NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10651
SPONSOR: Rules (Braunstein)
 
TITLE OF BILL: An act to amend the real property tax law, in relation
to the eligibility for J-51 tax abatements to reflect cost of living
adjustments
 
PURPOSE OR GENERAL IDEA OF BILL:
To adjust the J-51 tax abatement minimum assessed property value eligi-
bility to reflect yearly changes in cost of living.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Amends Subdivision 17 of section 489 of the Real Property Tax
Law regarding eligibility for benefits of subdivision 17. In this subdi-
vision, cooperatively owned buildings or condominiums whose value
exceeds the assessed valuation limitation specified in subdivision 17,
paragraph (c) shall only be eligible for the benefits of subdivision 17
if alterations or improvements for which the dwelling, building, or
structure that applied for the benefits, were carried out with substan-
tial government assistance.
Subdivision 17, paragraph (c) assessed value limitation: for the final
assessment rolls completed prior to 2017, the assessed value limitation
shall be $30,000.
For the final assessment roll to be completed in 2017, the assessed
value limitation shall be $32,000 - increased by the cost-of-living
adjustment percentage of 2017.
The cost-of-living adjustment percentage shall be equal to the "applica-
ble increase percentage" used by the US Commissioner of Social Security
to determine the monthly social security benefits paid to individuals in
2017.
For every year after 2017, the applicable assessed value limitation,
cost-of-living adjustment percentage and applicable increase percentage
shall all be advanced by one year, and the assessed valuation limitation
shall be the previously applicable limitation, increased by the new
cost-of-living adjustment percentage, provided that such limitation
shall not exceed $35,000.
If there is no applicable increase because the general benefit has
increased as defined by 42 U.S.C. 415(i), then the applicable increase
percentage will be the percentage which would have yielded that general
benefit increase.
Section 2 contains the effective date.
 
JUSTIFICATION:
The J-51 tax abatement is a property tax exemption and abatement
received by buildings for renovating a residential apartment building.
Since 1992, co-op units and condos that had an assessed value less than
$40,000 were eligible to receive this abatement.
However, in 2013, the eligibility cap was reduced to units that have an
assessed value of less than $30,000. As a result of this change, fewer
middle-income co-ops and condo owners are eligible for these abatements.
This bill would increase the J-51 tax abatement cap yearly to reflect
adjustments in the cost of living, as set by the U.S. commissioner of
social security in determining monthly benefits. Therefore, the abate-
ment cap would be indexed for inflation and will consistently accommo-
date middle income coop and condo owners.
 
PRIOR LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.