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A10651 Summary:

BILL NOA10651
 
SAME ASSAME AS S08095
 
SPONSORBraunstein
 
COSPNSRDenDekker
 
MLTSPNSR
 
Amd §489, RPT L
 
Relates to the eligibility of J-51 tax abatements to reflect cost-of-living adjustments.
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A10651 Memo:

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.
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