Provides that an assessing unit may pass a local law to provide that for the assessment of golf courses, the assessed valuation shall be based upon the property's highest and best use rather than its current use.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6444
SPONSOR: Galef (MS)
TITLE OF BILL: An act to amend the real property tax law, in relation
to the taxable status date and the assessment of golf courses
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to allow the passage of a local law
in regards to the assessment of golf courses.
SUMMARY OF PROVISIONS:
Section 1. Section 302 of the Real Property Tax Law is amended by adding
a new subdivision 6 to read as follows: 6. Notwithstanding any other
provision of law to the contrary, an assessing unit may pass a local law
to provide that for the assessment of golf courses, the assessed valu-
ation shall be based upon the property's highest and best use rather
than its current use. Such local law shall be passed no later than 60
days prior to the completion and filing of the first tentative assess-
ment roll to which it is applicable.
Section 2. Establishes the effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
This portion of this memorandum is not applicable at this time.
Golf courses are unique, and often challenging to value. There are
several types of courses (private, semiprivate, public, not-for-profit,
municipal, etc.) with varying business models and economic returns. Golf
courses do not typically sell on the open market, making the Sales
Comparison Approach unreliable and typically disregarded. The income
approach is the generally accepted approach to valuing golf courses, but
it often requires reliance on per-round fees paid at neighboring cours-
es. For private country clubs, this has meant considering public and
municipal course fees, which do not mirror the economics of a private
club which often receives significant revenue from initiation and
membership fees, restaurants, sports shops, etc. In other instances,
such as a member owned not-for-profit golf course, the cash flow and
revenue of the club may be unimpressive. However, the property may be
located in a prime-real estate area where developers are willing to pay
a premium for developable land. Such value is not considered in these
This bill gives a community the option to assess golf courses based upon
their highest and best use. The Appraisal Institute defines highest and
best use as follows: the reasonably probable and legal use of vacant
land or an improved property that is physically possible, appropriately
supported, financially feasible, and that results in the highest value.
This appraisal principal allows the consideration of other economically
profitable uses of a property when determining its value. For the valu-
ation of golf courses only, it could be used by assessors, at local
option, to provide a more accurate assessment of the property.
This legislation provides another option for communities to explore
should they have a golf course(s) that they feel is being assessed at
the wrong value.
PRIOR LEGISLATIVE HISTORY:
A.9677 and S. 8045 of 2017/2018
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
There are no fiscal implications to New York State or our local govern-
ments in association with the passage of this legislation.
This act shall take effect immediately.
STATE OF NEW YORK
2019-2020 Regular Sessions
March 7, 2019
Introduced by M. of A. GALEF, SEAWRIGHT, RIVERA, ABINANTI, LAWRENCE --
Multi-Sponsored by -- M. of A. THIELE -- read once and referred to the
Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to the taxable
status date and the assessment of golf courses
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 302 of the real property tax law is amended by
2 adding a new subdivision 6 to read as follows:
3 6. Notwithstanding any other provision of law to the contrary, an
4 assessing unit may pass a local law to provide that for the assessment
5 of golf courses, the assessed valuation shall be based upon the proper-
6 ty's highest and best use rather than its current use. Such local law
7 shall be passed no later than sixty days prior to the completion and
8 filing of the first tentative assessment roll to which it is applicable.
9 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.