Rpld 1803-b sub 1 (b), 581 & 467-a, amd RPT L, generally; amd 339-y, RP L; amd 11-2105 & 11-201, NYC Ad Cd
Abolishes the class share system and partial valuation; provides a homestead exemption and a real property tax circuit breaker abatement; repeals partial tax abatement for residential real property held in the cooperative or condominium form of ownership; defines co-ops and condominiums as class one properties.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10600
SPONSOR: Rules (Rajkumar) TITLE OF BILL:
An act to amend the real property tax law, in relation to abolishing the
class share system in certain cities; and to repeal certain provisions
of such law relating thereto (Part A); to amend the real property tax
law, in relation to a homestead exemption (Part B); to amend the real
property tax law, in relation to a circuit breaker tax abatement (Part
C); to amend the real property law and the real property tax law, in
relation to the assessment of residential cooperative, condominium and
rental property; and to repeal certain provisions of the real property
tax law relating thereto (Part D); to amend the administrative code of
the city of New York, in relation to cooperative housing corporations;
and to repeal certain provisions of the real property tax law, in
relation to a partial tax abatement for residential real property held
in the cooperative or condominium form of ownership (Part E); and to
amend the administrative code of the city of New York and the real prop-
erty tax law, in relation to the determination of fair market value
(Part F)
PURPOSE OR GENERAL IDEA OF BILL:
To provide comprehensive reform of New York City's property tax system.
SUMMARY OF PROVISIONS:
Section 1 is the bill title. Section 2 outlines the bill.
Part A
Section 1 amends Subdivision 1 of section 1802 of the real property tax
law by adding a new paragraph providing for a class one-a property
Section 2 amends Paragraph class one of subdivision 1 of section 1802 of
the real property tax law, as amended by chapter 332 of the laws of 2008
to establish that the new class of property applies only to the city of
New York.
§ 3 amends The real property tax law by adding a new section 1803-c
providing for tax rates as new rates are phased in.
§ 4 amends Subdivision (a) of section 1801 of the real property tax law,
as added by chapter 1057 of the laws of 1981 to remove New York City
from the definition of Special assessing unit.
§ 5 amends Subdivision (f) of section 1801 of the real property tax law,
as amended by chapter 191 of the laws of 2001, by removing New York City
from the definition of base proportion.
§ 6 repeals Paragraph (b) of subdivision 1 of section 1803-b of the real
property tax law
7. Amends Subdivision 2 of section 305 of the real property tax law, as
added by chapter 1057 of the laws of 1981, to exempt New York City from
fractional assessments.
§ 8. Amends Section 1805 of the real property tax law by adding a new
subdivision 7 on calculation of tax rates during the phase-in of new
rates.
9. This act shall take effect immediately.
Part B
Section 1. Amends the real property tax law by adding a new section
420-d providing for a homestead exemption for Class One properties that
are a primary residence.
Section 2 This act shall take effect immediately.
Part C
Section 1. The real property tax law is amended by adding a new section
425-b creating a property tax circuit breaker
Section 2 is the effective date
Part D
Section 1. Repeals Section 581 of the real property tax law
§ 2. Amends Subparagraph (ii) of paragraph (d) of subdivision 1 of
section 339-y of the real property law, as amended by chapter 223 of the
laws of 1989 to say property shall not be assessed pursuant to subdivi-
sion two of section five hundred eighty-one of RPT
§ 3. Amends Paragraph (b) of subdivision 1 of section 730 of the real
property tax law, as amended by chapter 154 of the laws of 1993 so that
section five hundred eighty-one of this chapter does not apply to New
York City.
4. Amends Paragraph (b) of subdivision 1 of section 1111 of the real
property tax law, as added by chapter 532 of the laws of 1994 to provide
the same for this section.
5. Amends Paragraph (a) of subdivision 1 of section 1113 of the real
property tax law, as added by chapter 516 of the laws of 2010, to
provide the same for this section.
Sec 6 is the effective date.
Part E
Section 1. Repeals Section 467-a of the real property tax law
§ 2. Amends Subdivision (g) of section 11-2105 of the administrative
code of the city of New York, as amended by section 10 of part LL of
chapter 407 of the laws of 1999 to remove reference to subdivision three
of section four hundred sixty-seven-a of the RPT.
3. This act shall take effect immediately. PART F
Section 1. Amends Section 11-201 of the administrative code of the city
of New York providing that the commissioner of finance determines fair
market value.
§ 2. Amends real property tax law by adding a new section 305-b provid-
ing the same.
§ 3. This act shall take effect immediately.
§ 3. Severability clause.
§ 4. This act shall take effect immediately
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
Click here to enter text.
JUSTIFICATION:
New York City's arcane property tax system is rife with inequities. The
use of assessed values with caps on growth results in assessments vastly
below market value, resulting in artificially lower tax rates in gentri-
fied neighborhoods. The coop-condo tax abatement also creates sweetheart
tax rates for luxury buildings. Effective tax rates are now vastly
different based on neighborhood, tending to be higher in low income
communities compared to those that gentrified. The Five Borough Fair
Property Tax Act uses fair market value assessments, done by the NYC
commissioner of finance, with a means-tested circuit breaker tax
reduction to provide targeted relief to taxpayers who need it. The bill
also repeals the coop-condo tax abatement, the overly complicated class
share system, and the use of fractional assessments.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
Part A, B, D, E shall take effect immediately. Part C shall take effect
January 1, 2025 and shall apply to assessment rolls produced on and
after such date. Part F shall take effect immediately provided, howev-
er, that the applicable effective date of Parts A through F of this act
shall be as specifically set forth in the last section of such Parts.
STATE OF NEW YORK
________________________________________________________________________
10600
IN ASSEMBLY
June 20, 2024
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Rajkumar) --
read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to abolishing the
class share system in certain cities; and to repeal certain provisions
of such law relating thereto (Part A); to amend the real property tax
law, in relation to a homestead exemption (Part B); to amend the real
property tax law, in relation to a circuit breaker tax abatement (Part
C); to amend the real property law and the real property tax law, in
relation to the assessment of residential cooperative, condominium and
rental property; and to repeal certain provisions of the real property
tax law relating thereto (Part D); to amend the administrative code of
the city of New York, in relation to cooperative housing corporations;
and to repeal certain provisions of the real property tax law, in
relation to a partial tax abatement for residential real property held
in the cooperative or condominium form of ownership (Part E); and to
amend the administrative code of the city of New York and the real
property tax law, in relation to the determination of fair market
value (Part F)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "five
2 borough fair property tax act".
3 § 2. This act enacts into law components of legislation necessary for
4 the implementation of New York city property tax reform. Each component
5 is wholly contained within a Part identified as Parts A through F. The
6 effective date for each particular provision contained within such Part
7 is set forth in the last section of such Part. Any provision in any
8 section contained within a Part, including the effective date of the
9 Part, which makes a reference to a section "of this act", when used in
10 connection with that particular component, shall be deemed to mean and
11 refer to the corresponding section of the Part in which it is found.
12 Section four of this act sets forth the general effective date of this
13 act.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15160-03-4
A. 10600 2
1 PART A
2 Section 1. Subdivision 1 of section 1802 of the real property tax law
3 is amended by adding a new paragraph class one-a to read as follows:
4 Class one-a: in a city with a population of one million or more (a)
5 all one, two and three family residential real property, includ-
6 ing such dwellings used in part for nonresidential purposes but
7 which are used primarily for residential purposes, including
8 property held in cooperative or condominium forms of ownership;
9 and provided that, notwithstanding the provisions of paragraph
10 (g) of subdivision twelve of section one hundred two of this
11 chapter, a mobile home or a trailer shall not be classified
12 within this class unless it is owner-occupied and separately
13 assessed; and (b) residential real property consisting of one
14 family house structures owned by the occupant, situated on land
15 held in cooperative ownership by owner occupiers; and (c) all
16 vacant land (i) other than such land in the borough of Manhat-
17 tan, provided that any such vacant land which is not zoned resi-
18 dential must be situated immediately adjacent to property
19 improved with a residential structure as defined in subpara-
20 graphs (a) and (b) of this paragraph, be owned by the same owner
21 as such immediately adjacent residential property immediately
22 prior to and since January 1, 1989, and have a total area not
23 exceeding 10,000 square feet; and (ii) located in the borough of
24 Manhattan north of or adjacent to the north side of 110th street
25 provided such vacant land was classified within this class on
26 the assessment roll with a taxable status date of January 5,
27 2008 and the owner of such land has entered into a recorded
28 agreement with a governmental entity on or before December 31,
29 2008 requiring construction of housing affordable to persons or
30 families of low income in accordance with the provisions of the
31 private housing finance law; and (d) all residential real prop-
32 erty consisting of four-ten unit rental dwellings. Notwithstand-
33 ing the foregoing, such vacant land shall be classified accord-
34 ing to its use on the assessment roll with a taxable status date
35 immediately following commencement of construction, provided,
36 further, that construction pursuant to an approved plan for
37 affordable housing shall have commenced no later than December
38 31, 2010;
39 § 2. Paragraph class one of subdivision 1 of section 1802 of the real
40 property tax law, as amended by chapter 332 of the laws of 2008, is
41 amended to read as follows:
42 Class one: outside a city with a population of one million or more
43 (a) all one, two and three family residential real property,
44 including such dwellings used in part for nonresidential
45 purposes but which are used primarily for residential purposes,
46 except such property held in cooperative or condominium forms of
47 ownership other than (i) property defined in subparagraphs (b)
48 and (c) of this paragraph and (ii) property which contains no
49 more than three dwelling units held in condominium form of
50 ownership and which was classified within this class on a previ-
51 ous assessment roll; and provided that, notwithstanding the
52 provisions of paragraph (g) of subdivision twelve of section one
53 hundred two of this chapter, a mobile home or a trailer shall
54 not be classified within this class unless it is owner-occupied
55 and separately assessed; and (b) residential real property not
A. 10600 3
1 more than three stories in height held in condominium form of
2 ownership, provided that no dwelling unit therein previously was
3 on an assessment roll as a dwelling unit in other than condomin-
4 ium form of ownership; and (c) residential real property
5 consisting of one family house structures owned by the occupant,
6 situated on land held in cooperative ownership by owner occupi-
7 ers, provided that; (i) such house structures and land consti-
8 tuted bungalow colonies in existence prior to nineteen hundred
9 forty; and (ii) the land is held in cooperative ownership for
10 the sole purpose of maintaining one family residences for
11 members own use; and (d) all vacant land located within a
12 special assessing unit which is a city [(i) other than such land
13 in the borough of Manhattan], provided that any such vacant land
14 which is not zoned residential must be situated immediately
15 adjacent to property improved with a residential structure as
16 defined in subparagraphs (a) and (b) of this paragraph, be owned
17 by the same owner as such immediately adjacent residential prop-
18 erty immediately prior to and since January 1, 1989, and have a
19 total area not exceeding 10,000 square feet; [and (ii) located
20 in the borough of Manhattan north of or adjacent to the north
21 side of 110th street provided such vacant land was classified
22 within this class on the assessment roll with a taxable status
23 date of January 5, 2008 and the owner of such land has entered
24 into a recorded agreement with a governmental entity on or
25 before December 31, 2008 requiring construction of housing
26 affordable to persons or families of low income in accordance
27 with the provisions of the private housing finance law. Notwith-
28 standing the foregoing, such vacant land shall be classified
29 according to its use on the assessment roll with a taxable
30 status date immediately following commencement of construction,
31 provided further, that construction pursuant to an approved plan
32 for affordable housing shall commence no later than December 31,
33 2010;] and (e) all vacant land located within a special assess-
34 ing unit which is not a city, provided that such vacant land
35 which is not zoned residential must be situated immediately
36 adjacent to real property defined in subparagraph (a), (b) or
37 (c) of this paragraph and be owned by the same person or persons
38 who own the real property defined in such subparagraph imme-
39 diately prior to and since January 1, 2003;
40 § 3. The real property tax law is amended by adding a new section
41 1803-c to read as follows:
42 § 1803-c. Real property tax rates in a city of one million or more
43 during the phase-in period. 1. Beginning in the first year of the phase-
44 in period pursuant to subdivision seven of section eighteen hundred five
45 of this article, the legislative body of the assessing unit shall levy
46 annual taxes at such rates that the revenue projected is no more than
47 one per centum greater than the revenue of the previous year, and that
48 result in all properties in each property class contributing the same
49 percentage of gross levy as the previous year, irrespective of their
50 classification in the previous year. Thereafter, any change in annual
51 tax rates must retain the same ratio among class rates for the duration
52 of the phase-in period.
53 2. Beginning with the first year following the phase-in period pursu-
54 ant to subdivision seven of section eighteen hundred five of this arti-
55 cle, the commissioner of finance shall conduct a ratio study, in accord-
56 ance with the most recent Standard on Ratio Studies from the
A. 10600 4
1 International Association of Assessing Officers, to determine the effec-
2 tive tax rates of all property classes and recommend any change in their
3 ratio.
4 3. In the first year following the phase-in period pursuant to subdi-
5 vision seven of section eighteen hundred five of this article, the
6 legislative body shall set annual tax rates for each property class in
7 proportion to its share of the total fair market value of all real prop-
8 erty as entered on the most recent final assessment roll. Thereafter,
9 any change in annual tax rates must retain the same ratio among class
10 rates until the publication of a new ratio study pursuant to subdivision
11 two of this section, whereupon the legislative body may alter the ratio
12 of annual tax rates for the coming year in consultation with such study.
13 § 4. Subdivision (a) of section 1801 of the real property tax law, as
14 added by chapter 1057 of the laws of 1981, is amended to read as
15 follows:
16 (a) "Special assessing unit" means an assessing unit with a population
17 of one million or more, which is not a city.
18 § 5. Subdivision (f) of section 1801 of the real property tax law, as
19 amended by chapter 191 of the laws of 2001, is amended to read as
20 follows:
21 (f) "Base proportion" means [either: (1) for a special assessing unit
22 which is not a city, the proportion of the taxable assessed value of
23 real property which each class constituted of the total taxable assessed
24 value of all real property as entered on the final assessment roll
25 completed and filed in calendar year nineteen hundred eighty-one of such
26 special assessing unit or on the part of that assessment roll applicable
27 to a portion of the special assessing unit, except that for town and
28 county special districts not included within the definition of portion,
29 the applicable roll shall be that which was completed and filed in
30 calendar year two thousand one, or (2) for a special assessing unit
31 which is a city,] the proportion of the taxable assessed value of real
32 property which each class constituted of the total taxable assessed
33 value of all real property as entered on the final assessment roll
34 completed and filed in calendar year nineteen hundred eighty-four, and
35 as adjusted to account for properties exempted under section four
36 hundred fifty-eight of this chapter to the extent such properties are
37 taxable for education purposes, provided, however, that the taxable
38 assessed value of real property subject to a transition assessment
39 pursuant to subdivision three of section eighteen hundred five of this
40 article shall be determined from the lesser of the transition assessment
41 or actual assessment.
42 § 6. Paragraph (b) of subdivision 1 of section 1803-b of the real
43 property tax law is REPEALED.
44 § 7. Subdivision 2 of section 305 of the real property tax law, as
45 added by chapter 1057 of the laws of 1981, is amended to read as
46 follows:
47 2. All real property in each assessing unit shall be assessed at a
48 uniform percentage of value (fractional assessment) [except that, if the
49 administrative code of a city with a population of one million or more
50 permitted, prior to January first, nineteen hundred eighty-one, a clas-
51 sified assessment standard, such standard shall govern unless such city
52 by local law shall elect to be governed by the provisions of this
53 section]. In a city with a population of one million or more, all real
54 property in each assessing unit shall be assessed at one hundred percent
55 of its fair market value.
A. 10600 5
1 § 8. Section 1805 of the real property tax law is amended by adding a
2 new subdivision 7 to read as follows:
3 7. (a) Notwithstanding any provision of law to the contrary, in a city
4 with a population of one million or more, beginning with the assessment
5 roll completed in two thousand twenty-five, for a class one property,
6 the assessor shall compute any increase in tax liability due to an
7 increase in assessed value as a phase-in pursuant to the provisions of
8 this subdivision. The annual tax during each taxable year of the phase-
9 in period shall be computed as follows:
10 (i) multiply the sales-based valuation of the property in the first
11 taxable year of the phase-in by the new tax rate;
12 (ii) subtract from the result obtained in subparagraph (i) of this
13 paragraph the annual tax for the final taxable year before the phase-in
14 period;
15 (iii) divide the result obtained in subparagraph (ii) of this para-
16 graph by five;
17 (iv) add the result obtained in subparagraph (iii) of this paragraph
18 to the annual tax for the previous year;
19 (v) multiply the most recent sales-based valuation by the new tax
20 rate;
21 (vi) subtract the result obtained in subparagraph (i) of this para-
22 graph from the result obtained in subparagraph (v) of this paragraph;
23 and
24 (vii) add the result obtained in subparagraph (vi) of this paragraph
25 to the result obtained in subparagraph (iv) of this paragraph.
26 (b) For taxable years during the phase-in period, the amount
27 prescribed by this subdivision for a property owner qualified for the
28 circuit breaker abatement pursuant to section four hundred twenty-five-b
29 of this chapter shall be computed to include such reduction.
30 (c) If a class one property is sold during the phase-in period, the
31 annual tax for the first taxable year after its sale shall be computed
32 as follows:
33 (i) Multiply the sales-based valuation of the property in the first
34 year of the phase-in by the new tax rate;
35 (ii) Subtract from the result obtained in subparagraph (i) of this
36 paragraph the annual tax for the final taxable year before the phase-in
37 period;
38 (iii) Divide the result obtained in subparagraph (ii) of this para-
39 graph by five;
40 (iv) Multiply the result obtained in subparagraph (iii) of this para-
41 graph by the number of taxable years remaining in the phase-in period,
42 including the one for which this annual tax is computed; and
43 (v) Add the result obtained in subparagraph (iv) of this paragraph to
44 the result obtained in subparagraph (i) of this paragraph.
45 Thereafter, the annual tax shall be the sales-based valuation multi-
46 plied by the new tax rate. The amount prescribed by this paragraph
47 for a property owner qualified for the circuit breaker abatement pursu-
48 ant to section four hundred twenty-five-b of this chapter shall be
49 computed to include such reduction.
50 § 9. This act shall take effect immediately.
51 PART B
52 Section 1. The real property tax law is amended by adding a new
53 section 420-d to read as follows:
A. 10600 6
1 § 420-d. Homestead exemption. 1. (a) Within a city having a popu-
2 lation of one million or more, any class one property shall be exempt
3 from taxation and special ad valorem levies as provided in subdivision
4 two of this section.
5 (b) To qualify for exemption pursuant to this section, the property
6 must be a class one property. If the property is not eligible but a
7 portion of the property is partially used by a qualifying owner as a
8 primary residence, that portion which is so used shall be entitled to
9 the exemption provided by this section.
10 (c) The property must serve as the primary residence of one or more of
11 the owners thereof.
12 (d) For purposes of the exemption authorized by this section, the
13 parcel's affiliated income may be less than five hundred thousand
14 dollars. As used in this section, the term "affiliated income" shall
15 mean the combined income of all of the owners of the parcel who resided
16 primarily thereon on the applicable taxable status date, and of any
17 owners' spouses residing primarily thereon. The term "income" as used
18 herein shall have the same meaning as in subdivision three of this
19 section.
20 (e) Title to that portion of real property owned by a cooperative
21 apartment corporation in which a tenant-stockholder of such corporation
22 resides, and which is represented by the tenant-stockholder's share or
23 shares of stock in such corporation as determined by its or their
24 proportional relationship to the total outstanding stock of the corpo-
25 ration, including that owned by the corporation, shall be deemed to be
26 vested in such tenant-stockholder. That proportion of the assessment of
27 such real property owned by a cooperative apartment corporation deter-
28 mined by the relationship of such real property vested in such tenant-
29 stockholder to such entire parcel and the buildings thereon owned by
30 such cooperative apartment corporation in which such tenant-stockholder
31 resides shall be subject to exemption from taxation pursuant to this
32 section and any exemption so granted shall be credited by the appropri-
33 ate taxing authority against the assessed valuation of such real proper-
34 ty; the reduction in real property taxes realized thereby shall be cred-
35 ited by the cooperative apartment corporation against the amount of such
36 taxes otherwise payable by or chargeable to such tenant-stockholder.
37 2. The homestead property tax exemption provided by this section shall
38 be as follows:
39 ANNUAL INCOMEPERCENTAGE FAIR MARKET VALUE
40 ASSESSED VALUATION
41 EXEMPT FROM TAXATION
42 Up to $375,00020 per centum
43 Over $375,000 up to $400,00016 per centum
44 Over $400,000 up to $425,00012 per centum
45 Over $425,000 up to $450,0008 per centum
46 Over $450,000 up to $475,0004 per centum
47 Over $475,000 up to $500,0002 per centum
48 3. The term "income" as used in this section shall mean the "adjusted
49 gross income" for federal income tax purposes as reported on the appli-
50 cant's federal or state income tax return for the applicable income tax
51 year, subject to any subsequent amendments or revisions, reduced by
52 distributions, to the extent included in federal adjusted gross income,
53 received from an individual retirement account and an individual retire-
A. 10600 7
1 ment annuity; provided that if no such return was filed for the applica-
2 ble income tax year, "income" shall mean the adjusted gross income that
3 would have been so reported if such a return had been filed. Provided
4 further, that where an income-eligibility determination is wholly or
5 partly based upon the income of one or more individuals who did not file
6 a return for the applicable income tax year, then in order for the
7 application to be considered complete, each such individual must file a
8 statement with the department showing the source or sources of their
9 income for that income tax year, and the amount or amounts thereof, that
10 would have been reported on such a return if one had been filed. Such
11 statement shall be filed at such time, and in such form and manner, as
12 may be prescribed by the department, and shall be subject to the secrecy
13 provisions of the tax law to the same extent that a personal income tax
14 return would be. The department shall make such forms and instructions
15 available for the filing of such statements. The assessor shall upon the
16 request of a taxpayer assist such taxpayer in the filing of the state-
17 ment with the department.
18 4. Any exemption provided by this section shall be computed after all
19 other partial exemptions allowed by law, excluding the school tax relief
20 (STAR) exemption authorized by section four hundred twenty-five of this
21 title, have been subtracted from the total amount assessed; provided,
22 however, that no parcel may receive an exemption for the same PILOT or
23 municipal tax purpose pursuant to both this section and section four
24 hundred sixty-seven of this title.
25 5. The commissioner may require such exemption to be granted upon
26 application by the owner or all of the owners of the real property on a
27 form prescribed and made available by the commissioner. The applicant
28 shall furnish such information as the commissioner shall require. Appli-
29 cations for the exemption authorized pursuant to this section shall be
30 considered timely filed if they are filed on or before the fifteenth day
31 of March of the appropriate year.
32 6. It shall be the responsibility of the commissioner to annually
33 determine all income standards pursuant to this section, to cause notice
34 thereof to be published in the state register, to disseminate notice
35 thereof to assessors, and such other parties as deemed appropriate.
36 § 2. This act shall take effect immediately.
37 PART C
38 Section 1. The real property tax law is amended by adding a new
39 section 425-b to read as follows:
40 § 425-b. Property tax circuit breaker abatement. 1. A city with a
41 population of one million or more shall provide for a real property tax
42 abatement as set forth in this section.
43 2. For the purposes of this section:
44 (a) "Qualified taxpayer" means a resident individual who owns the
45 class one or class two residential real property and who resides in such
46 property.
47 (b) "Household" or "members of the household" means a qualified
48 taxpayer or qualified taxpayers and all other persons, not necessarily
49 related, who all reside in the residential real property owned by the
50 taxpayer or taxpayers, and share its furnishings, facilities and accom-
51 modations; provided that no person may be a member of more than one
52 household at one time.
53 (c) "Household gross income" means the aggregate adjusted gross income
54 of all members of the household for the taxable year as reported for
A. 10600 8
1 federal income tax purposes, or which would be reported as adjusted
2 gross income if a federal income tax return were required to be filed,
3 with the modifications in subsection (b) of section six hundred twelve
4 of the tax law but without the modifications in subsection (c) of such
5 section, plus any portion of the gain from the sale or exchange of prop-
6 erty otherwise excluded from such amount; earned income from sources
7 without the United States excludable from federal gross income by
8 section nine hundred eleven of the internal revenue code; support money
9 not included in adjusted gross income; nontaxable strike benefits;
10 supplemental security income payments; the gross amount of any pension
11 or annuity benefits to the extent not included in such adjusted gross
12 income (including, but not limited to, railroad retirement benefits and
13 all payments received under the federal social security act and veter-
14 ans' disability pensions); nontaxable interest received from the state
15 of New York, its agencies, instrumentalities, public corporations, or
16 political subdivisions (including a public corporation created pursuant
17 to agreement or compact with another state or Canada); workers' compen-
18 sation; the gross amount of "loss-of-time" insurance; and the amount of
19 cash public assistance and relief, other than medical assistance for
20 needy persons, paid to or for the benefit of the qualified taxpayer or
21 members of their household. Household gross income shall not include
22 surplus foods or other relief in kind or payments made to individuals
23 because of their status as victims of Nazi persecution as defined in
24 public law 103-286 or any disability compensation received by veterans
25 on account of injury or illness incurred or aggravated during military
26 service in the wars in Afghanistan and Iraq since September eleventh,
27 two thousand one. Provided, further, household gross income shall only
28 include all such income received by all members of the household while
29 members of such household.
30 (d) "Net real property tax" means the real property taxes assessed on
31 the residential real property owned and occupied by the taxpayer or
32 taxpayers after any exemption or abatement received pursuant to this
33 chapter.
34 3. (a) An abatement provided by this section shall be computed after
35 all other exemptions allowed by law have been subtracted from the total
36 amount assessed.
37 (b) The real property tax on a parcel of an eligible taxpayer shall be
38 abated by the abatement amount, which shall be calculated by multiplying
39 the taxable assessed valuation, after application of all other
40 exemptions for which such parcel is eligible, by the abatement tax rate
41 determined pursuant to this subdivision, provided that the abatement
42 amount shall not exceed ten thousand dollars.
43 (c) A qualified taxpayer whose property tax liability is greater than
44 ten per centum of their income shall be eligible for an abatement from
45 property taxes, up to ten thousand dollars, as follows:
46 Household gross income:Abatement is:
47 $58,000 or lessOne hundred per centum of remaining tax
48 liability which is greater than ten
49 per centum of household income
50 Greater than $58,000 up toSeventy-eight per centum of remaining
51 $65,000tax liability which is greater
52 than ten per centum of household income
53 Greater than $65,000 up toSixty-three per centum of remaining
54 $70,000tax liability which is greater than
55 ten per centum of household income
A. 10600 9
1 Greater than $70,000 up toForty-eight per centum of remaining
2 $75,000tax liability which is greater than ten
3 per centum of household income
4 Greater than $75,000 up toThirty-two per centum of remaining
5 $80,000tax liability which is greater than ten
6 per centum of household income
7 Greater than $80,000 up toSeventeen per centum of remaining tax
8 $85,000liability which is greater than ten
9 per centum of household income
10 Greater than $85,000 up toTwo per centum of remaining tax
11 $100,000liability which is greater than ten
12 per centum of household income
13 4. (a) Title to that portion of real property owned by a cooperative
14 apartment corporation in which a tenant-stockholder of such corporation
15 resides, and which is represented by the tenant-stockholder's share or
16 shares of stock in such corporation as determined by its or their
17 proportional relationship to the total outstanding stock of the corpo-
18 ration, including that owned by the corporation, shall be deemed to be
19 vested in such tenant-stockholder.
20 (b) That proportion of the assessment of such real property owned by a
21 cooperative apartment corporation determined by the relationship of such
22 real property vested in such tenant-stockholder to such entire parcel
23 and the buildings thereon owned by such cooperative apartment corpo-
24 ration in which such tenant-stockholder resides shall be subject to the
25 abatement pursuant to this section and any abatement so granted shall be
26 credited by the appropriate taxing authority against the assessed valu-
27 ation of such real property; the reduction in real property taxes real-
28 ized thereby shall be credited by the cooperative apartment corporation
29 against the amount of such taxes otherwise payable by or chargeable to
30 such tenant-stockholder.
31 5. The commissioner may require an application for such abatement to
32 be made annually by the owner, or all of the owners of the property, on
33 forms prescribed by the commissioner, and shall be filed in such
34 assessor's office on or before the appropriate taxable status date.
35 6. (a) The commissioner of finance shall initially, and annually ther-
36 eafter, determine the eligibility of taxpayers for the abatement allowed
37 by this section.
38 (b) At least sixty days prior to the appropriate taxable status date,
39 the assessor shall mail to each person who was granted an abatement
40 pursuant to this section on the latest completed assessment roll an
41 application form and a notice that such application must be filed on or
42 before the taxable status date and be approved in order for the
43 exemption to continue to be granted. Failure to mail such application
44 form or the failure of such person to receive the same shall not prevent
45 the levy, collection and enforcement of the payment of the taxes on
46 property owned by such person.
47 § 2. This act shall take effect January 1, 2025 and shall apply to
48 assessment rolls produced on and after such date.
49 PART D
50 Section 1. Section 581 of the real property tax law is REPEALED.
51 § 2. Subparagraph (ii) of paragraph (d) of subdivision 1 of section
52 339-y of the real property law, as amended by chapter 223 of the laws of
53 1989, is amended to read as follows:
A. 10600 10
1 (ii) on and after January first, nineteen hundred eighty-four, the
2 homestead class of an approved assessing unit which has adopted the
3 provisions of section [one thousand nine] nineteen hundred three of the
4 real property tax law, or the homestead class of the portion outside an
5 approved assessing unit of an eligible split school district which has
6 adopted the provisions of section nineteen hundred three-a of the real
7 property tax law; provided, however, that, in an approved assessing unit
8 which adopted the provisions of section [one thousand nine] nineteen
9 hundred three of the real property tax law prior to the effective date
10 of this subdivision, paragraph (b) of this subdivision shall apply to
11 all such real property (i) which is classified within the homestead
12 class pursuant to paragraph one of subdivision (e) of section [one thou-
13 sand nine] nineteen hundred one of the real property tax law and (ii)
14 which, regardless of classification, was on the assessment roll prior to
15 the effective date of this subdivision unless the governing body of such
16 approved assessing unit provides by local law adopted after a public
17 hearing, prior to the taxable status date of such assessing unit next
18 occurring after December thirty-first, nineteen hundred eighty-three,
19 that such paragraph (b) shall not apply to such real property to which
20 this clause applies. [Provided further, however, real property subject
21 to the provisions of this subparagraph shall be assessed pursuant to
22 subdivision two of section five hundred eighty-one of the real property
23 tax law.]
24 § 3. Paragraph (b) of subdivision 1 of section 730 of the real proper-
25 ty tax law, as amended by chapter 154 of the laws of 1993, is amended to
26 read as follows:
27 (b) the property is: (i) improved by a one, two or three family
28 owner-occupied structure used exclusively for residential purposes other
29 than property subject to the assessment limitations of [section five
30 hundred eighty-one of this chapter and] article nine-B of the real prop-
31 erty law or (ii) the property is unimproved and is not of sufficient
32 size as determined by the assessing unit or special assessing unit to
33 contain a one, two or three family residential structure;
34 § 4. Paragraph (b) of subdivision 1 of section 1111 of the real prop-
35 erty tax law, as added by chapter 532 of the laws of 1994, is amended to
36 read as follows:
37 (b) "Residential property" means property which is improved by a one,
38 two or three family structure used exclusively for residential purposes
39 other than property subject to the assessment limitations of [section
40 five hundred eighty-one of this chapter and] article nine-B of the real
41 property law. A parcel shall be deemed to be residential property for
42 purposes of this article if the applicable tax roll shows that (i) the
43 assessor has assigned to the parcel a property classification code in
44 the residential category, or (ii) the parcel has been included in the
45 homestead class in an approved assessing unit, or in class one in a
46 special assessing unit.
47 § 5. Paragraph (a) of subdivision 1 of section 1113 of the real prop-
48 erty tax law, as added by chapter 516 of the laws of 2010, is amended to
49 read as follows:
50 (a) "Residential property" means property which is improved by a one,
51 two, or three family structure used exclusively for residential purposes
52 other than property subject to the assessment limitations of [section
53 five hundred eighty-one of this chapter and] article nine-B of the real
54 property law. A parcel shall be deemed to be residential property for
55 purposes of this article if applicable tax roll shows that (i) the
56 assessor has assigned to the parcel a property classification code in
A. 10600 11
1 the residential category, or (ii) the parcel has been included in the
2 homestead class in an approved assessing unit, or in class one in a
3 special assessing unit.
4 § 6. This act shall take effect immediately.
5 PART E
6 Section 1. Section 467-a of the real property tax law is REPEALED.
7 § 2. Subdivision (g) of section 11-2105 of the administrative code of
8 the city of New York, as amended by section 10 of part LL of chapter 407
9 of the laws of 1999, is amended to read as follows:
10 (g) Every cooperative housing corporation shall be required to file an
11 information return with the commissioner of finance as follows: such
12 information return shall be filed by February fifteenth of the year two
13 thousand and of each year thereafter, covering the reporting period
14 beginning on January sixth of the year preceding the filing and ending
15 on January fifth of the year of the filing. For reporting periods begin-
16 ning before January sixth, nineteen hundred ninety-nine, such informa-
17 tion return shall be filed by July fifteenth of each year covering the
18 preceding period of January first through June thirtieth and by January
19 fifteenth of each year covering the preceding period of July first
20 through December thirty-first provided, however, that for the reporting
21 period from January first through June thirtieth, nineteen hundred
22 eighty-nine, such information return shall be filed by July thirty-
23 first, nineteen hundred eighty-nine. The return shall contain such
24 information regarding the transfer of shares of stock in the cooperative
25 housing corporation as the commissioner may deem necessary, including
26 but not limited to, the names, addresses and employer identification
27 numbers or social security numbers of the grantor and the grantee, the
28 number of shares transferred, the date of the transfer and the consider-
29 ation paid for such transfer[, provided, however, that if such cooper-
30 ative housing corporation elects that such information return be deemed
31 an application for an abatement pursuant to paragraph (f) of subdivision
32 three of section four hundred sixty-seven-a of the real property tax
33 law, such return shall contain the information required pursuant to
34 paragraph (d) of subdivision three of such section]. The commissioner of
35 finance may enter into an agreement with the commissioner of taxation
36 and finance of the state of New York to provide that a single informa-
37 tion return may be filed for purposes of the tax imposed by this chapter
38 and the real estate transfer tax imposed by article thirty-one of the
39 tax law.
40 § 3. This act shall take effect immediately.
41 PART F
42 Section 1. Section 11-201 of the administrative code of the city of
43 New York is amended to read as follows:
44 § 11-201 Assessments on real property; general powers of finance
45 department. The commissioner of finance shall be charged generally with
46 the duty and responsibility of assessing all real property subject to
47 taxation within the city. The commissioner shall determine the fair
48 market value of real property for the purpose of taxation.
49 § 2. The real property tax law is amended by adding a new section
50 305-b to read as follows:
51 § 305-b. Determination of fair market value. In a city with a popu-
52 lation of one million or more, the commissioner of finance of such city
A. 10600 12
1 shall determine fair market value of real property in such city for the
2 purposes of real property taxation.
3 § 3. This act shall take effect immediately.
4 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
5 sion, section or part of this act shall be adjudged by a court of compe-
6 tent jurisdiction to be invalid, such judgment shall not affect, impair
7 or invalidate the remainder thereof, but shall be confined in its opera-
8 tion to the clause, sentence, paragraph, subdivision, section or part
9 thereof directly involved in the controversy in which such judgment
10 shall have been rendered. It is hereby declared to be the intent of the
11 legislature that this act would have been enacted even if such invalid
12 provisions had not been included herein.
13 § 4. This act shall take effect immediately provided, however, that
14 the applicable effective date of Parts A through F of this act shall be
15 as specifically set forth in the last section of such Parts.
