NYS Real Property Tax Law § 581.
Assessment of residential cooperative, condominium and rental property.
1. (a) Notwithstanding any other provision
of law, real property owned or leased by a cooperative
corporation or on a condominium basis shall be assessed for purposes
of this chapter at a sum not
exceeding the assessment which would be placed upon such parcel were
the parcel not owned or
leased by a cooperative corporation or on a condominium basis.
(b) The
provisions of paragraph (a) of this subdivision shall not apply to
such real property
classified within: (i) on and after January first, nineteen hundred eighty-six,
class one of section
one thousand eight hundred two of this chapter; or (ii) on and after January
first, nineteen
hundred eighty-four, the homestead class of an approved assessing unit which
has adopted the
provisions of section one thousand nine hundred three of this chapter, or the
homestead class of
the portion outside an approved assessing unit of an eligible split school
district which has
adopted the provisions of section nineteen hundred three-a of this chapter;
provided, however,
that, in an approved assessing unit which adopted the provisions of
section one thousand nine hundred three of this chapter prior to the
effective date of this subdivision, paragraph (a) of this subdivision
shall apply to all such real property (i) which is classified within the
homestead class pursuant to paragraph one of subdivision (e) of section
one thousand nine hundred one of this chapter and (ii) which, regardless
of classification, was on the assessment roll prior to the effective
date of this subdivision unless the governing body of such approved
assessing unit provides by local law adopted after a public hearing,
prior to the taxable status date of such assessing unit next occurring
after December thirty-first, nineteen hundred eighty-three, that such
paragraph (a) shall not apply to such real property to which this clause
applies.
(c) The provisions of paragraph (a) of this subdivision shall not
apply to a converted condominium unit in a municipal corporation, other
than a special assessing unit, which has adopted, prior to the taxable
status date of the assessment roll upon which its taxes will be levied,
a local law or, for a school district, a resolution providing that the
provisions of paragraph (a) of this subdivision shall not apply to
converted condominium units within that municipal corporation. A
converted condominium unit for purposes of this paragraph shall mean a
dwelling unit held in condominium form of ownership that has previously
been on an assessment roll as a dwelling unit in other than condominium
form of ownership, and has not been previously subject to the provisions
of paragraph (a) of this subdivision.
2. Real property owned or leased by a cooperative corporation or on a
condominium basis which is located in an approved assessing unit, or
which is not located in an approved assessing unit but which is located
in an eligible split school district which has adopted the provisions of
section nineteen hundred three-a of this chapter, and is not subject to
the provisions of paragraph (a) of subdivision one of this section,
shall be assessed pursuant to the provisions of this subdivision.
(a) The assessor
of an assessing unit in which such real property is
located shall compute an assessment which would be placed on such parcel
were the parcel not owned or leased by a cooperative corporation or on a
condominium basis, which value shall be known as the restricted assessed
valuation.
(b) The assessor of such assessing unit in which such real property is
located shall compute an assessment which would be placed on such parcel
without regard to the restrictions found in paragraph (a) of this
subdivision or section three hundred thirty-nine-y of the real property law,
which value shall be known as the assessed valuation.
(c) The
assessor of such assessing unit shall enter the assessed valuation on
the assessment roll of such assessing unit and the restricted assessed
valuation in a separate column of the assessment roll of such assessing
unit.
(d) A municipal corporation which levies taxes pursuant to article
nineteen of this chapter shall levy such taxes against the assessed
valuation of such parcels for taxes imposed by or on behalf of such
municipal corporation.
(e) A municipal corporation which does not levy taxes pursuant to
article nineteen of this chapter shall levy such taxes against the
restricted assessed valuation of such parcels for taxes levied by or on
behalf of such municipal corporation.
3. Notwithstanding any other provision of law, real property occupied
for residential purposes on a rental basis (as distinct from a
cooperative or condominium basis) shall be assessed without regard to
the value the property might have if converted to a cooperative or
condominium basis or if sold or owned for the purpose of such a
conversion.
4. For the purposes of this section, the term "cooperative
corporation" shall include any corporation organized under any special
or general law of this state, including, but not limited to, the
business corporation law, the cooperative corporations law, the
not-for-profit corporation law, and the private housing finance law, or
the predecessor statutes thereof, primarily for providing housing
accommodations to its stockholders or members and which is, or is to be,
operated for the benefit of the persons or families who are entitled to
occupancy by reason of ownership of stock or membership in the
corporation.
NYS Real Property Tax Law §
581-a. Assessment of residential real property.
Notwithstanding any
other provision of law, the assessed valuation of real property used for
residential rental purposes where at least twenty percent of the
residential units are subject to an agreement with a municipality, the
state, the federal government, or an instrumentality thereof, which
agreement restricts occupancy of those units to tenants who qualify in
accordance with an income test, shall be determined using the income
approach as applied to the actual net operating income, after deducting
for reserves required by any federal, state or municipal programs. For
the purposes of this section "net operating income" shall mean the
actual or anticipated net income that remains after all operating expenses
are deducted from effective gross income, but before mortgage debt service
and book depreciation are deducted. The assessed valuation
of real property used for such residential rental purposes shall be
determined using the actual net operating income, and shall not include
federal, state or municipal income tax credits, subsidized mortgage
financing, or project grants, where such subsidies are used to offset
the project development cost in order to provide for lower initial rents
as determined by regulations promulgated by the division of housing and
community renewal.
RPP - NYS Real Property Law § 339-y. Separate taxation.
1. (a)
With respect to all property submitted to the provisions of this article
other than property which is
the subject of a qualified leasehold condominium, each unit and its
common interest, not including any personal property, shall be deemed to
be a parcel and shall be subject to separate assessment and taxation by
each assessing unit, school district, special district, county or other
taxing unit, for all types of taxes authorized by law including but not
limited to special ad valorem levies and special assessments, except
that the foregoing shall not apply to a unit held under lease or
sublease unless the declaration requires the unit owner to pay all taxes
attributable to his unit. Neither the building, the property nor any of
the common elements shall be deemed to be a parcel.
(b) In no event shall the aggregate of the assessment of the units
plus their common interests exceed the total valuation of the property
were the property assessed as a parcel.
(c) For the purposes of this and the next succeeding section the terms"assessing unit", "assessment", "parcel", "special
ad valorem levy",
"special assessment", "special district", "taxation" and "taxes" shall
have the meanings specified in section one hundred two of the real
property tax law.
(d) The provisions of paragraph (b) of this subdivision shall
not
apply to such real property classified within:
(i) on and after January first, nineteen hundred eighty-six, class
one of section one thousand eight hundred two of the real
property tax law;
or
(ii) on and after January first, nineteen hundred eighty-four, the
homestead class of an approved assessing unit which has adopted the
provisions of section one thousand nine hundred three of the real
property tax law, or the homestead class of the portion outside an
approved assessing unit of an eligible split school district which
has
adopted the provisions of section nineteen hundred three-a of the
real
property tax law; provided, however, that, in an approved assessing
unit
which adopted the provisions of section one thousand nine hundred
three
of the real property tax law prior to the effective date of this
subdivision, paragraph (b) of this subdivision shall apply to all
such
real property (i) which is classified within the homestead class
pursuant to paragraph one of subdivision (e) of section one thousand
nine hundred one of the real property tax law and (ii) which, regardless
of classification, was on the assessment roll prior to the effective
date of this subdivision unless the governing body of such approved
assessing unit provides by local law adopted after a public hearing,
prior to the taxable status date of such assessing unit next occurring
after December thirty-first, nineteen hundred eighty-three, that
such
paragraph (b) shall not apply to such real property to which this
clause
applies. Provided further, however, real property subject to the
provisions of this subparagraph shall be assessed pursuant to
subdivision two of section five hundred eighty-one of the real property
tax law.
(e) On the first assessment roll with a taxable status date on or
after the effective date of a declaration filed with the recording
officer and on every assessment roll thereafter, the assessor shall
enter each unit as a parcel, as provided in paragraph (a) of this
subdivision, based upon the condition and ownership of each such
unit on
the appropriate valuation and taxable status dates. Units owned by
a
developer may be entered as a single parcel with a parcel description
corresponding to the entire development, including the land under
such
development, and excluding those units appearing separately. Upon
the
first assessment roll where each unit is separately assessed, only an
individual unit and its common interest shall constitute a parcel.
(f) The provisions of paragraph (b) of this subdivision shall not
apply to a converted condominium unit in a municipal corporation other
than a special assessing unit, which has adopted, prior to the taxable
status date of the assessment roll upon which its taxes will be levied,
a local law or, for a school district, a resolution providing that the
provisions of paragraph (b) of this subdivision shall not apply to a
converted condominium unit within that municipal corporation. A
converted condominium unit for purposes of this paragraph shall mean a
dwelling unit held in condominium form of ownership that has previously
been on an assessment roll as a dwelling unit in other than condominium
form of ownership, and has not been previously subject to the provisions
of paragraph (b) of this subdivision.
2. With respect only to qualified leasehold condominiums:
(a) Each unit, its common interest, not including any personal
property, and the proportionate undivided part of the real property
which is the subject of a qualified leasehold condominium and is
allocated to such unit (as expressed in the declaration), shall be
deemed to be a parcel, shall be subject to separate assessment to the
unit owner and shall be subject to taxation by each assessing unit,
school district, special district, county or other taxing unit for all
types of taxes authorized by law including, but not limited to, special
ad valorem levies and special assessments. Neither the real property
which is the subject of a qualified leasehold condominium, the building,
the property nor any of the common elements shall be deemed to be a
parcel. In no event shall the aggregate of the assessment of the units
plus their common interests plus their proportionate undivided parts (as
expressed in the declaration) of said real property exceed the total
valuation of the property and said real property assessed as a single
parcel owned in fee. No provision of this paragraph shall be deemed to
subject to taxation any parcel or part thereof which, pursuant to
applicable law, is either exempt from taxation or with respect to which
no taxes are payable.
(b) For the purposes of section five hundred two of the real property
tax law, both the unit owner and the owner of the real property which is
the subject of a qualified leasehold condominium shall be deemed to be
the owner of the parcel in which such unit is included; provided,
however, that for the purposes of section nine hundred twenty-six of the
real property tax law, only the unit owner shall be deemed the owner of
the parcel in which such unit is included and only the unit owner shall
be personally liable for the payment of any taxes assessed against such
parcel. Only the fee owner of the land which is the subject of a
qualified leasehold condominium, however, shall be deemed to be the
owner of the parcel in which a unit is included for the purposes of
determining whether such parcel is subject to or exempt from taxation or
whether no taxes are payable with respect thereto.
(c) The taxes assessed against each unit, its common interest and the
proportionate undivided part of the real property which is the subject
of a qualified leasehold condominium allocated to such unit (as
expressed in the declaration), shall constitute a lien solely on that
unit, its common interest and the proportionate undivided part of said
real property allocated to such unit (as expressed in the declaration),
and such taxes shall not constitute a lien on any other unit or the
common interest of any other unit or the proportionate undivided part of
said real property allocated to any other unit (as expressed in the
declaration).
(d) At such time as the real property which is the subject of a
qualified leasehold condominium is submitted to the provisions of this
article, the assessing unit shall make provision so that the real
property which (i) is not the subject of a qualified leasehold
condominium and (ii) immediately prior to such submission was included
in a parcel in which there also was included all or any part of the real
property which is (immediately subsequent to such submission) the
subject of a qualified leasehold condominium, is established as a single
parcel on the assessment roll and tax map of such assessing unit,
separate and apart from any real property which is the subject of a
qualified leasehold condominium.
3. All provisions of a declaration relating to a unit, its common
interest and the proportionate undivided part of the real property which
is the subject of a qualified leasehold condominium allocated to such
unit (as expressed in the declaration), which has been sold for taxes
shall survive and shall be enforceable after the issuance of a tax deed
for such unit to the same extent that such provisions would be
enforceable against a voluntary grantee of such unit immediately prior
to the delivery of such tax deed.
4. The board of managers may act as an agent of each unit owner who
has given his written authorization to seek administrative and judicial
review of an assessment made in accordance with subdivision one of this
section, pursuant to title one-A of article five and title one of
article seven of the real property tax law. The board of managers may
retain legal counsel on behalf of all unit owners for which it is acting
as agent and to charge all such unit owners a pro rata share of
expenses, disbursements and legal fees for which charges the board of
managers shall have a lien pursuant to section three hundred
thirty-nine-z.
5. Notwithstanding the provisions of any general, special or local law
to the contrary, in a city having a population of one million or more,
the board of managers shall be authorized to act as the sole agent on
behalf of all unit owners, without authorization of each unit owner, for
the limited purpose of determining whether or not to waive prospectively
the benefit of real property tax abatement and exemption for the
property in order to qualify for a partial abatement of real property
taxes pursuant to section four hundred sixty-seven-a of the real
property tax law.
PROPOSED NEW LAW
NYS Assembly Bill Summary
BILL NO A01446
SAME AS No same as
SPONSOR Calhoun
Amd S581, RPT L; amd S339-y, RP L
Permits certain condominium units located within an assessing unit
to opt out
of the assessment of residential cooperative, condominium and rental
property
upon the adoption of a local law.
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A01446 Actions:
BILL NO A01446
01/09/2007 referred to real property taxation
01/09/2008 referred to real property taxation
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A01446
Votes:
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A01446 Memo:
BILL NUMBER:A1446
TITLE OF BILL: An act to amend the real property tax law and the real
property law, in relation to permitting the opting out of the
assessment of residential cooperative, condominium and rental property
upon the adoption of a local law
PURPOSE OR GENERAL IDEA OF BILL: Provides an assessing unit the
option of opting out of Section 581 of the Real Property Tax Law, and
the condominium assessment statute, upon the adoption of a local law.
SUMMARY OF SPECIFIC PROVISIONS:
Section One amends Section 399-y, subdivision (1), of the Real
Property Law by adding a new paragraph (g) that establishes that the
provisions of paragraph (b) shall not apply to condominium units
located within assessing units that have exercised their authority
to
opt out of the condominium assessment requirements otherwise
prescribed pursuant to Section 581 of the Real Property Tax Law.
Section Two amends Section 581, subdivision (1), of the Real Property
Tax law (RPTL) by adding new paragraph (d) that would allow an
assessing unit, upon the adoption of a local law, to opt out of the
condominium assessment requirements as prescribed by this section,
thereby providing for the assessment of condominiums on an identical
basis to other residential property.
EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER: Under current
law
certain assessing units are required to assess condominiums pursuant
to Section 581 of the Real Property Tax Law which required in most
instances,... "that real property owned or leased by a cooperative
corporation or on a condominium basis shall be assessed at a sum not
exceeding the assessment which would be placed upon such parcel were
the parcel not owned or leased by a cooperative corporation or on a
condominium basis." This bill would allow such assessing units
to opt
out of this section, thereby providing for the assessment of
condominiums on an identical basis as that of other residential
property.
JUSTIFICATION: Much debate has surrounded the way that condominium
units are assessed in New York State. Existing law requires that
condominiums are to be assessed by what income they could generate
as
rental units. Since, the demands for rentals, in many circumstances,
are smaller than that of non-rented properties assessed values are
often times lower. Thus, what a condominium unit is assessed based
on
the rental value versus that of a stand-alone property is lower. This
generates a taxing conundrum of sorts when a condominium unit that
could be assessed at $300,000 is being assessed at $150,000 based on
State law. Homeowners argue that condominium owners are getting an
unfair tax break because of how the units are assessed, prompting a
default disparity in property and school tax bills; in other words
condominium owners are not paying their fair share for similar
services. The inequities in tax bills pit condominium owners against
property owners and create headaches for local officials. This bill
authorizes a local assessing unit to opt out of Section 581 of the
Real Property Tax Law (upon adoption of a local law). By granting
local control over condominium assessment, communities will be better
equipped to provide for the assessment of condominiums on an identical
basis as that of other residential property.
PRIOR LEGISLATIVE HISTORY:
2003-04: A.9419 Held for consideration in Real Property Taxation
2005-06: A.2180 Held for consideration in Real Property Taxation
FISCAL IMPLICATIONS: This bill will generate additional revenue for
relevant taxing entities. There are no fiscal implications to the
State.
EFFECTIVE DATE: Immediately.
S T A T E O F N E W Y O R K
________________________________________________________________________
Bill # 1446
2007-2008 Regular Sessions
I N A S S E M B L Y
January 9, 2007
___________
Introduced by M. of A. CALHOUN -- read once and referred to the Committee
on Real Property Taxation
AN ACT to amend the real property tax law and the real property law,
in
relation to permitting the opting out of the assessment of residential
cooperative, condominium and rental property upon the adoption of a
local law
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEMBLY, 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 CONDOMINIUM UNITS LOCATED WITHIN AN ASSESSING UNIT THAT
HAS
5 ADOPTED A LOCAL LAW TO OPT OUT OF THIS SECTION.
6 S 2. Subdivision 1 of section 339-y of the real property law is
7 amended by adding a new paragraph (g) to read as follows:
8 (G) THE PROVISIONS OF PARAGRAPH (B) OF THIS SUBDIVISION SHALL NOT
9 APPLY TO CONDOMINIUM UNITS LOCATED WITHIN AN ASSESSING UNIT THAT
HAVE
10 EXERCISED THEIR AUTHORITY TO OPT OUT OF THE CONDOMINIUM
ASSESSMENT
11 REQUIREMENTS OTHERWISE PRESCRIBED PURSUANT TO SECTION FIVE
HUNDRED
12 EIGHTY-ONE OF THE REAL PROPERTY TAX LAW.
13 S 3. This act shall take effect immediately.
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