THE VALUE OF A MIXED-USE OR NON-RESIDENTIAL  PROP-
 ERTY  USING  THE COMPARABLE SALES, INCOME CAPITALIZATION OR COST METHOD,
 THE FOLLOWING SHALL BE CONSIDERED WHEN SELECTING  APPROPRIATE  SALES  OR
 RENTALS COMPARABLE TO THE SUBJECT PROPERTY; PROVIDED, HOWEVER, THAT  THE
 FOLLOWING  REQUIREMENTS  SHALL  APPLY ONLY TO ASSESSING UNITS OTHER THAN
 CITIES HAVING A POPULATION OF ONE MILLION OR MORE:
   (A)  SALES  OR RENTALS OF PROPERTIES EXHIBITING SIMILAR CURRENT USE OR
 THE USE AT THE TIME OF SALE IN THE  SAME  REAL  ESTATE  MARKET  SEGMENT.
 COMPARABLE  PROPERTIES  SHOULD  INCLUDE  PROPERTIES LOCATED IN PROXIMATE
 LOCATION TO THE SUBJECT PROPERTY UNLESS THERE IS AN INADEQUATE NUMBER OF
 APPROPRIATE SALES OR RENTALS WITHIN THE SAME MARKET SEGMENT; AND
   (B) SALES OR RENTALS OF PROPERTIES THAT ARE SIMILAR IN AGE, CONDITION,
 CURRENT USE OR THE USE AT  THE  TIME  OF  SALE,  TYPE  OF  CONSTRUCTION,
 LOCATION, DESIGN, PHYSICAL FEATURES AND ECONOMIC CHARACTERISTICS INCLUD-
 ING SIMILARITIES IN OCCUPANCY AND INCOME GENERATING POTENTIAL.
   § 2. This act shall take effect immediately and shall apply to assess-
 ment rolls prepared on or after January 1, 2022.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03993-04-1

2021-S5715A (ACTIVE) - Details

See Assembly Version of this Bill:: A894
Law Section:: Real Property Tax Law
Laws Affected:: Add §305-a, RPT L
Versions Introduced in 2019-2020 Legislative Session:: A4752

2021-S5715A (ACTIVE) - Summary

2021-S5715A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5715A

SPONSOR: GAUGHRAN
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to requiring
assessors using the comparable sales method for assessments to consider
certain comparable properties in formulating the assessment

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would provide guidelines for assessors using the comparable
sales, income-capitalization, or cost method

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill amends the real property tax law, by adding a
new section 305-a as it relates to establishing guidelines for using in
assessing the value of mixed-use and nonresidential property. This
section shall not apply to New York City.

Section two of the bill relates to the effective date.

 
JUSTIFICATION:

This bill will provide clear guidance, to assessors when using the
comparable sales, income capitalization or cost method. The comparable
sales, income capitalization or cost methods use sales data of similar
properties to develop a value. There have been numerous court cases
where property owners are challenging their assessment using sales data
of properties which are not similar in use, type or location. The courts
have differed with their evaluation of opposing assessments in such
challenges due to the lack of guidance in statute. They are forced to
make-decisions on the validity of assessment reports from the munici-
pality and property owner based on precedent of previous rulings and
general practice.  This bill ensures there are clear and unambiguous
guidelines for assessments that use the comparable sales method.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:

The amended version ensures that new RPTL section 305-a would not apply
to cities with populations of one million or more and ensure that these
guidelines only apply when the comparable sales, income capitalization
or cost method is used on mixed-use or non-residential property.

 
FISCAL IMPLICATION:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately and apply to assessment rolls
prepared on and after January 1, 2022.

2021-S5715A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5715--A
     Cal. No. 757
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 16, 2021
                                ___________
 
 Introduced  by Sen. GAUGHRAN -- read twice and ordered printed, and when
   printed to be committed  to  the  Committee  on  Local  Government  --
   reported  favorably  from  said committee, ordered to first and second
   report, ordered to a third reading,  amended  and  ordered  reprinted,
   retaining its place in the order of third reading

 AN  ACT  to  amend  the  real property tax law, in relation to requiring
   assessors using the comparable sales method for assessments to consid-
   er certain comparable properties in formulating the assessment
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  real  property  tax  law  is amended by adding a new
 section 305-a to read as follows:
   § 305-A. ASSESSMENT USING THE COMPARABLE SALES, INCOME  CAPITALIZATION
 OR  COST METHOD.   1. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (A) "MIXED-USE PROPERTY" MEANS A PROPERTY WITH A BUILDING OR STRUCTURE
 USED FOR BOTH RESIDENTIAL AND COMMERCIAL PURPOSES.
   (B) "NON-RESIDENTIAL PROPERTY" MEANS A PROPERTY  WITH  A  BUILDING  OR
 STRUCTURE USED FOR COMMERCIAL PURPOSES.
   2.  WHEN DETERMINING THE VALUE OF A MIXED-USE OR NON-RESIDENTIAL PROP-
 ERTY USING THE COMPARABLE SALES, INCOME CAPITALIZATION OR  COST  METHOD,
 THE  FOLLOWING  SHALL  BE CONSIDERED WHEN SELECTING APPROPRIATE SALES OR
 RENTALS COMPARABLE TO THE SUBJECT PROPERTY; PROVIDED, HOWEVER, THAT  THE
 FOLLOWING  REQUIREMENTS  SHALL  APPLY ONLY TO ASSESSING UNITS OTHER THAN
 CITIES HAVING A POPULATION OF ONE MILLION OR MORE:
   (A) SALES OR RENTALS OF PROPERTIES EXHIBITING SIMILAR USE OR  THE  USE
 AT  THE TIME OF SALE IN THE SAME REAL ESTATE MARKET.  COMPARABLE PROPER-
 TIES SHOULD INCLUDE PROPERTIES LOCATED  IN  PROXIMATE  LOCATION  TO  THE
 SUBJECT  PROPERTY  UNLESS  THERE  IS AN INADEQUATE NUMBER OF APPROPRIATE
 SALES OR RENTALS WITHIN THE SAME MARKET; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03993-06-1

 S. 5715--A                          2
 
   (B) SALES OR RENTALS OF PROPERTIES THAT ARE SIMILAR IN AGE, CONDITION,
 USE OR THE USE AT THE TIME OF  SALE,  TYPE  OF  CONSTRUCTION,  LOCATION,
 DESIGN, PHYSICAL FEATURES AND ECONOMIC CHARACTERISTICS INCLUDING BUT NOT
 LIMITED TO SIMILARITIES IN OCCUPANCY AND MARKET RENT.
   § 2. This act shall take effect immediately and shall apply to assess-
 ment rolls prepared on or after January 1, 2022.

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