New York 2025-2026 Regular Session

New York Assembly Bill A03812

Introduced
1/30/25  
Refer
1/30/25  

Caption

Relates to the taxation of property owned by a cooperative corporation.

Summary

This bill changes how certain cooperative and condominium properties are treated for property tax purposes under New York’s real property tax law and real property law. It creates a local-option framework under which municipalities outside special assessing units, and school districts by resolution, may choose not to apply the existing valuation/taxation provisions to co-op and condominium property. The change would apply to assessment rolls based on taxable status dates on or after January 1, 2027. The bill includes important carve-outs. It would not affect co-op or condominium property that was already subject to the current provisions before January 1, 2027, and it would also exempt properties participating in an affordable housing tax credit program or subject to a regulatory agreement with a government agency tied to affordable housing requirements. In effect, the bill gives local governments more discretion over the tax treatment of these properties while preserving existing treatment for certain properties and protecting affordable housing arrangements.

Impact

The bill amends section 581 of the Real Property Tax Law and section 339-y of the Real Property Law to authorize municipalities and school districts to opt out of the current tax treatment for cooperative and condominium property in non-special assessing units. This could change assessment practices and tax liabilities for co-op and condo buildings in jurisdictions that adopt the local law or resolution, while leaving special assessing units unaffected. The bill also preserves existing treatment for properties already covered before January 1, 2027, and excludes affordable housing-related properties from the new local-option rule.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available materials. Based on the bill text, the measure appears to be a targeted tax policy adjustment rather than a broad overhaul, with an apparent intent to give local governments flexibility while avoiding disruption to existing arrangements and affordable housing programs.

Contention

The main point of potential contention is the shift of discretion to local governments and school districts over whether co-op and condominium properties remain subject to the current tax provisions. Supporters may favor local control and tax policy flexibility, while opponents may worry about uneven treatment across jurisdictions, increased tax burdens on co-op and condo owners, or administrative complexity. A second likely issue is the grandfathering of properties already subject to the law before January 1, 2027, which creates different treatment depending on timing, though the affordable housing exemptions may reduce concern in that area.

Companion Bills

NY S05460

Same As Relates to the taxation of property owned by a cooperative corporation.

Previously Filed As

NY A01292

Relates to the taxation of property owned by a cooperative corporation.

NY S04065

Relates to the taxation of property owned by a cooperative corporation.

NY S05460

Relates to the taxation of property owned by a cooperative corporation.

NY SB927

Corporations and Associations - Cooperative Limited Equity Housing Corporations - Establishment

NY HB85

Corporations and Associations - Cooperative Limited Equity Housing Corporations - Establishment

NY HB0085

Corporations and Associations - Cooperative Limited Equity Housing Corporations - Establishment

NY SB511

Corporations and Associations - Cooperative Limited Equity Housing Corporations - Establishment

NY HB4650

Relating to the exemption from ad valorem taxation of property owned by a community land trust or housing finance corporation.

NY S09572

Requires at least one director on a board of directors of a residential cooperative housing corporation be a primary resident of such residential cooperative housing corporation; prohibits the charging of payments, fees or charges by cooperative housing corporations without thirty days written notice to such cooperative housing corporation's shareholders.

NY A10983

Requires at least one director on a board of directors of a residential cooperative housing corporation be a primary resident of such residential cooperative housing corporation; prohibits the charging of payments, fees or charges by cooperative housing corporations without thirty days written notice to such cooperative housing corporation's shareholders.

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