NY State Senate Bill 2023-S5097

Senate Bill S5097

2023-2024 Legislative Session

Implements transfer assessments for certain classes of property in a city with a population of one million or more

download bill text pdf

Current 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to local government
Feb 22, 2023	referred to local government

2023-S5097 (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:: 2019-2020: S7631
2021-2022: S593, S8097

2023-S5097 (ACTIVE) - Summary

Implements transfer assessments for any class one or class two parcel in any special assessing unit wholly contained within a city which has had a transfer of title within the fiscal year where the market value of such parcel, as determined by the New York city department of finance, is greater than the assessed value of such parcel.

2023-S5097 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5097

SPONSOR: CLEARE
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to implementing
transfer assessments for certain classes of property in a city with a
population of one million or more

 
PURPOSE:

To apply a market-valued assessment upon real properties upon their
transfer.

 
SUMMARY OF PROVISIONS:

Section 1 amends the Real Property Tax Law to include a new subdivision
7 to stipulate that, from 2021 onward upon the transfer of title, any
class 1 or class 2 property in a special assessing unit wholly contained
in a city shall have its market value as the basis for its assessed
value. The increase to market value assessment of the property shall
take place by thirds over three years.

 
EXISTING LAW:

Properties in New York City have a cap upon the increase of assessed
value of 6% per year to reach a maximum of 20% over five years. This cap
stays with the property upon transfer to a new owner.

 
JUSTIFICATION:

While property tax caps have the effect of reducing the tax burden upon
a property owner, uneven increases in real estate property values over
time have created a vastly uneven tax burdens for property owners in New
York City. With a property tax caps in place for many years, we now have
a situation where those with properties with greatly appreciated market
values pay a vastly lower effective tax rate than those who own proper-
ties whose values have appreciated more modestly. As a result, people
with expensive properties can pay an effective tax rate that is as
little as one-sixth of those with more modestly valued homes.

This removal of the assessment cap applies only to properties being
transferred, so that people staying in their homes will continue to
receive the benefit of the cap, while those buying expensive properties
will not receive a tax advantage for buying an expensive home.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None

 
LOCAL FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2023-S5097 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5097
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 22, 2023
                                ___________
 
 Introduced  by  Sen.  CLEARE -- 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  implementing
   transfer  assessments for certain classes of property in a city with a
   population of one million or more

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  1805  of the real property tax law is amended by
 adding a new subdivision 7 to read as follows:
   7. NOTWITHSTANDING ANY PROVISION  OF  LAW  TO  THE  CONTRARY,  IN  ANY
 SPECIAL  ASSESSING  UNIT  WHOLLY CONTAINED WITHIN A CITY, BEGINNING WITH
 THE ASSESSMENT ROLL COMPLETED IN TWO THOUSAND TWENTY-FOUR AND  FOR  EACH
 SUBSEQUENT  ASSESSMENT  ROLL,  THE  ASSESSOR  SHALL DETERMINE A TRANSFER
 ASSESSMENT FOR ANY CLASS ONE OR CLASS TWO PARCEL WHICH HAS HAD A  TRANS-
 FER  OF  TITLE  WITHIN  THE  FISCAL  YEAR WHERE THE MARKET VALUE OF SUCH
 PARCEL, AS DETERMINED BY THE NEW YORK CITY  DEPARTMENT  OF  FINANCE,  IS
 GREATER THAN THE ASSESSED VALUE OF SUCH PARCEL. SUCH TRANSFER ASSESSMENT
 SHALL  BE  APPLIED  TO  THE  FIRST ASSESSMENT ROLL AFTER THE TRANSFER OF
 TITLE OF SUCH PARCEL AND FOR EACH OF THE SUCCEEDING TWO ASSESSMENT ROLLS
 BY COMPUTING DIFFERENCE OF SUCH PARCEL'S ASSESSED VALUE AND  THE  MARKET
 VALUE, AS DETERMINED BY THE NEW YORK CITY DEPARTMENT OF FINANCE, OF SUCH
 PARCEL  WHEN  THE  TRANSFER  OF  THE  TITLE  OF SUCH PARCEL OCCURRED AND
 INCREASING THE ASSESSED VALUE OF  SUCH  PARCEL  BY  ONE  THIRD  OF  SUCH
 DIFFERENCE ON EACH SUCH ASSESSMENT ROLL.
   § 2. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09706-01-3

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