New York State Assembly

 
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A03491 Summary:

A03491 Actions:

A03491 Committee Votes:

Committee:REAL PROPERTY TAXATION   Chair:Galef      
DATE:02/02/2021AYE/NAY:10/0  Action: Favorable refer to committee Ways and Means        
Galef
Aye
Miller
Aye
McDonald
Aye
Tague
Aye
Dickens
Aye
Barnwell
Aye
Rosenthal
Aye
Sayegh
Aye
Eichenstein
Aye
Mamdani
Aye

Committee:WAYS AND MEANS   Chair:Weinstein      
DATE:06/07/2021AYE/NAY:32/3  Action: Favorable refer to committee Rules        
Weinstein
Aye
Ra
Aye
Glick
Aye
Fitzpatrick
Nay
Nolan
Aye
Hawley
Aye
Pretlow
Aye
Montesano
Nay
Perry
Aye
Blankenbush
Aye
Colton
Aye
Norris
Aye
Cook
Aye
Brabenec
Aye
Cahill
Aye
Palmesano
Aye
Aubry
Aye
Byrne
Aye
Cusick
Aye
Ashby
Aye
Benedetto
Aye
Weprin
Aye
Rodriguez
Aye
Ramos
Aye
Braunstein
Aye
McDonald
Aye
Rozic
Aye
Dinowitz
Aye
Joyner
Aye
Magnarelli
Aye
Zebrowski
Nay
Bronson
Aye
Dilan
Aye
Seawright
Aye
Hyndman
Aye

Committee:RULES   Chair:Gottfried      
DATE:06/08/2021AYE/NAY:22/8  Action: Favorable         
Heastie
Excused
Barclay
Nay
Gottfried
Aye
Hawley
Nay
Nolan
Aye
Giglio
Nay
Weinstein
Aye
Blankenbush
Nay
Pretlow
Aye
Norris
Nay
Cook
Aye
Montesano
Nay
Glick
Aye
Ra
Nay
Aubry
Aye
Brabenec
Nay
Englebright
Aye
Dinowitz
Aye
Colton
Aye
Magnarelli
Aye
Perry
Aye
Paulin
Aye
Peoples-Stokes
Aye
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Zebrowski
Aye
Thiele
Aye
Braunstein
Aye
Dickens
Aye
Davila
Aye

A03491 Floor Votes:

A03491 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A3491B
 
SPONSOR: Galef

 
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, 2022. The
provisions of this paragraph shall not apply to condos or co-ops that
are participating in an affordable housing tax credit program or has a
regulatory agreement with a federal, state, or local agency related to
affordable housing requirements.
 
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 data 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, 2022. The
provisions of this paragraph shall not apply to condos or co-ops that
are participating in an affordable housing tax credit program or has a
regulatory agreement with a federal, state, or local agency related to
affordable housing requirements.
 
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
 
Difference from the original print to the A print includes the addition
of "provided further, 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 is participating in an affordable housing
tax credit program or has a regulatory agreement with a federal, state
or local agency related to affordable housing requirements. The differ-
ence between the A version and the B version include three instances
where 2022 is changed to 2023.
 
 
JUSTIFICATION:
 
As currently written, the Real Property Tax Law and 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 diffi-
culties they encounter when they are forced to ignore market
information--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.
 
Lastly, yet importantly, this legislation not apply to special assessing
districts such as New York City and Nassau, and therefore they are not
affected by the passage of this legislation.
 
 
PRIOR LEGISLATIVE HISTORY:
 
A.5221-A and S.7057-A of 2019/2020,
A.2874-A and S.1191-B of 2017/2018,
A.5484-A and S.618-A of 2015/2016,
A.682-A and S.1000-A of 2013/2014,
A.4981-A and S.546-A of 2011/2012,
A.5724 and S.255 of 2009/2010, and
A.10730 and S.7727 of 2007/2008
 
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
 
There are no fiscal implications associated with the passage of this
legislation.
 
 
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, 2023.

A03491 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         3491--B
                                                                Cal. No. 127
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 27, 2021
                                       ___________
 
        Introduced   by   M.  of  A.  GALEF,  ABINANTI,  MAGNARELLI,  SEAWRIGHT,
          J. RIVERA, HYNDMAN, WILLIAMS, COOK, STIRPE, WALLACE -- Multi-Sponsored
          by -- M. of A. THIELE -- read once and referred to  the  Committee  on
          Real  Property  Taxation  -- reported and referred to the Committee on
          Ways  and  Means  --  committee  discharged,  bill  amended,   ordered
          reprinted as amended and recommitted to said committee -- ordered to a
          third  reading,  amended and ordered reprinted, retaining its place on
          the order of third reading
 
        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 corpo-
          ration
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivision 1 of section 581 of the real property tax law
     2  is amended by adding a new paragraph (d) to read as follows:
     3    (d) The provisions of paragraph (a)  of  this  subdivision  shall  not
     4  apply  to  real property owned or leased by a cooperative corporation or
     5  on a condominium basis in a municipal corporation, other than a  special
     6  assessing  unit,  which has adopted, prior to the taxable status date of
     7  the assessment roll upon which its taxes will be levied, a local law or,
     8  for a school district, a resolution providing  that  the  provisions  of
     9  paragraph  (a) of this subdivision shall not apply to such real property
    10  within that municipal corporation; provided, however, the provisions  of
    11  this  paragraph  shall  not  apply to real property owned or leased by a
    12  cooperative corporation or on a condominium basis that had  been  previ-
    13  ously  subject  to  the  provisions of paragraph (a) of this subdivision
    14  prior to January first, two  thousand  twenty-three;  provided  further,
    15  however,  the provisions of this paragraph shall not apply to real prop-
    16  erty owned or leased by a cooperative corporation or  on  a  condominium
    17  basis  that is participating in an affordable housing tax credit program
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08115-04-1
        A. 3491--B                          2
 
     1  or has a regulatory agreement with a federal,  state,  or  local  agency
     2  related to affordable housing requirements.
     3    §  2.  Subdivision  1  of  section  339-y  of the real property law is
     4  amended by adding a new paragraph (g) to read as follows:
     5    (g) The provisions of paragraph (b)  of  this  subdivision  shall  not
     6  apply  to  real property owned or leased by a cooperative corporation or
     7  on a condominium basis in a municipal corporation other than  a  special
     8  assessing  unit,  which has adopted, prior to the taxable status date of
     9  the assessment roll upon which its taxes will be levied, a local law or,
    10  for a school district, a resolution providing  that  the  provisions  of
    11  paragraph  (b) of this subdivision shall not apply to such real property
    12  within that municipal corporation; provided, however, the provisions  of
    13  this  paragraph  shall  not  apply to real property owned or leased by a
    14  cooperative corporation or on a condominium basis that had  been  previ-
    15  ously  subject  to  the  provisions of paragraph (b) of this subdivision
    16  prior to January first, two  thousand  twenty-three;  provided  further,
    17  however,  the provisions of this paragraph shall not apply to real prop-
    18  erty owned or leased by a cooperative corporation or  on  a  condominium
    19  basis  that is participating in an affordable housing tax credit program
    20  or has a regulatory agreement with a federal,  state,  or  local  agency
    21  related to affordable housing requirements.
    22    § 3. This act shall take effect immediately and shall apply to assess-
    23  ment rolls prepared on the basis of taxable status dates occurring on or
    24  after January 1, 2023.